1 What We Make 2 Market Opportunity 3

1. What We Make 2. Market Opportunity 3. Competitive Advantages 4. Threats & Risks 5. Investment Proposition

Market Opportunity: APPLICATIONS • Authentication: anti-counterfeiting tags (CD’s, packaging, fabric, documents, currency. . . ) • Electronics: LEDs, displays, photovoltaics, etc • Life Sciences: diagnostics, biological sensors, drug delivery, etc

Market Opportunity: MARKET DEVELOPMENT Nanoco™ projected % activity by segment

Market Opportunity: MARKET DEVELOPMENT Nanoco™ projected % revenue by source

Market Opportunity: SALES ACTIVITY IN EIGHT WEEKS START POINT • • • July: No product. No Web site. No staff Aug – Oct: Intensive production testing ‘Free Evaluation Sample’ program Automated enquiry Website 1 press release + Nano. Sig Global 2000

Market Opportunity: SALES ACTIVITY IN EIGHT WEEKS Evaluation Samples: R&D/License. Discussions NASA Oak Ridge National Lab. Nanosys/QDot New Light Cal Tech Southwest Research Peking University Qineti. Q (UK Mo. D spin-out) British Bio. Cell Dept. Biophysics, Hungary Oak Ridge Innovision Cal Tech UK Ministry of Defense Samsung Matsushita Biocode BMW VW Securency (More)

Market Opportunity: Sales Discussions in 8 Weeks AUTHENTICATION • CDs, cigarettes, currency, clothing, packaged goods, fine art. . . • Billions of lost tax rev. & taxable profits • Many billions of items • 0. 025 to 0. 3 cents per tag for Nano. Dots • $25, 000 - $300, 000 per million packages • Plus license fees on turn-key solutions

Market Opportunity: Sales Discussions in 8 Weeks ELECTRONICS • • • Photovoltaic portable devices Photochromic materials Plastic solar cells/roofing tiles Plastic light emitting diodes Flat screen displays Smaller quantities but higher margins than authentication

Market Opportunity: Sales Discussions in 8 Weeks LIFE SCIENCE • • Measuring cells’ immune receptors Tagging monoclonal antibodies Colocalization measurements Simultaneous molecular tracking Very small quantities; higher margins

Market Opportunity: NANOCO PROJECTED REVENUE Based Only On Discussions To Date

Market Opportunity: COST & MARGINS • • • Very significant margins in R&D product Very significant economies of scale Excellent production yields QC cost flat up to 100 gm batches High volume QC process underway Good fee & license prospects

Market Opportunity: COMPETITIVE SCENARIO • Applications builders making dots • Nobody focusing solely on ‘our’ space • No infringing scalable methodology/IP

COMPETITIVE ADVANTAGES 1. INTELLECTUAL PROPERTY • Patents granted in U. S. and E. U. (#’s. 09/043, 258 & 96927134, 5) • Only extant method of making production volumes of dots. • Various additional/divisional patents in process

COMPETITIVE ADVANTAGES 2. FIRST MOVER ADVANTAGE “Nanoco is the most successful entrepreneur in the formidable task of developing and commercializing Quantum Dots. ” Nano. Analytics, Los Angeles, CA, Oct 2002

COMPETITIVE ADVANTAGES: FIRST MOVER “Many labs in China show much interest in QDs' application in biology and other areas. But there was no commercial products supplied before Nanoco. I think China market is large and the commercial opportunity is attractive. ” Yinlin Sha Dept. of Biophysics Peking University Nov. 1 st ‘ 02

COMPETITIVE ADVANTAGES 3. MANAGEMENT TEAM • • Science/research PLUS business/marketing 300 + papers on nano-particle synthesis Significant start-up business experience Sales presence established in U. S. and E. U.

COMPETITIVE ADVANTAGES: TEAM FOUNDER: PROF. PAUL O’BRIEN • Head of Chem. & Materials Science, Manchester Univ. • Most published scientist in nanoparticle synthesis • Inventor of patented ‘single pot’ production method for Nano. Dots • Avalailable 20% – 100%

COMPETITIVE ADVANTAGES: TEAM CEO: IAIN WOOLWARD • Multiple tech. launches • 25 yrs in Silicon Valley • Extensive marketing (ex. Saatchi, etc. ) • Bootstrapped own $65 MM business • Good global experience • On 4 person mgmt. team on $800 MM rev + IPO 18 mth. start-up

COMPETITIVE ADVANTAGES: TEAM EXCELLENT SCIENTIFIC TALENT POOL • • • Univ. of Manchester: 27, 000 students University is Nanoco shareholder Highly talented post-doc nano-group Highly international/Asian Relatively affordable Highly available full time/part time

COMPETITIVE ADVANTAGE 4. SUSTAINABILITY • World-class nano facilities from existing shareholder (Univ. of Manchester) • Very low burn rate • Revenues (+ profit? ) < 6 months. . . or • . . we can wait it out.

COMPETITIVE ADVANTAGES 5. SCALABILITY • Only proven scalable methodology • No significant financial barriers to scale

THREATS & RISKS • Profitable app’s may materialize slowly • Alternative scalable method may lead to… • Race for market share & price war • Corp. giant might assault our IP

INVESTMENT PROPOSITION • • Q 1/Q 2 2003: Seed of $500, 000+ (Possible Q 4 2003: Series ‘A’/Final) Seed: ‘Convertible Preferred’ 3 year loan @ 18% compound a. r. r. Possibly semi or wholly secured Extensive warrants for upside Controlling interest upon default

INVESTMENT PROPOSITION ADVANTAGES TO INVESTOR • • • Low risk debt instrument Fair annual return locked in Liquidity locked in Lots of upside with warrants No argument over valuation Control in case of default

INVESTMENT PROPOSITION USE OF SEED FUNDS • Grow global sales • Optimize economies of scale • 2 nd generation nano-particles • Extend IP on production methods

INVESTMENT PROPOSITION SUMMARY • • • Affordable Diversified bet across multiple app’s. Low risk investment vehicle Revenue/profit ready Powerful IP position World-class/world-wide team

CONTACT DETAILS Iain Woolward, CEO Iainwoolward@nanoco. biz 408 718 4457