Elegant Affordable Beauty

…from the Pacific Kelp Forest

™

Consumer Marketing Copy for KSI’s Initial NutriCosmetic Products: a Serum Concentrate, Facial Cleanser, Day

Moisturizer, Night Moisturizer, Eye Serum

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NutriCosmetics Target Female Market Assumptions Behind High AntiOxidant Product Sales Projections

Using Social Media like Pinterest/Home Shopping Network/HSN/and Distributor links such as Sephora.com or Ulta.com:

Initial Target Market:

Women aged….30—65 Tgt. Population: 75,000,000 Tgt. Income, 5% of Population have $100,000+ Income KSI Total Tgt: 3,750,000 Females KSI Market Share: 5% or 187,500 Each purchase three KSI Products per year spending an average $500 annually

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Cosmetic Laboratories, Inc. Formula for KSI’s Initial NutriCosmetics Products Containing Both Kelp

Concentrate and High Purity Fucoidan

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Assumed Pricing Metrics

Serum $95Day $90Night $90Cleanser $28Eye $68

Avg. Unit Retail: $74.20

Avg. Unit Wholsale $37.10

Cosmetic Laboratories and USFI Team Up with KSI on

NutriCosmetics

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USFI Customers total over 2000 Globally and Awards include:

The Communicator AwardsThe Davey AwardsAmerican Graphic Design AwardsCUES Golden Mirror AwardsCUNA Diamond AwardsTexas Lone Star Awards

CL made all the TruVia (formerly Solazyme Products)the Algenist Line from Micro Algae sold on a Alguronic Acid claimed discovery

The KSI Market Being Met

• Over all ages for women, men, and even pets, global interest in safe, affordable, and better performing personal care, health, wellness, beauty, anti-aging products has increased. The demand for premium non-prescription, “FDA-Lite” consumer NutriCosmetic/cosmeceutical type products and services to protect one’s personal health and beauty levels ranging from “the best” attractive external skin products, with safe formula ingredients, to fashionable clothing, to immune system supplements is growing. Products in these segments total over $400 Billion in annual sales globally with the premium skin protecting segments at $11 billion and growing at 20% per annum. The key new element is KNOCEAN Sciences, Inc.’s novel and natural AntiOxidant power products.

• Timing is ripe for KNOCEAN to create build a strong Company to tap into the woman’s desire to use only the best of these higher skin protecting new products with their own currently existing “avalanche” of market acceptance of the positive power of quality AntiOxidants.

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A Major Joint AntiOxidant Market Opportunity Exists Through KSI

Exclusive and Proprietary Products• No other Company in the world works with Kelp Oil®

(considered a waste product) or its compound, the new Kelp Concentrate and KSI will dominate the commercial scale raw material supply from the Macrocystis pyrifera high yield sources, and with GRAS approval.

• No other Company has the over 90% purity Fucoidan products much less with GRAS approvals.

• We plan to tap into this $11.5 billion retail market globally with these proprietary KSI products and a new pipeline of products in the future.

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KNOCEAN’s Raw Material Source for It’s AntiOxidant Products is Giant Kelp, and its patented process for Kelp Oil, Kelp Concentrate and Fucoidan.

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Dense Kelp Forest off Baja California

Giant Kelp off San Diego Kelp Concentrate

High Purity Fucoidan

Kelp Oil

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KSI Harvesting/Processing of Kelp and Kelp Oil into Kelp

Concentrate and High Purity Fucoidan

Full Scale High-Purity Fucoidan Production–KSI, Lakeshore Technologies, Marinova

Lab Scale Kelp Concentrate Production, Commercial Scale Testing-LCI/GEA Process Eng.

Giant Kelp (Macrocystis pyrifera) is a macroalgae, and these algae’s are traditionally noted for their iodine capability,

and most often are studied in vitro for its Fucoidan, a sulfated polysaccharide, until KNOCEAN discovered novel

diversified bioactive compounds in a Giant Kelp waste product, Kelp Oil and called it Kelp Concentrate.

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Macroalgae—in our case Giant Kelp--have for centuries been consumed whole among the East Asian populations of China, Korea, and Japan. Macroalgae produce unique and interesting biologically active compounds. Protein can account for up to 47% of the dry weight of macroalgae. They contain all the essential amino acids, omega-3 lipids and soluble fiber as well as a wide variety of bioactives including lipid-modulating blood pressure lowering and glucose mechanism modifying compounds.

The Consumer Message: The Need to Put AntiOxidants into a Safe, Non-toxic Formula

for NutriCosmetics

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The formation of free radicals is a widely accepted pivotal mechanism leading to skin aging. Super Antioxidants are substances that can provide health protection by scavenging free radicals, in particular the major Five Free Radicals. KNOCEAN ‘s Products as the Top AntiOxidant compound can support neutralizing the imbalance of excess free radicals that speed aging and create other illnesses beyond what the current popular AntiOxidant ingredients provide. The KNOCEAN product formulas will have safe non-toxic ingredients blended into its high AntiOxidant compounds.

The Free Radical Theory of Aging and AntiOxidant Defenses and Giant Kelp

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In its concern about the skin and internal bodily functions, The Free Radical Theory of Aging shows that despite bodily repair mechanisms, oxidative damage builds up within our cells and tissues. This internal damage in the short term can lead to changes or losses in functional components and cellular senescence and death. The overall bodily processes of aging result from these accumulated damages over time.

Taking Vitamins as antioxidants, ever larger doses, and other claimed antioxidant sources have been adopted remedies by consumers since the late 1950’s to reinforce the body’s own defenses against the Five Main Free Radicals

Discovery of High AntiOxidant Power in Giant Kelp and Kelp

Compounds

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Certificate of Analysis: ORAC5.0 Results:

Test Result Units Antioxidant power against peroxyl radicals 195 µmole TE/gram Antioxidant power against hydroxyl radicals 828 µmole TE/gram Antioxidant power against peroxynitrite 6 µmole TE/gram Antioxidant power against super oxide anion 64 µmole TE/gram Antioxidant power against singlet oxygen 652 µmole TE/gram Total ORACFN (sum of above) 1,745* µmole TE/gram

* The acceptable precision of the ORAC assay is < 15% relative standard deviation. There are five predominant reactive species found in the body: peroxyl radicals, hydroxyl radicals, peroxynitrite, super oxide anion, and singlet oxygen. Total ORACFN/ORAC5.0 provides a measure of the total antioxidant power of a food/nutrition product against the five predominant reactive species. *1,745,000 per 100g. Signed for and on behalf of Brunswick Laboratories

Authorized Signature Boxin Ou, Ph.D.

Big Secret in the Nutrition World - Some 90% of AntiOxidant Ingredient Content in Products are

Just small amounts of Vitamins

• Some vitamins are antioxidants but all vitamins that are antioxidants are weak antioxidants.

• Some consumers take megadoses of Vitamin A, C, E, and other berry extract products, and “cocktails of extracts” to offset the low antioxidant content of standard doses.

• Regulatory weakness is that if you include 30% of the MDR of Vitamin C,A, E per serving then you can use the “contains AntiOxidants” phrase on your product packages

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Kelp Concentrate - The Highest Natural Kelp Based Marine AntiOxidant Power Versus Other Low AntiOxidnt Ingredients Used in Cosmetics

*Oxygen Radical Absorption Capacity (ORAC) 5.0 is a method of measuring antioxidant capacities in biological samples.

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Knocean’s Products Will be the Only Prestige Beauty Products to Have TradeMark Certification for Four Skin Care Standards

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KNOCEAN’s Products Anti-Aging Skin Care Protection

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KNOCEAN’s Products Exceed Results for Crème de la Mer

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KSI will Dominate Access to an Estimated 80% of Highest Yield Kelp (Macrocystis pyrifera)

Locations - The Kelp Oil Supply

Harvest Capacity• Baja California, (MX)

90,000 tons (Northern and Southern Permisos)

• Southern California 125,000 tons

• Central California 15,000 tons

• Total Average Annual Potential 230,000 tons.*

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Projections for First Five Years of KNOCEAN

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Knocean Sciences  Income Statement ($)  

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue US OnlyCosmeceuticals $7,865,200 $36,543,500 $46,375,000 $64,925,000 $92,750,000 Supplements $0 $3,510,000 $23,760,000 $23,760,000 $23,760,000 Neutraceuticals $0 $3,600,000 $19,000,000 $21,500,000 $24,000,000

Total Revenue $7,865,200 $43,653,500 $89,135,000 $110,185,000 $140,510,000  

Cost of Goods Sold $1,442,955 $4,817,040 $12,776,540 $14,776,540 $17,776,540

Gross Margin $6,422,245 $38,836,460 $76,358,460 $95,408,460 $122,733,460  % of Revenue 82% 89% 86% 87% 87%

Operating ExpensesEngineering $421,200 $440,700 $889,275 $924,619 $968,030 % of Revenue 5% 1% 1% 1% 1%Marketing/Sales $4,404,360 $14,141,114 $23,840,333 $26,960,020 $31,249,935 % of Revenue 56% 32% 27% 24% 22%Administration $2,563,904 $3,921,670 $4,982,620 $6,171,949 $7,391,978 % of Revenue 33% 9% 6% 6% 5%

Total Operating Expenses $7,389,464 $18,503,484 $29,712,228 $34,056,588 $39,609,943  % of Revenue 94% 42% 33% 31% 28%

Income Before Int & Taxes ($967,219) $20,332,976 $46,646,232 $61,351,873 $83,123,517  % of Revenue -12% 47% 52% 56% 59%

Interest Expense $0 $0 $0 $0 $0 Interest Revenue $0 $0 $0 $0 $0

Income Before Taxes ($967,219) $20,332,976 $46,646,232 $61,351,873 $83,123,517  Tax Exp $0 $6,778,015 $16,326,181 $21,473,155 $29,093,231

Net Income ($967,219) $13,554,961 $30,320,051 $39,878,717 $54,030,286  % of Revenue -12% 31% 34% 36% 38%