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WHAT IS SWEETSKINZ?

•  The only manufacturing methodology that imbues any end product’s
   rubber surface with durable color graphics, designs or logos.



                     Technology
•  We manufacture a semi-finished screen-printed rubberized
   membrane with any desired combination of colors and graphics.


•  The rubberized membrane is permanently bonded under high heat
   to the end product’s rubber surface during the later stages of the
   manufacturing process


•  Our process can be used in the manufacture of any type of
   pneumatic tire as well as on footwear, conveyor belts, hoses, grips,
   and any other end product containing a rubber surface.
BACKGROUND


•  Started in 1999 with the goal of revolutionizing the tire industry



                         Background
•  Created the world’s first tire featuring:
     •  A variety of full-color graphics and patterns
     •  Inks and rubber compound formulas that resist discoloration due
     to heat, UV and carbon migration


•  Launched first tires in the bicycle segment
BRAND PROPOSITION
•  Tire manufacturers can finally add reliable color logos and branding
to their products


•  Colors are long lasting – even on black rubber

             Brand Proposition
•  Patterns can be consistent, repeatable, and finely detailed
WHAT WE DO




What We Do
WHAT WE DO




What We Do (cont.)
SIGNIFICANT MILESTONES
•  September 2006 – First consumer tires (Bicycle)

•  October 2006 – First patent granted

•  December 2007 – First sale of skinz to tire manufacturer (Bicycle)

        Significant Milestones
•  February 2009 – First ATV tires displayed at industry show

•  March 2009 – First motorcycle/scooter tires displayed at industry
          show

•  February 2009 – First ATV tires displayed at industry show

•  November 2000 – Successful development of inks and compound
        that resist rapid color degradation
TECHNOLOGY

•  SkinZ are printed with proprietary rubber inks


•  SkinZ are applied during the manufacturing process


                      Technology
•  SkinZ are vulcanized to the underlying green compound in the
molding process to produce a seamless and permanent bond


•  SweetskinZ ink and compoundformulas can be adjusted to work
with virtually any base rubber compound
PROTOTYPES




               Prototypes




Both full tire and sidewall only applications are possible
MANUFACTURING PROCESS
                     (TYPICAL TIRE MANUCATURING PROCESS)



    Below is an exploded view of the layers for a full graphic tire with
    SweetskinZ SkinZ added

    These layers would then be connected at the two ends to form a belt
               Manufacturing Process
    that would then be molded into the final tire




Top Layer: SweetskinZ SkinZ



Middle Layer: Base Rubber Compound



Bottom Layer: Tire Belting
PRODUCTION CAPABILITY

•  Current maximum capacity (one shift) - 540,000 sheets per year

•  Current maximum capacity (three shifts) - 1.62 million sheets per year


         Production Capability
•  For example, a typical sheet can produce approximately:
      •  5 Mountain bike SkinZ
      •  20 Motorcycle/scooter sidewall SkinZ
      •  20 Shoe sole SkinZ
      •  100 Auto tire logo SkinZ
      •  5 Auto tire sidewall SkinZ

•  Additional capital cost to double maximum capacity
   (three shifts) - $600,000
WHERE WE ARE TODAY




Where We Are Today
BICYCLE TIRES
•  Authorized distributors and sales in 28 countries on 4 continents
   accounting for approximately 90,000 units to date

•  Present manufacturing partners:
  Vee Rubber Company, Hwa Fong/Duro Rubber Company, and

                    Bicycle Tires
  Jurong Excel Rubber Company- with overall total sales volume in
  excess of $380 million per year

•  In advanced stages of product development with one of the leading
  bicycle tire manufacturers whose current overall production volume
  is more than 60 million tires per year

•  Bicycles with SweetskinZ tires sold in Walmart ®,
  Toys’R’Us ®, and JBB Sports ® retail stores
MOTORBIKES,
             MOTORCYCLES, & ATV

•  Featured at the 2009 Bangkok Motor Show on Innoue Rubber

Motorbikes, Motorcycles, and
  Company (IRC) and Hwa Fong/Duro Rubber Company
  motorbike tires


                             ATVs
•  Featured at the 2009 Indianapolis Dealer Expo on Cheng Shin
 Rubber Company ATV tires


•  Receiving production orders
  from the above companies
AUTO & TRUCK TIRES
•  In advanced stages of product development with major tire
  manufacturer in India for:

    •  OEM tires for auto manufacturers based in India


         Auto and Truck Tires
    •  Aftermarket tires sales into major markets of India, Africa,
       Middle East, and Europe

    •  Color logos/branding on all tires manufactured
2008 WORLDWIDE MOTORIZED
               TIRE SALES
•  Passenger cars, light trucks and medium duty trucks –
  over 1.3 billion units

•  Motorcycles, motorbikes, electric scooters, ATVs –
  Over 160 million units
                          2008 Tire Sales
SOURCES: Modern Tire Dealer Magazine - 2009 Facts; CSM Auto Worldwide Global Production Summary; Electric Bikes
Worldwide Report – 2008 Update; Motorcycle Industry Council; A. G. Edwards & Sons
FOOTWEAR


•  In advanced stages of product development with 3 major
  international footwear manufacturers for:

                        Footwear
    •  Hiking and outdoor shoes

    •  Children’s footwear

    •  Soccer shoes

    •  Other sporting shoes
SALES & MARKETING
                REPRESENTATION
•  In the process of signing agreement with one of the worlds largest
  industrial conglomerates headquartered in Japan

           Sales and Marketing
•  New partner company currently represents a wide range of sporting
  goods products including:

                 Representation
    •  Fitness equipment, including treadmills

    •  Golf club grips

    •  Bat grips

    •  Sports footwear

    •  Rubber flooring and mats
COMPANY MANAGEMENT
•  Victor Rollins, Vice President of Sales & Marketing (2006 to present)
      •  Twenty plus years experience in sales and marketing in bicycle
         industry and international business
      •  Formerly Vice President of Sales of Cycle Source Group, LLC
      •  Studies at North Carolina State University and
        Allegheny County College

      Competitive Advantage
COMPETITIVE ADVANTAGE

•  US Patent on process of bonding colorful/reflective skin to tire;
  Multiple other patents granted or pending

•  Valuable proprietary processes
       Competitive Advantage
      •  Rubber printing technology
      •  Ink formulas
      •  Proprietary compound/ink interaction expertise

•  Only company to effectively print on uncured rubber surface and to
  do so with repeatable patterns containing fine details

•  Many possible applications/markets for SweetskinZ product outside
  the tire market
WHAT WE SEEK


•  SweetskinZ is looking for the right partner to:

    •  Joint venture/strategic partner

                  What We Seek
    •  License technology for a particular vertical market or
      geographic region

    •  Invest capital to help expand commercialization of product

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Sweetskinz Graphic Rubber

  • 2. WHAT IS SWEETSKINZ? •  The only manufacturing methodology that imbues any end product’s rubber surface with durable color graphics, designs or logos. Technology •  We manufacture a semi-finished screen-printed rubberized membrane with any desired combination of colors and graphics. •  The rubberized membrane is permanently bonded under high heat to the end product’s rubber surface during the later stages of the manufacturing process •  Our process can be used in the manufacture of any type of pneumatic tire as well as on footwear, conveyor belts, hoses, grips, and any other end product containing a rubber surface.
  • 3. BACKGROUND •  Started in 1999 with the goal of revolutionizing the tire industry Background •  Created the world’s first tire featuring: •  A variety of full-color graphics and patterns •  Inks and rubber compound formulas that resist discoloration due to heat, UV and carbon migration •  Launched first tires in the bicycle segment
  • 4. BRAND PROPOSITION •  Tire manufacturers can finally add reliable color logos and branding to their products •  Colors are long lasting – even on black rubber Brand Proposition •  Patterns can be consistent, repeatable, and finely detailed
  • 6. WHAT WE DO What We Do (cont.)
  • 7. SIGNIFICANT MILESTONES •  September 2006 – First consumer tires (Bicycle) •  October 2006 – First patent granted •  December 2007 – First sale of skinz to tire manufacturer (Bicycle) Significant Milestones •  February 2009 – First ATV tires displayed at industry show •  March 2009 – First motorcycle/scooter tires displayed at industry show •  February 2009 – First ATV tires displayed at industry show •  November 2000 – Successful development of inks and compound that resist rapid color degradation
  • 8. TECHNOLOGY •  SkinZ are printed with proprietary rubber inks •  SkinZ are applied during the manufacturing process Technology •  SkinZ are vulcanized to the underlying green compound in the molding process to produce a seamless and permanent bond •  SweetskinZ ink and compoundformulas can be adjusted to work with virtually any base rubber compound
  • 9. PROTOTYPES Prototypes Both full tire and sidewall only applications are possible
  • 10. MANUFACTURING PROCESS (TYPICAL TIRE MANUCATURING PROCESS) Below is an exploded view of the layers for a full graphic tire with SweetskinZ SkinZ added These layers would then be connected at the two ends to form a belt Manufacturing Process that would then be molded into the final tire Top Layer: SweetskinZ SkinZ Middle Layer: Base Rubber Compound Bottom Layer: Tire Belting
  • 11. PRODUCTION CAPABILITY •  Current maximum capacity (one shift) - 540,000 sheets per year •  Current maximum capacity (three shifts) - 1.62 million sheets per year Production Capability •  For example, a typical sheet can produce approximately: •  5 Mountain bike SkinZ •  20 Motorcycle/scooter sidewall SkinZ •  20 Shoe sole SkinZ •  100 Auto tire logo SkinZ •  5 Auto tire sidewall SkinZ •  Additional capital cost to double maximum capacity (three shifts) - $600,000
  • 12. WHERE WE ARE TODAY Where We Are Today
  • 13. BICYCLE TIRES •  Authorized distributors and sales in 28 countries on 4 continents accounting for approximately 90,000 units to date •  Present manufacturing partners: Vee Rubber Company, Hwa Fong/Duro Rubber Company, and Bicycle Tires Jurong Excel Rubber Company- with overall total sales volume in excess of $380 million per year •  In advanced stages of product development with one of the leading bicycle tire manufacturers whose current overall production volume is more than 60 million tires per year •  Bicycles with SweetskinZ tires sold in Walmart ®, Toys’R’Us ®, and JBB Sports ® retail stores
  • 14. MOTORBIKES, MOTORCYCLES, & ATV •  Featured at the 2009 Bangkok Motor Show on Innoue Rubber Motorbikes, Motorcycles, and Company (IRC) and Hwa Fong/Duro Rubber Company motorbike tires ATVs •  Featured at the 2009 Indianapolis Dealer Expo on Cheng Shin Rubber Company ATV tires •  Receiving production orders from the above companies
  • 15. AUTO & TRUCK TIRES •  In advanced stages of product development with major tire manufacturer in India for: •  OEM tires for auto manufacturers based in India Auto and Truck Tires •  Aftermarket tires sales into major markets of India, Africa, Middle East, and Europe •  Color logos/branding on all tires manufactured
  • 16. 2008 WORLDWIDE MOTORIZED TIRE SALES •  Passenger cars, light trucks and medium duty trucks – over 1.3 billion units •  Motorcycles, motorbikes, electric scooters, ATVs – Over 160 million units 2008 Tire Sales SOURCES: Modern Tire Dealer Magazine - 2009 Facts; CSM Auto Worldwide Global Production Summary; Electric Bikes Worldwide Report – 2008 Update; Motorcycle Industry Council; A. G. Edwards & Sons
  • 17. FOOTWEAR •  In advanced stages of product development with 3 major international footwear manufacturers for: Footwear •  Hiking and outdoor shoes •  Children’s footwear •  Soccer shoes •  Other sporting shoes
  • 18. SALES & MARKETING REPRESENTATION •  In the process of signing agreement with one of the worlds largest industrial conglomerates headquartered in Japan Sales and Marketing •  New partner company currently represents a wide range of sporting goods products including: Representation •  Fitness equipment, including treadmills •  Golf club grips •  Bat grips •  Sports footwear •  Rubber flooring and mats
  • 19. COMPANY MANAGEMENT •  Victor Rollins, Vice President of Sales & Marketing (2006 to present) •  Twenty plus years experience in sales and marketing in bicycle industry and international business •  Formerly Vice President of Sales of Cycle Source Group, LLC •  Studies at North Carolina State University and Allegheny County College Competitive Advantage
  • 20. COMPETITIVE ADVANTAGE •  US Patent on process of bonding colorful/reflective skin to tire; Multiple other patents granted or pending •  Valuable proprietary processes Competitive Advantage •  Rubber printing technology •  Ink formulas •  Proprietary compound/ink interaction expertise •  Only company to effectively print on uncured rubber surface and to do so with repeatable patterns containing fine details •  Many possible applications/markets for SweetskinZ product outside the tire market
  • 21. WHAT WE SEEK •  SweetskinZ is looking for the right partner to: •  Joint venture/strategic partner What We Seek •  License technology for a particular vertical market or geographic region •  Invest capital to help expand commercialization of product