Advanced Membrane Solutions

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KmX Corporation

• Advanced Membrane Solutions
• Presentation to

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Goal

• Become a global leader in
• the Chemical Purification and
• Synthetic Fuels markets and a
• significant OEM for water
• Membranes and Filters.

Mission
Use state-of-the-art membrane technology to
deliver turnkey systems that increase end-user
profits and reduce environmental damage.
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KmX Competitive Advantages

• Proven leading edge licensed membrane and
  processor technology
• Proprietary the result of ten years and US5m
  investment by Petro Sep, Inc.
• Unique management knows of no company with the
  resistance and separation features found in KMX's
  chemical membranes.
• Flexible and Economic for the first time
  membranes can be used to purify harsh, toxic
  chemicals and gases in a wide variety of extreme
  conditions in a highly economic fashion.

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KmX Competitive Advantages

• Turnkey approach backed by solid engineering and
  a compelling business model
• Turnkey solution skid-mounted solution includes
  customized membranes and patented processor
  technology.
• Complementary services design, customization
  and management supplied with Petro-Sep, Inc.
• Compelling business model fully financed joint
  ventures share incremental revenue generation.

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Limitations of Conventional Distillation

• Distillation is the conventional method for
  separating and purifying solvent mixtures but
  cannot achieve high purity levels.
• Solvent mixtures are heated in distillation
  stills and the components are separated based on
  their boiling points.
• Distillation fails to work at the point where the
  liquid mixture composition reaches boiling and
  further separation of the component parts is no
  longer possible.
• At this point (called azeotropic point) the
  purity of the distillate (boiled product) cannot
  be enhanced with further distillation.

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Value Proposition - Benefits

• Use of membranes as an alternative to, or
  complimentary with distillation, significantly
  reduces the costs of purifying chemicals.
• Allows chemical users to reuse spent chemicals
  many times over.
• Reduces the need for and cost of purchasing and
  stocking chemicals and removing/dispensing of
  waste streams.
• Increases energy efficiency and reduces
  environmental damage.
• Leverages and is synergistic with traditional
  distillation and refinery plants.

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Value Proposition - Economics

• Processes chemicals to a level of purity and
  value, never achieved by traditional processes.
• Increases distillation productivity from columns.
• Increases yields from Reactor Columns.
  (Esterification)
• Increases price from higher purity output.
• Increases margins from lower costs.
• Environmentally benign process.

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Cost Comparison of Distillation and
Membrane Technologies
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Azeo-SepHow Does It Work?
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VOC-Sep How Does It Work?
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Relationship between KmX and Petro Sep

• KMX is Petro Sep's (PSI) only licensed
  manufacturer and distributor.
• KMX has exclusivity in the following industries
  in North America, Scandinavia and Israel Solvent
  Recycling, Ink and Paint, Synthetic Fuels, plus
  first right of refusal on other regions and
  industries.
• KMX has exclusive manufacturing, marketing and
  selling rights to all PSIs membranes in North
  America, Scandinavia, and Israel.
• KMX has non exclusive rights to sell PSIs
  solutions in all other industries and countries.

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Relationship between KmXand Petro-Sep

• Under the terms of its License with KmX, PSI
  will
• Transfer all processors at cost.
• Provide services at cost plus a reasonable
• overhead absorption.
• Receive a 3 royalty on revenues from purifying
  chemicals using its technology.
• Receive a 5 royalty on all membrane sales.

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The Azeo-Sep Processor
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The Azeo-Sep Processor
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Azeo-SepStand Alone Systems Typical Process
Flow Diagram
Batch Unit
Continuous Unit
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Three Separate, Synergistic Revenue Streams

• Providing turnkey solutions for the purification
  of chemicals to Chemical Users, Solvent Recyclers
  and Synthetic Fuel Producers.
• Selling refined chemicals.
• Selling water and application specific membranes
  and filters.

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Current Qualified Opportunities

• Apex Inc, USA
• Waste Reduction Systems, Inc., USA
• Gage Products Inc Detroit, USA
• Xethenol, USA
• Tabib Ltd, Israel.
• Teva Ltd, Israel.
• Ecco-Shred, Toronto, Canada
• Bromine Ltd, Israel
• Clean Harbor Inc, USA
• General Motors, USA
• Qingdao Hainuo Water Supply, China

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Business Model -Turnkey Solutions

• Install Azeo-Sep solutions on a cost per liter
  basis.
• Participate in the cost savings and/or
• incremental operating profits on a 60/40
  basis.
• Close five-year minimum contractual commitment.
• Provide lease financing support, with title
  remaining with KMX.
• Bundle solutions that can include providing
  outsourced operational support.

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Business ModelSelling Chemicals Synthetic
Fuels

• Acquired Apex to rapidly generate high margin
  revenue and income, act as a Flag Ship to
  prospects and continuously test and improve KMX
  membranes and processors in a live environment.
• Partnered with WRS, an established U.S. broker,
  bringing committed solvent streams (at wholesale
  prices from its many sources) and an extensive
  client list (for sales at retail prices).
• Creating strategic alliances with existing
  chemical recyclers and synthetic fuel
  manufacturers.
• Penetrate all major chemical users to offer
  Closed Loop Chemical Recycling.

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Turnkey Solutions for Industry (Using Combined
Azeo- SepTM and Voc-SepTM Processes)
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Azeo-Sep Case study for solvent recycling
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Tabib Israel - Case Study

• Collects over 80 of Israels pharmaceutical
  waste.
• Has distillation capabilities.
• Currently incinerates vast percentage of what it
  collects in Israel or abroad mainly Germany.
• Working on joint venture to purify waste
  chemicals to resell back to pharmaceutical
  companies or to the open market.
• Potential for two truck loads a day.

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Simplified Flow Diagram of the New Recycling
Operation Proposed for Tabib, Israel

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The Membrane Family
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Large Selection of Standard Membranes for Diverse
Applications

• 2000 series Dehydration of Organic Solvents
• (EtOH / Water, IPA/Water)
• 3000 series Solvent/Solvent Separation (MeOH /
  MTBE,
• Benzene/ Cyclohexane
  Similar aromatic/aliphatic
• separation
• 4000 series Highly acidic and severe service
  applications
• (acetic acid, organic acids, inorganic acids
  in low
• conc.)
• 5000 series Strong alkaline solutions
  dehydration

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VOC- SepTM Membranes

• 100 Series Remove more volatile VOCs from water
• 200 Series Removal of aromatics and other
  heavier
• VOCs from water (BTEX,
  Toluene etc.)
• 300 Series Removal of Polar heavier hydrocarbons
  
• from water (Phenol, Phenol
  Formaldehyde
• etc.)

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Business Model- Membranes

• Leverage internal membrane expertise in low and
  hi-end membranes in 3rd party marketplace.
• Purchase and install low end water membrane
  manufacturing equipment immediately.
• Purchase and install application specific
  membrane manufacturing equipment in 12 months.
• Sell output through distribution.

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Business Model- Membranes

• KmX will manufacture and sell hollow fiber
  membranes for water treatment purposes.
• These membranes, provided without casings, will
  be inserted by Value Added Resellers into their
  own manufactured casings and sold as a complete
  unit.
• The first and second manufacturing units will be
  capable of manufacturing low end generic fibers
  and filters.
• The third unit will be capable of manufacturing
  high end application specific membranes.

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Advantages of Hollow Fiber Membranes

• Modest energy requirement
• Greater Strength and Filtration
• Less waste products
• Flexible
• Low operational costs

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KmX Management

• Experienced Senior Management Team
• Isaac Gaon President and CEO
• Fakhir Usman Baig CTO President Petro-Sep
• Peter Lewis EVP President KmX USA
• Dr. A. Majid Kazi VP Operations
• Experienced Advisory Board
• Dr. Takeshi Matsuura
• Rene Pardo
• Kerry E. Adler
• Mr. Toshinori Ikebe
• Mark Berenblut