Company Insight April 2011

Puralytics
Primary Tag: Water & Wastewater Other Tags: Water Treatment, Purification

Mia Javier Senior Analyst Research & Advisory 415-684-1020 x 7173 mia.javier@cleantech.com Company Description: Developer of a patent-pending photochemical water purification technology Competitors: Raindance, Excel Waters, RO Ultratech, Ozomax
Company Profile Location (HQ) Founded Beaverton, Oregon, United States of America 2007

Provider of light-based water purification products for a range of markets

Company Insight
Puralytics has peaked the attention of the water innovation community with its growing list of industry awards. The company has developed a patent-pending water purification technology using a light-activated photocatalyst nano coating. Strategically, we believe that the companys go-to-market strategy is well formulated: Puralytics is targeting applications where water quality is business critical, the purification requirements are well defined and new capability is required due to increasing awareness, regulations, or cost. In order to penetrate specific industrial markets, the company is engaging with local channel partners to sell its two product families; the Shield and the SolarBag. While still in the earlier stages of development the company is off to a good start with a 342% growth in revenue from 2009 to 2010.

Employees (Estimate) 7 Revenue (2010) Website $305,319 www.puralytics.com

Financing Profile Company Status Development Stage Investment Stage Private (Venture-Backed) Limited Commercial Availabilty Series A

Market Insight
The number of vendors that are developing new water purification technologies continue to grow. As new contaminants are identified, the continued development of more robust mouse-trap treatment technologies emerges for a range of markets. Treatment solutions that enable initial capital cost efficiency, operational cost efficiency and zero waste by-products for either centralized or distributed water systems are most likely to gain momentum in penetrating markets. That said the introduction of new high-tech solutions to any water sub-market requires experienced management teams with the tenacity and strong execution strategy to bring solutions to market. Depending on the specific addressable market, vendors are addressing a portion of the $87 billion 2010 global water treatment equipment market.
Venture Market Insights
Date Investors Engmann Options LLC, Steifel Foundation LLC, 10 2009 - 2011 Angel Investors, Management Team Total Amount $830,000 $830,000

Total Paid-in-Capital $830,000 Ticker N/A

Recent News: 03/23/11: Puralytics establishes distribution in Western Canada with new agreement 03/20/11: Puralytics signs distribution agreement for Western US states 02/21/11: Puralytics SolarBag product line approved for household use in Kenya

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Company Insight: Puralytics Tags: Water & Wastewater, Water Treatment, Purification, 2010 CTG100 April 2011

Company and Market Snapshot

Overview Founded in 2007, Puralytics has developed a cost efficient water purification system for distributed use. The company's products, enabled by advances in semiconductors, optics, and nanotechnology, use natural or LED light to induce photochemical reactions to purify a given volume of water.

Products/Technology

Puralytics' purification technology uses only light energy to activate a photocatalyst nano coating. Water is purified by five simultaneous photochemical reactions, breaking down organic compounds, reducing and removing heavy metals and sterilizing microorganisms. There are no chemical additives and 100% of the water is purified. Puralytics currently markets two product lines; the Shield and the SolarBag, both based upon Puralytics patent-pending technology. Electrically powered, the Shield is a LED based purification stand-alone system or system component. This unit has an extremely small footprint at 28x19x8 and provides 500 gallons per day of purified water. The SolarBag is a direct sunlight activated photochemical water purification bag, manufactured and distributed by channel partners, which can purify 3 liters of water when placed in sunlight for 2 - 4 hours. The SolarBag has promising applications in remote military, emergency response, and emerging markets.

Strategy/Sales Channels

Puralytics has identified target applications that have a defined need for removal of organics, heavy metals, and microorganisms, and have flow rate requirements which fit with initial system capabilities. Laboratory Waste Water and Well Water treatment are the company's initial target markets. The primary strategy will be to develop channel partnership or OEM supply agreements with corporations and organizations that currently serve the company's target applications. Market and geographic distributor agreements have been signed for Western US States, Western Canada, India, ASEAN, and GCC countries. Raindance, Excel Waters, Axeon, Ozomax Mark Owen, CEO, Founder Dr. Tom Hawkins, VP Engineering Ed Kolasinski, Chief Operating Officer Dave Moser, VP Business Development

Key Competitors Management Team

Key Relationships

Company Hydration Technologies

Date N/A

Relationship Type Channel Partner

Engmann Options LLC Steifel Foundation National Science Foundation

Jan-09 Jan-09 Oct-09

Development Partner Development Partner Development Partner

Oregon Nanoscience and Mar-10 Microtechnologies Institute (ONAMI)

Development Partner

Notes Hydration Technologies' humanitarian water division is helping Puralytics sell the SolarBag to nonprofits that will distribute it Investor Investor Puralytics was awarded a NSF Grant in the amount of $148,796 in response to a Small Business Innovative Research (SBIR) phase I proposal ONAMI awarded Puralytics a development grant in March, 2010

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Company Insight: Puralytics Tags: Water & Wastewater, Water Treatment, Purification, 2010 CTG100 April 2011

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