The Biotech Industry BioIndustry Domains BioFeed Biopesticide Biofertilizer

The Biotech Industry Bio-Industry Domains Bio-Feed Biopesticide Biofertilizer - Amino Acids - Vitamins - Bio-fuels (succinate) Bio-Agriculture Nutraceuticals Functional Food Bio-Food Biochemicals Biotech Industry Bio-Environment Bioremediation Bio-degradation Bio-monitoring Bio-Medicine Biopharmaceuticals Clinical Diagnosis Bioengineering Bioreactor design Bioprocess Engineering

The Biotech Industry Bio-Industry Markets by Domains (Values in Million US$) Biopharmaceuticals Biochemicals Bio-Food Bioenergy and resources Bioprocess Engineering & Monitoring Systems (Source: Silicon valley consulting, SRI) Bio-Environment Bio-Agri/Aquaculture

The Biotech Industry Bio-Industry Market in Korea (Values in 100, 000 US$) 1997 2000 2003 2008 (Source: Korea Economic Daily, KED, 1999) 2013

The Biotech Industry Two sides of Bio-Industry Brighter side of Bio… Darker side of Bio… • Fast growth rate • Lack of networking • High profitability • Slower turnover rate • Environment friendly • Higher R&D expenses • Unlimited applicability • Little manufacturing • High entry barrier • Smaller brain pool

The Biotech Industry Breakthroughs of Bio-Ventures n n n Public Awareness of “Bio-Chips” Higher Funding Opportunities Human Genome Project Comes to an End Expansion of Bio-Market Government-Driven Support Success Story of Amgen, Biogen. .

Innovative Biotechnology Network Creating “Fusion Biotechnology” in. Bio. NET Corporation and the Daeduk Bio. Community March 22, 2001 in. Bio. NET Corporation

in. Bio. NET Corporation “Our Strains for Your Business” in. Bio. NET Corporation

in. Bio. NET Corporation n in. Bio. NET Corporation Biotech Venture Company n Established in 1996 n Spin-off Company from KRIBB Industrialization of Biotechnology n Research & Development n Manufacturing Biotechnology & Products n Agricultural, Environmental, and Biopharmaceutical Applications n Microbial Products n Applied Microbial Technology n Bioengineering Process Development n Contract Research Organization(CRO)

Some Achievements “New Technology Business Corporate” - KITECH, MOCIE, 1996 (Microbial Technology) “Promising Innovative Technology” - SMBA, 1997 (Ag-Biotechnology) “Korea Technology(KT) Award” - MOST, 1999 (Bio-Remax®), 2000 (Air-Tech®) “Environmental Technology Award” - MOE, 1999 (Bio-Remax®) “National Secure Technology Company” - MOE, 1999 (Recombinant Strains) “Excellent Product” - Supply Administration, Korean Government, 1999 in. Bio. NET Corporation

Technology Platform “Dealing with Microorganisms” Genetic Engineering Microbial Engineering Protein Engineering in. Bio. NET Corporation New Strain Development Bacterial Engineering Industrial Strain Improvement Microbial Genome Project Bioprocess Engineering

Research & Development Single Microorganisms 1996 1997 Microbial Consortia 1998 1999 Genomics & Bacterial Engineering 2000 2001 Biocontrol agent against plant pathogens Fund Partner Patent MOCIE Biofilter for NH 3 CNU Postharvest Control agent Product CNU SMBA Development of microbial biopesticides MOST KRIBB Bioconversion of vit. C by metabolic engineering MOST KRIBB Biocontrol agent against Ganoderma in. Bio YNU Biofilter for VOC SMBA HU MOA MOE MOST Salmonella Monitoring kit MOHW Bioconversion of food waste Biodegradation of organophosphates Biodegradation of TMAH Probiotics for aquaculture MOST YNU MOCIE: Ministry of Commerce, Industry, and Energy; CNU: Chungnam National University; SMBA: Small & Medium Business Administration; MOST: Ministry of Science and Technology; KRIBB: Korea Research Institute of Bioscience and Biotechnology; in. Bio: in. Bio. NET Corporation; YNU: Yosu National University; HU: Hallym University; MOHW: Ministry of Health and Welfare; MOA: Ministry of Agriculture; MOE: Ministry of Environment in. Bio. NET Corporation

Identity of in. Bio. NET Microbial Diversity Microorganism as Products Microbial Physiology Contract Research & Technology Transfer Bio-Process Engineering Microbial Metabolites Microorganism-Produced Metabolites Genetic information n. Diagnostic Kits

Product Pipeline n Microorganism as Products n n n Microorganism-Produced Metabolites n n n Feed Enzymes Organic Acids as Bio-Fuels Vitamins and Amino Acids Antibiotics and Vaccines Protein Drugs as Biopharmaceuticals Contract Research & Technology Transfer n n n in. Bio. NET Corporation Biofertilizer/Biopesticides Direct-Fed Microbials/Probiotics Microorganisms for Plant Growth Promotion Wastewater Treatment Formula Microbial Products for Odor Control New Strain Identification & Development Bacterial Engineering Microbial Genomics and Bioinformatics Bioprocess Engineering & Design New Drug Screening & Development

Product Pipeline n Bio-Process Engineering n n n Diagnostic Kits n n in. Bio. NET Corporation Bio-Filters for Bad Odor/VOC Control Bioremediation of Contaminated Soil/Water Bioconversion of Organic Wastes Biodegradation of Pollutants/Toxic Compounds GMO-Detection Kit Prion Detection Kit Salmonella Detection Kit Pathogenic Bacteria Monitoring through Metagenomics

Technology Transfer Biopesticide Technology, 1998 • Mycogen Corporation, San Diego, CA, USA • Biopesticidal strains, clones, and expression systems for crop protection and transgenic crops Bacterial Engineering Technology, 1999 • A* Company, USA • Development of industrial strain for the production of biochemicals Bacterial Engineering Technology, 2001 • “S” Corporation*, China • Development of Novel industrial strain for the production of biochemicals * Company Name Concealed by Non-Disclosure Agreement in. Bio. NET Corporation

in. Bio. NET’s Strategy Stage 1 • Build a Biotech Community • Initiate Microbial Genomics • Add Biopharma to Pipeline Stage 2 • • • Stage 3 • GMP Facilities for Biopharma • Large-Scale Production of Drugs • Global Contract Research Stage 4 • Global Biopharmaceutical Co. • Revenue over US$ 500 Million/y (2000~2001) (2001~2002) (2002~2003) (2003~2005) in. Bio. NET Corporation Initial Public Offering(IPO) Facilitate Collaboration in DBC Initiate New Drug Research

in. Bio. NET Research Park n n n Built in 1996 as HANHYO Inst. Tech. Facility : 17, 000 m 2 Total : 110, 000 m 2 Research, Community, Administration, Manufacturing Building Research Oriented Facility c. GMP-ready Manufacturing Facilities in. Bio. NET Corporation

in. Bio. NET’s Networking • Manufacturing & Business Infra • Experiences in Global Marketing • Better Revenues & Financially Stable • Why not “SHARE WHAT WE HAVE? ” • Develop Bio-Venture Community inside the “in. Bio. NET Research Park” in. Bio. NET Corporation

in. Bio. NET Corporation “Our Strains for Your Business” in. Bio. NET Corporation

The Daeduk Bio. Community 1. Create Efficiency and Synergy 2. Stay Small, Strong, and Competitive 3. Cook a Bigger Pie for “All” 4. Develop “Packaged Technology” “Leading the Biotech World through Technology Fusion” in. Bio. NET Corporation

Members of DBC • in. Bio. NET Corporation Bacterial Engineering, Microbial Genomics • Geno. Tech Corporation DNA Technology: Synthesis and Analysis • Tool. Gen, Inc. Zinc Finger Protein: Gene Switch • LOKAS Automation Corp. Bioinstruments: Bioanalysis Instruments • Pep. Tron Corporation Protein Technology: Peptides & Combi-Chem • Geno. Focus Co. Ltd. Directed Evolution of Proteins • Bio. Progen Co. Ltd. Protein Drug Development, Downstream process • Han. Chem Co. Ltd. Chemical Synthesis of Drug Precursors • Envi. Tech Co. Ltd. Environmental Biotechnology • Small. Soft Co. Ltd. Bioinformatics • Samchully Pharm. , Co. Ltd. Chemical & Biological Drug Synthesis • Crystal Genomics Co. Ltd. • Genomic Tree, Inc. • Gene. Chem, Inc. DNA Microarray Technology in. Bio. NET Corporation HTS of New Drug by Virtual Screening Gene Therapy Technology

Some Figures of DBC n Total Employees: 185 (as of 01/2001) n Total Researchers: 138 (75%) n Ph. D. : 41 Masters: 60 Others: 37 n Total Capital: US$11 M n Total Investment: US$40 M n Total Revenues : US$50 M(2001) 90 M(2002) n Patent Applications Filed: 72 n Scientific Articles Published: 117 in. Bio. NET Corporation

How DBC is Managed What we SHARE n n n n Vision R&D Facilities Manufacturing Facilities Marketing and Networking Infra Market and Research Information Government Funded R&D Projects Recreation Facilities Housing for Employees in. Bio. NET Corporation

DBC Shared Facilities Central Stores for Chemicals and Reagents Biological & Chemical Analysis Facility in. Bio. NET Corporation Lab-Scale Fermentation Facilities Genomic Research Facilities

DBC Shared Facilities Industrial Scale Fermentation Facilities Chemical & Biopharmaceutical Pilot Plants Downstream Process Facilities in. Bio. NET Corporation

See the Differences of DBC • Post-Incubation of Bio-Ventures • No Rent, Just Utilities • No Swapping of Shares • My Business, Our Business • No Obligations, No Dependency in. Bio. NET Corporation

Vision of in. Bio. NET Industry-Ready Microbes Developing Specialists Genomics Proteomics Bioinformatics Artificial DNA Gene Therapy Drug Screening Molecular Biology Purification Fermentation Bio. Process Eng. Fluorescence Tech Antisense Tech Peptide Crystallography Tissue Engineering Embryology HTS Expression system. . . Gate Keeper Bio. Tech Conventional Industry Technology Fusion Emerging Industry Technology Innovation

Packaged Technology From Genomics Research to Industrial Applications Sourcing in. Bio. NET Sequencing Geno. Tech Instruments Bioinformatics Small. Soft Chem DB Function in. Bio. NET Gene Info Tool. Gen LOKAS Samchully Han. Chem Pep. Tron Enzyme Evol. Protein Drugs New Drugs DNA Chips Geno. Focus Bio. Progen Crystal Genomics Genomic Tree in. Bio. NET Corporation c. GMP grade Manufacturing & Marketing

Contract Research From Genomics Research to Bacterial Engineering in. Bio. NET Geno. Focus in. Bio. NET Annotation Enzyme Eng. Bacterial Eng. Original Strain in. Bio. NET Corporation Improved Strain Sequencing Pathway Pro. Bio. Process Geno. Tech Tool. Gen Bio. Progen

in. Bio. NET’s Business Models From Research to Business in. Bio. NET Envi. Tech Microbial Ecology Management Industrial Strain Development Bio-Process Engineering Manufacturing Infrastructure Marketing Infrastructure Geno. Tech LOKAS Geno. Focus in. Bio. NET Corporation Microbial Products Environmental & Agricultural Products Industrial Strains For Biochemical Production Bioengineering Bio-Process & Waste Management Enzymes Industrial Biocatalysts & Feed Enzymes Pep. Tron & Bioprogen Bio-Pharmaceuticals Geno. Tech & Small. Soft Diagnostic Systems Recombinant Vaccines & Cytokines DNA Chips & Bio-Monitoring Kit

Shared Vision of DBC Develop Packaged Technology Share Larger Pie for All Going Global in. Bio. NET Corporation