CHEMSTATIONInternational Franchise

Ownership

CHEMSTATION Background

n ChemStation began in 1977 and developed and patentedmachinery necessary to automate the detergentmanufacturing process. The machinery and thetechniques used to manufacture ChemStation productsare unique in the industry.¡ The development of computerized manufacturing equipment

allows the ChemStation manufacturing equipment tocommunicate by way of proprietary software.

¡ This places the manufacturing process near the user, thusformulae can be created for a particular purpose and/or aparticular individual or department with an extremely shortturnaround between R&D and delivery.

¡ Products developed for a specific purpose in one part of theworld can be instantly available in other parts by a simpleelectronic message between the computers operating themanufacturing equipment.

CHEMSTATION Background

n ChemStation has grown its focus from simplerefillable containers into specialized markets andsegments.¡ ChemStation maintains departments that look after

such issues as:n Trainingn Research and Developmentn Regulations and other government issuesn Customer servicen Equipment design and repairn National account administration

FAQ’s

What is CHEMSTATION?n ChemStation is industrial detergent manufacturing using

a patented process and equipment.n ChemStation is just-in-time manufacturing and delivery.n ChemStation may be the only available manufacturing

franchise opportunity.n ChemStation produces environmentally friendly

products.n ChemStation delivers the product to the customer in

refillable containers, eliminating drums and othercontainers that end up as landfill waste.

n ChemStation customers are usually cleaning somethingin the printing, parts washing, vehicle cleaning, foodprocessing, landfill, refining, and general maintenanceindustries.

FAQ’s

What does it take to become aCHEMSTATION teammember?

n You need to be comfortable withselling and the sales process.

n You need the ability to manage andmotivate 7-10 employees.

n You do not need a chemicalbackground.

n You will need to be financiallysecure in order to exploit the marketopportunities within your country.

FAQ’s

What do I get when I sign on withCHEMSTATION?

n You get a unique way of doing business that makes it hardfor the customers to say no.

n You get a support system consisting of a team of chemists,a technical service department, on-call equipmenttechnicians and financial advisors to help you every stepof the way.

n You get initial week-long training, regional trainingmeetings, industry-specific training at the corporateheadquarters, and a four-day annual meeting for allowners.

n A proprietary software system like none other in thechemical industry.

The CHEMSTATION System

n ChemStation is industrial detergentmanufacturing using a patented processand equipment. ChemStation is just-in-time manufacturing and delivery usinga system of refillable tanks thateliminates container disposal.

CHEMSTATION Advantages

n Local manufacturing facilitiesn JIT delivery to minimize inventory carrying costsn Fastest possible response in the industryn Maximum 24-hour delivery guarantee for emergenciesn Service personnel on call 24/7n 6,317 Custom-formulated products (and growing)n Provide service and quality sanitation systems wherever it is neededn Trained staff for a number of industriesn Refillable containers eliminate the need to order, handle, inventory,

and dispose of other disposable containersn ChemStation employs personnel that are available to assist and

oversee plant set-upsn Proper dilution controlled with proportioning or automated

dispensing systemsn ChemStation maintains the functionality of installed equipment

How it Works

n ChemStation products are blends of proprietarychemicals manufactured and shipped from Dayton,OH and commodities purchased from a localcommodity distributor.

n Once a formula is custom-manufactured it isdelivered by your staff into refillable containers atthe customer location.

CHEMSTATION Products

H2O, 90%

Commodity, 5%

Blends, 5%

Commodities – Over 30 ChemStation-approved commodities (e.g., SodiumHydroxide, Sodium Hypochlorite,Phosphoric Acid, etc.) purchased fromyour local distributor.

Blends – Over 80 proprietary formulasdeveloped by and shipped fromChemStation International.

Industries Served

Landfill

Paper

Airport

Concrete

Hotel

Bottling

Car Wash

Refineries

Food Plants

Parts

Asphalt

Brewery

North America Network

Your CHEMSTATION Staff

n ChemStation is primarily a marketing opportunity. We have madethe Operations side of the business relatively simple. You willinitially need to hire, train, and motivate a staff of 7-10 employees.

n The Staff:n General Managern Operations Managern Delivery Drivern Administrative Assistantn 3-5 Salespeople

n ChemStation Corporate has a staffof employees to support youand your team.¡ Technical

n Food Teamn Parts Teamn Vehicle Team

¡ Computer and Operationsn Information Technology (IT) Teamn Equipment Team

The Support System

Food/Odor Control Team

n Our Food/Odor Control Team consists of:¡ Full-time Chemists¡ Technical Support people

¡ Industries Served:n Any Food Manufacturern Bottlingn Dairiesn Odor Control

(landfills, sewage treatment, etc.)

Parts Team

n Our Parts Team consists of:¡ Full-time Chemists¡ Technical Support people

¡ Industries Served:n Any manufacturer of various parts

¡ Automotive¡ Machinery, etc.

n Printing (water- or soy-based inks)¡ Corrugators¡ Newsprint

n Petrochemical¡ Refineries

Vehicle Team

n Our Vehicle Team consists of:¡ Full-time Chemists¡ Technical Support people

n Industries Served:¡ Any vehicle cleaning¡ Cars¡ Trucks¡ Airplanes¡ Boats¡ Equipment

n General Maintenance¡ Floor Cleaning¡ General Degreasing

References

n Food Industry¡ Tyson¡ Del Monte¡ Perdue¡ Sara Lee¡ Interstate Brands¡ Russell Stover

n Parts Industry¡ American Showa¡ Northrup Grumman¡ Dynex

n Vehicle Industry¡ Penske¡ Ryder¡ Alamo/National Car Rental¡ Schneider National¡ Superior Carriers

n Other Industries¡ Weyerhaeuser¡ Mead/Westvaco¡ Chevron¡ Dow Chemicals¡ Dupont¡ Shell

InformationTechnology Team

n Our IT Team supports:¡ H-700 Software

(Proprietary ChemStation software.)Operates the patented H-700 blendingmachinery.

¡ TANK Software(Proprietary ChemStation software.) Runsthe operations side of the business. Customerand prospect management.

H700 Software

n User-friendly interfacen Manages manufacturing

of custom formulationsn Simple intuitive promptsn Visual manufacturing

indicators

TANK Software

n Customer managementn Product managementn Delivery auto-schedulingn Truckload managementn Inventory managementn Vast reports menu

¡ Sales¡ Operations¡ Inventory

Equipment Team

n Our Equipment Team consists of:¡ Equipment Development staff

This team keeps your ChemStation equipment running properlyand helps design and develop equipment intended for customerinstallations.

¡ Customer Equipmentn Detergent Application Systemsn Centralized Systemsn Proportioning Equipment, etc.

Your CHEMSTATION Facility

n 8,000 – 14,000 sq ft including:¡ 1,500 sq ft office space

n General Manager officen Sales officen Operations Manager officen Administrative Assistant space

¡ 6,500 – 12,500 sq ft Warehousen Manufacturing Arean Chemical Storagen Equipment Storagen Container Storagen 2 Docks

Join Our Success# of Drums Eliminated

-

50,000

100,000

150,000

200,000

250,000

19941995

19961997

19981999

20002001

20022003

20042005

Total Customer Tanks

-

5,000

10,000

15,000

20,000

25,000

30,000

35,000

19941995

19961997

19981999

20002001

20022003

20042005

Grow With Us

Total Revenue

19941995

19961997

19981999

20002001

20022003

20042005

Number of Franchise Locations

0

10

20

30

40

50

60

19941995

19961997

19981999

20002001

20022003

20042005