Com Ergen Inc Bright Prospects for Hungarian Nanotech

Com. Ergen Inc. Bright Prospects for Hungarian Nanotech SMEs 2009. 03. 18 Guy Loury

Why are we looking at Com. Ergen Inc. ? Good example of a Hungarian nanotechnology SME that is successfully making its way to the world markets Why is Com. Ergen Successful ? What does the future hold for Com. Ergen Inc. ?

Company Introduction Com. Ergen Inc. is an innovative nanotechnology Research & Development spin-off company specializing in: • Nanoparticle engineering services and instrumentation for several industries including: Pharmaceutical, Alternative Energy, Fine chemical, and Agrochemical industries • Disruptive Technologies (instrumentation) Our company’s mission is to be a world leading service and instrument provider in the nanoparticle engineering field • Based in Budapest • International management team and practices • Global clients and activities

Company History Com. Ergen Inc. was founded in 2006 • Established as a nanotechnology R&D specialist spinoff from Thales. Nano Inc. • Initial capital contribution came from an established Hungarian Technology Network • 2006 -2007 - Research into market and our core competencies • 2007 -2008 - Initial design of instrumentation and feasibility study • 2008 -2009 - Production of instrument prototypes and development of service portfolio, initial service introduction • 2009 -Future- Recapitalization, capacity growth, bring services to market, launch instruments into the market, continual improvement process begins

Corporate Success Factors Focused planning To be focused you must first have a goal, the goal should not be easily attainable but it must be a single goal • Objectives must be met to achieve the goal • Objectives must be S. M. A. R. T. S-specific (singular) M-measurable A- attainable R-realistic T-time-bound • Activities must be assigned to responsible parties in order to accomplish the objectives

Market Identification & Evaluation Proper market identification and evaluation is critical to success Identified Markets Evaluation • Metal Nanoparticles ØNot realized-Not profitable • Catalyst ØRealized- Saturated-Not profitable • Quantum Dots ØNot realized-No customers • Carbon Nanotubes ØSaturated-No real application-Out of Scope • Nano Semiconductor ØSaturated-No real application-Out of Scope • Nanowires ØSaturated-No real application-Out of Scope • Nano API ØNot saturated-Real market-Largest revenue“harbored” market

Positioning-The key to success Positioning is a key to success if done properly. However, if done improperly it can sink your company. There are three ways to gain an advantageous position when breaking into a new market. 1. Do it First 2. Do it Best 3. Do Both Comergen’s road to success and current position 1. Com. Ergen has established itself as one of the first 5 in the world to enter this niche market 2. Com. Ergen is currently, by defacto, a best 5 in the world in the market 3. Com. Ergen is quickly extending its capacities to maintain and strengthen its position within the worlds best 5

Bright Future Prospects Com. Ergen’s technology is currently being embraced by the pharmaceutical industry as a leading solution for solubility and bioavailability problem solving. Our proven approach addresses the expressed needs of the pharmaceutical companies and our flexible business model represents several collaborative options.

Bright Future Prospects Successful service and product development depends heavily upon approach Com. Ergen’s approach: • Evaluation of customer and market needs • Problem identification • Solution selling This approach is more meaningful to the customer and will position our company’s offerings advantageously compared to competitors, whereby enhancing the value of the company.

Bright Future Prospects We have several large industrial collaborations and discussions, in progress, with companies such as: • Sanofi Aventis (France) • Nuformix (United Kingdom) • Co. Crystal Inc. (UK) • Compu. Drug (USA) • N-Gene Research Laboratories Inc. (USA) Collaboration with world leading partners will help position our company, our services and our products in the global market

Summary • Nanotechnology has real markets which can be reached by Hungarian SMEs. • SMEs in Hungary can succeed with proper planning, focus and follow through. • Com. Ergen Inc. is a good example of a Hungarian SME who is on road to the world market. Thank you for your time!