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

Environmental Engineering Enterprise for global wastewater Industry

2. Business Summary

The wastewater industry is a trillion dollar industry. Automated wastewater cleaning technology using potable water systems to treat Council Municipal Pump (Lift) Stations has been around for more than a decade. Systems are now being replaced by our new technology which uses the wastewater within the Pump (Lift) Station to do the cleaning process. With the extensive focus on conserving potable water, it is a strategic time to steal a march on the global market. Our new revolutionary technology is simple in design, conserves water, eliminates the use of toxic chemicals, supports better workplace health and safety practice and is cost effective. Our product was first launched into the US market in October 2006 and gained instant acceptance. Expansion into Canada was undertaken in February 2007 and followed by Australia in April 2007. All markets are eagerly embracing this new water saving technology. The primary market is Government agencies and local Council municipalities. Whilst acceptance is high, sales conversion requires direct(face to face) representation and product trial. Reliance on manufacturer representatives has been slow and less effective. Product supply can be readily scaled up and delivers significant ecomomies of scale. The company requires funding to expand its own dedicated sales force, raise market awareness and fully capitalize on demonstrated market potential.

Updates

3. Estimate of Market Size and Growth Potential

Number of Lift Pump Stations @ USD$3500 - $4000 per unit: Australia - 15000 + 500per yr new growth Canada - 18000 + 500per yr new growth USA - 600,000 + 2000per yr new growth UK - 60,000 + 400per yr new growth Europe - 1,200,000 + 2000per yr new growth Asia - 50,000 + 1000per yr new growth China - 500,000 + 2000per yr new growth Japan - 40,000 + 300per yr new growth India - 50,000 + 300per yr new growth Middle East - 30,000 + 200per yr new growth The sales we have made has taken place over a period of 6 months using only 2 sales people.

4. Market Demand

Waste water pump stations are the same all over the world. These stations require daily-weekly maintenance otherwise the system breaks down and Environmental Protection Agencies audit the councils - resulting in huge fines. Chemicals, manual labour and some alternatives that exist in the market all offer part of a solution - our product offers a complete retro-fit solution to pump station maintenance needs representing significant cost savings and operating efficiences.

5. Competitive Advantage

Lower Sale Price
Volume of Scale
Government Regulation
Intellectual Property
Contracts - Government

Government Regulation specify that collection stations be maintained using envronmentally friendly means - this is supported by Gov contracts via bids. The sale price is competitive and represents a one off cost rather than a monthly - yearly cost i.e. labour, plant, chemicals. Our MK1 design has a US Patent the MK11 design will feature a roll out of 3 distinct improvements that each have patent applications filed for international markets.

6. Market Distribution

To date we have been selling direct to the customer via our own sales team and manufacturer representatives. Sales leads have been generated by telephone marketing consultants and augmented through trade exhibits, waste water journals to engineers and municipal operators. Once new customers are established through the first site installation, repeat sales roll out to the other pump station sites. Further international expansion through licensed distributors agreements is a logical option that is not been factored into the current business plans.

7. Management

The current management team comprises expertise in Hydraulic engineering, sales, technical and quality assurance management, banking and financial markets, strategic planning. There is a continuing focus to build our executive team by bringing on board industry professionals and coupled with 12 months of wastewater business activity we continue to establish and build on our current business position. MD: Dip Hydraulic Engineering, 17yrs experience in construction hydraulics plumbing and wastewater industry management, managed various business's (Retail and Property),Sales, Business Dip. Strategic Planning. CFO: Dip Business, 20 yrs Business Banking and domestic/commercial finance Westpac, Sales, Dip. Business Management. 5 yrs involvement in the waste water industry. Admin & Sales Manager: 15 yrs Business Administration all diciplines, Dip. Social Science QA Manager: 30yrs experience in construction hydraulics plumbing and wastewater industry management various industry qualifications, Retail business owner, Quality Assurance experience.

8. Technology

The technology allows the distribution of reintroduced effluent into a wastewater collection system. This takes place through a self cleansing feed mast fed by discharge from existing pump rising mains within a station. At pump activation effluent passes through the feed mast into the washer head that then distributes the liquid in a rotating action evenly throughout the working level of the station thus removing grease etc and odor whilst hydrating the liquid - keeping well clean

9. Product Development

The base MK11 design has three new distinct improvements/enhancements. The base design that will carry the other releases is developed and being sold in the market place. The 2nd new design release is about to issue and incorporates a atomizer system that neutralizes H2S gas build up in the well (proto type built and being installed)The 3rd release(later this year)focuses on the removal of biological phosphate within the station which will form a pretreatment process before effluent reaches treatment plant. These developments represent significant product improvements that will enhance market interest and the market profile of the company.

10. Scalability

The product is contract manufactured and easliy produced in large volumes. The cost per unit decreases when produced in larger batch quantites. The cost will fall further when capital becomes available to finance ejection moulding etc for production. Single unit cost is $1500 to produce - 40 units would cost $500 per unit to produce - 100+ units cheaper again. The unit is constructed from 316/304 stainless steel. Further economies are achieved where customers undertake their own installations including direct labour savings, warehousing and shipment efficiences. In these examples the company provides QA and technical support via website (installation guides -warrantees etc.)

11. Intellectual Property in SME's Business

Copyright
Multiple Patents
Patents

We currently own a US Patent for the MK1 washer. We have filed application for Australian/international provisional patent for the MK11 model in readiness for per country filing.

12. Barriers to Entry

We feel we have a 5 year window of opportunity to claim our market share. There are competitors who have a version of our MK1 that have been operating in Australia for 12 yrs and have had good success but their product uses potable water and councils have been ordered to pull their products out because of water issues. They have started in the US but I have heard they are suffering similar issues there. Many of their clients in Australia and the US are preferring to use our new technology.

13. Milestones

Sales objectives in key markets: 12 mmths to Dec '07 $520k (120 Units) following Yr Dec'08 $2.25M (500 Units) Dec'09 $6.75M (1500 Units). Canada launched Feb '07; 1st Yr $200k (50 Units) Next 1yr $400k (100 Units) following Yr $1.2M (300 Units). Aus launched April '07; 1st Yr $200k (50 Units) Next 1yr $400k (100 Units) following Yr $1.2M (300 Units). By 2009 the company plans to expand into UK and Europe through licenced distributors. Sales staff required to support sales objectives: US Sales staff of 5 increasing to optimum of 10 Aus / Canada 2 to 3 per market. NZ 1 Salesperson.

14. Risks

1. Price rises in cost of materials ie stainless steel -looking to move our manufacturing to Brazil or Asia and investigating alternative materials. 2. Using manufacturers Reps who don't press your product because of other lines they carry - changing to dedicated sales force. 3. Another company copying our technology - we are first to market and employing ongoing research to further improve the current technology and product market appeal.

15. Company Valuation

Company has not been valued by an external valuer.

16. Abridged Profit & Loss

 

Last year results cover an 8 month period from April 2006 to Dec 2006. During this period the business was being established resulting in significant R&D costs, sales, marketing and travel expenses. Initial capital injection was required to meet set up costs. Significant product development has been completed. Sales projections relate only to the USA, Canada and Australian markets. Sales are now progressively increasing and this warrants significant funding to support international expansion.

17. Balance Sheet

18. Accumulated Sales since business started

Sales
$265,000

Years Established
1

19. Is the business solvent

yes

Solvency History

The SME has not been subject to any of the above. One director has been a director of a property investment company that has been in receivership - (appointed by the mortgagee as a protection measure against a remorseful vendor funder) matter has been settled and appointed receivers are being removed and the company sold.

20. No. of Employees

2 to 5

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

25

22. CAPstart Matching Product

23. Business Stage

Expansion

24. Role the investor would play

Executive Director
Investment Only
Chief Executive Officer

25. Main Location

overseas