Federal and State governments recognize the importance of marine waste disposal solutions by offering a series of grants for developing sewage management programs. These grants supply as much as 75 percent of the costs of programs. The Company's research indicates the Company may be eligible for grants under these programs. The Company's program represents a rare example of private industry working with government agencies to produce extraordinary public benefits while resulting in dramatic revenues and profit for the private industry partner.

The Regulatory Background
The Federal Government has long recognized the deleterious effect of untreated human waste into oceans and other waterways. It is unquestioned that there are far reaching environmental and health consequences of dumping.

The Clean Water Act (“The Act”) prohibits all dumping of untreated sewerage (with limited exceptions) into oceans and interstate waterways. The Act also permits States to implement laws more stringent than the Federal Laws. The Act also allows States to apply to the EPA for designation of its waterways as a “No Discharge Zone” prohibiting all discharges into its waterways. A requirement of this application is that the State prove that there are reasonably available adequate facilities for the safe and sanitary removal from vessels. The Company's services are invaluable in meeting these requirements.

The Opportunity
It is estimated that there are 12.9 million recreational boats registered in the United States. All of these boats are subject to the requirements of the Clean Water Act. It is estimated that an extremely small number of boaters use existing pump-out services. The Company's business model allows it to operate in all States, since it does not require fixed facilities or extensive capital costs. The Company has the opportunity to achieve outstanding revenue results by capturing a significant percentage of this huge market.

Beta Testing and Proprietary Applications
Klean Marine will Beta test in South Florida to demonstrate the effectiveness of the Company's system in improving water quality in the area. As a component of the Beta testing process, Klean Marine will collect and log data using automatic identification system transponders that provide information that conforms to Coast Guard standards during the Beta testing. The data is defined as quantity, date and location of each pump-out. The application of the shipbourne marine automatic identification systems (AIS) transponders, receivers and data logging equipment for waste removal and ballast control and reporting is novel and proprietary in its application.

Using this proprietary AIS application, Klean Marine will provide monthly reports to the EPA indicating the number of boats serviced, quality of waste collected by location, ballast input and discharge and measured improvement to water quality by location. The success of the Beta test will not only be a marketing vehicle, but will also be the cornerstone for the more than 300 grants available that will cover as much as 75 percent of the Company's costs. This data gathering system can become the government standard for programs to control the epidemic of raw sewage disposal in the nation's waterways.

The Business Model
The Company's business strategy for the first 3 years of operations is:

• Acquire and equip boats and trucks required to implement program
• Perform beta test in Florida to demonstrate improvement in water quality utilizing the Company's services
• Apply for grants
• Implement marketing programs
• Expand to States outside of Florida
• Affiliate/and or acquire pump-out and strategically aligned businesses
• Achieve national status

Use	Amount ($)
Boats, Trucks and Other Equipment	1,000,000
Beta Testing and Research and Development	250,000
Working Capital	750,000
Marketing	1,000,000
Total	3,000,000

An additional sum of $25 million is sought for the following uses;

• Acquisition of a significant number of small pump-out businesses
• National Expansion
• Working Capital

• Inexpensive yearly agreement
• Mobil service
• No fixed facility

Management
Present management possesses extensive experience in the marine industry. The Company has assembled an advisory board of professionals that specialize in the environment, AIS technology, government granting and other related specialties. The senior management team is led by a successful entrepreneurs that started and grew substantial private and public companies in related industries. He has a background in engineering and finance, and experience across a wide variety of industries including technology, healthcare, biotech, distribution, utilities, solar energy and consumer product manufacturing. He possesses the broad range of professional skills and expertise to help guide a business to the next level. He was CEO, President of eight private and public companies.

Sales Projections
Klean Marine anticipates contracting with an average of 100,000 boaters per month starting the third quarter of 2008. Annually the numbers of contracts are projected to increase 50 percent. With this model projections for the first 3 years of operation are:

Year	Projected Revenues ($ Millions
1	25
2	100
3	300