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MICROBAN OVERVIEW

Cipherlab Co. LtdAugust 3rd 2010

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Overview of Microban.

• Microban Overview: Who we are and what we do.

• Microban Value Proposition: How Microban creates value for its partners.

Why use Microban additives?

• Microban Technology: Choice of antimicrobial / test methods / How

antimicrobials function: What are the benefits?

• Microban Support: How we help our partners.

Agenda

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MICROBAN OVERVIEW

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Microban Americas Charlotte, USA Montreal, Canada Sao Paulo, Brazil Mexico City, Mexico

Microban Europe Cannock, U.K. Frankfurt, Germany Milan, Italy Barcelona, Spain

Microban Asia Pacific Hong Kong Shenzhen, China

Microban is the world’s leading provider of safe, durable and effective built-in antibacterial solutions.

Microban International, Ltd.

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North America Charlotte, USA

(Polymers & Formulations) Export to EU, Central &

South America, and Asia (Polymers & Formulations)

Europe Liverpool, U.K. (Polymers)

Asia Pacific Hong Kong – Warehouse

(Polymers & Formulations) Shenzhen, China

(Polymers)

Microban supports customers on a regional level with local manufacturing and export of its additive systems, and is expanding its manufacturing base to Asia.

Microban Manufacturing & Warehousing Footprint

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BUILT-IN TO MORE THAN

750 PRODUCTS

BY OVER 150 LEADING MANUFACTURERS

AROUND THE WORLD

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Microban Partners - Selection

Microban is privileged to help these and other industry-leading companies around the world improve and

differentiate their products.

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Our impressive reach towards consumers

Microban – we are up to the challenge

In the Home

Hospitals, Clinics, Surgeries

Hotel, Restaurants, Catering Venues

Offices, Waiting Rooms, Care Homes

Supermarkets, Shopping Centres

Other Public Venues

Airports, Public Transport Venues

Gyms, Leisure, Pools & Spa Centres

Museums, Schools, Universities

and, we are looking at new areas all of the time...

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Example product materials we already treat

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MICROBAN VALUE PROPOSITION

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Microban Value Proposition

For companies trying to strengthen their businesses and address core business challenges.

Microban represents an alternative business strategy that brings value by providing a compelling and enduring point of product differentiation …

And we do this by providing a complete ingredient brand solution including:

• The leading antimicrobial brand• Innovative technical solutions• Patent protection (when available) • Regulatory support• Ingredient branding marketing expertise

We help our partners strengthen their businesses by creating a valuable point-of-differentiation for their products through a compelling ingredient brand.

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The power of Microban ingredient branding

• Extend Product Life – The life of a product will be extended when using Microban – we restrict typical microbial and fungal degradation

• Visible Cleanliness – Product cleanliness is improved with our antimicrobial and / or antifungal solution

• Invisible Cleanliness – Microbes are invisible. Their growth is proven to be significantly controlled by Microban technology

• Odour Reduction – Microbes can cause noxious odours. Using Microban naturally reduces odours and improves product appeal for consumers

Since 1996, Microban have been driving consumer product sales through innovation, improved quality, product longevity & enhanced consumer appeal

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MICROBAN TECHNOLOGY

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Microban Technology

• Plastics– Antimicrobial is incorporated during extrusion for thermoplastics or by addition to

liquid resin for thermosets– Full range of plastics, from polyolefins to polystyrenes and polycarbonate to

unsaturated polyesters and acrylics

• Textiles– Incorporated via standard textile processes such as the dye bath or in surface

finishes such as softeners and permanent press finishes

• Coatings– Mixed with latex or solvent-based resins– Addition rates into the coating depend on the application rate of the coating on

the substrate

• Ceramics– Secondary glaze on tile surfaces

• Metals– Epoxy powder coatings or nickel / chrome electroplating

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Choice of Antimicrobial

The available choices for antimicrobials will depend on:

• Efficacy desired– Antibacterial– Anti-fungal

• Processing– Process conditions, particularly temperature– Materials used for part

• Properties desired (e.g, clarity)

• Cost

• Regulatory approvals– Approval for specific use– Food & water contact approvals, if needed for water.– Approved use limits

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Benefit – Improved Cleanliness

• Does not necessarily lead to sterile surfaces

• Provides continuous action as compared to disinfection

• Does not readily transfer to skin, food, or other contact surfaces

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10

15

20

25

30

35

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Total Viable Count cfu/swab

No

of

sw

ab

s /

co

un

t ra

ng

e

<103 <109

- Treated boning knives- Untreated boning knives

Results from field study conducted in Sainsbury food preparation facilities. Sainsbury is a major British supermarket

chain.

2 log reduction in average CFUs

Reduction in samples with high levels of contamination

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Level of

Bio

bu

rden

on

Pro

du

ct

Su

rface

20 4 6 8 10 12 14 16 18 20 22 24

Over a 24 Hour Period

Cle

an

& d

isin

fect

Cle

an

& d

isin

fect

Average bioburden w/ cleaning

Average bioburden wo/ cleaning

Effect of Disinfection

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Ad

dit

ion

al “d

irt”

Ad

dit

ion

al “d

irt”

Ad

dit

ion

al “d

irt”

Ad

dit

ion

al “d

irt”

Level of

Bio

bu

rden

on

Pro

du

ct

Su

rface

20 4 6 8 10 12 14 16 18 20 22 24

Over a 24 Hour Period

Average Bioburden w/antimicrobial

Average bioburden wo/ cleaning

Effect of Antimicrobial Treatment

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DisinfectantsMicroban® Antimicrobial Technology

Over a 24 Hour Period

Level of

Bio

bu

rden

on

Pro

du

ct

Su

rface

20 4 6 8 10 12 14 16 18 20 22 24

Average Bioburden – w/ Disinfectants

Average Bioburden w/ Antimicrobials

Average Bioburden w/o cleaning

Antimicrobial Treatment vs. Disinfection

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Microban Efficacy Demonstration

Unprotected Surface

2 hours 16 hours 20 hours 24 hoursSurface with Microban® Antimicrobial Protection

2 hours 16 hours 20 hours 24 hoursThis information is based upon standard laboratory tests and is provided for comparative purposes to substantiate antimicrobial activity for non-public health applications. Microban technology is not designed to replace good hygiene practices or protect users from disease causing microorganisms. Antimicrobial action limited to product surface.

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Qualitative Test Method

• 3 main methods covering bacterial and Fungal resistance.

– AATCC TM 30 pt III (plastics materials – Fungal growth)

– AATCC TM 147 (bacterial test method mainly for textile materials)

– Kirby Bauer / Zone Diffusion (plastics materials – bacterial growth)

• Results expressed as a Zone of Inhibition or measurement of inhibition area (mm).

• Observations are also noted for Surface growth (fungal tests) and graded according to %

coverage

• Qualitative test methods show a product is able to inhibit the growth of the test organism

(bacteriostatic or fungistatic activity)

Antibacterial Test Methods

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Quantitative Test Method

• Two main standards employed :

– ISO 22196 / JIS Z 2801 (Japanese Industrial standard)

– AATCC TM 100

• Results expressed as a % reduction value and Log Kill e.g. 99.9% = 3 Log reduction

after recovery of viable organisms following a 24hr period.

– Samples results are expressed verses the initial population of bacteria or verses untreated

control (when available)

• Quantitative test methods show a product is able to actively kill the test organism

(bactericidal or fungicidal activity)

– Results obtained will also distinguish between bacteriostatic and bactericidal activity.

Antibacterial Test Method Summary

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Antibacterial Microban Actives: Mode of Action

CHLOROPHENOXY ANTIMICROBIALS

• Multiple routes

• Combine with protein/enzyme amino acids and disrupt the cellular functions

• Disrupt cell membrane integrity causing loss of ion transport gradients

• Triclosan blocks lipid biosynthesis and prevents formation of vital membrane fatty acids

CHLOROPHENOXY ANTIMICROBIALS

• Multiple routes

• Combine with protein/enzyme amino acids and disrupt the cellular functions

• Disrupt cell membrane integrity causing loss of ion transport gradients

• Triclosan blocks lipid biosynthesis and prevents formation of vital membrane fatty acids

Metal ions

• Copper or Silver ions combine with the thiol (-SH) groups in amino acids and disrupt enzyme catalysis and function

Metal ions

• Copper or Silver ions combine with the thiol (-SH) groups in amino acids and disrupt enzyme catalysis and function

Zinc Pyrithione Based Antimicrobials

• Disrupts normal ion transport gradients, interfering with nutrient intake and energy production. Metal ions in the cell are chelated and transported out of the cell

Zinc Pyrithione Based Antimicrobials

• Disrupts normal ion transport gradients, interfering with nutrient intake and energy production. Metal ions in the cell are chelated and transported out of the cell

Cationic Antimicrobials

• Disrupts ion transport gradients across the cell membrane interfering with cellular respiration

• React with enzymatic functional groups

Cationic Antimicrobials

• Disrupts ion transport gradients across the cell membrane interfering with cellular respiration

• React with enzymatic functional groups

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Claims Overview

• Claims will be developed based on laboratory substantiation of bacteriostatic/bacterocidal and/or fungistatic/fungicidal efficacy.

• In addition, claims will be formulated based on one or more of the following key functional benefits provided by Microban protection.– Invisible Cleanliness – Visible Cleanliness– Odour Control– Product Degradation

• Microban antimicrobial technologies are designed to provide durable antimicrobial protection. Lifetime durability claims may be used with the appropriate substantiating data.

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Primary Objective• To differentiate Silestone® from granite and other

countertop materials to generate demand and justify premium price.

Actions• Launched worldwide across their entire product line and

supported with heavy media (T.V. advertising at prime time on Spanish and Portuguese channels) and pan European consumer print campaigns.

• Sponsorship of Fernando Alonso Formula One driver supported by TV advertising on Spanish and Portuguese channels.

Results

• Major growth across Europe leading to 9 new sales offices and 3 distribution warehouses opening.

• Extension of product diversity from kitchen countertops to public space interior design.

The makers of Silestone® countertops embraced Microban protection to differentiate their product from other quartz surfaces and to steal share from other countertop surface materials.

Case Study: Cosentino®

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Application example: Hospital Design

• 1. Walls

• 2. Beds and curtains

• 3. Blinds

• 4. High contact surfaces

• 5. Flooring

• 6. Switches and controls

• 7. Wet environments

• 8. Computer equipment and reception areas

Infection risk control – protecting buildings

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Primary Objective• To enhance Whirlpool appliances with a range of

antibacterial features.

Action• Whirlpool have introduced a special air filter

device in the refrigerators which incorporates Microban antibacterial technology.

• Following its success, the Microban technology has been extended to additional areas within the refrigeration project and also across the product mix (dishwashers and washing machines) within the Whirlpool and Bauknecht brands.

Results• Significant differentiation achieved and

communicated to Whirlpool customers.• Market surveys showing a remarkably high

percentage of Whirlpool customers find the treatment appealing and innovative.

Whirlpool embraced Microban to enhance their appliances features and is currently

broadening the range of treated components across the product

Case Study: WHIRLPOOL®

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MICROBAN SUPPORT

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Microban provides a turnkey, ingredient branding solution, that ranges from a technical solution through the use of the Microban brand.

The Microban Solution

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Technical Support

Microban provides industry-leading technical services to ensure that partners get a customised technical solution that best meets their unique product.

• Expert research and development – dedicated staff of engineers, microbiologists and analytical chemists.

• The only antimicrobial solutions provider that offers over 20 different antimicrobial technologies under a single umbrella brand.

• One of the most advanced antibacterial laboratories in the world.

• Bacterial and fungal microbiology laboratories on-site at HQ in North Carolina.

• Capacity to manage all of our partners’ testing needs. Microban micro lab completes over 30,000 tests annually.

• Close liaison with independent testing laboratories across Europe.

• Privileged to be conducting cutting edge antimicrobial product development for the US Department of Defence.

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HEALTHCARE RESEARCH

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Healthcare Research

97% of healthcare professionals are concerned about the presence of microbes (such as bacteria, mold and mildew) in their

healthcare facilities.

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Healthcare Research

79% of patients are concerned about the presence of bacteria when at a hospital.

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Patient room products / medical devices

From initial patient and healthcare provider research

Microban has identified key areas of contamination within

patient rooms

This research is being supported by a patient room swab

study within Presbyterian Hospital Huntersville, USA to

confirm highly contaminated products - “hot spots”

Microban is currently in dialogue with manufacturers of

‘hot spot’ products and more than half have expressed a

high level of interest in engaging with Microban on a

project

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Patent Protection

With one of the strongest antimicrobial patent positions in the world, Microban helps its partners create competitive barriers where possible.

• 163 patent applications and 42 issued patents protecting the use of Microban® antimicrobials in various end products help provide effective barriers to entry by your competitors.

• In-house patent attorney surveys patent landscape at the outset of the project to determine areas of opportunity for patent protection.

• Protects our partners from infringing on 3rd party’s rights as well.

• Proactive patent stance enables us to preserve our partner’s exclusivity and provide market leverage.

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Regulatory Support

Microban regulatory helps partners quickly secure the necessary approvals to hasten product launches, and ensures aggressive claim compliance.

• In-house VP, Regulatory Affairs with over 20 years of regulatory and toxicology experience provides partners with unmatched expertise.

• Former EPA Director is a member of the Microban Board who provides on-going advice.

• Washington & Brussels – based regulatory consulting / law firms support Microban and its partners on a regular basis.

• Experience working with international regulatory authorities to ensure compliance on a global basis.

• US - EPA, FDA - EU - ECHA• Canada – PMRA - Australia - AVMPA• Mexico – Cicoplafest - UK – HSE

• Facilitate third part approvals with agencies such as NSF and TUV.

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MARKETING SUPPORT

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Microban Marketing Support

• Claims Development

• Packaging Development

• Point of Sale Development

• Market Research

• Press Releases

• Sales Training

• Microban Website

• Microban Collateral

• Customer Specific Programmes

• Website Development

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Microban Partner Advertising

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Healthcare microsite

www.microban.com/partnersites/microban-medical

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Microban website

World-wide coverage with direct link to partner website

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Microban support literature

Generic, customized and multilingual – designed for events, press packs and trade shows