Iontek International Corp. BlueMax Offers Unique Value Proposition: Emissions Reductions & Fuel Savings Overview Soaring fuel prices and new emissions mandates are creating financial stresses for organizations big and small. Governments ’ fuel costs are forcing budget shortfalls, and businesses that use a lot of fuel are closing at alarming rates. In many cases, businesses able to adjust to these fuel prices will not be able to afford the additional capitol investments required to meet new emissions mandates. Several case studies show that use of the fuel catalyst BlueMax enables vehicles to meet Tier III emissions standards while also increasing fuel economy, offering multiple benefits from a single expenditure and providing 300% or greater ROI (return on investment) in most cases. The Challenge Mandates for emissions reductions are taking effect around the world, forcing changes in corporate and government practices. In addition to Kyoto Protocol carbon restriction measures, governments are adopting carbon cap and trade systems, assigning costs to emissions and creating financial incentives for carbon reductions. Meeting these new emission mandates is financially stressful for any size organization, but it is often impossible for small companies unable to afford the capitol investment of brand new vehicles or even the cost of after-market catalytic converters for existing inventory. The Opportunity The shift to a carbon based economy offers great rewards to those who can make the transition. Emissions reductions will become carbon credits with cash value, and in some cases these will be available retroactively. By identifying the best transitional technology in each case, organizations can gain competitive advantages in both financial savings and from the marketing value of adopting cutting edge environmental practices. In cases where fuel can be properly blended, BlueMax offers the best emissions reduction option and value. Case Studies Taylor Trucking: Facing the duel stresses of increased fuel prices and new environmental standards, Taylor Trucking in Vancouver, Washington, USA, expected they would have to close their business when new emissions mandates begin in the coming year. Taylor is a second generation company operating 6 1 dump trucks with Cummins and Detroit diesel engines. This means trucks range in age from 2-12 years old and are mostly used for short haul runs. Before using BlueMax in their diesel fuel Taylor was losing money due to fuel prices. Also, several of Taylor’s trucks were spewing black soot and could not pass emissions tests at the new standards. After using BlueMax for two months, Taylor estimated they were saving $5,000 US each week on fuel costs. Several months later, they see continued improvement in fuel economy and decreased maintenance costs. In addition, all of the trucks in Taylor’s fleet now meet Tier III emissions standards. Company owner Mike Laboke now says with confidence that they are staying in business, saving around 70 jobs and maintaining a family tradition. Achieving this with a BlueMax green technology comes with a bonus; they believe their new low emissions practices will give them a competitive edge when bidding for contracts with green organizations. Atlantic Express of L.A.: " e state of California is imposing some of the strictest emissions standards in the world, and for Atlantic Express, one of the largest school bus companies in the US, meeting these standards is required to maintain their contracts with the LA School District. In addition, they face growing concerns and impending regulation of diesel particulate matter (DPM) because of its impacts on children’s’ health. Iontek International Corp. After three weeks of running BlueMax treated fuel in buses with Cummins diesel engines, each passed emissions tests to Tier III standards, a visual and wipe test noted a significant reduction in DPM residue on the bus, and they reported a 39.5% increase in fuel efficiency. Atlantic Express noted that by using BlueMax in their diesel fuel they are saving in fuel costs, in maintenance costs, on the costs of catalytic converters for the buses that were not meeting emissions mandates and ultimately, by meeting those emissions mandates, they are retaining their valued contracts with the LA School District. To put a number on these savings, we calculated using 1 million gallons of fuel (although Atlantic Express of LA uses a bit more than this.) At $4 per gallon for diesel and 39% increase in fuel efficiency, they are saving $1,560,000 on fuel.. After the cost of BlueMax, they save $1, 092,000, which represents a 429% ROI (return on investment) in fuel savings alone. Cargo Xpress: " i s long distance trucking company operates 30 trucks with Cummins, Detroit and Mercedes diesel engines. They have used BlueMax since its earliest production, when only the diesel version was made available, beginning in 1982. Cargo Xpress President Alan R. Sebastian reports on their experience with the product, writing, “We are happy to report not one single incident of engine failure or damage has occurred. In fact, just the opposite is noted. When engines are being worked on, we find them to be extremely clean and free of any internal deposits or build-ups.” Estimating that they are saving 14.5% on fuel costs alone, Sebastian adds, “We highly recommend BlueMax to any truck or bus fleet seeking to increase profits and obtain higher operating efficiency from their trucks while reducing pollution.” Summary The decision to adopt new technologies in response to changing economic and policy demands can be daunting for any organization. Best practices result when the decision considers issues of economy and sustainability. Even for organizations that can afford the huge capitol expenditures for new vehicles, the choice is not an easy one. Most automobile experts are predicting that transformational engine technologies will emerge soon, tempting decision makers to wait. And, replacing a vehicle that can be made to function very efficiently is usually not the most environmentally friendly decision. A lot of greenhouse gas emissions are created in the production of any new vehicle, and the old vehicle will still be running, just in another organization ’ s inventory, so it takes a long time to achieve a carbon reduction from this decision. While catalytic converters are proven to reduce greenhouse gas emissions, they also have a negative impact on fuel economy. their installation takes time and money, they present additional maintenance issues, and their production costs continue to rise with the price of noble metals such as platinum. By contrast, Bluemax blend of plant derived botanicals is sustainably harvested, and the developing company, 3E Envirosciences, has made a commitment to work with the Carbon Fund to achieve carbon neutral status. And, the product will soon be evaluated for carbon credits which will be earned by BlueMax’ s consumers and can be traded on the carbon markets. BlueMax ’ s fuel catalyst offers a solution to greenhouse gas emissions now, a truly green solution that will create savings and value. For organizations that store and pump their own fuel, BlueMax provides the most economically feasible way for businesses to significantly reduce their greenhouse gas emissions while also increasing fuel efficiency, improving fuel performance, and reducing engine maintenance. Using BlueMax delivers a unique value proposition, offering emission reductions and fuel economy, serving the atmosphere and the bottom line. Note: BlueMax is distributed under license from FUELON Inc.