the strength of better thinking.

Unique Selling Proposition

for Consumer

• Save up to 50% on heating and cooling bills without spending

Energy Efficiency more for your home

• Purchase more home because energy cost savings are

Energy Efficient Mortgage deducted from your qualifying debt load

• Merkel/Durasip panels save trees, reduce transportation

Green Stewardship emissions, conserve energy and can be made from recycled
plastics and renewable sources

• A Class A fire rating – the most stringent rating available –

Fire Resistance makes Merkel/Durasip panels the safest in the industry.

• Piece of mind during violent storms and even hurricane force

Hurricane Resistance winds.

• There is no wood to rot, mold or become a nest for destructive

Mold/Termites/Insects insects

• Integration of nano-particles and specialty fabrics enhance

Military/Governmental panels to shield from ballistic events as ell as EMI/RFI
 Unique Selling Proposition
for Builder
  Merkel/Durasip panels allow integration of electrical, windows and
plumbing into the pre-fabricated wall
  1 step process vs. 2-4 steps – no concrete, grout, chicken wire or dry wall

Pre-fabricated Home
Avg.
Savings
of $14,000
Level Merkel/ Decreasing Build Cost
Of Durasip Increasing Quality Control
Pre-Fab
Possible Block

Stick
Frame

1 week Time to Finish Envelope 16 weeks

 Site-Built Opportunity

  Residential new home starts in the US were 1,300,000 in 2007 -

approximately 3 billion sq ft of livable area.1
  US Non-residential starts in 2007 were over 1 billion sq ft.
  2007 usage of Wood Structural Panels in N.A. was 40.2 billion sq ft –
making the CSIP opportunity over $221 billion.2
  Currently, Wood SIPs are utilized in about 3% of the residential
housing market.1
  The average U.S. home is 2400 square feet and would use
approximately 6000 sq ft of CSIP material.1
  39,000 homes/year (3% share), Gross Sales of CSIPs = $1.3 billion

  Average Net Selling Price of a Merkel CSIP = $5.50 per square foot
  Production cost for Merkel CSIP is $2.80 per square foot (50% G.M.)
Source: (1) National Association of Home Builders (2) APA Engineered Wood Association.

Annual Site-Built C-SIP Opportunity = $221 billion

Merkel/Durasip Panel Home
Merkel Panels are pre-cut
Walls are connected
Walls are fastened together
Corners are fastened
Roof Panels are attached
No heavy equipment required
Stucco is Applied
Finished Coat Applied
Manufacturing Facility
 Exit Strategy

  Secure Merkel Market Share of 30 million sq ft

annually
  Positive cash flow in 18 months
  Build relationships with global partners
  Build relationships with potential merger or
acquisition targets
  Develop global material suppliers and distribution
network
  Merger or IPO