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Page 1: Carbon Cleaning Systems-2012Oct12

WE GO BEYOND GREEN ENERGY

EPOCH ENERGY TECHNOLOGY CORP CARBON CLEANING SYSTEMS

WINNER OF THE PRESTEGIOUS ENERGY GLOBE WORLD AWARD FOR THE CATEGORY “AIR” IN 2010

ENVIRONMENTAL GREEN MARK

www.oxy-hydrogen.com

Page 2: Carbon Cleaning Systems-2012Oct12

MILESTONES 1994 First of many Patents granted in Taiwan & Internationally

(currently more than 150 patents in 30 countries)

1998 Epoch Oxy-hydrogen Generator Market Debut

1999 Customer Satisfaction Gold Medal Award (Taiwan)

2000 Sales to the Australia, Japan, China, Hong Kong, Korea, Malaysia, Thailand, Singapore

2000 Jul. European SLG CE Mark Certification

2000 Nov. ISO 9001 Accreditation

2003 Apr. Granted 5-year Tax-Exempt Incentive for New Strategic Industries,

Industrial Development Bureau, Ministry of Economic Affairs (Taiwan)

2007 Mar. Granted Listing on Taiwan’s OTC Stock Exchange (March 29th)

2008 Jan. Golden Root Award (Taiwan)

2008 Jan. Epoch’s Solar Water Heater is granted the Taiwan Green Mark

2008 Apr. Golden Quality Award (Taiwan)

2008 May Received the Energy Globe Honorary National Award for Taiwan (in Brussels)

2008 Dec. SME Innovation Research Award

2009 April Received a National Energy Globe Award for our EP-2000 (2nd year in a row)

2009 Aug. President Jacky Lin received a National Invention and Creation Award Sliver

Medal for his Dual-Fuel System.

2010 June Winner of the top Energy Globe World Award in the category “Air” for our EP-C series

(3rd year in a row)

2011 Winner of an Energy Globe Foundation National Award for our Carbon Cleaning

System (the only 4-time winner and our fourth award in a row).

Page 3: Carbon Cleaning Systems-2012Oct12

Some Of Our Patents

JAPAN FRANCE

SOUTH KOREA CANADA

NEW ZEALAND

USA GERMANY

CHINA

TAIWAN

SOUTH AFRICA

U. K.

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Worldwide Recognition

www.oxy-hydrogen.com

2011 Energy Globe National Award 2010 Energy Globe World Award 2009 National Award 2008 Honorary National Award

EPOCH is the only 4-time winner of an Energy Globe Foundation Award Our most recent National Award in recognition of our Carbon Cleaning System

Page 5: Carbon Cleaning Systems-2012Oct12

2008 Energy Globe Awards EU Parliament, Brussels

Keynote speakers included Kofi Anan, Mikhail Gorbachev and Maneka Gandhi

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Meeting with Olafur Grimsson, President of Iceland, 2008 Immediately following the 2008 Energy Globe Awards

www.oxy-hydrogen.com

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2010 Energy Globe World Award Held in Rwanda

Epoch’s President Mr. Jacky Lin receives a 2010 Energy Globe World Award from Mr. Achim Steiner, the Executive

Director of UNEP. Mr. Steiner also serves on a number of international advisory boards, including the China Council

for International Cooperation on Environment and Development (CCICED) and the Environmental Advisory Council

(ENVAC) of the European Bank for Reconstruction and Development (EBRD).

For the 2010 award competition, almost 900 projects were submitted from more than 100 countries around the world. Only one winner from each country could win a national award. From these national winners, 3 projects were nominated for each of 5 categories; Earth, Fire, Water, Air and Youth. EPOCH was chosen as the World Winner in the category “Air”.

Page 8: Carbon Cleaning Systems-2012Oct12

Taiwan Awards

www.oxy-hydrogen.com

The Taiwan Green Mark is given only to those products which meet the most environment friendly criteria. This certification is now being recognized internationally.

Page 9: Carbon Cleaning Systems-2012Oct12

PRODUCTS AND TECHNOLOGIES

OXY-HYDROGEN

SOLAR

MOBILE INCINERATOR

SOLAR WATER HEATERS

GAS

GENERATORS

DUAL-FUEL

SYSTEMS

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OXY-HYDROGEN GENERATORS

H2 O2

H2

H

EP-130

EP-1000

EP-350

EP-500 EP-560

Energy Globe Award 2010 Winner in the category “Air”

EP-C100 EP-C50

Page 11: Carbon Cleaning Systems-2012Oct12

THE ELECTROLYSIS PROCESS Distilled or R.O. Filtered Water plus Electricity

Pure clean water is separated by

electricity.

Becoming a mixed oxygen-hydrogen

gas.

When burned, this gas produces only water vapor,

no pollution.

FLAME TEMPERATURES UP TO 2800°C (5072°F)

ZERO POLLUTION RENEWABLE ENERGY

CHANGING WATER INTO FUEL

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The Perfect Fuel For Brazing & Welding

Safer, Faster, Cleaner, Non-Polluting

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Steel-Cutting up to 1 foot thick, with no smoke

Up to 30% faster than oxy-acetylene; up to 50% reduction in bottled O2 consumption. Steel melts at 1500ºC (2800ºF); The oxy-hydrogen flame is 2800ºC (5072ºF)

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Mobile Biohazard Purification System EP-2000 2009 Energy Globe National Award Recipient

Completely self-contained Mobile Incinerator, can be quickly dispatched to safely eliminate outbreaks of Bird-Flu, H1N1, SARS and other epidemics, as well as Medical & Hazardous Waste with temperatures of up to 1300ºC (2372ºF).

Page 15: Carbon Cleaning Systems-2012Oct12

Public Transportation Project

Agreement signing ceremony (left to right - Kaohsiung Mayor Chen with EPOCH President J. Lin) / Delivery of first two test units in 2008.

Winner of the Energy Globe World Award

2010, category “Air”

Page 16: Carbon Cleaning Systems-2012Oct12
Page 17: Carbon Cleaning Systems-2012Oct12

ENGINE CARBON CLEANING SYSTEM

INTRODUCING the EPOCH

Taiwan Excellence Award received in 2008

Engine Carbon Cleaning Patent / 2011 Energy Globe Award

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PROCEDURE FOR PERFORMING ENGINE CARBON CLEANING

IS SIMPLE AND EASY

Complete combustion

loosens and eliminates

carbon deposits

Connect the EP-350B gas output

to the engine’s

intake manifold

(vacuum port)

Oxy-Hydrogen ENRICHED

gas enters

the engine’s cylinders

www.oxy-hydrogen.com

Page 19: Carbon Cleaning Systems-2012Oct12

BEFORE

AFTER

Results of Carbon Cleaning with the Epoch EP-350B The six photos below were taken to show the effect of

the carbon cleaning process. Each “AFTER” photo corresponds to the “BEFORE” photo directly above it.

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ENGINE HORSEPOWER AND TORQUE ARE RESTORED

13.33 horsepower increase / 1.57 torque increase; roughly an 11% increase!

2 LITER HONDA CIVIC

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EMISSIONS ARE REDUCED

CO 95%

HC 92%

NOx 93%

CO2 2%

Page 22: Carbon Cleaning Systems-2012Oct12

CO 74%

HC 59%

NOx 97%

CO2 3%

EMISSIONS ARE REDUCED

Page 23: Carbon Cleaning Systems-2012Oct12

CARBON CLEANING AT PIC MOTORSPORTS (THE PENBAY INTERNATIONAL CIRCUIT) IN TAIWAN

Page 24: Carbon Cleaning Systems-2012Oct12

THE PENBAY INTERNATIONAL CIRCUIT IN TAIWAN INCLUDES A CERTIFIED FIA G2 LEVEL TRACK

Page 25: Carbon Cleaning Systems-2012Oct12

CARBON CLEANING AT PIC MOTORSPORTS (THE PENBAY INTERNATIONAL CIRCUIT) IN TAIWAN

Page 26: Carbon Cleaning Systems-2012Oct12

CARBON CLEANING AT PIC MOTORSPORTS (THE PENBAY INTERNATIONAL CIRCUIT) IN TAIWAN

2004 Acura; 3.2 liters; 65,938 miles

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CARBON CLEANING AT PIC MOTORSPORTS (THE PENBAY INTERNATIONAL CIRCUIT) IN TAIWAN

Subaru Impreza STi; 2.5 liter turbo; 400hp; 123,303km

Page 28: Carbon Cleaning Systems-2012Oct12

MOBILE CARBON CLEANING PLATFORM IN TAIWAN

Mobile Carbon Cleaning System at service sites in Taiwan This mobile platform uses 2 EP-560B units coupled with a diesel gen-set for use where no grid power is available. One EP-560B is used for engine sizes between 6 & 10liters, and both EP-560B units are used together for engines larger than 10 liters.

Page 29: Carbon Cleaning Systems-2012Oct12

Brand HINO

Gross Weight 15 Tons

Displacement 6,485 C.C. Plate Number WE-517

Manufacturing Year April 1998

Mileage 876,259.6 Km

1st

Test 2nd Test

3rd Test

Average Reduction%

Before 54.4% 54.2% 53.7% 54.1% 40.11%

After 26.2% 32.2% 38.6% 32.4%

Chuan Wei Transportation & Trucking Co., Ltd.

Brand MITSUBISHI Gross Weight 35 Tons

Displacement 11,945 C.C. Plate Number WE-517

Manufacturing Year December 1997

Mileage 90,799.3 Km

1st Test

2nd Test

3rd Test

Average Reduction%

92.8% 94.2% 93.7% 93.6% 69.12%

37.5% 22.7% 26.2% 28.9%

These trucks have gone through a 40-minute carbon cleaning service. Emission tests with the smoke meter are done before and after the carbon cleaning service for comparison purposes. The average is taken from 3 measurements as the final test result. The readings represent the density of carbon molecule emissions after the combustion of diesel fuel. Higher percentages stand for higher pollution; lower percentages indicate lower emissions. The trucks used in this test were older vehicles that do not have engine management systems. New trucks with computer controlled fuel injection and engine management systems might not show results as great as with older vehicles. Although new diesel vehicles are equipped with filters and post combustion systems, these added components do require maintenance in order to work efficiently. Our carbon cleaning system can still be effective to enhance the combustion efficiency and to remove carbon deposits.

EMISSIONS ARE REDUCED

Page 30: Carbon Cleaning Systems-2012Oct12

Brand FUSO

Gross Weight 23 Tons

Displacement 11,149 C.C. Plate Number TJ-802

Manufacturing Year January 1996

Mileage 762,364.8 Km

1st

Test 2nd Test

3rd Test

Ave. Reduction%

Before 51.9% 57.3% 51.1% 53.4% 66.85%

After 7.5% 7.9% 37.5% 17.7%

Tong Yo Li Logistics Co., Ltd.

Brand FUSO

Gross Weight 35 Tons

Displacement 12,882 C.C. Plate Number 341-JF

Manufacturing Year July 2003

Mileage 1,029,009 Km

1st

Test 2nd Test

3rd Test

Ave. Reduction%

Before 2.6% 2.7% 2.1% 2.5% 64.0%

After 0.0% 2.6% 0.0% 0.9%

Hong Xing Trucking Co., Ltd. (This is a Euro 5 Vehicle which has particle

collection chamber in the exhaust; therefore,

emission test results are much lower)

These trucks have gone through a 40-minute carbon cleaning service. Emission tests with the smoke meter are done before and after the carbon cleaning service for comparison purposes. The average is taken from 3 measurements as the final test result. The readings represent the density of carbon molecule emissions after the combustion of diesel fuel. Higher percentages stand for higher pollution; lower percentages indicate lower emissions. The truck on the right is an older vehicles that does not have engine management systems. The truck on the left however is a Euro-5 class that is fully equipped with all the latest pollution control devices. The results show that our carbon cleaning system can still be effective to enhance the combustion efficiency and to remove carbon deposits, even on the most environmentally advanced diesel trucks.

EMISSIONS ARE REDUCED

Page 31: Carbon Cleaning Systems-2012Oct12

Project: Carbon Cleaning Larger Vehicles Guang Bao Construction Co., Ltd.

PROVIDING CONVENIENT ON-SITE SERVICE

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Emission Tests before and after carbon cleaning with Smoke Meter

Project Name: Guang Bao Construction Co., Ltd.

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

502-M5 SCANIA 43t 11816 2006.04

Mileage (Km): 340067

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 18.4 19.4 18.6 18.8

After 5.8 6.7 11.6 8.0

Emissions Reduction 57.27%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

666-HZ MAN 43t 12816 2006.06

Mileage (Km): 485913

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 11.9 11.2 11.2 11.4

After 9.5 9.8 9.3 9.5

Emissions Reduction 16.62%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

300-AT VOLVO 43t 12130 2005.03

Mileage (Km): 977197

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 13.4 10.5 11.1 11.7

After 8.6 6 11.3 8.6

Emissions Reduction 26.00%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

078-VK VOLVO 43t 12130 2007.05

Mileage (Km): 637855

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 4.8 4.2 4.8 4.6

After 0 2.7 3.7 2.1

Emissions Reduction 53.62%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

047-ZS VOLVO 43t 12130 2005.08

Mileage (Km): 726964

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 13 18.9 17.6 16.5

After 8.2 13 10.7 10.6

Emissions Reduction 35.56%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

613-ZT VOLVO 43t 12130 2005.07

Mileage (Km): 883732

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 12.4 14.5 15.2 14.0

After 10.4 10.6 11.6 10.9

Emissions Reduction 22.57%

CARBON CLEANING TRUCKS IN TAIWAN

Page 33: Carbon Cleaning Systems-2012Oct12

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

MW-663 FUSO 35t 11149 1993.05

Mileage (Km): 4818000

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 83.8 91.7 90.5 88.7

After 58 73 63 64.7

Emissions Reduction 27.07%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

538-HE VOLVO 43t 12130 2005.06

Mileage (Km): 726218

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 10.7 13.1 14.4 12.7

After 7.3 3.6 4.4 5.1

Emissions Reduction 59.95%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

835-G5 Mercedes Benz 43t 11946 2006.04

Mileage (Km): 654673

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 11.7 11.7 9.7 11.0

After 5.4 0 2 2.5

Emissions Reduction 77.64%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

338-GX MAN 43t 12816 2004.06

Mileage (Km): 755889

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 21.5 20.6 18.8 20.3

After 15.6 17.8 18.8 17.4

Emissions Reduction 14.29%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

369-HJ VOLVO 43t 12130 2005.06

Mileage (Km): 581869

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 15.2 16.1 14.9 15.4

After 15 7.2 8.2 10.1

Emissions Reduction 34.20%

Plate No. Brand Tons Engine Displacement

(C.C.) Manufacturing

Year

698-GX VOLVO 43t 12130 2005.01

Mileage (Km): 560581

1st Test (﹪) 2nd Test (﹪) 3rd Test(﹪) Average(﹪)

Before 8.1 11 11.1 10.1

After 7.7 9.7 8.2 8.5

Emissions Reduction 15.23%

CARBON CLEANING TRUCKS IN TAIWAN

Page 34: Carbon Cleaning Systems-2012Oct12

EPOCH PARTNERS IN TAIWAN

Page 35: Carbon Cleaning Systems-2012Oct12

PARTNER LOCATIONS IN TAIWAN

NAME # OF SITES NAME # OF SITES

NISSAN 16 AUTOLIFE 19

HONDA 4 XU YI AUTO STORES 6

KIA 3 GOLD SUZUKI 3

FORD 2 LIAN QUAN 2

SUZUKI 1 OTTOLIFE 2

HYUNDAI 1 SHANG BIN AUTO STORE 2

SUBTOTAL 27 SITES TOTAL LOCATIONS 61

Page 36: Carbon Cleaning Systems-2012Oct12

EPOCH’S EP-350B PERFORMING CARBON CLEANING

ON LARGE MOTORCYCLES

Page 37: Carbon Cleaning Systems-2012Oct12

EPOCH’S PARTNER IN SINGAPORE: RAW ENERGY

MOBILE CARBON CLEANING PLATFORM IN SINGAPORE USING THE EP-560B BRINGING CARBON CLEANING SERVICES TO CORPORATE FACILITIES

Page 38: Carbon Cleaning Systems-2012Oct12

CLEANING SUPERCARS IN SINGAPORE USING THE EP-350B

ABOUT 100 EP-350B UNITS ARE IN SERVICE IN SINGAPORE

Page 39: Carbon Cleaning Systems-2012Oct12

SER, is a subsidiary of Renewable Energy Technology which is headquartered in Laredo, Texas. They are Epoch’s oldest and most successful business partner for Carbon Cleaning, doing business in Mexico focusing on carbon cleaning services exclusively though new car dealerships. They are currently working with more than 20 different brand dealerships. In the city of Morelia, they have a 90% market penetration in new car dealerships. As of November of 2011, more than 30,000 carbon cleaning procedures have been performed throughout Mexico. The following slide shows some of those brands:

EPOCH’S PARTNER IN MEXICO

Page 41: Carbon Cleaning Systems-2012Oct12

¿Dónde estamos?

Where are we?

Car Agencies using EP-350B

New Openings

LOCATIONS

Page 42: Carbon Cleaning Systems-2012Oct12

2011 2012 (projected)

EVOLUTION & GROWTH

FIRST FULL YEAR IN 2 YEARS

2010

Page 43: Carbon Cleaning Systems-2012Oct12

Monthly Growth in Services in Mexico

138.00215.00

274.00513.00

595.00517.00

982.00

1,389.00

1,825.00

2,577.00

2,322.00

2,667

0

500

1000

1500

2000

2500

3000

Service Cars

Service Cars

NUMBER OF CARS SERVICED

Page 44: Carbon Cleaning Systems-2012Oct12

Laredo, Texas; Webb County Patrol Car

Morelia, Mexico; Public Transport

Page 45: Carbon Cleaning Systems-2012Oct12

FRAMEWORK FOR SUCCESSFUL BUSINESS

1. Establish a distribution network (if needed) for your company’s territory; 2. Establish a staff consisting of Technical Supervisors, Call-center Operators, Trainers,

Admin & Service Reps; a. Technical Supervisors will visit each site on a regularly schedule timeframe. During each visit, they will perform a service check of the equipment, note the number of Carbon Cleaning procedures that have been performed, get feedback from the technicians who perform the service as well as their superiors, witness an actual Carbon Cleaning procedure to ensure that SOP is being followed, and create log entries for each visit. Each Supervisor shall be responsible for only as many sites as they can visit during a maximum 2-week rotation (20 sites [2per day] is recommended unless the client density allows for more visits per day). b. Call-center Operators will act to promote the service to their shop’s customers, get customer feedback, etc. c. Trainers will be responsible for certifying each technician who will be performing the Carbon Cleaning services, and periodic testing of each technician to ensure that procedures are followed exactly. d. Administrative staff for billing and coordinating sales and service support. e. Service Reps will perform periodic maintenance to the machines.

The information provided here is based on our most successful business model for Carbon Cleaning. Your requirements might differ according to your company’s needs, organizational structure and existing staff.

Page 46: Carbon Cleaning Systems-2012Oct12

In our most successful enterprise, where carbon cleaning units are provided to new car dealerships under a lease agreement, customer satisfaction is the number 1 priority. Supervisors visit with each dealership regularly to get feedback from service technicians and on-site management. They also witness one procedure at each site to ensure that SOP is followed exactly. A checklist is completed for each site that includes inspection of the machines in use, if any problems have been experienced and the running total number of Carbon Cleaning procedures that have been performed since the last site visit. Clients are billed each month according to the number of procedures that have been performed (machines are leased). If any machine malfunctions, it is immediately replaced with another unit from the distributor’s warehouse the same day. The machine taken from the site is then inspected and repaired, and then returned to the warehouse inventory. This procedure is followed because it minimizes client downtime while showing the highest level of customer service. Periodic maintenance can also be scheduled (if needed) as a result of site inspections. Regularly scheduled maintenance can be performed in a manner that will have the least impact on Carbon Cleaning services. Under agreements with each dealership, client appointments for service are provided to the call-center so the operators can promote the procedure and schedule accordingly with the dealerships. The operators will perform follow up call with the customers to get their feedback and ensure customer satisfaction.

FRAMEWORK FOR SUCCESSFUL BUSINESS

Page 47: Carbon Cleaning Systems-2012Oct12

FRAMEWORK FOR DOING BUSINESS

OPTION 1: PURCHASE & RESALE Purchase our Carbon Cleaning Systems & Resell them to your clients or franchise owners.

OPTION 2: PURCHASE & LEASE THE EQUIPMENT Purchase our Systems and Lease the machines to your clients or franchise owners.

OPTION 3: PURCHASE & PERFORM THE SERVICE Purchase our systems and perform Carbon Cleaning services on your clients’ cars directly.

Page 48: Carbon Cleaning Systems-2012Oct12

OPTION 1: RESALE Purchase & Resell our Carbon Cleaning Systems.

BENEFITS – hands off approach means a smaller staff requirement and lower overhead. Only product promotion, sales & aftersales service are needed with billing on a point of purchase basis. Profits are taken at the completion of the sales (one time only), and as a result of aftersales service in the form of routine maintenance. Cash turnover generated from sales. Additional revenues can come from supplying distilled water to your clients. However since they own the machines, it is difficult to ensure that they will consistently use it or properly care for the equipment (liability). LIABILITIES – no control over how the equipment is operated (potential for misuse or abuse), limited profit potential from sales of equipment. Per-sale profits of between of 35% MSRP on quantities ordered from Epoch. Your clients get any depreciation tax advantage on equipment. EXAMPLE – if 100 EP-350B units are purchased at a 35% discount rate and resold, a gross profit of 455,000 is expected ($4550x100). A $250 per year, per machine fee for routine scheduled maintenance would yield $25,000 in continuing annual revenues (less salary of service reps.) from those 100 units.

Page 49: Carbon Cleaning Systems-2012Oct12

OPTION 2: EQUIPMENT PURCHASE & LEASE Purchase our Systems and Lease the equipment.

BENEFITS – hands on approach means a greater level of customer satisfaction. Product promotion, sales & aftersales service (including regularly scheduled site visits) are needed with billing on a per procedure basis (fixed monthly fee is optional). Profits are taken monthly, with aftersales service for routine maintenance factored into the lease arrangement. High cash turnover generated from growing quantities of machines on lease. You get any depreciation tax advantage on equipment and maintain maximum control of the equipment and how it is used.

LIABILITIES – hands on approach means a larger staff requirement and higher overhead. You must dedicate appropriate staff to ensure that your clients are well served. You are responsible for the equipment’s care and condition. It is also required that you establish a trustworthy supply chain for distilled water and service to your clients.

EXAMPLE – if 100 EP-350B units are purchased from Epoch and leased to your clients at a $42.50 per Carbon Cleaning procedure rate, a gross revenue potential of $8,976,000 is expected ($42.50/procedure x 8/day x 22days/month x 12months x 100 machines). That is $89,760 per machine/year. At a 35% discount rate on your purchased price per unit, those 100 units would cost you $845,000, leaving you with $8,131,000 in first year gross profits for those 100 units. If you allow for a $2million/year overhead for staff, maintenance and facilities, you are still looking at a very healthy bottom line.

Page 50: Carbon Cleaning Systems-2012Oct12

OPTION 3: PURCHASE & PERFORM the SERVICE Purchase our Systems and Perform the Service directly.

BENEFITS – hands on approach means a greater level of customer satisfaction. Product promotion, sales & aftersales service (including regularly scheduled site visits) are needed with direct billing to vehicle owners on a per procedure basis (fixed annual service contract fee is optional). Profits are taken accordingly, with aftersales service for routine maintenance factored into the overhead. High cash turnover generated from growing quantities of machines in service. You get any depreciation tax advantage on equipment and maintain maximum control of the equipment and how it is used.

LIABILITIES – hands on approach and direct interaction with vehicle owners means a larger staff requirement and higher overhead. You must dedicate appropriate staff to ensure that your clients are well served. You are responsible for the equipment’s care and condition. It is also required that you establish a trustworthy supply chain for distilled water supply.

EXAMPLE – if 100 EP-350B units are purchased from Epoch and you charge your clients at an $85 per Carbon Cleaning procedure rate, a gross revenue potential of $17,952,000 is expected ($85/procedure x 8/day x 22days/month x 12months x 100 machines). That is $179,520 per machine/year. At a 35% discount rate on your purchased price per unit, those 100 units would cost you $845,000, leaving you with $17,107,000 in first year gross profits for those 100 units, and subsequent annual gross profits of $17,952,000. If you allow for a $2million/year overhead for staff, maintenance and facilities, you are looking at an extremely healthy bottom line of well over $15 million annually.

Page 51: Carbon Cleaning Systems-2012Oct12

LARGE-SCALE CARBON CLEANING

EPOCH offers a number of Carbon Cleaning models to suit any number of engine sizes. You can use the table above to see the range of engine sizes that each model is designed for. The green range is where the maximum benefit exists, but successful cleaning has been performed in an extended range of engines sizes (shown in yellow). The EP-130B is used for small motorcycle engines and generators; the EP-350B for cars; the EP-500B for high performance & exotic cars or small trucks; the EP-560B is for a large variety of trucks and buses; and the EP-1000B is for engine sizes between 10 and 20 liters (610 to 1220 cu.in.). The EP-560B and EP-1000B units can be linked together to accommodate any sized engine including locomotives and ships. In addition, for high volume locations, the EP-1000B can be configured to service up to 6 vehicles at once.

Page 52: Carbon Cleaning Systems-2012Oct12

EP-350B Recommended for carbon cleaning services on vehicles with engine displacements between 400~3,000cc

CARBON CLEANING MODELS

Recommended for carbon cleaning services on vehicles with engine displacements between 3,000~6,000cc

EP-500B

Page 53: Carbon Cleaning Systems-2012Oct12

Recommended for carbon cleaning services on vehicles with engine displacements between 6,000~10,000cc EP-560B

Recommended for carbon cleaning services on vehicles with engine displacements larger than 10,000cc

EP-1000B

CARBON CLEANING MODELS

Page 54: Carbon Cleaning Systems-2012Oct12

EPOCH CARBON CLEANING SYSTEMS PRICE LIST

Model No. MSRP (USD) Engine Displacement c.c. (cu.in.)*

EP-350B $13,000 500~3,000 c.c. (31~183cu.in.)

EP-500B $25,000 3,000~6,000 c.c. (183~366cu.in.)

EP-560B $32,000 6,000~10,000 c.c. (366~610cu.in.)

EP-1000B $50,000 Over 10,000 c.c. (over 610cu.in.)

* Engine sizes shown here represent the “sweet spot” for each model. See slide 51 for full range of sizes.

※FOB Kaohsiung, Taiwan.

※The Suggested Retail Price does not include freight cost or any cost of technical supports.

※Payment Term: T/T or Irrevocable L/C before shipment.

Page 55: Carbon Cleaning Systems-2012Oct12

Pricing Strategy per Carbon Cleaning Service For Vehicles of engine displacement from 500~3,000 cc

Model No. Level Charge/Service (USD)

EP-350B

General Car Workshops $45

Local Franchise Car Workshops $ 45~65

Franchise Car Workshops of Car

Dealers (General Car Brands) $ 65~95

Franchise Car Workshops of Car

Dealers (Imported Cars) $ 95~125

Mercedes Benz, BMW or Upscale Cars $ 125 or more

For Larger Vehicles

Model No. Level Charge/Service (USD)

EP-500B 3,000~6,000 cc. $ 95~115

EP-560B 6,000~10,000 cc $ 115~145

EP-1000B Larger than 10,000 cc. $ 145~175 or more

Please note that the reference prices shown are from our clients in Asia and Mexico; you set your own pricing structure as you see fit.

Page 56: Carbon Cleaning Systems-2012Oct12

BY THE NUMBERS

OPTION MODEL MSRP $ EACH REVENUE GROSS PROFIT (Per machine)

OP. EXP.*

NET 1ST YEAR**

NET SUB. YEARS

1 PURCHASE/ RESELL

EP-350B 13000 8450 4550 250 250

2 PURCHASE/ LEASE

EP-350B 13000 8450 179,520 89,760 20000 61,060** 69,510

3 PURCHASE/ PROVIDE SERVICE

EP-350B

13000

8450

179,520

179,520

20000 150,820** 159,270

Based on a 50% fee collected from client per procedure ($85 charge to vehicle owner) NOTE: Numbers shown are per unit and/or US$ unless otherwise noted. - Based on 8 vehicles/day; 22 days/month for one full year. - * $2million overhead based on a minimum of 100 units in service. (Actual overhead will vary, and this number is 4 times higher than our maximum experienced costs) ** Net 1st year includes overhead, cost of machine and annual maintenance

Page 57: Carbon Cleaning Systems-2012Oct12

OPTION MODEL MSRP $ EACH REVENUE GROSS PROFIT (Per machine)

OP. EXP.*

NET 1ST YEAR**

NET SUB. YEARS

1 PURCHASE/ RESELL

EP-500B 25000 16250 8750 250 250

2 PURCHASE/ LEASE

EP-500B 25000 16250 221,760 110880 20000 74,380** 90,630

3 PURCHASE/ PROVIDE SERVICE

EP-500B 25000 16250 221,760

221,760

20000 185,260** 201,510

BY THE NUMBERS

Based on a 50% fee collected from client per procedure ($105 charge to vehicle owner) NOTE: Numbers shown are per unit and/or US$ unless otherwise noted. - Based on 8 vehicles/day; 22 days/month for one full year. - * $2million overhead based on a minimum of 100 units in service. (Actual overhead will vary, and this number is 4 times higher than our maximum experienced costs) ** Net 1st year includes overhead, cost of machine and annual maintenance

Page 58: Carbon Cleaning Systems-2012Oct12

OPTION MODEL MSRP $ EACH REVENUE GROSS PROFIT (per Machine)

OP. EXP.*

NET 1ST YEAR**

NET SUB. YEARS

1 PURCHASE/ RESELL

EP-560B 32000 20800 11200 300 300

2 PURCHASE/ LEASE

EP-560B 32000 20800 274,560 137,280 20000 96,180** 116,980

3 PURCHASE/ PROVIDE SERVICE

EP-560B 32000 20800 274,560

274,560 20000 233,460** 254,260

BY THE NUMBERS

Based on a 50% fee collected from client per procedure ($130 charge to vehicle owner) NOTE: Numbers shown are per unit and/or US$ unless otherwise noted. - Based on 8 vehicles/day; 22 days/month for one full year. - * $2million overhead based on a minimum of 100 units in service. (Actual overhead will vary, and this number is 4 times higher than our maximum experienced costs) ** Net 1st year includes overhead, cost of machine and annual maintenance

Page 59: Carbon Cleaning Systems-2012Oct12

OPTION MODEL MSRP $ EACH REVENUE GROSS PROFIT (Per machine)

OP. EXP.*

NET 1ST YEAR**

NET SUB. YEARS

1 PURCHASE/ RESELL

EP-1000B 50000 32500 17,500 500 500

2 PURCHASE/ LEASE

EP-1000B 50000 32500

337,920 168,960 20000 113,460** 148,460

3 PURCHASE/ PROVIDE SERVICE

EP-1000B 50000 32500

337,920

337,920

20000 284,920** 317,420

Based on a 50% fee collected from client per procedure ($160 charge to vehicle owner) NOTE: Numbers shown are per unit and/or US$ unless otherwise noted. - Based on 8 vehicles/day; 22 days/month for one full year. - * $2million overhead based on a minimum of 100 units in service. (Actual overhead will vary, and this number is 4 times higher than our maximum experienced costs) ** Net 1st year includes overhead, cost of machine and annual maintenance

BY THE NUMBERS

Page 60: Carbon Cleaning Systems-2012Oct12

WHAT EPOCH CAN DO FOR YOU

www.oxy-hydrogen.com

WE CAN • PROVIDE YOU WITH A VALUE ADDED SERVICE FOR YOUR CUSTOMERS (A process that will give your customers immediate, long-lasting improvement in engine performance, optimized combustion efficiency and lower emissions) • GIVE YOU AN ENVIRONMENTALLY FRIENDLY, CHEMICAL FREE CARBON CLEANING SYSTEM (Our technology uses no toxic chemicals, and produces no toxic exhaust fumes) • ENHANCE YOUR COMPANY’S GREEN IMAGE (You can promote your company as a company that is doing something positive for the environment) • GIVE YOUR CUSTOMERS CLEANER BURNING, OPTIMIZED ENGINE PERFORMANCE (Restore engine horsepower & torque, reduce emissions; engines will run smoother) • ENHANCE YOU CUSTOMER RETENTION RATE (Customers will come back to you for this exclusive service) • HELP YOU TO CREATE JOBS AND STIMULATE THE ECONOMY (New staff requirements for this added service will create local jobs and contribute to a more robust economy)

• HELP YOUR BOTTOM LINE WITH A HIGHLY PROFITABLE ENGINE TREATMENT (Cost in consumables per procedure is less than $1.00 [2kw electric; 500cc’s distilled or R.O. water]) • OFFER YOU PEACE OF MIND (Our Carbon Cleaning systems are backed by a $2,000,000 liability insurance policy in the U.S.)

Page 61: Carbon Cleaning Systems-2012Oct12

www.oxy-hydrogen.com


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