BIO & HNT

Company Introduction

2006.10.

COMPANY COMPANY PROFILE PROFILE

Company Outline Company Outline

Established Date

2005. 10. 6 Capital $ 300,000

Registration No.

215-86-76561Number of employees

10

Type of industry

R&D/ Trading C.E.O. Kwoen, Hyouk-il

C o m p a n y Bio & Hnt Inc.

#1701, Hyundai Topics, 44-3, Bangi-dong,

Songpa-gu, Seoul, KoreaAddress

T. 82-2-417-7922 www.bio-hnt.com

Branch office in L.A

4210 Via Arbolada #119 Los Angeles, CA 90042 USA

Laboratory 480 – 6, Goong-dong, Eusung-gu, Daejeon-shi, Korea

1ΒΙΟ & ΗΝΤ

Company HistoryCompany History

PresentPresent Bio Sensor Product Research and Mosquito Repellent (Being develoBio Sensor Product Research and Mosquito Repellent (Being developed) ped)

2006.08.072006.08.07 Set up branch corporation in Set up branch corporation in Los AngelesLos Angeles

2006.06.302006.06.30 Headquarter moved to current location (Headquarter moved to current location (BangiBangi--dong, dong, SongpaSongpa--gugu, Seoul), Seoul)

2006.03.022006.03.02 Trading department handling overseas businessTrading department handling overseas business openedopened

2005.11.4.2005.11.4. R&D center opened (R&D center opened (GoongGoong--dong, dong, EusungEusung--gugu, , DaejeonDaejeon--shishi))

2005.10.28.2005.10.28. Development services contract completed Development services contract completed (with Dr. O, Hyun(with Dr. O, Hyun--woo of woo of DaejeonDaejeon Biotechnology Research Institute)Biotechnology Research Institute)

2005.10.26.2005.10.26. Proceed Joint development project for bio sensor Proceed Joint development project for bio sensor

(with (with BundangBundang electronic components institute)electronic components institute)

2005.10.26.2005.10.26. Mosquito RepellentMosquito Repellent Development contract completed Development contract completed (with Dr. Park, (with Dr. Park, GyeGye--chungchung of University of of University of pennsylvaniapennsylvania))

2005.10.7.2005.10.7. Headquarter opened (Headquarter opened (ChamshilChamshil--dong, dong, SongpaSongpa--gugu, Seoul), Seoul)

2005.10.6.2005.10.6. Corporation EstablishedCorporation Established

2ΒΙΟ & ΗΝΤ

Organization ChartOrganization ChartCEO

:Kwoen, Hyouk-il

Planning Director :

Jin, Seo-yong

Development Director: Park, Gye-chung

Auditor

Marketing Dept.

Sales Dept.

Trading Dept.

Accounting Dept.

General Affair

Development Dept.

(Team #1 & #2)

3ΒΙΟ & ΗΝΤ

Board of DirectorsBoard of Directors

Name Position Academic Background

Kwoen, Hyouk-il CEO Master of computer engineering, ISU

Park, Gye-chung Development Director Doctor of Entomology, SNU

Jin, Seo-yong Planning Director Master of Statistics, SNU

O, Hyun-woo Director of Research institute Doctor of Entomology, SNU

Sung, Kee-joo Chief of LA branch office Bachelor of accounting, ISU

Lee, Sang-ho CFOBachelor of accounting,

Kyung-buk University

CEO and Management

4ΒΙΟ & ΗΝΤ

PRODUCT PRODUCT INFORMATION INFORMATION

Mosquito Repellent MarketMosquito Repellent Market

•• Innovative new product has not been developed in mosquito repellent market for 40 years.: Insect repellent and pharmaceutical company in US do not invest on the development of new repellent and focus on the development of generic products copying product with expired patent.

•• Demand for natural ingredient mosquito repellent: Increasing wealthy people, more consumers recognize the harmfulness of DEET in the era of wellbeing.

• Spread of mosquito disease: WHO announced that 2 million people among 6 billion world people would be yearly died of mosquito disease due to global warming.

(Japanese encephalitis , Malaria, Yellow fever,

Filariasis,Dengue fever)

Ingredients of BIO&HNT without any side effect of DEET can replace mosquito repellents of DEET in the market occupied by DEET products

• Massive market of mosquito repellent amounted 3 billion dollars

-> 50 million American users and 300 million users of world market

5ΒΙΟ & ΗΝΤ

What is DEET?What is DEET?- DEET is a chemical developed by the U.S. Army in 1946 - 92% of mosquito repellents in the world are made of DEET. - Demand increase for environmentally friendly products after

DEET is confirmed as a noxious chemical.

<< Side effects of DEET >>

• Case of DEET taker’s death reveal that DEET is a harmful chemical to human body. American pediatricians prohibit children and pregnant women from the use of DEET repellents.

• Left with DEET repellent for a long time, human brain can be injuriously affected. (Disrupts of cerebral nerve, Failure of memory, contemplative facultyand concentration )

• Applied directly to the skin, side effect like rash can be caused.

• If Deet repellent is applied to the skin, 7-10% would be absorbed. Children should use repellents below 10% density. Even adults must avoid over 30% thickened DEET repellent)

6ΒΙΟ & ΗΝΤ

Mosquito repellent of BIO & HNT (1)Mosquito repellent of BIO & HNT (1)

100% Natural ingredientContrasting to synthetic products, products of Bio & HNT are composed of environmentally friendly natural ingredients. As natural hormone, new repellents can be used for a long time without any side effects.

Eliminating mosquito marvelouslyMosquito repellent of BIO & HNT containing 3 kinds of natural ingredients eliminate mosquito highly effectively

Compare with other synthetic products, effective hours of new product of Bio & HNT is over one hour longer. No other products can be compared with this product in effective hours.

Compare with other natural products, effective hous of new product of Bio & HNT is kept remarkably longer. Effectiveness of new products maintained from 4 to 5 hours; however, other natural repellents can be used effectively within only one hour.

100% Natural ingredient

Remarkably long-lasting

7ΒΙΟ & ΗΝΤ

Mosquito repellent of BIO & HNT(2)Mosquito repellent of BIO & HNT(2)

- Easy to carry!! - Use it wherever and whenever you need it.- Spray it on body or clothing conveniently.

- Not required Refill & Battery !!- Electricity does not required!!- Only Repellent of BIO & HNT would be sufficient !!

- Compare to the production cost of DEET, Production cost of new ingredient is available at 10-20% level. Lowest production cost allows new products price competitiveness.

Price

Competitiveness!

Easy &

Convenient!!

No! Refill

No! Battery

8ΒΙΟ & ΗΝΤ

Comparison with competitorsComparison with competitors

Origin Company Product Chief ingredients Duration SizesUnit Price(USD)

Harmful compo-

nent

U.S. AVON Bug Guard Plus'

IR3535 4hours 4 oz $12.00 X

U.S. Johnson& Johnson

Off skin spray

DEET, Eucalyptus 4hours 150ML $ 3.65 O

U.S. 3M Ultrathon DEET, Acrylates terpolymer 3~4hours 2 oz $15.63 O

U.S. Homs, LLC.

BiteBlock Soybean Oil, Purified Water, Coconut Oil, Glycerin, Geranium Oil, Citric Acid, Lecithin, Sodium Bicarbonate and Vanillin

3~4hours 4 oz $ 8.99 X

U.S. Various Small Company

All Natural Catnip Shield

Catnip/ Cornmint/ Rosemary Oil 1~2hours 8 oz $14.95 X

New

Zealand

ECOMIST ECOMIST Mixture of pyrethrin Ⅰ& Ⅱ and cinerin Ⅰ& Ⅱ(kenyan mum type)

1~2hours 250ml $20.84 X

Japan Tajimaya Mosquito end

DEET, Pyrethrin 3~4hours 150ml(Liquid)

$18.76 O

9ΒΙΟ & ΗΝΤ

Comparison of effective hoursComparison of effective hoursActive ingredientActive ingredient DensityDensity Hours of effectiveness Hours of effectiveness

(min.)(min.)

DEETDEET 20%20% 150150--250250

Natural ingredient of Bio & HNTNatural ingredient of Bio & HNT 10%10% 200200--300300

DEETDEET 7%7% 5050--150150

Natural ingredient of Bio & HNTNatural ingredient of Bio & HNT 5%5% 150150--250250

IR3535 (synthesis)IR3535 (synthesis) 10%10% 4040--7070

CitronellaCitronella 10%10% 2020--3030

CitronellaCitronella 5%5% 1010--2020

Bath oil (AvonBath oil (Avon’’s)s) 10%10% 1010--2020

* Aecles: 3 ~ 4 hours and half

* Culex: 4 hours and half ~ 6 hours

* Anopbeles: 5 ~7 hours

Effective hours of Bio&hnt product(per mosquito types)

10ΒΙΟ & ΗΝΤ

CertificationsCertifications

Skin stimulation test report from KTRICI

FDA & CE

Permission for Medical supplies

(KFDA)

Inspection and test report from IHE

Eco Labelling

from KEPI

: 6 months would be required for FDA and CE certifications

: Korea Food & Drug Administration belonging to Ministry of Health and Welfare controls the safety of food & pharmaceuticals etc. Regard to natural mosquito repellent, permission from KFDA is indispensable. 4~6 months would be required.

: Institute of health and environment conducts test,inspection and research for food additive, food container, food packing, remained agrichemicals, meat, drinking water, hygienics according tomedicine, medical supplies, cosmetics, medical devices, drugs and Food Sanitation Act

: Korea Testing and Research Institute for Chemical Industry conducts quality inspection, test and research for chemical products, technical education, test for noxious chemical materials, issuing of certified testreport and testing agency business etc.

: Eco labelling from Korea Eco-Products Institute is essential for manufacturing and consuming of environmentally friendly products.Consumers can join the environmental preservation through the environmental information of product. Company can produce the products continuously on the basis of consumer’s demand for environmentally friendly products.

11ΒΙΟ & ΗΝΤ

Market ApproachMarket Approach

Sales strategySales strategy

The second half of 2006

The first half of 2007

The second half of 2007

- Apply for international patent- Obtain manufacturing equipment

- Build overseas sales network - Advertise regional exclusive sales agencies

- Install more manufacturing line- Acquire international patent and sales right

• Establish branch

office in U.S.

• Advertising and

making a catalogue

• Overseas marketing

planning

• Launch end products

• Announcement

for mosquito control

association

• Proceed thesis to be

published on Science

magazine

• Develop applied products

• Prepare for international

exhibition

• Advertising in overseas

market

• Register developed

products

• Attending international

exhibition

12ΒΙΟ & ΗΝΤ

Product

Mosquito repellent(Household Insecticide)

Price

Competitive cost in manufacturing

(less than 20% cost of Major companies)

Place- American Branch office

as a key position - Setting up

regional agents - Reinforcing Direct Sales

Promotion - Attending overseas

exhibition continuously - Effort for acquiring

Brand power- Sales network with

major distributors

4P Analysis

13ΒΙΟ & ΗΝΤ

SWOT Analysis for SWOT Analysis for Mosquito Repellent of BIO & HNTMosquito Repellent of BIO & HNT

Strength Weakness

Opportunity Threat

Developing innovative natural mosquito repellentOrganizing Key Management Acquiring foreign and domestic Venture Capital

Developing stage, No patent/CertificationsDifficulty in acquiring capitalDifficulty in drawing investment

Evasion, Threat, Interference and negative opinion from preexisting companiesLaunch and sale of natural mosquito repellents from other companies

Innovative natural mosquito repellentExploring the possibility of alliance with preexisting companies of DEET ingredient mosquito repellent Massive market size of Mosquito repellentsexpectation effect of Bio products worldwide

SO strategy : Strategy using strength for taking market opportunity (chosen by BIO & HNT)Acquiring capitals by sales of natural ingredient products to other companies Drawing investment by contacting foreign and domestic investing companies

14ΒΙΟ & ΗΝΤ

BIO & HNT Check ListBIO & HNT Check ListScheduleSchedule ContentsContents ReferenceReference

Continuous Promotion for domestic sales Contact Major distributor,

Military supply etc.

Aug.~Dec.Aug.~Dec.’’0606

Contact domestic investment companies Drawing investment

Nov.Nov.’’0606 Acquire various certifications and Mosquito repellent Data

Simultaneous progress

in US and Korea at first

Nov.~Dec.Nov.~Dec.’’0606 Apply for patent in US, Korea, Japan

and China(4 countries)

Simultaneous progress

in US and Korea at first

Oct.~Jan.Oct.~Jan.’’07 07 Search and acquisition of Manufacturing factory

Among three regions

(Korea, China, Southeast Asia)

Sep.~Dec.Sep.~Dec.’’0606 Search companies interested in Mosquito repellent

US centric and Worldwide

Dec.Dec.’’06~06~

Feb.Feb.’’0707

Meet companies interested in Mosquito repellent

Simultaneous progress in US, Japan and China at first

Sep.~Feb.Sep.~Feb.’’0707 Contact investment company continuously US, Japan, Singapore etc.

Feb.~Mar.Feb.~Mar.’’0707 Establish branch office in the U.S. - Drawing investment

- Foundation Establishment

for product sale

Apr.~May.Apr.~May.’’0707 Drawing investment from preexisting companies in Mosquito repellent market

Worldwide

15ΒΙΟ & ΗΝΤ

Schedule ChartSchedule Chart 20072007

Jul.Jul. Aug.Aug. Sep.Sep. Oct.Oct. Nov.Nov. Dec.Dec. Jan.Jan. Feb.Feb. Mar.Mar. Apr.Apr. May.May. Jun.Jun.

Building detail business strategy

Chemical charterization of active ingredient

Ingredient analysis and synthesis completed

Mosquito Repellent Test Data

Comparative analysis Data with preexisting products

Apply for various certifications

In Korea and the U.S.

Apply for patent in Korea and the U.S. (1 year required)

Meeting with Overseas Companies and Promotion

Meeting with Domestic Companies and Promotion

Search and establishment of manufacturing factory

Drawing investment

Establishment of branch office in the U.S.

16ΒΙΟ & ΗΝΤ

INVESTOR INVESTOR RELATION RELATION

American market size American market size

(Aromatics/Insecticides)(Aromatics/Insecticides)

YearYear Market SizeMarket Size

20002000 $ 1,789 million$ 1,789 million

20012001 $ 1,935 million$ 1,935 million

20022002 $ 1,962 million$ 1,962 million

20032003 $ 2,115 million$ 2,115 million

20042004 $ 2,417 million$ 2,417 million 0

500

1000

1500

2000

2500

3000

2000 2001 2002 2003 2004

Million $

• American aromatic and insecticide market has grown for 5 years in a low.

• Insecticide market is expected to be increased due to climate change in the southern states

(Euromonitor, 2005)

22ΒΙΟ & ΗΝΤ

Mosquito Repellent World Market Mosquito Repellent World Market

MarketMarketUser population User population

/year/yearUnit priceUnit price/1 person/1 person

Market size (U$)Market size (U$)

The U.S.The U.S. 50,000,00050,000,000 $10.00$10.00 $500,000,000$500,000,000

WorldWorld 300,000,000300,000,000 $10.00$10.00 $3,000,000,000$3,000,000,000

US market

World

23ΒΙΟ & ΗΝΤ

-Market entry-Product differenciation

-Product stabilization-Market expension

-Brand expansion-Product range increase

Bio& HNT Growth Milestone

-Competitive advantage acquisition

-Training development

resources

-Continuous growth-Motive power acquisition

1

2

3

4

5

24ΒΙΟ & ΗΝΤ

Yearly sales planYearly sales plan((ConsosiumConsosium formation)formation)

ContactContact 11stst YearYear 22ndnd YearYear 33rdrd YearYear 44thth YearYear 55thth YearYear

Branch office in the U.S.Branch office in the U.S.

Exterior of the U.S. Exterior of the U.S.

(Agent / Direct Sales)(Agent / Direct Sales)

TotalTotal

1471471131138787

525525 682682

612612 795795

887887

10341034

192192

11531153

13451345

250250

15001500

17501750

(US$ Million)

0

200

400

600

800

1000

1200

1400

1600

1800

1stYear

2ndYear

3rdYear

4thYear

5thYear

Exterior of the U.S.

Branch office in the U.S.

25ΒΙΟ & ΗΝΤ

Yearly sales planYearly sales plan(Launch own(Launch own--brand)brand)

ContactContact 11stst YearYear 22ndnd YearYear 33rdrd YearYear 44thth YearYear 55thth YearYear

Branch office in the U.S.Branch office in the U.S.

Exterior of the U.S. Exterior of the U.S.

(Agent / Direct Sales)(Agent / Direct Sales)

TotalTotal

14.714.711.311.38.78.7

17.517.5 22.722.7

26.226.2 34.034.0

29.529.5

44.244.2

19.219.2

38.438.4

57.657.6

25.025.0

50.050.0

75.075.0

(US$ Million)

0

10

20

30

40

50

60

70

80

1stYear

2ndYear

3rdYear

4thYear

5thYear

Exterior of the U.S.

Branch officein the U.S.

26ΒΙΟ & ΗΝΤ

MAP and AddressesMAP and Addresses

BIO & HNT INC.BIO & HNT INC.Seoul Head Office Seoul Head Office : :

#1701, Hyundai Topics Bldg., #1701, Hyundai Topics Bldg., 3333--4, 4, BangiBangi--dong, dong, SongpaSongpa--gugu, , Seoul, 138Seoul, 138--050, Korea 050, Korea

TEL : 82TEL : 82--22--417417--7922 7922 FAX : 82FAX : 82--22--417417--7923 7923

DeajeonDeajeon Research InstituteResearch Institute : :

# 480# 480--6, 6, KoongKoong--dong, dong, YooYoo--SungSung--gugu, , DaejeonDaejeon--sisi, Korea , Korea

BIO & HNT International INC.BIO & HNT International INC.

4210 Via 4210 Via ArboladaArbolada #119 #119 Los Angeles, CA 90042 Los Angeles, CA 90042

Tel : 1Tel : 1--323323--227227--1040 1040

27ΒΙΟ & ΗΝΤ

Thank youThank you