Company Introduction

• Company name OXUS Co., Ltd.

• CEO Lee, Tae-soo (doctor of engineering)

• Established date Nov. 04. 1999

• Capital 1.5 billion won

• Staff 25 persons

• Address of #246 Cheonan-Ri, Seorak-myeon ,

Head office/Factory/R&D lab Gapyeong-Gun, Gyeonggi-Do

• Address of OXUS America 1685, Northfield Drive, Rochester Hills,

MI 48309, USA

Contents

Ⅰ. Company Introduction

1.Company history2.Awards and certifications3.Technology of OXUS

Ⅱ. Importance of Oxygen

1.Effect of oxygen2.Cause of oxygen shortage3.Symptoms of oxygen shortage

Ⅲ. Principle of Oxygen Concentrator

1. What is oxygen concentrator?2. Features of oxygen concentrator

Ⅳ. Introduction of EachBusiness Part of OXUS

1. Oxygen Room2. Medical device

May 1994 : Started a chronic respiratory insufficiency treatment base technology development research project (Ministry of Health and

Welfare).

Jun 1998 : Completed a chronic respiratory insufficiency treatment base technology development research project

(Ministry of Health and Welfare).

Sep 1998 : Completed Ministry of Health and Welfare-organized G7 medical oxygen concentrator development project.

Nov 1999 : Performed KAIST-organized medical oxygen concentrator commercialization research project.

Jun 1999 : Registration of designs for medical oxygen concentrator (Korean Intellectual Property Office).

Oct 2000 : Acquired certificate of quality guarantee company (Korea Machinery-Meter and Petrochemical Testing & Research Institute).

Nov 2001 : Acquired Chinese safety certificate of household oxygen concentrator.

Dec 2001 : Acquired certificate of Excellent Korean Technology (KT) mark (Ministry of Science and Technology).

Jul 2001 : Received safety certificate for oxygen concentrator (air purifier) (EMC Research & Development Institute).

Jun 2002 : Changed company name (OXUS Co., Ltd. www.oxus.co.kr).

Oct 2003 : CE mark certified (RWTUV/GERMANY).

Jun 2003 : Received IR52 Jang Young Shil Award (Ministry of Science and Technology).

Oct 2005 : Signed a contract of patent enforcement right with Delphi.

Jul 2007 : Received certificate of IEC60335 / CB RMC-087C4 (Korea Testing Laboratory).

Jan 2008 : Received certificate of IEC60335 / CB RAK-U03R2 (Korea Testing Laboratory).

Feb 2008 : Received the commissioner citation (Korea Food & Drug Administration).

Jul 2008 : Received IR52 Jang Young-Shil Awards (Ministry of Science and Technology).

Sep 2008 : Moved to the new building of company at #246 Cheonan-Ri, Seorak-myeon, Gapyeong-Gun, Gyeonggi-Do.

Jan 2009 : Received the certification of manufacturing the medical device OXUS F501S (Korea Food & Drug Administration).

Dec 2009 : Renewed GMP (Korea Food & Drug Administration).

Oct 2010 : RS-00400 medical device product manufacture license (Korea Food & Drug Administration).

May 2010 : Established OXUS America Inc.

S Sep 2010 : Obtained ISO 9001 / ISO 13485 / CE/MDD (OXUS F501S) certification (TUV Rheinland).

1. Company History

Common Lifestyle

Residential environment

- Urban life space becomes confined due to the design for soundproofing against noise, dustproofing to block pollution, insulation, fireproofing, enhancement of individual privacy, and crime prevention.

- Difficulty in external air circulation because a building becomes subterranean and high-rise due to urban centralization phenomenon.

- Breathing at the state exposed to polluted air, and eating contaminated water and foods.- Various kinds of stress in real life and drinking, smoking and lack of exercise.-Increase of oxygen consumption in the body due to the way of life of the moderns,

high-fat instant food and meat-centered dietary habits.

Environment and air pollution

- Increase of industrial and automobile exhaust gas due to fossil fuel (oil).Encroachment on a green tract of land according to various kinds of pollutant emission

and industrialization and urbanization.- Blocking the source of oxygen concentration and purification function.- Increase of carbon dioxide in the confined space of public facilities.

2. Cause of Oxygen Shortage

Filter Air Compressor

Oxygen concentrator

Molecularsieve

Filter Humidifier User (Patient)

Controller

Controller

Outdoor unit (oxygen-concentrating part) Indoor unit (oxygen-supplying part)

Signal

Oxygen

Noise

N2

O2Air

Principle of Oxygen

concentrator

Principle of Oxygen

concentrator

• Development of separation type oxygen concentrator / World’s first mass production• Separation into oxygen-concentrating part that concentrates oxygen (outdoor unit) and oxygen-supplying part that supplies oxygen (indoor unit)• Outdoor installation of oxygen-concentrating part where nitrogen is emitted, and noise and vibration occurs ※ For the sake of supplying safe and effective air of high degree of purity

• Oxygen-supplying part has a role of controlling the oxygen-concentrating part and supplying air in a room

Features of separation type concentrator

Ⅲ. Principle of Oxygen Concentrator

1. What is oxygen concentrator?

Oxygen concentrator having been ceaselessly developed by continuous research and development is the best product to satisfy the condition that customers want.We completely solved the problem of noise and vibration and nitrogen emission by designing the oxygen concentrator in the separation type of outdoor unit and indoor unit for the first time in Korea.

¨ Oxygen concentrator that introduces the most advanced and the newest IRS module (patent)

• Separation type of outdoor unit and indoor unit, and quiet in case of use

• Power saving type because of decrease in the number of parts

• Supply of fresh oxygen of high degree of purity of 80%

• Convenient because controller switch can be controlled indoors

• Can continuously supply oxygen of high degree of purity for 24 hours and 365 days

• Easy extension by installation of many outdoor units

[ IRS Module System]

2. Features of oxygen concentrator

Definition of Oxygen Room Product

The core purpose of oxygen room product is to create pleasant space by supplying oxygen to spaces for people’s residence, business and use.

With passing of time, spaces for people’s residence, business and use are becoming increasingly blocked off from outside space due to development of air conditioning, insulating and noise blocking facilities. On the other hand, this leads to decrease in ventilation rate, therefore indoor residential space is becoming more and more inferior. Also, due to limitations ofspace, many facilities are being installed in underground area lacking ventilation. And, most of intelligent buildings of thelatest trend are designed with windows not to be opened. Therefore, opinions are being raised that indoor environment is not as good as before. In general, we believe that outdoor air is more polluted than indoor air in urban areas. However, in reality,it is clear that indoor air is certainly more polluted than outdoor air.

Oxygen concentrator system of OXUS basically consists of the system that is the same as air conditioner. It consists of an outdoor unit, indoor unit and controller. Also, piping and installation operations are necessary. Outdoor unit is installed outdoors or in balcony. By separating oxygen and nitrogen from the air, nitrogen is discharged and the oxygen created is sent to an indoor space through pipeline. Indoor unit injects oxygen into the space. In other words, only the necessary oxygen is sent into the requiring space by using outside air.

The average oxygen concentration throughout the world is 20.9%. Oxygen concentration is lower in polluted areas. Human beings experience a sense of stuffiness in oxygen concentration level of less than 20%. Indoor space of an urban region in which most people reside has the oxygen concentration of 20.5% in general. However, the level easily drops below 20% if ventilation is not carried out successfully or the space is occupied by a large number of people. In general, difference in oxygen concentration between inhalation (20.9%) and exhalation (16%) of a human being is approximately 4.9% on average. Aggravation in environmental conditions leads to decrease in oxygen concentration of inhalation. Therefore, the difference from that of exhalation decreases. As a result, human body, especially brain, feels as though the oxygen is insufficient by as much as 20% rather than by an actual 1%. Even if an oxygen room product discharges oxygen to an indoor space, it is not easy to have the oxygen concentration level surpass 22%. However, the 1% of increase in oxygen concentration means approximately 20% of increase experienced by our body.

1. Oxygen Room Business

• Install an oxygen concentrator outdoor unit in the space for outdoor unit

• Install a multi-functional controller on the living room wall

• Install a wall attachment bubble type on the bedroom wall and den

• Install a ceiling type nozzle in a small room

• Nozzle position and type can be variously selected according to the structure

In case of application to apartment oxygen room

Apartment Oxygen Room Configuration

Office, Government office Configuration

Outdoor unit Indoor digital controller

Indoor bubble oxygen supplier

Definition of Medical Device Product• Products which can be used for oxygen therapy in the home or hospital according to the doctor’s prescription or instruction. • Products which can be utilized for “home oxygen therapy service” performed by National Health Insurance Service so that a patient with

chronic cardiopulmonary disease can receive oxygen therapy in the home according to the establishment of Ministry of Health and Welfare public announcement, Standard and Method of Insurance Benefits of Medical Treatment Expense.

1)Background of developmentIt is intended to manufacture and provide more suitable oxygen concentrator for the first time in Korea, which is utilized for “home oxygen therapy service” performed by National Health Insurance Service so that a patient with chronic cardiopulmonary disease can receive oxygen therapy in the home according to the establishment of Ministry of Health and Welfare public announcement No. 2006-169, Standard and Method of Insurance Benefits of Medical Treatment Expense.

2) Purpose of developmentConvenience in using the device, which is required in the use environment, and providing products which the cost of maintenance (electricity bill) and noise are reduced as well as providing oxygen of high degree of purity for stable home oxygen therapy service.

3) Specification presented by National Health Insurance Service Equipment and service contents classified by service price according to Ministry of Health and Welfare notification No. 2006-77, 18 October 2006, “Standard and Method of Insurance Benefits of Medical Treatment Expense“

Classification

Equipment standard Service contents

Degree of purity

NoisePower

consumptionAlarm function Regular visit

Directly-managed

office

KRW 120,000 /month

90%

and over

45㏈ and below

300W and below

At least 1 among power supply interruption, oxygen concentration, and flow rate (pressure)

At least 1 per quarter

3 and over

Over KRW 120,000 / month

~ under KRW 160,000 / month

Over 35 ㏈

~ under 45 ㏈

Over 250W ~ under 300W

At least 2 among power supply interruption, oxygen concentration, and flow rate (pressure)

At least 1 every 2 months

4 and over

KRW 160,000 / month

35dB and below

250W and below

At least 3 among power supply interruption, oxygen concentration, and flow rate (pressure)

At least 1 per month

6 and over

2. Medical Device Business

Classification F301(In preparation) F501S(mass produced) RS-00401(mass produced)

Photo

Specification

Flow rate & degree of purity

0.5~3 LPM :

90% and over (93±3%)

Power consumption: 160 W

Noise: 35dB

Weight: 30 kg

Flow rate & degree of purity

0.5~5 LPM :

90% and over (93±3%)

Power consumption: 220 W

Noise: 35 dB

Weight: 25 kg

Flow rate & degree of purity

1.0~5 LPM :

90% and over (90±3%)

Power consumption: 75 VA

Noise: 43 dB

Weight: 4.5 kg

2.2 Types of OXUS medical device product

`

Power consumptionOperating noiseProduct sizePortabilityOxygen flow rate

1st generation (~year2000) Fixed type

2nd generation(~year 2005)

Low power fixed type

3rd generation(~the latest)Portable type

Increase of patient’s radius of activities and opportunity of participating in social activities as the improvement of quality of life

Quality of life

Increase in necessity of transport for tour and leisure timePortability

* DOD (demand on delivery )

Power consumptionOperating noiseProduct sizePortabilityOxygen flow rate

Power consumptionOperating noiseProduct sizePortabilityDOD* functionDOD*

2.4 Product Trends