To: Beijing Greentec Equipment Holdings Co.,Ltd.

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1 To: Beijing Greentec Equipment Holdings Co.,Ltd. July 2014 We can do it...

2 We would like to establish a business relationship with you. Our company is a Japanese manufacturer that produces the retrofit diesel emission reduction device RefExh officially recognized by the Japanese Ministry of Land, Infrastructure, Transport and Tourism. We look for a Chinese business partner in the following field; For American market(major target) Fabrication sector For Chinese market (Potential target) Fabrication sector Marketing sector We are planning to launch our product; RefExh rifekkusu in USA and CHINA. Concerning American market, we have already finished off 90% of a selling certification procedure to CARB (California Air Resources Board). Concerning Chinese market, we are in the starting line. 1

3 Company Profile Company Name Lenz Environmental Resources Co., Ltd. Address 1890 Maginu, Miyamae-ku, Kawasaki city Kanagawa prefecture, Japan Phone Facsimile URL Establishment February 22, 2007 Paid-in Capital US$ 2,340,500 (US$1= 100) Chairman & Director Kiyokazu Oura President & CEO Taro Sawada Line of Business Manufacturing of products for reducing air pollution Group Company S&S Engineering Co., Ltd. S&S Holdings Co., Ltd. Kiyokazu Oura Chairman Taro Sawada President & CEO Satoru Shinoda Technology Officer Shinya Takai Financial Officer Dr. David B Brearley U.S. Marketing Officer 2

4 Overview of RefExh Our RefExh technology was certified by the Ministry of Land, Infrastructure, Transport and Tourism of JAPAN (in May 2003) Our RefExh is a product designed to reduce PM (particulate matters such as soot) and NOx (nitrogen oxides) and other harmful substances discharged from diesel engine currently in use. Six Key Features of RefExh 1. Can reduce PM & NOx emission simultaneously. 2. Can be retrofitted onto diesel engine in use. 3. Can extend the lifetime of diesel engine. 4. No need for infrastructure. 5. Engine oil will last twice as long. 6. Fuel economy will improve. PM (Particulate matter) 1. PM is extremely toxic to human bodies. 2. PM is included in the exhaust from diesel engines. 3. PM collects in our bronchial tubes and lungs. 4. Pollution resulting from diesel engine exhaust is causing various law suits all over the world. NOx (Nitrogen oxide) 1. NOx is extremely toxic to human bodies. 2. NOx is also included in the exhaust from diesel engines. 3. NOx causes bronchitis and pulmonary edemas. 4. NOx is one of the causes of photochemical smog and acid rain. 3

5 Basic Principle of RefExh Adjustable Emulsion Fuel Adjustable emulsion fuel is a new type of fuel generated by emulsifying diesel fuel, water and emulsifier based on sophisticated technology. The generation of NOx is substantially reduced by lowering the peak combustion temperature using the water content in the fuel. The slight explosion of water resulting from higher water content promotes mixing of emulsion fuel and oxygen, which in turn enhances combustion while suppressing the generation of PM (soot). RefExh is an advanced technology that generates adjustable emulsion fuel via computer control, according to the conditions in which the vehicle is being driven. RefExh works with an adjustable emulsion fuel-generation system installed on the vehicle. This system uses a computer to detect the driving condition of each vehicle, regardless of its operating environment, and generates emulsion fuel based on an optimized mixing ratio of diesel fuel and water. This state-of-the-art technology can dramatically reduce PM/NOx, something that couldn t be done with traditional emulsion fuels whose diesel fuel and water ratios are fixed. Water The heat of vaporization lowers the combustion temperature. Diesel Fuel Electronic Control Adjustable Emulsion Fuel Emulsifier Diesel Fuel 100% Water 25% Emulsifier 3.5% Reduction of PM due to Combustion of emulsion Reduction of NOx due to combustion at lower temperatures 4

6 Characteristics of RefExh RefExh System Item Improvement Effect PM 90% NOx 34% CO 33% HC 30% Engine Oil Approx. 2 times improvement PM Combustion Temperature 240 to 300 degrees Fuel Economy Approx. 8% Fuel-supply unit Three-way valve unit Water three-way valve Controller DC-DC converter DPF Warning indicator panel Water tank 5

7 Total Sales in Japan Total Sales of RefExh: 2,790 Units As of December 31 st, 2013 Applicable 34 diesel engine models in Japan Category Small Engine model ISUZU 4BE1(U-) 4HF1(U) MITSUBISHI 4D32(U-) 4D33(U-) TOYOTA 1W(U-) Vehicles equipped with this product under the approval of the Ministry of Land, Infrastructure, Transport and Tourism (JAPAN) must display this sticker. This sticker is issued by S&S Engineering Co., Ltd. Vehicles equipped with this product must display this sticker in Tokyo and other prefectures. Medium Large ISUZU 6HE1(U-165HP) 6HE1(U-195HP) 6BG1(U-170HP) 6HH1(KC-175HP) 6HH1(KC-210HP) MITSUBISHI 8DC9(KC-310HP) 8DC11(KC355HP) 8DC20(KC-385HP) MITSUBISHI 6D14(U-160HP) 6D16(U-185HP) 6D17(U-210HP) 6D16(KC-170HP) 6D17(KC-200HP) 6D17(KC-220HP) NISSAN DIESEL RE8(U-) RF8(U-340HP) RF8(W-340HP) RG8(KC-350HP) RF8(KC-310HP) NISSAN DIESEL FE6(U-185HP) FE6(KC-170HP) FE6(KC-195HP) HINO F17D(KC-320HP) F20C(KC-355HP) HINO H07D(U-) J07D(U-) J08C(KC-200HP) J08C(KC-215HP) J07C(KC-170HP) RefExh is installed in the various diesel cars in Japan. 6

8 Implementer of RefExh Mr. Shinichiro Sakurai is one of Japan s leading automotive engineers. He was actively involved in the development of first through seventh-generation Skyline series at Nissan, and is widely known among automotive fans as Mr. Skyline or Father of the Skyline. Mr. Shinichiro Sakurai was also instrumental in the development of the R380, R381 and R382 -the first class of serious racing prototypes that all won the Japan GP. Shinichiro Sakurai Former Chairman & Director of Lenz Environmental Resources Co., Ltd. And S&S Engineering Co., Ltd. RefExh was developed by S&S Engineering Co., Ltd, a company established by Mr. Shinichiro Sakurai. At the initial stage, Sakurai s team carried out testing jointly with Hokkaido University of Japan to prove the technology can be used diesel ships. He was inducted into the Japan Automotive Hall of Fame in 2005, following the path of Carlos Ghosn Bichara of Nissan Motors. 7

9 Market Our major target is the American market. Our next target is the Chinese market. We are planning to launch RefExh in USA from We have finished off 90% of a selling certification procedure to CARB (California Air Resources Board) already. Our target in USA is an Off-road vehicle market (heavyconstruction equipment: bulldozer, hydraulic shovel, dump truck and so forth). The size of an American Off-road vehicle market is estimated at more than 1.8 million units and more than US$10 billion. The diesel NOx/PM regulation is still in force at more than 15 states in USA. We believe our product RefExh will dominate the American Off-road vehicle market. Sales forecast in American market Year Unit sales 50 1,000 5,000 10,000 15,000 Sales amount $1,25 M $25M $125M $250M $375M Unit price of large size; US$25,000 US$1= 100 We think there is a big market in CHINA potentially. RefExh can work for the light gas oil of CHINA. And also RefExh is capable of adapting to a Chinese PM 2.5. Our target in CHINA is an On-road and an Off-road vehicle market. On September 10 th 2013, the Chinese government has budgeted US$35 billion for the measures for Vehicle air pollution control during 5 years. The size of a Chinese On-road and an Offroad vehicle market is estimated at more than 6 million units and more than US$40 billion. We will design competitively a special discount price for the Chinese market. The percentage of Chinese diesel vehicle exhaust category NEW vehicle 25.4% 2.67M vehicle Target zone 31.8% 3.35M vehicle 17.1% 1.80M vehicle OLD vehicle 25.7% 2.71M vehicle IN 2009 DATA Before N1: Diesel vehicle N1: Diesel vehicle N2: Diesel vehicle After N3: Diesel vehicle 8

10 Advantage Retrofit PM/NOx diesel emission manufacturer (for vehicle) is only a few companies in the world. Item The first-best device RefExh OtherJapanese manufacturer X JohnsonMatthey The United Kingdom PM (the rate of reduction) 90% 85% 85% NOx (the rate of reduction) 34% 35% 40% Fuel economy Improving 6%-9% Getting worse 3%-6% Getting worse 3%-6% Life-span of Engine oil Twice ー ー Capacity to deal with old vehicles Available Not available Not available Off-road vehicles Available Not available Not available You can see the latest technology of retrofit PM/NOx diesel emission by the following CARB s website. Click here please 9

11 Certificate from the Ministry of Land, Infrastructure, Transport and Tourism. JAPAN RefExh (registered as the Duet Burn System in Japan) has been certified as the first system approved under the NOx /PM Law by the Ministry of Land, Infrastructure, Transport and Tourism Certified Recommended Reduction Systems under NOx /PM Law MLIT-NPR-1, 3, 4, 12). RefExh is also designated as a system for the reduction of particulate matter, as jointly declared by eight prefectures (No. 036-D). To: S&S ENGINEERING CO., LTD. Representative President Mr. Shinichiro Sakurai Kokujishin number1719th Kokujikan number197th January 12, 2005 Land, Infrastructure and Transport Minister of State Kazuo Kitagawa It is based, on the performance evaluation operating procedure of the device which makes the nitrogen oxide or particulate decrease, about the appraisal result of the NOx PM decrease device. Performance evaluation operating procedure of the device which makes the nitrogen oxide or particulate decrease (2004 Ministry of Land, Infrastructure and Transport notification 814) of on the basis from your corporation with 2004 December 03 attaching concerning the device of the annex which has application, concerning the appraisal result of the NOx PM decrease device which is based on the performance evaluation operating procedure of the device which makes the nitrogen oxide or particulate decrease because it can recognize appraisal sort of the result and the annex which do as the superior decrease device, it notifies. 10

12 Certificate from the Authorized Testing Institution by CARB and EPA, U.S.A. RefExh has already cleared the ARB s criteria by the authorized institution s informal preliminary test. (ARB: Air Resources Board, Environmental Protection Agency USA) Fuel consumption NOx P M 11

13 Certificate from CARB and MSRC, U.S.A. Authorized state from CAEB concerning experimental testing on off-road Authorized state from MSRC concerning funding for experimental testing CARB: California Air Resources Board MSRC: Mobile Source Air Pollution Reduction Review Committee 12

14 RefExh can work for the light gas oil of China. Certificate from Tokyo Metropolitan The Chinese quality standards of the light gas oil for cars Chinese grade EURO conversion Sulfur content Operation Before N-1 Before EURO1 More than 800ppm N-1 EURO1 Less than 800ppm N-2 EURO2 Less than 500ppm N-3 EURO3 Less than 350ppm Now in force N-4 EURO4 Less than 50ppm N-5 EURO5 Less than 10ppm Certificate of the device which makes particulate matter decrease by Tokyo Metropolitan To: S&S ENGINEERING CO., LTD. Representative President Mr. Shinichiro Sakurai 15 kan-sha-kei-no, 386 Pursuant to Article 5 of Tokyo Metropolitan implementation guideline, Tokyo Metropolitan designates your device that has applied for designation on December 9, 2003 as the officially-designated device which makes particulate matter decrease. Here are its provision. January 8, 2004 Tokyo Metropolitan Governer Shintaro Ishihara Class of fuel used The light gas oil (sulfur content: less than 500ppm) RefExhis matching for EURO3. 13

15 Lenz will contribute to the world through the cutting-edge technologies for the preservation of our global environment. More information If you have any questions concerning this presentation, please feel free to contact us by an . 14

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