BarFresh Food Group, Inc. Investor Presentation

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Disclaimer

This Presentation has been prepared and is issued by Barfresh Food Group Pty Ltd and its controlled entities (collectively referred to as “Barfresh” or the “Company”) solely to assist Investor (“Investor”) in considering providing capital to Barfresh.

The purpose of this Presentation is to provide Investor pursuant to a confidentiality agreement with general information concerning Barfresh and to assist Investor in deciding whether to investigate the possible provision of capital to Barfresh. Accordingly, information contained herein should not be disclosed to third parties.

The information contained in this Presentation has been prepared in good faith by Barfresh and their financial advisers. This Presentation is intended as a guide only and does not purport to contain all information Investor may require in investigating the provision of capital to Barfresh. None of Barfresh, their shareholders nor their respective subsidiaries, jointly owned entities or associated companies or their respective businesses, shareholders, directors, partners, officers, employees, agents or advisers (collectively, the “Barfresh Affiliates”) make any representation or warranty, express or implied, as to the accuracy, reliability or completeness of the Information contained in this Presentation or subsequently provided to Investor or its advisers by any of Barfresh Affiliates including, without limitation, any historical financial information, any estimates and projections and any other financial information derived there from, and nothing contained in this Presentation is, or shall be relied upon as, a promise or representation, whether as to the past or the future.

Overview Company Background & Key Events

Technology & Intellectual Property

Smoothies

New Products and Brands

Australia/New Zealand & Middle East Position

Current Global Smoothie Market

US Position

Capital Raising

Other International Markets

Manufacturing Facilities

Barfresh Ownership

Investment Proposition

Company Background

• Established in 2005 by Riccardo Delle Coste• Developed the world first patented portion controlled smoothie ingredient pack, suitable for Smoothies,

Mocktails and Cocktails. • Identified market need for food retail outlets to compete in the growing healthy beverage market. • Australia’s Leading ‘Ready to Blend’ beverage manufacturer.• Food retail outlets have the need for convenience, portion control, product consistency, zero waste, and

speed of service in delivery of beverages – Barfresh products are designed to meet these requirements.• Barfresh have invested heavily in protection of intellectual property, development of manufacturing process

and development of product range.• Initially focussed on building strong footprint in Australia and building business through chain groups –

securing Subway Australia has been a landmark step.• Through the Subway relationship Barfresh commenced focussing on expansion opportunities in the US and

other international markets and has spent considerable funds in this regard. Future expansion into the US will be through a JV whereby all costs are funded by the JV partner.

• Manufacturer and supplier to Subway restaurants in Australia, New Zealand and the Middle East.• Ice cream and sour cream supplier to the foodservice market.• Barfresh Products are currently sold in Australia,

New Zealand, the Middle East, USA and Singapore

Key Events2004 Recognised market opportunity

2005 Lodged patent applicationsFirst pack prototype (2 part pack - frozen ingredients in 1, juice separate)First Packaging Method DesignedDesigned and implemented Manual Manufacturing ProcessSecured external fundingLaunched product to local foodservice market

2006 Hired first staff member in sales roleCommenced contract manufacturingSigned first chain group (AMF Centres - 50 locations)Sales volumes exceed production capacityCommissioned company to design process and equipmentSecured second round funding

2007Initial product presentation and discussions with Subway AustraliaSecured Jesters Chain (45 stores)Approached by various groups for Asian distributionCompleted market feasibility, due diligence with JV partners - decided to focus on existing operationsReengineered production process - semi-automated machineCommissioned new machine in new contract manufacturerCommenced discussions with Subway USA1st Stage trials with Subway Australia stores - 5 stores - Concept & Consumer Testing (exceeded their expectations)

2008Patents grantedSales volumes exceed production capacityIdentified and tested second contract manufacturing facilityRe-engineered product format - all inclusive (just add water)Launched into Singapore market securing first distributor and key account (coffee chain)2nd Stage Trials with Subway Australia stores - Operations Test - 25 stores (exceeded their expectations)Winner of Blendtec Café Cocktail Competition Award AustraliaFinalist Best New Hospitality Product - Fine Food Australia

Key Events

2009 3rd Stage Trials with Subway Australia stores - Market Test - 100 stores (exceeded their expectations)Commenced discussions with Subway New ZealandCommenced production from second contract manufacturing facilityCommenced rollout to Subway Australia stores (600 by year end)Trials with Subway New Zealand - Only Market Test RequiredInvited to exhibit as new product at Subway US International ConventionIncreased focus on US expansion - exhibited product at National Restaurant Association Show in ChicagoCommissioned second manufacturing machine - allowed high speed productionAppointed sales agent for Californian market

2010 Continued rollout with Subway Australia stores (ongoing - currently 840 stores)Commenced rollout to Subway New Zealand stores (All 218 stores completed)Continued focus on US market - growing pipeline of opportunities and manufacturing strategiesContinued development with Subway USAppointed sales agents for Middle East and New ZealandAcquired existing ice cream business (additional revenues and production capability)Established own manufacturing facility

2011 Signed 3 year supply contract with Subway AustraliaSigned 3 year supply contract with Subway New ZealandContinued establishment and improvement of manufacturing facilityEstablished "Warm Room" for incubation of Sour CreamSecured first bulk food service customer for Sour Cream $500k p.a.Won the NSW Public Hospitals Supply as well as other major healthcare providers.

Technology

Barfresh has specifically designed its manufacturing processes and its own machines to provide

the ability to combine a number of different ingredients in a portion controlled manner.

These ingredients are of different matter (e.g. liquid, chilled solids, frozen) and to do this using

frozen ingredients is extremely difficult.

The intellectual property that has been developed by Barfresh has been patented in a number

of countries (including Australia) and has a patent pending in many more (including USA).

During the last 3 years, the manufacturing process has been a constant focus for development

and has evolved from a manual process to the current high speed production process that is

accurate and has little waste.

After poor experiences utilising a number of contract manufacturers, Barfresh has established

its own manufacturing and storage operations. This will provide high margins and better control

over a core area of the Barfresh business.

Intellectual Property In addition to the patented technology, the manufacturing process together with the combination of

machinery involved contains significant intellectual property not easily duplicated, even though not patented.

Patents Pending:

• Brazil, Canada, Europe, Indonesia, Israel, India, Japan, South Korea, Mexico, Philippines, USA, Thailand, Malaysia

• Europe includes: Austria, Belgium, Bulgaria, Switzerland, Cyprus, Czech Republic, Germany, Denmark, Estonia, Spain, Finland, France, UK, Greece, Hungary, Ireland, Iceland, Italy, Lithuania, Latvia, Lichtenstein, Luxembourg, Monaco, Netherlands, Poland, Portugal, Romania, Sweden, Slovenia, Slovakia, Turkey.

Patents Granted:• Australia• New Zealand

Patents Registered:• Singapore• Russian Federation• South Africa

Patents Accepted:• China

Smoo Smoothies

• “Ready to Blend” smoothie ingredient packs containing fruit, juice, ice and either yoghurt, sorbet or ice cream. Just add water and blend. Dairy free and yoghurt based smoothies are 99% fat free.

• Multi-award winning smoothie products in the foodservice category• Cafe Cocktail of the Year Award (Cafe Biz Expo – Cafe Culture Magazine - Winner)• Best New Hospitality Product (Fine Food Trade Show Brisbane - Finalist)• Best New Foodservice Product (Food and Hotel Expo Melbourne - Finalist)

• Massive food service distribution:• Over 2000 outlets• Exported in foodservice channel to New Zealand, Singapore, Middle East and the USA• Some of our key accounts include Subway Restaurants in Australia, New Zealand and the Middle East,

AMF Bowling Centres, Jesters Pies, Event Cinemas (formerly Greater Union).

Real Fruit Pieces

Sorbet, Low Fat Frozen Yogurt or Ice Cream

Juice

Ice

Portion controlled beverage ingredient

packs, suitable for Smoothies, Cocktails

and Mocktails.

Includes ALL the ingredients (not just

some) – even the ice.

Real ingredients – no syrups or powders.

Faster and easier to make blended

beverages (<40secs).

No waste and consistent quality

Less labour required.

Less retail space required.

Inventory Control

STRONG MARKET APPETITE ACROSS ALL PLAYERS(Foodservice, retail chains and even existing juice bar groups)

Portion Controlled Product Ingredient Pack

Easy As 1 2 3

1. Add Water 2. Empty Ingredient 3. Blend & Serve

pack into blender

Note: For Cocktails simply reduce the amount of water by the amount of alcohol added.

Promotional Material

• Established in 2005

Caribbean

Cookies & CreamStrawberryMango Delight

TropicalBanana Mango Mixed Berry

*Also available in Peach, Passionfruit & Watermelon

Delicious and Nutritious

Subway Australia Marketing and Advertising Material

In store point of sale material:Menu board, window cling, under menu hanger, counter cards

Television Commercial

Radio Ad

Subway In Store

New Products and BrandsSour Cream

Ice Cream

Other Products• Traditional Gourmet Italian Gelato • Yoghurt - Fresh set, stirred and frozen• Custards – Chocolate & Vanilla• Mousse – Chocolate & Vanilla

Australia, New Zealand & Middle East Position

Subway Australia commenced roll out of products to 840 stores with remaining 200 stores yet to be completed

Subway New Zealand has completed its roll out to all 218 stores.

Key customers (other than Subway) are:• AHL Group – Rydges Hotels & Greater Union Cinemas (affiliated with Cinestar Group – Dubai)• AMF Bowling Centres Chain• Jesters Pie Chain

Sales team focused on expanding Australian sales to other chains and foodservice outlets (through distributors)

Recently established manufacturing and storage facility to bring manufacturing in-house.

Acquired ice cream business – provided equipment, expertise and additional revenue.

With the new manufacturing facility now operating and increased capabilities, Barfresh has been able to

competitively produce new products and secure new customers.

Barfresh is uniquely positioned to capitalise on opportunities in the foodservice, retail chains, and direct to

consumer markets via supermarkets.

Current Global Smoothie Market

Growing focus of global markets on health and wellness – this flows directly to eating habits,

lifestyle and obesity issues.

The five main areas of focus for future growth in the beverage market are:• All natural claim – consumer prefer natural formulations• Functional ranges – bone health (calcium and vitamin D)• Superfruits – high in antioxidants• Low allergen ranges – gluten and lactose free ranges• Better for you – low/no sodium, fat, sugar, calories, etc.

Barfresh products are able to satisfy each of the above criteria

Food retail outlets have the need for convenience, portion control, product consistency, zero

waste, and speed of service in delivery of beverages. This is also relevant for existing juice bar

outlets.

Barfresh’s patented technology and product range meets the retail needs to deliver to a growing

health conscious consumer market which demand quality of product with convenience and

supportable health benefits.

US Position Initially established a US Corporation (Barfresh Inc.) and appointed a sales agent to assist in development of

other US foodservice opportunities.

The focus for US expansion was based around Subway relationship and Barfresh has expended significant funds in developing the US position (refer financial information).

Given the funding requirement to properly establish US operations it was decided to form a joint venture with a US group whereby Barfresh contributed its intellectual property and the US group provided all the necessary funding.

There is significant opportunity in the US with Subway, Dunkin Donuts, Starbucks, Taco Bell, Jamba Juice (all of whom we are currently in discussions with) amongst others. The decision to JV was largely driven to bring in partners who can assist in delivering the upside but also removing the need for Barfresh Australia to continue funding costs.

With the recent roll out of smoothies by McDonalds and the upcoming introduction of smoothies by Subway and other major chains, the consequential advertising is expected to significantly increase the overall demand for smoothies.

US Position – Subway Opportunity

Commenced discussions with Subway USA in 2007.

As a result of lack of funding the correct flavour development for the US consumer was not

undertaken prior to the Subway’s consumer taste testing. The product was not considered sweet

enough for the US palate compared to the artificially flavoured product of Coke.

Coke has a worldwide supply agreement with Subway and has been aggressively chasing this

business.

The Barfresh product has been placed on hold until the Coke product is further tested.

Whilst the US program is on hold we have interest from other Subway US Development Agents that

wish to trial our product.

We also have feedback that the Coke product has some rather larger hurdles to overcome to be

successful, such as, the equipment cost, the need for plumbed water (extra cost) and the need for

ice as well as questionable nutritional value. All these issues are overcome with the Barfresh product.

BARFRESH COKEEquipment Cost $500 $2000

Requires Ice (not all stores have ice machines) NO YES

Requires Plumbing in Store No YESReal Fruit Pieces YES NOAll Natural YES NO

US Position – Subway Opportunity

Assumption: 100 units per store, per week is sold.

Potential volume of sales dependant on rollout is as follows: • 100% Rollout (25,000 stores) – 130 million units per annum• 75% Rollout (18,750 stores) – 98 million units per annum• 50% Rollout (12,500 stores) – 65 million units per annum

Based on current proposed pricing, the expected profit from sales to Subway using a contract

manufacturer is $20 million to $30 million per annum.

If the manufacturing is conducted “In House” by Barfresh, the additional profit would be $5

million to $10 million per annum.

The proposed pricing has been structured to provide an incentive to Subway for a full roll out

and is within Subway’s target pricing to achieve gold status for their cost of goods.

There is the possibility of ensuring a significantly higher roll out percentage if the equipment is

provided “Free On Loan”, however this would require additional capital expenditure by Barfresh.

US Position – Dunkin Donuts

Dunkin have requested to be part of the flavour development and Barfresh is working with

Executive Chef of Dunkin to further develop unique flavours for Dunkin Brands

Assumption: 245 units per store, per week is sold - high volume retail beverage outlet


Based on current proposed pricing, the expected profit from sales to Dunkin using a contract



million to $6.5 million per annum.

There is the possibility of ensuring a significantly higher roll out percentage if the equipment is

provided “Free On Loan”, however this would require additional capital expenditure by Barfresh.

US Position – Starbucks

Barfresh was recently approached by Starbucks US after several meetings to participate in the

development of their new smoothie range. Barfresh has recently executed a confidentiality

agreement and will be working closely with Starbucks on this project.

Assumption: 210 units per store, per week is sold – high volume retail beverage outlet


Based on current proposed pricing, the expected profit from sales to Starbucks using a contract


If the manufacturing is conducted “In House” by Barfresh, the additional profit would be $4.5


US Position – Taco Bell

Barfresh was previously working with Taco Bell on the smoothie program and whilst we met

pricing and flavour profiles for the group, we were requested to further automate the delivery of

the smoothie in store to remove the manual handling as these are very high volume stores.

Barfresh has a prototype in development that should be able to service this need, which would

then be able to be used for many other customers also.

Assumption: 290 units per store, per week is sold – high volume retail beverage outlet


Based on current proposed pricing, the expected profit from sales to Taco Bell using a contract




US Position – Jamba Juice

Through a joint venture with Oregon Ice Cream, Barfresh is exploring opportunities to provide its

products to Jamba Juice (both existing and new distribution channels).

Jamba Juice is a well established juice bar group in the US with approximately 750 stores.

There are four key opportunities for Barfresh products: • Jamba Express Stores (small locations/high volumes) • Limited Time Only Promotions (promo flavours to existing 750 stores) • Best Selling Lines - existing 750 stores – to allow faster production of high selling items during peak

times• Revamping existing Jamba retail product (in conjunction with In-Adventure)

Jamba Juice are in discussions with a number of groups with large numbers of outlets that

would be suitable for Jamba Express stores. This could grow to thousands of outlets.

US Position – Jamba Juice

Assumption: 350 units per store, per week is sold – Smoothie specialist outlet – High Volume


Based on current proposed pricing, the expected profit from sales to Jamba Juice using a

contract manufacturer is $27 million to $40 million per annum.



Based on our observations with respect to the above four key areas, there is an opportunity for

Barfresh to make a profit in excess of $30 million per annum.

US Position – Summary

Based on the limited number of key accounts which we are currently dealing with, there is a very large opportunity in the US

Initial discussions are with Taco Bell , but if successful there is the opportunity to expend to the rest of Yum Brand retail outlets.

* As indicated by the customer

Customer No of StoresEstimated Annual

Volume *Estimated Profitability

(using Contract Manufacturer)

Estimated Profitability (In-house

Manufacturing)

Starbucks 11000 120,000,000 $ 27,000,000 $ 36,000,000

Dunkin 6700 85,000,000 $ 19,000,000 $ 25,500,000

Taco Bell 5400 81,000,000 $ 18,000,000 $ 24,000,000

Subway 25000 130,000,000 $ 30,000,000 $ 40,000,000

Jamba Juice 10000 182,000,000 $ 40,000,000 $ 53,000,000

Capital Raising

The existing Barfresh shareholders have provided debt and equity in excess of $10m and are

keen to have other parties provide debt or equity to fund the US expansion.

The timing and amount of capital required by Barfresh will be dependent upon the rollout

timetable of any of the accounts, it is proposed that the funding be provided in tranches,

presumably at different valuations at different times

Additional funds will be required once there is an agreed rollout commitment by a customer, as

machinery and substantial stock will be needed.

Once a commitment by a key customer to rollout to a substantial number of stores, which would

require manufacturing in at least three sites in the US, the amount needed to acquire the

relevant machines and finance the stock needed would depend on the level and timing of the

customers requirements, it would be expected to be between $10m and $20m but possibly

significantly higher depending on whether Barfresh becomes the manufacturer.

No calculation has been made if manufacturing is to be done by Barfresh, at a plant it

establishes or in a business it acquires.

Capital Raising – Use of Funds

Accelerate US expansion in terms of:

• New manufacturing equipment to commence US supply;

• Stock build and provide product and equipment for trials with key customers

• Key Personnel

• Branding and marketing;

• Setup of US infrastructure.

Continued development of automated product delivery system

Develop organisation structure to support growth.

Continued product development.

Other International Markets

International growth strategy is focussed on leveraging Multinational key account footprint and

then securing other key accounts in the region to provide a platform for growth.

Subway Middle East are in the final stages of testing and are expecting an official approval to

rollout - these will be manufactured in Australia.

Subway Puerto Rico, Brazil and UK have also expressed interest and discussions are underway

with other key regions.

Have appointed agent for Middle East – already secured certain chain accounts (Cinestar) and

in discussions with others throughout the Middle East.

Recently appointed new agent in Singapore for Asian market – key performance targets have

been set and container sales are starting to flow.

Manufacturing Facilities

Until December 2010, Barfresh had historically used contract manufacturing for the production of its products – this was difficult, expensive and resulted in poor delivery to customers.

A new (State Of the Art) food manufacturing facility in the centre of Sydney boasting A-Grade dairy manufacturing capabilities. This has resulted in significantly greater production efficiency than with contract manufacturer

Barfresh is able to process and pack in excess of 24 Tonnes of product per day and has capacity for1200 pallets of frozen product storage on site.

In operation since December 2010, Barfresh has a fully flexible production floor, capable of small to high volume production runs in a variety of packaging formats for chilled, fermented or frozen products, including desserts.

The facility has:• HACCP Accreditation• Subway International Accreditation (via Siliker)• NSW Food Authority Accreditation• Barfresh is progressing BRC accreditation• Most products are Kosher, Halal and Gluten Free

Barfresh Ownership

Barfresh Beverage Systems Pty Ltd is a company established in New South Wales, Australia.

Barfresh is the entity which carries on the manufacturing and trading activities of the Barfresh

Group in Australia.

Barfresh is owned as to 50% by interests associated with Riccardo Delle Coste and 50% by

interests associated with Steven Lang.

The patented intellectual property is also owned equally by interests associated by Riccardo

Delle Coste and Steven Lang.

Barfresh Inc, established in Nevada, USA is a limited liability company, to carry on business in

the USA for the Barfresh Group, and is owned equally by interests associated with Riccardo

Delle Coste and Steven Lang.

Investment Proposition Barfresh have contributed over $5m to date in taking the US to its current position.

Barfresh has Subway as a customer in Australia, New Zealand and also currently going into the Middle East and Puerto Rico.

The business model also provides for diversification into manufacturing of other products lines. Barfresh is looking to raise between $3 – 5 million in the US which will represent approx. 10% of

Barfresh USA for each $1m. Barfresh is contributing: Circa $5m spent to date in establishing the market and relationships with major chains as well as

attracting key personnel to the team Existing relationship with Subway (potentially will win this contract over Coke – 26 times larger than

Aust – circa $100m revenue is early stages without marketing)

Opportunities with other potential customers such as Taco Bell, Dunkin, Starbucks, Jamba Juice and many others which could represent revenues in excess of $500m.

The investment in Barfresh US is an opportunity for an investor to participate at this early stage. As

soon as a contract is established with a major player (such as Subway which could be achieved within 12 months) we would expect a substantial step up in valuation based on these contracted revenues.

Barfresh Food Group Pty Ltd59-61 Derby St

Silverwater NSW AustraliaPh: +61 2 8753 7800

Business

BarFresh Food Group, Inc. Investor Presentation