Innovation Takes Root 2012, Orlando, FL

Innovation Takes Root 2012, Orlando, FL

Northern Technologies International Global leader in environmentally-beneficial technologies Publicly Traded (Nasdaq: NTIC) Headquartered in Circle Pines, MN USA Global distribution through 29 Joint-Ventures Global R&D and Manufacturing Facilities

Responsible Innovation Leveraging core scientific expertise and established global distribution across compelling growth opportunities Market Leading Core Business Advanced Corrosion Management Solutions Extension of core Zerust know-how to oil, gas and chemical storage applications Corrosion Inhibiting Products Vapor Corrosion Inhibiting (VCI) technology replaces less environmentally responsible alternatives Advanced Bioplastics Biodegradable and/or biobased plastics for flexible packaging, injection molding and engineered articles

Natur-Tec Overview Biodegradable and biobased polymer resin alternatives to conventional plastics for industrial and consumer applications Natur-Tec Manufacturing Process Competitive Advantages Natur-Tec products meet International standards for biodegradability; Made from renewable resources Ease of processing - end products manufactured with conventional equipment Lower cost Competitive performance to traditional plastics Portfolio of resin compounds tailored to a wide variety of end-use applications

The Bioplastics Market in India Population of 1.2 Billion (15% of the World Population)- www.indiastat.com Plastics consumption is approximately 10 Million tons annually (10% of the World s Plastic consumption) With expanding middle-class (expected to be 267 million by 2016 - up 67 per cent from the current levels) and rising income levels, demand for quality and convenience-based packaged products is increasing India has seen a change in lifestyle resulting in growth of ready-to-eat and foods of different cuisines fueling the growth of packaging industry China is strong on exports but India is a huge emerging consumer market

Waste Management Tons of Plastic Waste!!!

Legislative Trends in India Littering is a critical issue Various State Governments (Himachal Pradesh, Rajasthan, Kerala, Punjab etc.) have banned the use of plastic carry bags Ministry of Environment and Forests recently notified a ban on use of plastics in sachets for packaging tobacco type products Compostable plastics are exempted from the ban

Standards and Testing Facilities Central Institute of Plastics Engineering Technology (CIPET) is a government supported organization and established as certifying agency for compostable plastics. CIPET also provides testing services and set up to do testing for biodegradation per ASTM D5338 and also disintegration per ASTM D6400 / ISO 17088. Bureau of Indian Standards (BIS) has formed a sub committee PCD 12.6 Degradable Plastics sub committee. PCD 12.6 Degradable Plastics sub committee has adopted the ISO 17088:2008 Standards for Biodegradable Plastics under composting.

Composting Infrastructure in India Composting infrastructure exists at a smaller scale in households and institutes. Vermiculture is popular. Organizations such as Daily Dump provide composting set up kits to ensure organic waste is composted at home, conveniently and hygienically. http://www.dailydump.org There are a handful waste management companies that are now trying to establish industrial scale composting facilities such as RAMKY Group, etc.

Drivers for Using Ingeo Low COST bioplastic compared to Ecoflex, Mirel, Bionelle, etc. Sustainability: 100% Biobased carbon footprint reduction opportunity Performance & Properties: Potential to modify the polyester using several new additives and compatibilization technologies End-of-Life: Certified compostable upto ~2mm

Opportunities for Ingeo Non-traditional markets willing to package electronic and other consumer goods with biobased films for a sustainable message Restaurants, institutes, office buildings interested in establishing closed-loop solutions for their organic waste Cost sensitive market - smaller, affordable packages called sachets provide opportunities for new innovative laminate packaging

Biopolymer/Paper Hybrid Structures ITC Ltd. a US$ 6 Billion conglomerate with diversified presence in Cigarettes, Paperboards & Specialty Papers, Packaging, Agri-Business, Packaged Foods & Confectionery, etc. ITC's Paperboards and Specialty Papers Division (PSPD) is India's largest, technologically advanced and most eco-friendly, paper and paperboards business. Strategic alliance with NTIC to develop novel biopolymer/paper hybrid structures for consumer packaging applications for the Indian and global markets.

Completely Compostable and Comparable to PE NTIC and ITC, Ltd. together developed modified Ingeo for extrusion coating onto paper. The extrusion was carried out on a PE line. Ingeo was modified to obtain reduced neck-in and improved melt-strength Water-proofing and grease resistance comparable to PE coated paper. Coating thickness obtained was ~23 microns compared to PE thickness of 15-20 microns

Modified-Ingeo Completely Compostable and Comparable to PE Cobb Test

Modified-Ingeo Completely Compostable and Comparable to PE Grease Resistance Test Sample Type TAPPI T 559 cm-02 Grease Resistance/ 3M Kit test Uncoated paper (230 gsm) 1 PE coated paper 12+ Natur-Tec modified-pla coated paper 12+

Biopolymer/Paper Hybrid Structures

Closed-Loop Solutions The Indian Fast Food Industry is anticipated to grow at a CAGR of around 34% during 2011-2014. QSRs such as Yum Brands would like to explore idea of Green restaurants by diverting their organic waste to composting sites. RAMKY Group is India's leading Environmental and Waste Management Organization. ITC, Ramky and Yum Brands have formed a consortium to develop a closed-loop solution for organic waste at these Green restaurants.

Cognizant Technology Solutions Headquartered in New Jersey, USA is a global provider of information technology, consulting and business process outsourcing services. NTIC worked with Cognizant to implement closed-loop organics waste collection at their major facility in Chennai, India NTIC provided not only the compostable bags for their organics collection but also helped them set up a pilot-scale composting pile. Customer Applications

Closed Loop Organic Waste Recycling at Cognizant Technology Solutions Compostable Foodservice products Food waste and compostable plastics collected together Compost used in sustainable agriculture Organic Waste collection in Natur-Bag Twin or four tank composting unit on-site Organic Waste diverted to local /on-site composting unit

Eureka Forbes A leader in water purification systems, vacuum cleaners, air purifiers and security solutions with sales of over USD 300 Million. Value proposition is reduction in carbon footprint by introducing biocontent and use of compostable packaging. The opportunity is to increase biocontent in the bag.

Key Challenges to Adoption of Bioplastics and Ingeo in India Cost: Meeting cost of the final product in comparison to a similar plastic products Innovation: Coming up with out-of-the-box solutions to packaging to meet performance and cost Composting Infrastructure: Government support in creation of waste management infrastructure such as industrial composting sites Education: Presence of various oxo- degradable products in market that are claimed as biodegradable

Conclusions Government mandates and overall awareness on waste management issues is providing a platform for bioplastics to be promoted in India. Challenges such as developing waste management infrastructure and involvement of Government are key for a sustained growth. Ways to reduce cost and improving performance of Ingeo will serve as opportunities for innovation. Development of innovative packaging will lead to stronger growth.

Thank You For more information visit: www.natur-tec.com or email: info@natur-tec.com