deTerra

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deTerra Biobased PolymersNext Generation
Materials for Durable Applications
Innovation Takes Root 2012
Dr. Jeffrey Cernohous CTO, Chairman and Founder
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Presentation Overview

• Brief overview of Interfacial Solutions
• Introduction to deTerra Biobased Polymers
• Next Generation deTerra Biobased Polymers

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IFS Vision Statement

• Be the best in class provider of polymer material
  and process solutions to the plastics industry
  by
• Developing proprietary solutions that offer
  undeniable value propositions
• 2. Providing efficient technology development
  and transfer solutions
• Operating with the highest level of integrity,
  honesty, and confidentiality
• 4. Attracting and retaining world class people
  committed to our mission.

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• Our Mission Helping Innovators Innovate
• Our Strength Delivering Material Science
  Solutions Quickly
• Our Record gt300MM of Customer Sales Enabled
  in Several Markets
• Our Business Flexible Business Models to Meet
  Customer Needs

• Products and Contract Services
• Contract Melt Processing Services
• Contract Laboratory Testing Services
• Custom Compounding
• IFS Products
• (deTerra, Xusto, Moisture Scavenger)

• Intellectual Prop. Creation Development
• Contract Research Development
• Contract Manufacturing Scale-Up
• Manufacturing Modeling and Transfer
• Patent and Know How Licensing

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• Jeff Cernohous, Founder CTO
• Ph.D. B.S. Organic Chemistry
• 30 Patents Issued
• 8 yrs Interfacial Solutions President
• 5 yrs 3M Technology Development

• Gregg Bennett, CEO Member
• Ph.D. Polymer Sci. B.S. Ch.Engr
• 25 Patents Issued
• 20 yrs 3M incl. VP RD / Clinical Affairs IPD
  Genl. Mgr. of 3M Turkey

• Brian Szymanski, CLO Member
• Juris Doctor B.S. Ch.Engr
• Registered Patent Attorney
• 17 yrs IP, incl. 3M Asst. Chief Counsel
• 10 Yrs Chemical Mfg

• Todd Sarnstrom, VP Operations
• B.S. Computer Sci., B.A. Bus. Mgmt.
• 5 Patents Issued
• 25 yrs production and tech. mgmt
• 5 yrs Anagram, 15 yrs Jostens

• Adam Pawloski, Tech. Director
• Ph.D B.S. Chemical Engineering
• 10 Patents 35 Publications
• 10 yrs matls dev., multiple industries
• 3 yrs with Interfacial Solutions

• Kristi Cernohous, QC Director
• B.S. Chemistry and Food Science
• 7 yrs Forensic Evidence MN BCA
• 2 yrs Quality Engineer General Mills
• Extensive method instrument dev.

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Headquarters River Falls, WI (45 minutes from
Minneapolis, MN) Founded 2003 Employees 30
(14 Technical Degrees, 4 Ph.Ds) Facility 40,000
sq. ft. Website www.interfacialsolutions.com
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• Technical Compounding
• 2 lb Lab Samples
• 40,000 lb Truck Loads
• 3/4 Single Screw Extruder
• 2 x 27mm Lab Twin Screw Extruders
• 38, 50, 58mm Twin Screw Extruders
• Batch blending
• Side stuffing
• Liquid injection
• Super Critical Foaming
• Moisture sensitive materials
• Reactive Processing

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• Materials Characterization
• Thermal Analysis
• DSC
• TGA
• DMA
• HDT
• Molecular Structure
• GPC
• HPLC
• FTIR
• SEM
• Rheological Analysis
• Physical Characteristics
• Color
• Moisture
• Specific Gravity
• Particle Size
• Flame Retardant Testing

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Sample Preparation Pellets Injection Molded
Parts Blown Films Cast Films Extruded
Sheet Foamed Sheet Foamed Pellets
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Our Mission Helping Innovators Innovate

• Materials Expertise
• Polymers
• Natural Fibers and Fillers
• Adhesives
• Coupling Agents
• Compatibilizers
• Polymer Processing Additives
• Flame Retardants
• Moisture Scavengers
• Nanoparticles
• Biopolymers
• Foaming Agents

• Process Expertise
• Twin Screw Extrusion
• Reactive Extrusion
• Super Critical Foaming
• Cast Films and Sheet
• Blown Films
• Injection Molding
• Pelletizing
• Grinding
• Foaming
• Process Development
• Costing

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Our Mission Helping Innovators Innovate

• Minimize Scale-Up Risks
• Business Model Understanding
• Financial Modeling
• Plant Design
• Pilot Scale Production
• Toll Manufacturing
• Captive Production Models
• Technology Transfer

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Our Customers 2 Fortune 50 Companies 5 Fortune
500 Companies More Public Disclosures Soon Our
Typical Customer 100-300 MM annual
sales Privately held Profitable Growth
Oriented RD appreciation Complimentary core
competencies Fundamental material science need
Announced Collaborations
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What We Promise

• Rapid product development and prompt responses
• Full service idea to production capabilities
  minimize risk
• Best in Class Polymer Science Materials and
  Process Expertise
• Breadth and Experience across multiple markets
• Strong Strategic Alliances and Connections
• Strong Ability to Cross fertilization
  Technologies

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Our Branded and Proprietary Products

• deTerra Biobased Polymers
• Xusto Natural and Renewable Fiber Composites
• Interfacial Solutions Moisture Scavengers

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• deTerra Biobased Polymers

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deTerra Biobased Polymer Product Line

• deTerra is the trade name given to a series of
  biobased hyperbranched polymers developed and
  manufactured by Interfacial Solutions
• Based on polylactic acid (PLA) polymer
• The deTerra product line is based on high
  biobased product content (gt 80)

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deTerra Product Line

• Initial grade developed for building and
  construction industry non-halogenated FR grade
  to meet UL 723/ ASTM E-84 class 1/A
• FR grades to meet UL-94 class V-0 rating
• Considered as a green alternative to PVC and FR
  grades of PA, PP, and ABS
• High impact grades
• Extrusion and molding grades

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deTerra Biobased Polymers

• Currently sold or sampled into
• Molded articles
• Extruded articles
• Flame retardant articles
• LEED certified buildings
• Consumer goods
• Appliances
• Electronics
• Others

Example articles made using deTerra
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deTerra Molecular Characteristics

• deTerra Characteristics
• Reactive extrusion process
• Hyper-branching chemistry
• Major increase in Mz and Mw
• Patents pending
• Tailored rheology

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Melt Strength
Natureworks 2003D deTerra XP759
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• deTerra Biobased Polymers
• Next Generation

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Key Development Opportunities-PLA

• Improving impact strength
• Improving UL94V FR performance
• Improving melt strength
• Improving heat resistance (HDT)
• Expanding to other biopolymers (PHA)

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Impact Strength-Unnotched Izod
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Impact Strength-Notched Izod
16.5
Notched Izod (ft-lbs/in)
1.0
0.7
0.7
0.3
PLA
deTerra FR Wall Protection
deTerra FR Molding
deTerra High Impact
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UL94 Flammability
Grade Biobased Content () Specific Gravity (g/cc) E84 Results UL94 V Results UL94 H Results Limiting Oxygen Index
PR146 93 1.25 0 Flame Spread, lt70 Smoke Index V2 HB 24
XP345 76 1.30 Not Determined V0 HB 28
XP696 93 1.26 Not Determined V2 HB 23
Ingeo 2003D 100 1.24 Not Determined Not Rated HB 22

• High biobased content for all FR deTerra grades
• Comparable specific gravity to PLA
• Outstanding E84 fire ratings and characteristics
• V2 and V0 deTerra options for molding and
  extrusion
• LOI results correlate with flame performance
  observed

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deTerra Biobased Polymer Property Summary
Grade Biobased Content () Specific Gravity (g/cc) Flexural Modulus (psi) Flexural Strength (psi) Notched Izod Impact Strength (ft-lbs/in) Melt Flow Index (g/10 min _at_ 190C, 2.12 Kg)
PR146 93 1.25 450,000 12,000 0.8 1.0
XP345 76 1.30 500,000 11,200 0.95 18.0
XP698 85 1.25 330,000 8,600 16.5 28.0
XP696 93 1.26 460,000 12,600 1.2 1.0
Ingeo 2003D 100 1.24 400,000 14,000 0.3 7

• FR deTerra grades offer excellent flexural
  strength and modulus
• Comparable specific gravity to PLA
• The impact strength for deTerra FR grades are
  improved vs PLA
• Injection molding grade has impact performance
  comparable to PVC
• deTerra melt flow index/rheology can be tailored
  for extusion or molding

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Future Development Challenges
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Challenge 1-Thermal Resistance
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Challenge 3-Impact Strength
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Challenge 2-FR Impact
Material Notched Izod Impact (ft-lbs/in)
PVC 15
PETG 10
PR146 1
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Challenge 3-Economics
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Next Steps Other FR Biopolymers (PHA) Improved
FR/Impact Combo Improved Temperature Resistance