Challenger Powerboats, Inc. – ‘8-K’ for 5/8/02 – EX-1

On:  Wednesday, 5/8/02   ·   For:  5/8/02   ·   Accession #:  1114908-2-5   ·   File #:  0-30914

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Current Report   —   Form 8-K
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: 8-K         Current Report                                        11     42K 
 2: EX-1        Executive Summary                                     11     48K 

EX-1   —   Executive Summary

EX-1
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Business                                                                        
--------                                                                        
After researching Thermal Reduction and its advantages over                     
conventional waste destruction processes, it became immediately                 
apparent that this technology was sufficiently robust to address                
even the most difficult waste management issues. The (TR) Systems               
are the solution to multiple and complex waste streams.                         

Bach Hauser, Inc is going to build the next generation, state-                  
of-the-art waste disposal facilities based on patentable                        
technology from Bach Hauser, Inc .  Bach Hauser, Inc  will file                 
for additional patents , giving Bach Hauser, Inc  additional                    
leverage in the environmental waste industry.                                   

Mission Statement of the Company                                                
--------------------------------                                                
Our policy is environmental stewardship. Bach Hauser, Inc (The                  
"Company") is being formed specifically to research, develop, and               
deploy innovative, proprietary equipment and processes, targeting               
the growing environmental remediation markets.                                  

The Company's key focuses will be on waste reduction, nuclear                   
waste containment and innovative sensing and cleaning systems.                  
These markets represent a cumulative $3 to $5 billion dollars per               
year of which $2 billion is identified with no competitor in                    
place.                                                                          

The Company views its key advantages as follows:                                

1. Rapid identification of niche markets                                        

2. The ability to utilize existing technology in innovative,                    
patentable ways to provide key solutions to these niche markets.                

3. The ability to recruit world class technical teams for the                   
purpose of RD&D (Research  Development and Deployment) of these                 
technologies.                                                                   

4. The ability to establish key contacts to aid in market                       
deployment.                                                                     

The Company believes strongly in providing a creative work                      
atmosphere, with an emphasis on ideological and theoretical                     
problem solving key to modern advancements and shareholder                      
growth through new market penetration.                                          

Summary of the Company                                                          
----------------------                                                          
With the  21st century, we face some very serious challenges in                 
the field of waste management.  Our landfills, hospitals, and                   
manufacturing facilities face an ever-increasing waste management               
problem.                                                                        

We are all aware of the waste disposal problems plaguing our                    
cities, towns and states. Up to now, no one has presented a                     
solution for disposal and/or destruction of certain types of                    
waste.  Clay Kass has spent years researching various disposal                  
technologies and has found that the Thermoal Reduction based                    
approach offers many advantages over conventional waste                         
destruction processes.  Even the United States Environmental                    
Protection Agency (EPA) has acknowledged that pyrolysis-type                    
systems can be considered as the next generation in waste                       
disposal/management.  This process is the solution to many of the               
problems now plaguing society with the disposal of medical and                  
industrial wastes, used tires, asbestos, PCB's etc.                             

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Technology                                                                      
----------                                                                      
Bach Hauser, Inc has (4) main technologies as follows:                          

Thermal Reduction (TR) For (MSW)                                                
--------------------------------                                                
The Purpose:                                                                    
To process municipal solid waste with a non-burning technique which             
converts raw garbage to saleable methane and inorganic char.                    

The Process:                                                                    
Thermo Reduction reduces the mass of solid waste (by                            
over 80%), while recovering significant energy.  The process,                   
unlike incineration, does not produce any air pollutants.  The                  
process is both modular and scaleable and can be used in small                  
remote locations, or in large cities, with no impact on the                     
environment or local infrastructure.  Thermo Reduction is a heat                
absorption process converting solid waste (municipal and selected               
industrial refuge) into "char" and a low grade methane gas. "Char"              
is an inert carbon product, which has many commercial applications              
and the gas provides all the energy required to run the Thermo                  
Reduction Process Plant and has excess energy for use (sale) to                 
others.                                                                         

The core of the Thermo Reduction Process is called the Retort and               
is the key to the process. Solid waste is first collected, sorted               
(removing other valuable recyclables) and then shredded before                  
being feed into the retort. The Retort is a large stainless                     
cylinder, where waste is metered and injected inside the Retort                 
cylinder. The waste is then heated from 850 to 1200 degrees F.,                 
depending on the nature of the waste stream. The Retort is air                  
tight and sealed from the outside atmosphere. As the internal                   
energy from heat builds, without any oxygen it can not naturally                
burn and it breaks down in the Thermo process (decomposes) into                 
steam carbon oxides, volatile vapors and char. Steam, carbon                    
dioxide and carbon monoxide are present only during the startup                 
phase.  Once started the process becomes anaerobic and as the                   
waste is heated further, volatile gases are distilled.  These                   
gases include hydrogen, methane and ethane, with each pound of                  
wasted process yielding about 12 cubic feet of gas.  The energy                 
value of the gases varies depending on the waste being recycled,                
but the process produces gas with energy of from 500 to 1200                    
BTU's.                                                                          

Background:                                                                     
Solid Waste Disposal is the most significant and                                
unsolved problem facing the world environment in the year 2000 and              
beyond.  This includes Municipal Waste and Industrial Waste                     
Disposal.  The Current methods of incineration and disposal in                  
landfills are obsolete and add numerous hazards to our                          
environment. In addition, without massive money from government                 
directed subsidies, these methods of disposal are economically                  
prohibitive.  In addition moving massive amounts of waste and/or                
pollution from populated regions to remote and often pristine                   
localisms is absurd.  Three pilot plants were engineered, built                 
and tested to handle 2, 10, and 50 tons per day in municipal solid              
waste.                                                                          
(Also see additional documents, drawing, and tape.)                             

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Thermal Reduction (TR)For(Med Waste)/(Sanitary Sludge)/(Green Waste)            
-------------------------------------------------------------------             
The Purpose:                                                                    
To process medical waste with a non-burning technique which converts            
medical waste to saleable methane and inorganic char.                           

The Problem:                                                                    
With syringes washing ashore in New York, Florida and                           
California and "red bag" waste showing up at landfills, the                     
problem is further exacerbated by court ordered closures of                     
landfills.  According to the Environmental Protection Agency                    
(EPA), half of the estimated 6,600 landfills in the country are                 
being closed over the next five years.  Even though a hospital or               
health care facility may not violate any of the Resource                        
Conservation and Recovery Act (RCRA) regulations, it is still held              
liable under common law for improper handling or disposing of its               
pathological and biological waste should any harm be done to any                
person or property.  This cradle to grave mentality carries a                   
lifetime liability for all generators of medical waste.                         

Thermo Reduction reduces the mass of solid waste (by over 95%),                 
while recovering significant energy. The process, unlike                        
incineration, does not produce any air pollutants.  The process is              
both modular and scaleable and can be used in small remote                      
locations, or in large cities, with no impact on the environment                
or local infrastructure.  Thermo Reduction is a heat absorption                 
process converting medical waste (red can) into "char"and a                     
methane gas.  "Char" is an inert carbon product, which has many                 
commercial applications and the gas provides all the energy                     
required to run the Thermo Reduction Process Plant and has excess               
energy for use (sale) to others.                                                

The core of the Thermo Reduction Process is called the Retort and               
is the key to the process. Medical waste is first collected and                 
then shredded before being feed into the retort. The Retort is a                
stainless cylinder, where waste is metered and injected inside the              
Retort cylinder.  The waste is then heated  2000 degrees F.,                    
depending on the nature of the waste stream. The Retort is air                  
tight and sealed from the outside atmosphere. As the internal                   
energy from heat builds, without any oxygen it can not naturally                
burn and it breaks down in the Thermo process (decomposes) into                 
steam carbon oxides, volatile vapors and char. Steam, carbon                    
dioxide and carbon monoxide are present only during the startup                 
phase. Once started the process becomes anaerobic and as the waste              
is heated further, volatile gases are distilled.                                
(Also see additional documents, drawing, and tape )                             

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Thermal Reduction (TR) For Clean-Coal Technology                                
------------------------------------------------                                
Nitrogen oxide emissions cut 85 percent                                         
Process:                                                                        
A process in which coal is cooked and turned                                    
into a gas instead of burned. It will change the future of coal power           
generation, as we know it. CCT will have uses for just about all of             
the byproducts; CCT will be efficient, and will  offer an                       
environmentally safe alternative to natural gas.                                

In the late 1970s, utility companies began switching from coal to               
natural gas, which was plentiful, more efficient and                            
environmentally safe.  When the price of natural gas shot up to                 
$10 per million Btu last winter from $2.50, utilities started                   
looking for alternatives.  Coal, plentiful and relatively                       
inexpensive, suddenly found itself at the head of the energy                    
table.                                                                          

There are certain truths about coal. Today it accounts for more                 
than 50% of the power generation in the USA.  But because it spews              
toxins, coal has been long viewed as the scourge of the power                   
industry. America's traditional coal powered plants pump 2.3                    
billion tons of carbon dioxide into the air each year - twice the               
amount cars produce.  In 1999 the latest year for which figures                 
are available, coal-fired utilities filled the air with 18 million              
tons of sulfur dioxide and nitrogen oxide, two major components of              
acid rain.                                                                      

At traditional coal fired utilities, huge iron encased turbines                 
pulverize coal dust and pump it into a burner at tremendous                     
pressure.  That burning of coal is not only inefficient, but it is              
also dirty and adds to greenhouse emissions.                                    

CCT gasification process turns coal into a gas and strips out the               
impurities before the emissions go into the atmosphere.  Someone                
can be sitting near a coal gasification plant and see nothing                   
coming out of it. That's the goal. Compared with a typical coal-                
fired plant with modern pollution control devices, CCT produces                 
85% less nitrogen oxide and 32% less sulfur dioxide.                            

CCT is building on research that began in the 1980s, when coal                  
plants were shown to contribute to acid rain.  In 1990, Congress                
amended the Clean Air Act, phasing in tighter limits on emissions               
of soot particles, nitrogen oxides and sulfur dioxide. To help                  
utilities come in under the more stringent rules, the Department                
of Energy spent $1.8billion on clean-coal tech programs.                        

Recently, most research has zeroed in on the development of super-              
efficient burning methods so that plants can extract more                       
electricity from less coal. The average pound of coal contains                  
about 10,000 Btu. Most coal-fired plants capture about a third.                 
Newer ones can extract 37%, and rising to 40% within 10 years.                  

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The Process:                                                                    
The core of the CCT system is the Retort and is the key to the                  
process. The coal is shredded before being feed into the retort.                
The Retort is a large stainless cylinder, where coal is metered                 
and injected inside the Retort cylinder. The coal is then heated                
from 850 to 1200 degrees F., depending on the type. The Retort is               
air tight and sealed from the outside atmosphere. As the internal               
energy from heat builds, without any oxygen it can not naturally                
burn and it breaks down in the Thermo process (decomposes) into                 
steam carbon oxides, volatile vapors and char. Steam, carbon                    
dioxide and carbon monoxide are present only during the startup                 
phase. Once started the process becomes anaerobic and as the coal               
is heated further, volatile gases are distilled.                                

As the coal is heated and the volatile gases are distilled, the                 
combustible gas is drawn off and used partly to fuel the retort.                
Five percent of the gas is needed to sustain the machine's needs.               
Once started, the retort requires no outside fuel. The surplus                  
fuel can be stored, used to fuel adjacent equipment (i.e.,                      
electrical generators) or used for other industrial applications.               

Nuclear Waste Reduction (NWR)                                                   
----------------------------                                                    
The Purpose:                                                                    
To reduce the volume of low grade nuclear waste at                              
nuclear waste sites in the United States through a process called               
Nuclear Waste Reduction ,  a process that uses microwave                        
excitement and magnetic suspension to remove radioactive elements               
from non-radioactive elements.                                                  

The Process:                                                                    
The input system takes in low-grade waste in one of                             
two forms, standard 55-gallon drums and presorted bulk feed.                    
Waste is scanned by primary sensor system  which removes all,                   
liquid waste, high grade waste, and waste of unusually large size.              
The Microwave System is specifically tuned to ionize each                       
radioactive element.  Specific calibration depends on the type of               
low-grade waste being processed.  Magnetic Separator System is                  
comprised of four subsystems, stabilizing electromagnet, system                 
rotating electromagnet system, magnetic pulse system, and magnetic              
screen system.                                                                  

Background:                                                                     
With waste storage costs escalating more than 1000 per cent                     
with in the last ten years, market demand for technology to reduce              
the volume of waste stored has sharply risen.  Storage costs have               
climbed so dramatically, that in some cases it outweighs lifetime               
revenue generation for some nuclear operating facilities.  With                 
final development of Nuclear Waste Reduction (NWR), projected                   
achievable volume reduction is 95%.  This would signify a                       
substantial savings to operating facilities and just as important,              
reduce the volume of nuclear waste stored in the U.S.                           

Nuclear Waste Reduction (NWR) does not need to melt treated                     
waste, does not use harsh or environmentally dangerous chemicals,               
and does not release dangerous gasses. Thus the technique is both               
economically feasible and environmentally responsible.                          
( Also see additional documents, and drawing. )                                 

Skin Sense Containment System                                                   
-----------------------------                                                   
The Purpose:                                                                    
To monitor waste system containment effectively and                             
inexpensively and without opening or re-contaminating new areas.                
Ability to monitor radio activity, heat, moisture content, gases,               
pressure and structural or decomposition of the container itself                
as well as cracks or punctures in the skin from causes that are                 
outside of the container.                                                       

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The Product:                                                                    
Skin sense system will have two product systems,                                
Plug and Play container system and Liner system for large                       
containment areas. The containers will be square, to geometrical                
hold more material and will be easier to handle and safer. The                  
plastic cubicles will roughly hold 55 to 220 gallons for                        
containment of nuclear waste.  Cubicles would be lined with                     
sensors including, but not limited to, fiber optics, wire mesh,                 
and computer chip controllers.  All environmental sensors will be               
pressed between flexible Mylar type of plastics.  The skin would                
be able to monitor, heat, humidity, gases, pressure, rigidly, and               
cracks or punctures outside of the cubicle. The entire                          
environment in the cubicle can be monitored at all times.  The                  
skin would also monitor its self for rips or separation, punctures              
caused by anything including caustic substances.  This skin is                  
then connected to a C.P.U. that is located on the outside of the                
cubicle and flush against or embedded in the outside wall and                   
would be powered by battery which could be replaced without                     
opening the cubicles.  Data would be saved and downloaded to a                  
main computer bank in the office, which will allow for compilation              
of data for any and all cubicles adding the ability to create                   
graphical histories, which can be viewed in animated form.  This                
technology can of course be used in an entire building as well as               
the cubicles.                                                                   

Background:                                                                     
Department of Energy (DOE) regulations require nuclear                          
sites to inventory or characterize stored waste every six months.               
This characterizeation is a time consuming process often requiring              
individuals to handle stored waste posing significant exposure                  
risks.  The cost of characterization can be as high as $5,000.00                
per barrel. Current storage is mainly in 55-gallon steel drums.                 
These drums, cylindrical in shape, waste critical area when packed              
with very common contaminated material (i.e. concrete rubble,                   
hats, badges, boots, and glass). Skin Sense addresses this                      
problem with a square shaped container with interlocking slats to               
secure itself during storage and transport, Skin Sense addresses                
the costly "characterization" process by providing the information              
to an external CPU for remote, continuous monitoring. This                      
negates the need for intrusive characterization and can provide an              
on going savings for surveillance.  Over time, chemical reactions               
can cause these barrels to rust, requiring repackaging. This                    
problem typically doesn't present itself until it's too late.  By               
utilizing Skin Sense, any compromise in the containers interior                 
structure will be known immediately.                                            
( Also see additional documents, and drawing. )                                 

MedScan Medical Systems                                                         
-----------------------                                                         
The Purpose:                                                                    
To create a hand held device to monitor basic life                              
readings including, but not limited to, blood pressure, body                    
temperature, blood cell count, and presence of foreign particles                
(bacteria, viruses, toxins) within a patient's bloodstream,                     
without breaking the patient's skin.                                            

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The Process:                                                                    
Sensor System is encased in a nylon cuff, which wraps around a                  
patient's upper arm.  The MedScan Module uses a series of active                
pulses and sensors to obtain the patient's vital data. The                      
sensing system obtains feedback information through a                           
series of active pulses from the sensor unit. These pulses are                  
coupled to a collection of sensors and passive detection systems.               
Signals obtained from the sensor system are processed via a CPU                 
system from within the hand held MedScan unit.  The CPU returns                 
relevant patient data, such as: blood pressure, body temperature,               
red blood cell count, white blood cell count, and presence of                   
foreign particles.  This processed data is sent to: LCD readout on              
hand held unit and data storage unit  The data stored within the                
unit is saved for printout or download to mainframe system.                     
(Also see additional documents, and drawing.)                                   

Nation Guard & Air Guard                                                        
------------------------                                                        
Is a system with the capability to use web sensors to monitor                   
schools and other public spaces? The sensors would be hooked into               
911 call centers to provide them with real-time information about               
emergencies.  The AirGuard system will be used in airplanes to                  
allow plane interiors to be monitored.                                          

NationGuard is an Internet security firm with the capability to                 
use web sensors to monitor schools and other public spaces. The                 
sensors would be hooked into 911 call centers to provide them with              
real time information about emergencies.  Nation Guard is in                    
Newport Beach Ca., where a small staff is working to attract                    
investors and customers.                                                        

The company hopes to license its Nation Guard product to                        
government agencies security companies and will start selling the               
system next year.  Nation Guard is a miniature sensing system with              
the ability to monitor radioactivity, heat, moisture content,                   
gases, presence of foreign particles. It will us sensors like                   
nuclear and sonic imaging, infer-red, microwave, magnetic pulse                 
and wireless camera systems. Most of this system is already proven              
out and the rest are in research and development, as is AirGuard,               
a system that the company created the week after the Sept. 11                   
terrorist attacks. The AirGuard system will be sold to airline                  
manufacturers to be included in airplanes to allow plane interiors              
to be monitored.                                                                

The company will use patent pending technologies (spin offs of                  
its Nuclear Containment Technologies) and will also use a                       
combination of Internet, audio-visual and data communication.                   

Fuel Cell Systems                                                               
-----------------                                                               
(1) Methanol Fuel Cell system (2) Using waste                                   
gas to power fuel cells                                                         

(1) Methanol Fuel Cell system, which generates a current from                   
electrochemical reactions involving methanol, platinum and oxygen.              

The goal is to speed development of commercial methanol fuel cells              
for small and medium applications, from mobile phones to auxiliary              
generators.                                                                     

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The Department of Defense, which funded much of the early research              
on the technology, has tested portable generators that use a                    
methanol fuel cell. In theory, the power packs-about the size of a              
shoe box would enable soldiers to run several instruments for long              
stretches without having to recharge.                                           

Fuel cells convert a hydrogen containing fuel into electricity and              
heat.  The system is quiet and creates little waste pollution.                  
Like a battery, a fuel cell has a limited capacity to create a                  
current. Unlike a battery, a fuel cell isn't thrown out or                      
recharged when its available electrons are used up-its fuel is                  
replenished.                                                                    

Efforts to develop the technology have long focused on devices                  
that use hydrogen gas, the cleanest, most efficient fuel. NASA has              
used hydrogen technology for decades. It powers space shuttle                   
electronics. Car companies have spent an estimated $2 billion in                
recent years to test hydrogen-powered cells for electric cars.                  

The drawback is that hydrogen gas is highly explosive and must be               
stored in heavy pressurized tanks.                                              

Methanol has promise as a power source because, ounce for ounce,                
its chemical bonds store nearly 10 times more electrical energy                 
than does a nickel-hydride battery.                                             

Uses for the technology:                                                        
A digital phone running on a methanol fuel cell, for example,                   
would have to have the fuel replenished-perhaps in the form of a                
methanol containing cartridge-about once a month.                               

Alternatively, some engineers are aiming for chargers that run on               
methanol fuel cells, allowing mobile phones or other hand held                  
devices with run-down batteries to be revived when plugging into                
the electric grid.                                                              

Factory and power plant smokestacks outfitted with equipment that               
converts carbon dioxide, which may play a role in global warming,               
into methanol. This will ease energy concerns and reduce pollution              
at the same time.                                                               

Pyrolysis Gas to Fuel Cell Systems                                              
----------------------------------                                              
Using waste gas to power fuel ells.                                             

Background:                                                                     
Traditionally, electrical and thermal energy is produced in a                   
conventional combustion process.  Coal, fuel oil, and natural                   
gas are common fuels used for electrical generation,                            
while nuclear, hydroelectric, and solar are non-combustion                      
processes.  All fossil fuels release their stored energy and air                
pollution simultaneously when burned in a contemporary combustion               
process.                                                                        

To reduce or eliminate air pollution, the combustion process must               
be shifted in some way to another type of process.  Extracting                  
pollution-free energy from fossil fuels can be accomplished                     
through the electrochemical reaction of a fuel cell  A non-                     
combustion process is a foundation from which pollution-free                    
energy emerges, fulfilling our incessant need for energy without                
environmental compromise.                                                       

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The Electrochemical Solution                                                    
----------------------------                                                    
Environmental impacts of the fuel cell technology on ground-level               
air pollution are especially dramatic.  Test results readily                    
demonstrate that emissions from a typical fuel cell are cleaner than            
the ambient air in the Los Angeles area, and as such, are exempt from           
air quality permits in California.  An argument could be made in                
support of the fact that fuel cells not only help prevent pollution,            
but are also helping clean the air in Los Angeles.                              

Fuel cells are a compact, silent, and environmentally clean                     
technology lacking the pollution found in a present-day combustion              
process.  Fuel cells reduce on-site emissions directly lessening                
financial, societal, and environmental costs of providing energy                
services for that site.                                                         

Unconstrained by the thermodynamic limits of combustion or                      
limitations of the Carnot cycle, fuel cells use 40 percent less                 
fuel than a contemporary power-generation system.  Another                      
contributing factor that influence fuel cell efficiency is that,                
unlike a conventional power plant, the fuel cell has no moving                  
parts and does not require the mechanical energy of a rotating                  
shaft, or lubrication.  Fuel cells (as an electrochemical engine)               
are capable of attaining very high efficiencies quietly and with                
virtually no emissions.                                                         

Fuel cells enhance and help stabilize the electric grid.  The                   
fundamental theory is to rethink the large centralized power                    
generation system and build an infrastructure of distributed                    
resources with fuel cells as the centerpiece.  With this paradigm               
shift, the grid becomes more secure, power-quality enhanced and                 
air quality improved.  Utilities that take advantage of this                    
opportunity can retain market share, gain many new long-term                    
customers and use, or sell emission credits.                                    

Conclusion:                                                                     
The fuel cell is a bridge from the combustion process                           
to an electrochemical reaction, converting fuel-energy into                     
electricity and heat.  This bridge is a conduit to pollution-free               
energy and is often looked to as a link in the renewable hydrogen               
fuel chain.                                                                     
(Also see additional documents, and drawing.)                                   

Additional Thermal Reduction Processes are being looked at for                  
Special Non-Hazardous (industrial & Manufacturing) Waste                        
Manufacturers & other Industrial Waste Generators (of non-haz                   
waste) Pharmaceutical Manufacturers, Chemical Manufacturers                     
Universities & Other Teaching Institutions Consumer (household)                 
Product Manufacturers  Electrical Component Manufacturers of                    
Batteries, Lamps, Ballast's, etc.                                               

Hazardous (Industrial & Manufacturing) Waste - Manufacturers &                  
other Industrial Waste Generators (of hazardous waste)                          
Pharmaceutical Manufacturers Chemical Manufacturers  Incinerator                
Ash Utilities (electric, gas & water).                                          

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Military Waste  - Aging Military Munitions and Chemical Warfare                 
Agents.                                                                         

The "Hurricane"                                                                 
(APW aqueous parts washer)                                                      
-------------------------                                                       
The Purpose:                                                                    
To wash engine parts.                                                           

The Process:                                                                    
This is a very simple technology utilizing high                                 
pressure, hot water and biodegradable soap to wash engine parts.                
The product is manufactured of 100% solid stainless steel with a                
3hp seamless pump providing 75psi in a multi-directional spray.                 
This product eliminates the need to hand wash parts using caustic               
solvents.                                                                       

Background:                                                                     
The California Air Quality Management District (AQMD) has outlawed              
solvent use in California.  There are in excess of 75,000 businesses            
in California alone that must comply with this ruling and convert to            
a water based system.                                                           
(Also see additional documents, drawing, pictures and brochers.)                

Nuclear Oxidation Reduction System                                              
----------------------------------                                              
Looking at first draffs of liquid seperation system.                            

Fusion Energy Systems                                                           
---------------------                                                           
Taking a different approach to build this                                       
energy system.                                                                  

Market Summary                                                                  
--------------                                                                  
Thermal Reduction (TR) For municipal solid waste Target Municipal               
landfills, transfer stations, large industrial and recreational sites.          

There are currently over 1,500 landfill sites in the U.S. and                   
Canada thus Thermal Reduction (TR) does not require a large market              
penetration to be successful.  Units will be designed in 50 and                 
100 ton per day (TPD) capacities but can be engineered for single               
units to process up to 250 TPD. Units are designed to sell                      
modularly for sites receiving waste streams in excess of 250 TPD.               

Marketing efforts will focus toward local and state government.                 
We are already  looking at 4 projects in California and New York.               
We have had a lot of inquires from Italy, Greece, Mexico and                    
Egypt.  Plans for a demonstration facility for municipalities                   
nationwide are in the works.                                                    

Primary competition for the Thermal Reduction (TR) is                           
incineration.  With EPA regulations regarding emission of dioxin                
and furans produced by incineration becoming more stringent,                    
Thermal Reduction (TR) sees its competitors rapidly leaving the                 
marketplace.  This will allow Thermal Reduction (TR) to move more               
freely through the municipal waste marketplace                                  

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Thermal Reduction (TR) For Medical Waste.                                       
----------------------------------------                                        
Target:                                                                         
Hospitals, Doctors/Dentists Offices  Skilled & Unskilled Nursing                
Care,  Group Practices, Specialized Out-Patent Services, Patient                
Care Clinics,  Alternative-Care Providers, Zoos, and Veterinarians              
& Veterinary Hospitals.                                                         

With syringes washing ashore in New York, Florida and California                
and "red bag" waste showing up at landfills, the problem is                     
further exacerbated by court ordered closures of landfills.                     
According to the Environmental Protection Agency (EPA), half of                 
the estimated 6,600 landfills in the country are being closed over              
the next five years.  Additionally, even though a hospital or                   
health care facility may not violate any of the Resource                        
Conservation and Recovery Act (RCRA) regulations, it is still held              
liable under common law for improper handling or disposing of its               
pathological and biological waste should any harm be done to any                
person or property.  This cradle to grave mentality carries a                   
lifetime liability for all generators of medical waste.                         

Nuclear Waste Reduction (NWR)                                                   
-----------------------------                                                   
Target:                                                                         
Department of Energy, commercial nuclear power                                  
operations, Federal Laboratories (i.e., Idaho National Engineering              
& Environmental Laboratory, Rocky Flats, Hanford, Oakridge, and                 
Los Alamos).                                                                    

Nuclear Waste Reduction (NWR) technology is best suited for                     
treatment and concentration for low-level (LLW), mixed low-level                
(MLLW), and transuranic (TRU) waste.  The three combined accounts               
for approximately 93% of all nuclear waste generated in the U.S.                
This presents a substantial market for Nuclear Waste Reduction                  
(NWR).  There is currently no functional competitor to Nuclear                  
Waste Reduction (NWR) either working or in development.  This also              
allows Nuclear Waste Reduction (NWR) to pioneer a new marketplace               
where demand is awaiting the solution.  Extensive market                        
assessment of this technology has been completed through the year               
2020.  With the current backlog of waste to be treated, Nuclear                 
Waste Reduction (NWR) would have sole possession of a market that               
presents a $2.6 billion -S4.0 billion annual opportunities.                     
Foreign markets would more than double the income potential.                    

Skin Sense                                                                      
----------                                                                      
Target:                                                                         
Department of Energy, Federal Laboratories Licensed                             
Disposal Facilities. (i.e. EnviroCare, Waste Control Specialists).              

A small scale market assessment has been made utilizing a best                  
guess approach, Waste Reduction Technology is estimating Skin                   
Sense market at approximately $100 million to $500 million                      
annually.  With final development of Skin Sense and a definition                
of the technologies full capabilities, these munbers could rise                 
dramatically.