Advancing Recycling and Organics Management:

A Sustainable Future

NEW TECHNOLOGIES FOR MANAGING ORGANICS

Presented by:Jim Coull

Converted Organics Inc.’s

HTLC Technology

Who is Converted Organics? Converted Organics Inc. is currently composed of three primary lines

of business at the intersection of Agriculture, Water and Waste Recycling:

– Organic fertilizer (Converted Organics™)

– Vertical farming (TerraSphere Systems)

– Industrial wastewater treatment (Industrial Wastewater Resources)

Organic Fertilizer Business - What do we do? Provide a proven, cost-effective option for dealing with organic waste.

– Organic waste comprises 10-20% of the waste stream.

– Organic waste is heavy, odorous, and a lead cause in vector attraction at landfills and transfer stations.

– Organic waste is the largest untapped portion of the waste stream for increased recycling.

COMPANY OVERVIEW

Expired/Spoiled Goods from Market Become Food Waste

Fertilizer Sold to

Agriculture, retail lawn & garden, and turf markets

Crops Sold at Market Converted Organics processes foods waste into fertilizer

Crop Production

ORGANIC FERTILIZER BUSINESS MODEL

Food waste diverted from landfills

Convert food waste into organic fertilizer using an advanced “green” process

Sale of organic fertilizer

Retail

Professional

Turf

Agribusiness

ORGANIC FERTILIZER BUSINESS MODEL

31 million tons of food waste is disposed of in U.S. landfills annually

Americans waste about 27 percent of their food, according to the USDA

When land-filled, food waste decomposes to produce methane gas

Methane gas is 20x more destructive than CO2 as greenhouse gas

The production of 1 ton of synthetic fertilizer requires the burning of enough natural gas to release 4.6 tons of carbon dioxide into the atmosphere

FOOD WASTE IS A HUGE PROBLEM

SOLUTION: AEROBIC DIGESTION / FOOD WASTE RECYCLING

Reduces Dependence on Chemical Pesticides / Fungicides / Herbicides– The products provide soil nutrients and improve plant health – healthy

plants need fewer pesticides, which can be harmful to farm workers and the environment.

Promotes Sustainable Agriculture – The products provide nutrients and organic matter to soils, reducing the

need for chemical fertilizers, which pollute lakes and rivers.

Reduces Greenhouse Gas Emissions – The process diverts waste from landfills and incinerators, which release

climate-altering methane and carbon dioxide.

CONVERTED ORGANICS’ TECHNOLOGY & PROCESS

High Temperature Liquid Composting (HTLC®) Technology– Rapidly converts organic matter (including fish byproducts,

vegetable and plant wastes, meat wastes, etc.) into high quality, manure-free liquid organic fertilizer products.

– Proven technology successfully operated for many years.

The Process– Accepts a much wider range of

food wastes

– Product cycle takes days, not weeks

– No odors, dust, or leachate

– Does not attract vermin or seagulls

THE PRODUCT: LIQUID ORGANIC FERTILIZERS

High-value product in great demand in agribusiness and turf/specialty markets.

Increases crop yields by 30% while using significantly less fertilizer.

Grows healthier plants that need fewer pesticides/fungicides.

Reduces chemical fertilizer runoff.

Unlike chemical fertilizers, the product restores soil nutrients, creating healthy, sustainable agriculture.

Consistent and stable.

PRODUCT POSITIONING

• No synthetic chemicals

• No manures

• No chicken waste

• No bio-solids

• Pathogen free

% Crop Yield Increase

Crop 8-1-4 4-1-8 XK GP LC PCF TotalsAlmonds -- -- -- 23 32.6 25.4 27Pistachios -- 31.9 41 -- -- -- 36.5Grapes -- -- -- 36.6 39 29.1 34.9Onions -- -- -- 33 43.6 37.9 38.2Fresh Tomatoes -- -- -- 31.1 19.2 19 23.1Processing Tomatoes -- -- -- 25.6 24.8 24.3 24.9Rice 13.3 -- -- 10.4 14.4 10.7 11.8Wheat 24.9 -- -- 20.6 28.3 24.9 24.6

Totals 19.1 31.9 41 25.8 28.8 24.5 28.5

Conducted in 2010 by one of largest U.S. agriculture retailers

CONVERTED ORGANICS CROP TRIALS

AGRICULTURE REPRESENTS 98% OF U.S. FERTILIZER DEMAND - 23M TONS, OR 40%, IS LIQUID FERTILIZER

Millions of Tons

Source: U.S. Fertilizer Institute and Scott’s Miracle-Gro Presentation

Converted Organics target markets

Market Product Type

1

58

Dry Bulk

Liquid (includes anhydrous ammonia)

57

29

23

6

58

Dry BaggedAgriculture

Non-Agriculture(Lawn & Garden,Professional Turf, Other)

MONTANA

WYOMING

IDAHO

WASHINGTON

OREGON

NEVADA

UTAH

CALIFORNIA

ARIZONA

NORTH DAKOTA

SOUTH DAKOTA

NEBRASKA

COLORADO

NEW MEXICO

TEXAS

OKLAHOMA

KANSAS

ARKANSAS

LOUISIANA

MISSOURI

IOWA

MINNESOTA

WISCONSIN

ILLINOISINDIANA

KENTUCKY

TENNESSEE

MISS

ALABAMAGEORGIA

FLORIDA

SOUTHCAROLINA

NORTH CAROLINA

VIRGINIA

WV

OHIO

MICHIGANNEW YORK

PENN

MARYLAND

DELAWARE

NEWJERSEY

CONNRI

MASS

MAINE

VT

NH

ALASKA

HAWAII

TOTAL LIQUID FERTILIZER CONSUMED (2007) BY REGION

Millions of Short Tons – Total = 22.5M Short Tons

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New England 0.0M Tons0% of U.S. Total

Mid-Atlantic 0.40M Tons2% of U.S. Total

East North Central 5.1M Tons23% of U.S. Total

South Atlantic 1.5M Tons7% of U.S. Total

East South Central 0.7M Tons3% of U.S. Total

West South Central 2.7M Tons12% of U.S. Total

West North Central 8.0M Tons36% of U.S. Total

Mountain 1.3M Tons6% of U.S. Total

Pacific 2.8M Tons12% of U.S. Total

Other 0.1M Tons0% of U.S. Total

Source: Commercial Fertilizers, 2007 – The Fertilizer Institute

THERE ARE SEVEN MILLION CERTIFIED ORGANIC FARM ACRES IN U.S., GROWING AT 12% CAGR

Source: Organic Farming Research Foundation

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U.S. ORGANIC FARM SEGMENT IS A CAPTIVE MARKET FOR CONVERTED ORGANICS, BUT IT IS A SMALL PERCENTAGE OF TOTAL FARM ACREAGE

796

4

U.S. Conventional Cropland Acreage

Millions of Acres

Source: USDA, National Agricultural Statistics Service (2007)

U.S. Organic Acreage

CAGR 1992-2005: +12% per year

20051992 1997 2002 2003 20041993 19951994 2000 2001

0.9

1.3

1.8

2.11.9

2.2

3.0

4.1

1.0 1.00.9

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NATURAL ORGANIC MATERIALS REPRESENT LESS THAN 1% OF TOTAL FERTILIZER USED IN THE U.S.

27.3

19.6

3.0

6.6

7.8

0.7

Multiple Nutrients (NPK)

Phosphate Materials

Natural Organic Materials

Nitrogen Materials

Millions of Short Tons (100% = 57.6M Tons)

Source: The Fertilizer Institute (2007)

Secondary & Micronutrients

Potash Materials

Converted Organics product category

EIGHTY PERCENT OF CERTIFIED ORGANIC CROPLAND ACREAGE IS CONCENTRATED IN 15 STATES

Number of acres

AK

HI

CA

WA

MT

ID

NV

WY

UTCO

AZ

NM

OR

ND

TX

OK

KS

NE

MN

IA

LA

AR

MS

AL

FL

GA

TN

SDWI

IL

MOKY

INOH

MI

SC

NC

VT

ME

NY

PA

MD

NH

DE

MA

NJ

RI

DC

VAWV

• If our highest priority Agriculture Market is the organic farm market, we should focus our sales effort on those states that have the greatest number of certified organic acres

• The shaded states represent high priority markets for organic fertilizers• When we move forward with changing the Biolizer brand name, we should prioritize the

states accordingly for re-certification

Source: USDA Census – Published February, 2009

> 200K acres

100K - 200K acres

40K-100K acres

< 50K acres

CT

AK

CONTACTS

Jim Coull, JM Coull Inc. Converted Organics Inc.

978.461.0330 (o)978.290.0624 (m)jcoull@jmcoull.com

Converted Organics Inc.137-A Lewis WharfBoston, MA 02110617.624.0111617.624.0333 faxwww.convertedorganics.com

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