1. Mergers & Acquisitions in the e-Waste Industry Presented by: Mark Robards VP Sales & Marketing ECS Refining

2. Table of Contents Introduction ECS Refining & M & A Growth The Industry & Opportunity Strategies Planning - Focus Lessons Learned

3. ECS Refining - Overview Founded in 1980 Current Year Revenue & Profits –2009 Revenue (estimate) - $73.4M –2009 Profit (estimate) - - $ 9.2M Employees – 160 FTE, 70 Contract 9 Processing facilities – CA, TX, OR, OH Basel Action Network – e-Steward Founder Major Customer Segments –Generators/OEMs –Collectors/Handlers/Recyclers –Large/Midsize Enterprise

4. ECS Revenue History in $000’s

6. ECS Business Units Refining Operations ECS Aircraft Tin – Lead Smelter Electronics Recycling Hydro Process High Temp Alloys Precious Metal Rec. Pyrometallugy Proc. Tin/Lead Smelting Solder & residues Electro-Mechanical e-Waste shredding, sort, separate into commodity products Photo Services Operations ECS Refining Pureflow™ Photo Solution Processing Silver recovery & service solution Battery/Power Devices Canadus Power Systems Battery revitalization product Advanced Desulfation Technology Resale Operations Wholesale/Retail/e-Commerce Mfg. Equip. Proc. Control Equip. Test Equip. PC’s, Laptops Disk Drives Servers Outback Equipment United Datatech Surplus Computers Surplus IT Equip Servers, Gadgets Peripherals

7. ECS Sales/Support & Processing locations ECS Sales/Support Sites ECS Refining N. America

8. Acquisition History

9. 220,00070,00025,00075,000 Units Disposed of Daily in the US alone 2,200,000 tons of E-Waste Every Year just from B2C sources ??? tons from B2B sources The Industry Opportunity

10. E-Recycling M & A Intro No company > 7% market share Fastest growing segment of municipal “solid waste” material stream Industry Drivers: –Legislative funding sources –“Social & Environmental responsibility” –Producer funding sources –Commodity prices stabilizing Increased cost (barrier) to entry

11. E-Recycling M & A Intro Extremely fragmented industry Many undercapitalized firms No truly integrated National or Global firms Regional firms control customers/material Large customers “begging” for a solution –Reduce number of vendors/partners worldwide –“Producer Responsibility” state legislation

12. E-Recycling M & A Intro Last 24 months - Increased activity in M&A –Slowed/stopped Q4 2008 –“Bottom feeding” & consolidation in 2009-10 Intn’l firms into US – Rob Brown, Lincoln Intn’l –Sims – Global Investment Recovery – 10/08 –EnviroHub/Cimelia – MaSer – 6/09 –Centillion – C&E Recycling – 8/08, Metech – 10/07 Failed/Idled M & A strategies – Intechra

13. M & A Strategies “Bottom Feeding” for troubled firms with valuable assets –Acquire customer base –Key employees – ie: Sales Reps –Specific Assets – facilities, equipment/processes –Specific Services/Markets - resale, asset mgmt “Tuck in” or “Adder” acquisition –Easy, incremental fit into existing company Extends current services or technologies Often is an existing customer or supplier

14. M & A Strategies Strategic Acquisition or Merger –Used to expand quickly or strategically Additional Regional coverage International – Localized services/Market expertise Additional services/markets Processing or technology acquisition –Commonly used valuations and multiples –Investment bankers in the process –Equity deals or large cash infusions –“Roll up” strategies

15. M & A Strategies Opportunistic acquisitions –Good companies low on cash –Founders retirement or exit plan –Customer driven expansion requirement Additional locations Additional services or processes –Company wants to be part of someone larger –Company needs new equipment or processing Trading equity for technology or process “know how”

16. M & A Planning Develop a specific plan Develop “War Chest”/Funding sources –Cheaper now rather than later Identify targets and evaluate for: –Contribution – profit, services, location, people –Synergies – potential for expense reduction –Cultural “fit” Identify and compare core corporate goals and objectives Focus, focus, focus

17. Transaction methodology “Asset Sale” – Leave the trouble behind Work outs, Non-Compete Agreements Comprehensive, professional “due diligence” –Financials and Bank statements –Customer base (80-20 rule) –Operations processing and inventory –Executive backgrounds and experience –Downstream customers & markets Strong competent Legal counsel and Bankers

18. M & A Lessons learned Acquire or hire successful “leaders” to guide/blend people and cultures Allow autonomy for acquired firm but hold “purse strings” firmly Trust, but review/investigate early and often to start If you’re not sure of the “fit”, don’t do the deal An “Opportunistic” deal can be very, very expensive and distracting if not a perfect fit

19. Questions?? Contact information: Mark Robards VP Sales & Marketing ECS Refining mrobards@ecsrefining.com +1 408 200 7052

20. The ECS Pledge Thank you for your time, ECS Refining