air freedom investor presentation 22 8 10

8/7/2019 Air Freedom Investor Presentation 22 8 10

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AirFreedom Ltd.

August 2010

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Overview

New technology improves utilization of internal filter space

Reduces total life-cycle costs throughimproved operation

lower energy use

reduced maintenance fees and manpowerfewer filters

Readily adapted for many applications in large markets

Team experienced in business development, air filtration, fluidmechanics

Advancing on contacts with key market players

Patent pending with wide coverage

Seeking $600,000 to commercialize product

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Air filters impact on total system life cycle costs

Todays filters require frequent maintenance, cleaning,replacement

Air filter market seeking more sophisticated, cost-effectivesolutions

Growing demands for cleaner air

Manufacturers looking to differentiate, increase revenues

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AirFreedom offers manufacturers a non-commodity product = higher profit margins

Market Need


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Life Cycle Costs

Annual cost reduction for per- filters in Air Handling Unit comprising 100 pre-filtersExisting

Pre-filtersAir Freedom

Pre-filterCost

ReductionAverage cost per 24"X24" filter 4 8

Initial Static Pressure (SP in. water) 0.31 0.15Filter life (months) 3 9Labor hours (per change out) 8.3 8.3

Filter disposal cost (per change out) 100 100

Number of change outs per year 4 1.25

Filter change out labor hours per year 33 10.4Filters used per year 400 125Change out labor costs per year $1,187 $374 $813

Filter disposal costs per year $400 $125 $275Filter costs per year $1,400 $1,000 $400Total Cost $2,987 $1,499Total Cost Reduction $1,488

Lowering average pressure drop on the filter produces

additional savings from reduced energy consumption


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AirFreedom market sectors

High range (G4) of low-range pre filters

Low range of mid level filters (F5-6)

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Level Arrestance Ratings Application End User Price

Low60%-90% G1-3 Residential 99% HEPA

ULPA

Commercial/ industrial

Gas turbine

$70-$125

Filter Categories


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Our Technology

New filter configuration

Filter media plate with proprietarystructure

Harnesses known negative effect inmedia filters = improves utilization offilters internal space/volume

Captures more dust particles in filtervolume

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AirFreedoms technology extends the life ofexpensive primary filters


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Completed

Alpha prototype results: dust holding capacity up to 3,100/g/m2

Beta model results: 2-4 times dust holding capacity withoutcompromising arrestance

Final design adapted for ASHRAE 52.2 testing

Tested by independent laboratory at Blue Heaven Technologies:

Next Steps

Adapt plate for specific application(s) in cooperation with strategicpartner(s)

Finalize commercial product

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Development Status


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Established 2008

Operates in Mofet BYehuda Innovation Accelerator, member of TheTrendlines Group

Investor Mofet BYehuda Innovation Accelerator

The Team

Eliezer Zohar, VP Business Development. Competitive intelligenceconsultant, former marketing director of technology incubator, head ofmarketing intelligence, Telrad; M.Sc., industrial psychology, HullUniversity, England

Michael Gershman, Ph.D., CTO. Expert in air filtration, fluid dynamicsand separation technology; Ph.D., theoretical mechanics, LeningradState University, Russia

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The Company


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Strategic partnerships with key filter, filter media manufacturers

Select partner according to

Market (HVAC, gas turbine, etc.)

Geographic coverage

Established manufacturing, marketing capabilities

No exclusivity

Joint development for specific applications

AirFreedom supports product commercialization

Strong incentive for partner increase revenues, margins

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AirFreedom revenues from royalties on sales

Business Model


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Independent testing in respected U.S. facility

In contact with leading filter/filter media manufacturers in U.S.,Europe, China, India

Working with industry experts to support contact base

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Business Development

From these efforts and activity outlined here, I genuinely believe that

the IP and business acumen ofAirFreedom has a bright future in the USmarket.Bob Burkhead Blue Heaven TechnologiesLouisville KY


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Industry players are showing strong interest in theAirFreedom potential

Dear Mr. Zohar,Thank you for the information. This technology could be specially

useful for India's high ambient dust conditions. We are interested to pursuethis further.

Vinay Bothra - Spectrum Filtration Pvt Ltd

I can hardly wait to study the file, so interesting! especially the test result. I

can say Yantair is very interest in developing the new technology and product

with Air Freedom. I 'd like to invite Mr Zohar to visit Yantair accompanied by youin your convenient time, so that we talk more details face to face.

Water Yantair - China

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Ahlstrom is signing the mutual NDA and we can talk about your technologyand how it may be of benefit to us. Can you please send data etc that we

can use to evaluate this technology? We are definitely looking for

technology to improve our DHC. Len Duello - Product Development Manager - Dust Filtration

We are interested. I have attached our NDA for your review so we cancontinue moving forward.

Mark J. Mattingly - Manager - National Sales

Koch Filter Corporation

Industry players are showing strong interest in theAirFreedom potential

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Key competition = technologies with improved dustholding capacity

Camfil Farr 30/30

Claim 30% greater capacity High price - $16

Nalco

Filter media from synthetic material

Structure of fibers allows increased dust holding Requires new filter design + new production line

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Competition


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($000) 2011 2012 2013 2014 2015

Partner/Manufacturer

Revenues 1,520 6,920 13,414 25,851 47,999

Air Freedom

Revenues (from royalties) 61 484 1,341 2,585 4,800

Operating Profit (454) (31) 751 1,935 4,050

Net Profit after tax (454) (31) 751 1,451 3,037

Accumulated net profit (454) 485) 267 1,718 4,755

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Net profit high value relative to revenues (royalties),operating profit

Streamlined operation

No COGS = value of $48 million for manufacturer

Financial Highlights


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AirFreedom is seeking to raise an investment to

Optimize technology

Develop specific products in collaboration with first

strategic partners

Advance IP protection

Improve testing facilities (??to clarify)

Business development to begin additional strategicpartner relationships

Funding


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Bringing innovation to air filtration

Reduces costs through improved operation, lower energyrequirements, less maintenance

Team experienced in business development and air filtration, fluidmechanics

Portfolio company in Mofet BYehuda Innovation Accelerator

Three provisional patents

Seeking investment to commercialize product

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Summary


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Thank You

Air-Freedom Ltd.

Eliezer ZoharMofet BYehuda Innovation AcceleratorP.O. Box 80 Kiryat Arba 90100, IsraelPhone: [email protected]

air freedom investor presentation 22 8 10

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