NANOTECHNOLOGY Evolutionary

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NANOWATER 2005
NANOTECHNOLOGY Evolutionary RevolutionaryDevel
opmentsKevin McGovern, Chairman McGovern
Capital LLC
September 27, 2005
www.kevinmcgovern.com
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McGOVERN CAPITAL LLC
Global innovation through alliances. IP
Strategist create, grow and maximize
intellectual property assets Platform
Technologies Catch the Current
TM Relationships Entrepreneurs, Corporations,
Universities and Governments
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McGOVERN CAPITAL LLC

• Must have PULSE ON INDUSTRIES
• DETECT CURRENT BELOW WATER LINE
• NANOTECHNOLOGY
• ANGSTROM PUBLISHING -- JV with FORBES
• The Forbes/Wolfe Nanotech Report
• Leading Nanotechnology Research and Newsletter
• WATER TECHNOLOGY
• Patented, microbiological water filter technology
  designed to defeat one of the worlds greatest
  killers Water-Born Diseases (WBD)
• NANO-FIBER TECHNOLOGY PORTFOLIO - broad
  applications in many industries worldwide /
  negotiating joint ventures

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NANOTECHNOLOGY FUNDING
The 2005 U.S. Budget provides 1 billion for the
multi-agency National Nanotechnology Initiative
(NNI), a doubling over levels in 2001, the first
year of the Initiative.
WORLDWIDE GOVERNMENT FUNDING FOR NANOTECHNOLOGY
RD (MILLIONS OF )
Source Nano.gov
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US NANOTECHNOLOGY FUNDING 2005
For the first time since the NNIs inception,
funding has been classified by Program Component
Area. The five agencies investing the most in
nanotechnology RD (i.e., National Science
Foundation, Department of Defense, Department of
Energy, Etc.) each have investments distributed
across at least six of the following
categories 1. Fundamental Nanoscale Phenomena
and Processes (234 million) 2. Nanomaterials
(228 million) 3. Nanoscale Devices and
Systems (244 million) 4. Instrumentation
Research, Metrology, and Standards for
Nanotechnology (71 million) 5.
Nanomanufacturing (47 million) 6. Major
Research Facilities and Instrumentation Acquisitio
n (148 million) 7. Societal Dimensions
(82 million)
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US VC Funding
April 2005 issue of Small Times magazine
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Revolutionary Technologies

• EXAMPLE Carbon Nanotubes have drawn the most
  nanotech research dollars to date
• Often called Light Pipes the carbon nanotubes
  are being considered for a broad range of
  applications, such as scratch-resistant films
• Generally however, government, universities and
  corporations have not yet moved revolutionary
  technologies, such as carbon nanotubes, from the
  laboratory to the market

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Evolutionary Nano Examples

• TEXTILES Nano-Tex is applying nanotechnology to
  fibers to create an improved fabric that resists
  stains and wrinkles
• BEVERAGES Vordian produces plastic with
  nano-sized clay particles that make shatter-proof
  beer bottles
• SPORTS EQUIPMENT Tennis Rackets, Fly-Fishing
  Rods

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INVESTOR BENEFITS OFEVOLUTIONARY NANO
TECHNOLOGIES

• EVOLUTIONARY nano investments offer GREATER
  NEAR-TERM RETURN ON INVESTMENTS and LESS
  TECHNOLOGICAL RISKS potentially greater
  long-term ROI (but more technological risk) from
  revolutionary deals
• From an INVESTMENT POINT OF VIEW, investors
  should be less concerned with the purity of the
  nanotechnology nature of the deal, and MORE
  CONCERNED with the SIZE and MATURITY OF THE
  PRODUCTS MARKET the RELATIVE TECHNOLOGICAL RISK
  of the product and the TIME HORIZON to the
  companys profitability and potential exit

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Revolutionary Evolutionary
Nano Success

• A WELL-BALANCED PORTFOLIO should contain both
  REVOLUTIONARY AND EVOLUTIONARY TYPE DEALS
• As funding continues to be earmarked
  disproportionately to revolutionary technologies,
  evolutionary developments will, as a by-product,
  continue to be created

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Nanotech Water EVOLUTIONARY AND
REVOLUTIONARY SUCCESS

• Nanotechnologys solutions to the worlds water
  issues are both EVOLUTIONARY AND REVOLUTIONARY
• HOW BIG IS THE GLOBAL WATER MARKET?

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GLOBAL WATER MARKET

• Water is a 400 billion global business
• Demand for drinking water is expected to grow
  another 40 by 2025
• Global consumption of water is doubling every 20
  years, more than twice the rate of human
  population growth
• According to the United Nations, 1.3 billion
  people already lack access to safe drinking
  water

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2000 United Nations Millennium Development Goals

• To Ensure Environmental Sustainability the UN
  adopted the specific goal to
• Halve, by 2015, the proportion of people
  without sustainable access to safe drinking
  water

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GLOBAL WATER MARKET

• More than 97 of the worlds water reserves are
  salt water, contained in the Earths oceans
• Just a small proportion of the 1.3 billion square
  kilometers that make up the worlds water
  reserves is fresh water
• Only 0.4 of those reserves is accessible

Source www.forestinfo.org
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Water Scarcity

• About three-quarters of annual worldwide rainfall
  comes down in areas containing less than
  one-third of the world's population.
• Seasonal rains run off too quickly for efficient
  use. India, for instance, gets 90 of its
  rainfall during the short summer rainy season.

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Water Scarcity

• According to one research study, today 31
  countries face chronic freshwater shortages. By
  the year 2025, 48 countries are expected to face
  shortages affecting up to 2.8 billion people.
• Among countries likely to run short of water in
  the next 25 years are Ethiopia, India, Kenya,
  Nigeria, and Peru. Parts of other large
  countries, such as China, already face chronic
  water problems.
• The supply of available freshwater is effectively
  shrinking because of pollution including
  municipal sewage, toxic industrial waste, and
  harmful chemicals from agricultural activities

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Water Scarcity
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Water Scarcity and Stress
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Water Use
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• "It takes an incredible 105,000 gallons of
  water to make a single automobile
• Mark Modzelewski, managing director of
  nanotechnology analyst firm Lux Research in New
  York.

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Conflicts

• In 1985 Dr. Boutros Ghali famously said that "the
  next war in the Middle East will be fought over
  water, not politics
• "If the wars of this century were fought over
  oil, the wars of the next century will be fought
  over water." Ismail Serageldin, former vice
  president for sustainable development at the
  World Bank.

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Water Scarcity

• The average distance that women in Africa and
  Asia walk to collect water is 6 km.
• The weight of water that women in Africa and Asia
  carry on their heads is the equivalent of your
  airport luggage allowance (20kg).
• The average person in the developing world uses
  10 liters of water a day.
• The average person in the United Kingdom uses 135
  liters of water every day.
• One flush of your toilet uses as much water as
  the average person in the developing world uses
  for a whole days washing, cleaning, cooking and
  drinking.

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Results of Lack of Water

• Water-related diseases kill millions of people
  each year, prevent millions more from leading
  healthy lives, and undermine development efforts.
  About 2.3 billion people in the world suffer from
  diseases that are linked to water.
• Diseases include Cholera, Typhoid Fever,
  Gastroenteritis, shigella, polio, meningitis,
  hepatitis A and E, Amoebiasis and Dysentery.
• An estimated 3 billion people lack a sanitary
  toilet
• An estimated 4 billion cases of diarrheal disease
  occur every year, causing 3 million to 4 million
  deaths, mostly among children

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Results of Lack of Water

• 2.2 million people in developing countries, most
  of them children, die every year from diseases
  associated with lack of access to safe drinking
  water, inadequate sanitation and poor hygiene.
• Some 6,000 children die every day from diseases
  associated with lack of access to safe drinking
  water, inadequate sanitation and poor hygiene
  equivalent to 20 jumbo jets crashing every day.
• In Zambia, one in five children die before their
  fifth birthday.  In contrast in the UK fewer than
  1 of children die before they reach the age of
  five.

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Results of Lack of Water

• In the past 10 years diarrhea has killed more
  children than all the people lost to armed
  conflict since World War II.
• In China, India and Indonesia twice as many
  people are dying from diarrheal diseases as from
  HIV/AIDS.
• The population of the Kibeira slum in Nairobi,
  Kenya pay up to five times the price for a liter
  of water than the average American citizen.
• An estimated 25 of people in developing country
  cities use water vendors purchasing their water
  at significantly higher prices than piped water.
• The simple act of washing hands with soap and
  water can reduce diarrheal disease by one-third.

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The Price of Water Scarcity

• Waterborne diseases cost the Indian economy 73
  million working days a year. 
• A cholera outbreak in Peru in the early 1990s
  cost the economy US1 billion in lost tourism and
  agricultural exports in just 10 weeks.
• UN Estimates the Worldwide economic impact of
  waterborne diseases exceeds 80 billion/year.

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Results of Lack of Water

• At any one time it is estimated that half of the
  worlds hospital beds are occupied by patients
  suffering from water-borne diseases.

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Types of Pollutants

• Particulate matter particles of minerals and
  organic material that cause turbidity in water.
• Chemical pollutants includes pesticides and
  industrial wastes dissolved in solution
• Disease causing agents bacteria, virus and
  parasitic organisms.
• Truly safe drinking water must address all three
  of these categories.

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Water Treatment Methods

• Boiling Effective when done properly.
  Ineffective against particulate matter and
  chemical pollutants, expensive and energy
  intensive.
• Chemical Disinfection Effective against most
  pathogens. Some pathogens resistant.
  Environmental and end-user risks. Ineffective
  against chemical pollutants.
• Solar Simple and low-cost. May be ineffective
  against certain pathogens or through turbid
  water. Ineffective against chemical pollutants.

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Water Treatment Methods

• Filtration Devices Vary greatly depending upon
  pore size and composition. Can be very effective
  against particulate matter and chemical
  pollutants. Traditionally ineffective against
  many pathogens.
• UV Effective against many pathogens but
  perceived as complicated and expensive.
  Ineffective against particulate matter and
  chemical pollutants.

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Purification Methods Predominant Across Regions
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Water Solution Product Issues

• Filter Bacteria and Virus
• Gravity Flow / Point of Use
• Flow Rate
• Separation / Elimination
• Durability
• Security / Knock-Offs
• Price
• Commercial Feasibility

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Water Solution Distribution Issues

• Base of the Pyramid
• Pilots / Pyramid of Influence
• Channels of Distribution
• Private Enterprise / JV
• NGOs
• Government
• Demographic Considerations
• Geographic Homogeneity
• Middle Class
• Urban vs. Rural

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Evolutionary/Revolutionary Nano Examples

• WATER TECHNOLOGY Applies nanotechnology in
  water filter components to remove particles and
  kill pathogens the size of bacteria and viruses

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Traditional Competition

• Activated Carbon
• Chemical Treatments
• Ceramic filters.
• Reverse Osmosis.
• Distillation Processes

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Nano Competition

• Nano Ceramic
• Nano Engineered Membranes
• Nano Fibers
• Nano-Scale Polymer Brushes
• Nano-Scale Photocatalytic Materials

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SUMMARY OF NANOTECHS FUTURE

• INTERNATIONAL COMPETITION
• EVOLUTIONARY nanotech developments will result in
  near-term, less risky revenue opportunities
• KEY PARTNERSHIPS ALLIANCES among government,
  universities, corporations, VCs and entrepreneurs
  will continue to drive the development of
  nanotechnology
• IP will continue to be the CORE OF NANOTECHNOLOGY
  DEVELOPMENT
• THE FUTURE OF NANO WATER WILL DEVELOP WITHIN THIS
  SAME FRAMEWORK

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Future of NanoWater

• International Phenomenon
• Evolutionary and Revolutionary
• Alliances are Key

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