Remember that the information below is not meant to be in any way a complete analysis of the opportunity, but to give potential Investors an overview of some of the issues that may be important. Interested investors should examine further information. Also please refer to the terms and conditions in your subscription agreement.

1. Proposal Title/Headline

Unique Patented Energy Saving Roof Coating.

2. Business Summary

The Company has a unique, patented (PCT stage) Selective Surface Coating product. It is the only product of its kind that produces a net cooling within metal roofed buildings. Coating is applied to metal roofed industrial and commercial buildings and is applicable for shopping centres, supermarkets, warehouses, factories, low rise office buildings. Temperature reduction leads to considerably lower building costs, and lower capital and operating costs of air conditioning plant required in these buildings. Company's first contracts just signed with major national supermarket chain and State government. Financial Projections show a positive operating cash flow in the first year of operation.

Updates

3. Estimate of Market Size and Growth Potential

Potential market for the product is global and extremely large, there are not any market statistics available as there is no comparable product. Product is new and unique in cost benefits provided, it will create a demand wherever there are large metal roofed industrial and commercial buildings in temperate and tropical climates throughout the world. Applications include shopping centres, supermarkets, warehouses, factories, low rise office buildings. 1. Aust. market: annual new build + retrofit 3. Overseas: Southern US only (although many other warm to hot region countries apply). 4. US exchange rate = US$0.56=A$1

4. Market Demand

Significant Cost Savings - in the following areas: Air conditioning power consumption - around 40-60% p.a. Air conditioning capital cost - up to 40% once off. Roof construction - up to 25% once off. Colourbond roofing and insulation not required Roof maintenance reduction through application of long life external coating. Also effective in cooling large non-airconditioned structures. No equivalent product is currently available in examined markets.

5. Competitive Advantage

Intellectual Property

The product is unique in cooling large metal roofed buidings providing a low cost method to achieve considerable energy cost savings. Product is patented and is at the PCT stage.

6. Market Distribution

Due to IP & QA factors all sales, marketing and distribution will initially be done by company and selected contractors.

7. Management

Chairman: Former Chairman,major Australian Defence Force, Paint and Coating Committee. Former CEO of large public company successfully dealing in innovative products. Extensive experience as an adviser to one of Australia's most successful overseas companies. Very experienced in managing the patent process. Chief Executive Officer: (major shareholder) - has 27 years experience in researching, introducing and launching new products in IT. Experienced in taking new products to market. Sales Manager: (major shareholder) - has 5 years experience marketing to industrial companies and state government.

8. Technology

Coating absorbs heat from solar radiation and from within the building which it then reradiates through a narrow infra-red wavelength "atmospheric window". Net result being internal temperatures lower than ambient air. The solar load (by far the greatest heat load on most buildings) is totally eliminated. This directly translates into considerable power savings (air coditioning).

9. Product Development

Product is developed and has been fully analysed by the University of Technology, Sydney and the Queensland University of Technology. Results available to interested investors. The NSW Dept. of Education has run very successful field trials from which reports are also available.

10. Scalability

Initial batches will be 1000 litres, later increasing in line with demand to 5000 litres. Accordingly, economies of scale will yield a lower unit cost. This will be achieved through volume discounts on raw materials, manufacturing efficiencies and distribution costs. The scaling up of manufacturing can be closely matched to demand thereby minimising stockpiling large buffer stocks.

11. Intellectual Property in SME's Business

Patents
Trademark

The company is the registered owner of the Patent and Trade Marks. A PCT International Patent Application has been filed with a priority date of 7th June, 2001.

12. Barriers to Entry

The primary barrier to the entry of effective competition is the Patent. Three years research has not indicated equivalent product anywhere in the world. We believe reverse engineering would be very difficult as Spectrographic analysis would not reveal the formula as the pyhsical property of the key element would be destroyed in the analysis.

13. Milestones

1. Initial production batch (4,200 lt): completed 2. Initial 2 customer applications: commenced 3. IP payment to inventor: $25,000: completed 3. IP payment to inventor: $80,000 Sept.02 4. Office/manufacturing capacity: Sept.02,- $160,000 5. Marketing programs: Oct.02,- $50,000 6. 8 projects completed within first 6 months (2 by mid July)

14. Risks

1. Market acceptance;- creditable technical analysis available, large retail chain convinced already, to the extent of conducting trials. 2. Marketing into construction industry;- director has extensive marketing experience, early activity indicates strong acceptance once reference sites become available. 3. Q.A. product must be applied correctly; - company policies will ensure QA management through all processes including application.

15. Company Valuation

No external evaluation of the company and its potential has yet occured.

16. Abridged Profit & Loss

 

1. Sales commenced in July 2002 2. 4200 litres of product produced (costs incurred) in May,02 to fill orders invoiced in July 3. 2003-4 sales growth due to customers' uptake after field trials. This uptake continues beyond next two years.

17. Balance Sheet

18. Accumulated Sales since business started

Sales
$0

Years Established
2

19. Is the business solvent

yes

Solvency History

20. No. of Employees

2 to 5

21. Shareholding % to be issued to new investor for investing.

neg

22. CAPstart Matching Product

  C1

23. Business Stage

Startup of business

24. Role the investor would play

Non Executive Director

25. Main Location

NSW