Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE EXPERIENCE THE DIFFERENCE

Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™

EXPERIENCE THE DIFFERENCE


TABLE OF CONTENTS

H2O is essential to life!

What you didn’t know…

Burdens of Bottled Water

Benefits of POU cooler

Current Market Trend

Products & Services

Customer Benefits

Cost Benefit Analysis

About us

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H2O is essential to life!

- Chemicals and toxic minerals

- Hindrance of brain and heart functions

- Attention Deficit Disorder

- Chronic Fatigue Syndrome

- Alzheimer’s disease

- Anxiety and Depression

You are what you drink!

Pure water keeps the body healthy

Decreased chance of contracting:

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Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE™ 4

WHAT YOU DIDN’T KNOW…

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Would you drink yesterday’s old water today?



Say “Hello” to the bacteria that love your water.

(Cont’d)

Protect your water with ChungHo patented technologies.

24 Hour Re-Filtration!ChungHo patented technology

Patent # 105585

* Bacteria doubles every 24 hrs

5



Disinfection Required? No

Confirmed E. Coli & Fecal Coliform Tested? No

Testing Frequency for Bacteria 1 / week

Must Filter to Remove Pathogens, or Have Strictly Protected Source? No

Must Test for Cryptosporidium, Giardia, Viruses? No

Testing Frequency for Most Synthetic Organic Chemicals 1 / year

Operator Must be Trained & Certified? No

Must Test for and Meet Standards for Asbestos & Phthalate? No

Must Use Certified Labs to Do Testing? No

Must Report Violations to State, Feds? No

Regulated allowable levels of heavy metals 5ppm lead

Consumer Right to Know About Contamination? No

FDA Regulations - Report done by NRDC

(Cont’d)

6


BURDENS OF BOTTLED WATER

Fluctuating water expense & overhead

Disruption of work flow & security

Frequently running out of water

Heavy lifting - 40 lbs. water jugs

Rising cost of bottled water

Waste of storage space

Poor design & low technology

Easy contamination

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BENEFITS OF POU COOLER

Cost Reduction – Purified water costs fraction of a penny per gallon. Unlimited Water Supply – Because it is connected to your tap, it can

purify up to 80 GPD. No More Clutter – Eliminate all storage of bottled water and free up

space. No More Lifting – Eliminate any potential risk of employee injury do to

heavy lifting of bottled water. No Liability - Eliminates any workman’s comp. issues related to bottled

water injury. Reduced Overhead Cost – No one needs to distribute bottles

throughout the company. No Accounting Headaches – One flat monthly bill enables easy invoice

processing and time saving. (Auto Payment: ACH, Credit Card)

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BENEFITS OF POU COOLER

(Cont’d)

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Promotes: Healthier Living and Green Environment!

Promotes a healthier and “greener” alternative to bottled water

Eliminates tons of plastic bottle waste that are not being recycled

Eliminates air pollution from delivery trucks

Saves gas because there is no need to deliver bottles

NOTE: San Francisco Mayor banned bottled water in office. Spent over $500K/Yr on bottled water.


CURRENT MARKET TREND

Tap Water

Bottled Water

Filter Systems

Past

4th: Polluted / Unhealthy

3rd: Expensive / Overrated

2nd: Limited Capacity

1st: Iguassu Ice

Present

Start!

Future

Premium Water Purification Systems

H2O Evolution

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BEFORE(Bottled Water)

AFTER(POU Cooler)

What it looks like…

# of units 5 Dispensers 5 POU Coolers

Cost per Month Approx. $1,000/M Less than $300/M

Cost Savings/M - $700/M

% Savings/M - 70%

Total Cost (36M) Approx. $36,000 $10,800

Total Cost Savings (36M) - $25,200.00


Case Study – Simply Pure™ Adoption at Cintas Corporation

Cost savings and convenience without hassles

(Cont’d)

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Customer Cost Analysis

Avg. cost of bottle: $6/bottle

Avg. cost of cooler: $10/unit

Delivery/Fuel surcharges

Limited delivery schedule

Overhead cost

Invoice processing cost

Workman’s Compensation

(Cont’d)

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PRODUCTS&

SERVICES

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(Cont’d)

PRODUCTS & SERVICES

REVERSE OSMOSIS WATER PURIFICATION SYSTEM

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(Cont’d)

PRODUCTS & SERVICES

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(Cont’d)

PRODUCTS & SERVICES

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(Cont’d)

PRODUCTS & SERVICES

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(Cont’d)

PRODUCTS & SERVICES

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(Cont’d)

PRODUCTS & SERVICES

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MODEL SPECIFICATION RETAIL PRICE IMAGE

SUPER IGUASSU ICE

Tri-Temp POU Cooler w/ built-in Ice MakerAvailable in two colors (Black/Wine)Stand-Type4 Stage Reverse Osmosis80GPD Membrane8G Total Tank CapacityHigh Capacity Ice and Water

$3,000.00

IGUASSU ICE

Temp POU Cooler w/ built-in Ice MakerAvailable in two colors (Black/Tri-Wine)Stand-Type4 Stage Reverse Osmosis80GPD Membrane4G Total Tank Capacity

$2,500.00

IGUASSU ICE 500

Temp POU Cooler w/ built-in Ice MakerAvailable in three colors (Black/Tri-Wine/White)Stand-Type4 Stage Reverse Osmosis80GPD Membrane2.5G Total Tank Capacity

$2,000.00

SUPER IGUASSU

Tri-Temp POU CoolerAvailable in two colors (Black/Wine)Stand-Type4 Stage Reverse Osmosis80GPD Membrane8G Total Tank CapacityHigh Capacity Water

$2,700.00

IGUASSU

Tri-Temp R/O POU CoolerAvailable in two colors (Black/Wine)Stand-Type4 Stage Reverse Osmosis80GPD Membrane5G Total Tank Capacity

$2,200.00

Product Line – Iguassu Series (Cont’d)

PRODUCTS & SERVICES

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IGUASSU 500

Tri-Temp R/O POU CoolerAvailable in two colors (Black/Wine)Stand-Type4 Stage Reverse Osmosis80GPD Membrane5G Total Tank Capacity

$1,750.00

IGUASSU CT-II

Tri-Temp R/O POU CoolerAvailable in two colors (Black/Wine)Countertop-Type4 Stage Reverse Osmosis80 GPD Membrane3G Total Tank Capacity

$1,300.00

IGUASSU CT

Cold and Ambient R/O POU CoolerAvailable in two colors (Black/Wine)Countertop-Type4 Stage Reverse Osmosis80 GPD Membrane2.5G Total Tank Capacity

$1,150.00

ODYSSEY B

Tri-Temp R/O POU CoolerStand-Type4 Stage Reverse Osmosis80 GPD Membrane6G Total Tank Capacity

$1,700.00

Product Line – Additional POU Coolers

(Cont’d)

PRODUCTS & SERVICES

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IGUASSU AIR PURIFIER

Air purification system for home/officeAvailable in two colors (Black/Wine)Area of coverage is 1,000 sq. ft.Dust sensor for dust level detectionContinuous and auto modesPre-, Gas, HEPA filters

$1,200.00

IGUASSU AIR PURIFIER 500

Air purification system for home/officeAvailable in two colors (Black/Wine)Area of coverage is 500 sq. ft.Dust sensor for dust level detectionContinuous and auto modesPre-, Gas, HEPA filters

$900.00

IGUASSU BIDET

Tri-Temp R/O POU CoolerStand-Type4 Stage Reverse Osmosis80GPD Membrane5G Total Tank Capacity

$700.00

SOFTNER BBShower SoftenerIon-exchange to soften waterAroma Rinse Cartridge for body rinse

$500.00

Product Line – Other health products(Cont’d)

PRODUCTS & SERVICES

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PRODUCT 24M 36M 48M 60M

SUPER IGUASSU ICE $149.99 $99.99 $94.99 $89.99

IGUASSU ICE $114.99 $84.99 $79.99 $74.99

IGUASSU ICE 500 $69.99 $49.99 $44.99 $39.99

SUPER IGUASSU $114.99 $84.99 $79.99 $74.99

IGUASSU $84.99 $64.99 $59.99 $54.99

IGUASSU 500 $54.99 $44.99 $39.99 $34.99

IGUASSU CT-II $39.99 $34.99 $31.99 $29.99

IGUASSU CT $34.99 $29.99 $26.99 $24.99

ODYSSEY B $59.99 $54.99 $49.99 $44.99

Rental/Leasing Plans

(Cont’d)

PRODUCTS & SERVICES

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TYPE ITEM DESCRIPTION RETAIL PRICE

POU COOLER

Sediment Filter 6 Months $25.00

Pre-Carbon Filter 12 Months $30.00

Post-Carbon Filter 18 Months $40.00

Membrane Filter 24 Months, 80GPD $200.00

UV Filter 12 Months $200.00

SOFTNER BB Sediment Filter 6 Months $20.00

Aroma Rinse Body rinse $15.00

GOOD MORNING BIDET Sediment Filter 6 Months $20.00

Aroma Scent Cart. Scent cartridge for bidet $5.00

ADD-ON OPTIONS FORPOU COOLERS

DP ComboDelivery pump connection to refrigerator + Faucet

$200.00

DP+RFDelivery pump connection to refrigerator

$150.00

DP+FCDelivery pump connection to faucet

$150.00

Accessories and Options(Cont’d)

PRODUCTS & SERVICES

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Customer Benefits

Purest water (four-stage RO)

Elegant designs and features

For drinking and cooking

After service (A/S) customer support

Automatic filter exchange notice

Industry Standard Warranty

Full Service (*filters/parts/repair/labor

included)

Guaranteed Quality and Satisfaction

(Cont’d)

PRODUCTS & SERVICES

(* Only for Lease Plan or Service Plan Options)

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Three Year Savings

COST BENEFIT ANALYSIS

Bottled Water Simply Pure™

$/Bottle $6 N/A

# of Bottles 244 ($1464) N/A

$/Dispenser or POU Cooler $10 $45

# of Dispensers 36 ($360) 36

$/M $1824 $1620

$/Yr $21,888 $19,440

$/3yrs $65,664 $58,320

Savings/M N/A $204 (11%)

Savings/Yr N/A $2,448

Savings/3Yrs N/A $7,344

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ABOUT US

Market-Leading Point-of-Use (POU) cooler company in the world

Manufacturing Headquarters in South Korea – Established in 1993

Over 1M customers worldwide

US Headquarters in Anaheim, CA – Established in 2003

Over 6 years of successful business history in US

60+ dealerships across the country and Canada

Regional Distribution Center in Chicago (Coming Soon…)

About Us

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For additional information, please contact: – Address: 1240 N. Simon Circle, Suite A, Anaheim, CA 92806

– Office: (714) 630-0307

– Fax: (714) 630-0308

– Sales Inquiry: [email protected]

– Customer Service: [email protected]

– Homepage: www.chunghousa.com

Thank you for considering us to be

your Premium Water Purification

System Supplier.

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http://www.chunghousa.com/

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Company Confidential & Proprietary Information CHUNGHO USA – SIMPLY PURE EXPERIENCE THE DIFFERENCE