1. Initial proof of science was generated by Dr. John Coleman at the University of Toronto between 1989 and 1999. Since then, the process has been refined to allow algae to tolerate high heat, high salinity, and the alcohol levels present in ethanol production.

2. The Direct to EthanolTM process links sugar production to photosynthesis with enzymes within individual algae cells. The enzymes are naturally occurring and are the same as those used to produce bread, beer and wine, thus pose no known risks to humans.

3. There are over 100,000 species of blue-green algae useable with rapid growth cycles, high photosynthesis efficiency, large sugar storage attributes that Algenol has access to in refining algae with its Direct to EthanolTM process. The algae are metabolically enhanced to produce ethanol while being resistant to high temperature, high salinity, and high ethanol levels, which were previous barriers to ramping to commercial scale volumes.

4. Algenol’s prototype production strains are producing ethanol at a rate of 6,000 gallons/acre/year, and are expected to improve to 10,000 gallons/acre/year by the end of 2008. With further refinement, the algae cells have the potential to increase production rates to 12,000 to 40,000 gallons/acre/year in the future.

5. Algenol only uses algae strains that do not produce human toxins. In addition, the specific algae cells used cannot live in the environment found outside their Capture TechnologyTM contained sealed bioreactor.