Company Introduction

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Neil Perkins
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1 Company Introduction

2 Company name OXUS Co., Ltd. CEO Lee, Tae-soo (doctor of engineering) Established date Nov Capital 1.5 billion won Staff 25 persons Address of #246 Cheonan-Ri, Seorak-myeon, Head office/factory/r&d lab Gapyeong-Gun, Gyeonggi-Do Address of OXUS America 1685, Northfield Drive, Rochester Hills, MI 48309, USA

3 Contents Ⅰ. Company Introduction 1.Company history 2.Awards and certifications 3.Technology of OXUS Ⅱ. Importance of Oxygen 1.Effect of oxygen 2.Cause of oxygen shortage 3.Symptoms of oxygen shortage Ⅲ. Principle of Oxygen Concentrator 1. What is oxygen concentrator? 2. Features of oxygen concentrator Ⅳ. Introduction of Each Business Part of OXUS 1. Oxygen Room 2. Medical device

4 1. Company History May 1994 : Started a chronic respiratory insufficiency treatment base technology development research project (Ministry of Health and Welfare). Jun 1998 : Completed a chronic respiratory insufficiency treatment base technology development research project (Ministry of Health and Welfare). Sep 1998 : Completed Ministry of Health and Welfare-organized G7 medical oxygen concentrator development project. Nov 1999 : Performed KAIST-organized medical oxygen concentrator commercialization research project. Jun 1999 : Registration of designs for medical oxygen concentrator (Korean Intellectual Property Office). Oct 2000 : Acquired certificate of quality guarantee company (Korea Machinery-Meter and Petrochemical Testing & Research Institute). Nov 2001 : Acquired Chinese safety certificate of household oxygen concentrator. Dec 2001 : Acquired certificate of Excellent Korean Technology (KT) mark (Ministry of Science and Technology). Jul 2001 : Received safety certificate for oxygen concentrator (air purifier) (EMC Research & Development Institute). Jun 2002 : Changed company name (OXUS Co., Ltd. Oct 2003 : CE mark certified (RWTUV/GERMANY). Jun 2003 : Received IR52 Jang Young Shil Award (Ministry of Science and Technology). Oct 2005 : Signed a contract of patent enforcement right with Delphi. Jul 2007 : Received certificate of IEC60335 / CB RMC-087C4 (Korea Testing Laboratory). Jan 2008 : Received certificate of IEC60335 / CB RAK-U03R2 (Korea Testing Laboratory). Feb 2008 : Received the commissioner citation (Korea Food & Drug Administration). Jul 2008 : Received IR52 Jang Young-Shil Awards (Ministry of Science and Technology). Sep 2008 : Moved to the new building of company at #246 Cheonan-Ri, Seorak-myeon, Gapyeong-Gun, Gyeonggi-Do. Jan 2009 : Received the certification of manufacturing the medical device OXUS F501S (Korea Food & Drug Administration). Dec 2009 : Renewed GMP (Korea Food & Drug Administration). Oct 2010 : RS medical device product manufacture license (Korea Food & Drug Administration). May 2010 : Established OXUS America Inc. S Sep 2010 : Obtained ISO 9001 / ISO / CE/MDD (OXUS F501S) certification (TUV Rheinland).

5 2. Cause of Oxygen Shortage Environment and air pollution - Increase of industrial and automobile exhaust gas due to fossil fuel (oil). Encroachment on a green tract of land according to various kinds of pollutant emission and industrialization and urbanization. - Blocking the source of oxygen concentration and purification function. - Increase of carbon dioxide in the confined space of public facilities. Residential environment - Urban life space becomes confined due to the design for soundproofing against noise, dustproofing to block pollution, insulation, fireproofing, enhancement of individual privac and crime prevention. - Difficulty in external air circulation because a building becomes subterranean and high-rise due to urban centralization phenomenon. Common Lifestyle - Breathing at the state exposed to polluted air, and eating contaminated water and foods. - Various kinds of stress in real life and drinking, smoking and lack of exercise. -Increase of oxygen consumption in the body due to the way of life of the moderns, high-fat instant food and meat-centered dietary habits.

Humidifier User (Patient) O2 N2 Controller Controller Noise Features of separation type concentrator Development of separation type oxygen concentrator / World s first mass production Separation into

6 Ⅲ. Principle of Oxygen Concentrator 1. What is oxygen concentrator? Principle of Oxygen concentrator Outdoor unit (oxygen-concentrating part) Oxygen concentrator Indoor unit (oxygen-supplying part) Air Filter Air Compressor Molecular sieve Oxygen Signal Filter Humidifier User (Patient) O2 N2 Controller Controller Noise Features of separation type concentrator Development of separation type oxygen concentrator / World s first mass production Separation into oxygen-concentrating part that concentrates oxygen (outdoor unit) and oxygen-supplying part that supplies oxygen (indoor unit) Outdoor installation of oxygen-concentrating part where nitrogen is emitted, and noise and vibration occurs For the sake of supplying safe and effective air of high degree of purity Oxygen-supplying part has a role of controlling the oxygen-concentrating part and supplying air in a room

2. Features of oxygen concentrator Oxygen concentrator having been ceaselessly developed by continuous research and development is the best product to satisfy the condition that customers want.

Oxygen concentrator that introduces the most advanced and the newest IRS module (patent) Separation type of outdoor unit and indoor unit, and quiet in case of use Power saving type because of

7 2. Features of oxygen concentrator Oxygen concentrator having been ceaselessly developed by continuous research and development is the best product to satisfy the condition that customers want. We completely solved the problem of noise and vibration and nitrogen emission by designing the oxygen concentrator in the separation type of outdoor unit and indoor unit for the first time in Korea. Oxygen concentrator that introduces the most advanced and the newest IRS module (patent) Separation type of outdoor unit and indoor unit, and quiet in case of use Power saving type because of decrease in the number of parts Supply of fresh oxygen of high degree of purity of 80% Convenient because controller switch can be controlled indoors Can continuously supply oxygen of high degree of purity for 24 hours and 365 days [ IRS Module System] Easy extension by installation of many outdoor units

8 1. Oxygen Room Business Definition of Oxygen Room Product The core purpose of oxygen room product is to create pleasant space by supplying oxygen to spaces for people s residence, business and use. With passing of time, spaces for people s residence, business and use are becoming increasingly blocked off from outside space due to development of air conditioning, insulating and noise blocking facilities. On the other hand, this leads to decrease in ventilation rate, therefore indoor residential space is becoming more and more inferior. Also, due to limitations of space, many facilities are being installed in underground area lacking ventilation. And, most of intelligent buildings of the latest trend are designed with windows not to be opened. Therefore, opinions are being raised that indoor environment is not as good as before. In general, we believe that outdoor air is more polluted than indoor air in urban areas. However, in reality, it is clear that indoor air is certainly more polluted than outdoor air. Oxygen concentrator system of OXUS basically consists of the system that is the same as air conditioner. It consists of an outdoor unit, indoor unit and controller. Also, piping and installation operations are necessary. Outdoor unit is installed outdoors or in balcony. By separating oxygen and nitrogen from the air, nitrogen is discharged and the oxygen created is sent to an indoor space through pipeline. Indoor unit injects oxygen into the space. In other words, only the necessary oxygen is sent into the requiring space by using outside air. The average oxygen concentration throughout the world is 20.9%. Oxygen concentration is lower in polluted areas. Human beings experience a sense of stuffiness in oxygen concentration level of less than 20%. Indoor space of an urban region in which most people reside has the oxygen concentration of 20.5% in general. However, the level easily drops below 20% if ventilation is not carried out successfully or the space is occupied by a large number of people. In general, difference in oxygen concentration between inhalation (20.9%) and exhalation (16%) of a human being is approximately 4.9% on average. Aggravation in environmental conditions leads to decrease in oxygen concentration of inhalation. Therefore, the difference from that of exhalation decreases. As a result, human body, especially brain, feels as though the oxygen is insufficient by as much as 20% rather than by an actual 1%. Even if an oxygen room product discharges oxygen to an indoor space, it is not easy to have the oxygen concentration level surpass 22%. However, the 1% of increase in oxygen concentration means approximately 20% of increase experienced by our body.

9 Apartment Oxygen Room Configuration Install an oxygen concentrator outdoor unit in the space for outdoor unit Install a multi-functional controller on the living room wall Install a wall attachment bubble type on the bedroom wall and den Install a ceiling type nozzle in a small room Nozzle position and type can be variously selected according to the structure In case of application to apartment oxygen room

10 Office, Government office Configuration Outdoor unit Indoor digital controller Indoor bubble oxygen supplier

2. Medical Device Business Definition of Medical Device Product Products which can be used for oxygen therapy in the home or hospital according to the doctor s prescription or instruction.

11 2. Medical Device Business Definition of Medical Device Product Products which can be used for oxygen therapy in the home or hospital according to the doctor s prescription or instruction. Products which can be utilized for home oxygen therapy service performed by National Health Insurance Service so that a patient with chronic cardiopulmonary disease can receive oxygen therapy in the home according to the establishment of Ministry of Health and Welfare public announcement, Standard and Method of Insurance Benefits of Medical Treatment Expense. 1)Background of development It is intended to manufacture and provide more suitable oxygen concentrator for the first time in Korea, which is utilized for home oxygen therapy service performed by National Health Insurance Service so that a patient with chronic cardiopulmonary disease can receive oxygen therapy in the home according to the establishment of Ministry of Health and Welfare public announcement No , Standard and Method of Insurance Benefits of Medical Treatment Expense. 2) Purpose of development Convenience in using the device, which is required in the use environment, and providing products which the cost of maintenance (electricity bill) and noise are reduced as well as providing oxygen of high degree of purity for stable home oxygen therapy service. 3) Specification presented by National Health Insurance Service Equipment and service contents classified by service price according to Ministry of Health and Welfare notification No , 18 October 2006, Standard and Method of Insurance Benefits of Medical Treatment Expense Equipment standard Service contents Classification Degree of purity Noise Power consumption Alarm function Regular visit Directlymanaged office KRW 120,000 /month 45 db and below 300W and below At least 1 among power supply interruption, oxygen concentration, and flow rate (pressure) At least 1 per quarter 3 and over Over KRW 120,000 / month ~ under KRW 160,000 / month 90% and over Over 35 db ~ under 45 db Over 250W ~ under 300W At least 2 among power supply interruption, oxygen concentration, and flow rate (pressure) At least 1 every 2 months 4 and over KRW 160,000 / month 35dB and below 250W and below At least 3 among power supply interruption, oxygen concentration, and flow rate (pressure) At least 1 per month 6 and over

5~3 LPM : 90% and over (93±3%) Power consumption: 160 W Noise: 35dB Weight: 30 kg Flow rate & degree of purity 0.

12 2.2 Types of OXUS medical device product Classification F301(In preparation) F501S(mass produced) RS-00401(mass produced) Photo Specification Flow rate & degree of purity 0.5~3 LPM : 90% and over (93±3%) Power consumption: 160 W Noise: 35dB Weight: 30 kg Flow rate & degree of purity 0.5~5 LPM : 90% and over (93±3%) Power consumption: 220 W Noise: 35 db Weight: 25 kg Flow rate & degree of purity 1.0~5 LPM : 90% and over (90±3%) Power consumption: 75 VA Noise: 43 db Weight: 4.5 kg

2.4 Product Trends Quality of life ` Increase

life Portability Increase in necessity of

consumption Operating noise Product size

(~year2000) Fixed type Power Portability

Low power fixed type Power Portability DOD*

Portable type * DOD (demand on delivery )

13 2.4 Product Trends Quality of life ` Increase of patient s radius of activities and opportunity of participating in social activities as the improvement of quality of life Portability Increase in necessity of transport for tour and leisure time Power consumption Operating noise Product size Portability Oxygen flow rate 1 st generation (~year2000) Fixed type Power consumption Operating noise Product size Portability Oxygen flow rate 2 nd generation (~year 2005) Low power fixed type Power consumption Operating noise Product size Portability DOD* function DOD* 3 rd generation (~the latest) Portable type * DOD (demand on delivery )

KyoungjaLee. Korea Pharmaceutical Information Service (KPIS), Korea

KyoungjaLee. Korea Pharmaceutical Information Service (KPIS), Korea KyoungjaLee Korea Pharmaceutical Information Service (KPIS), Korea Pharmaceutical Serialization in Korea Pharmaceutical serialization policy & national traceability system KyoungjaLee, General Director