Open Briefing.

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    Open Briefing. ESI. CEO on ENERSLUDGE License Agreement

    Record of interview :

    Environmental Solutions International Limited (ESI) today announced an exclusive license agreement to market and implement the ENERSLUDGE™ technology in France with the world’s leading water management company, ONDEO-Degremont. What does ONDEO-Degremont bring to ESI and your efforts to commercialize the ENERSLUDGE™ technology?

    CEO Denis Glennon
    Commercializing a technology in overseas markets is a challenge for any Australian company. It is a very big challenge for small-medium enterprise like ESI. A commercially sensible way forward is through exclusive licensees. That’s the approach we’ve selected.

    ONDEO-Degremont is the largest water and wastewater company, not only in France but in the world. It has enormous technical and marketing resources as well as strong customer relationships across the world. Being able to access its expertise should speed the commercialization of ENERSLUDGE™. We are now in a stronger position to grow returns from the ENERSLUDGE™ technology.
    What are the specific opportunities for ENERSLUDGE™ plant developments in the near term?

    CEO Denis Glennon
    ONDEO-Degremont and ESI have already identified a number of opportunities in France and we have submitted one joint tender in Paris. The Paris tender has allowed ONDEO-Degremont and ESI to work closely on a joint project bid and I’m pleased with the synergies found between the two companies despite the difference in size and culture.
    What industries have been identified in France as potential users of the ENERSLUDGE™ technology?

    CEO Denis Glennon
    Our expertise in sewage sludge places us in a strong position to develop projects with municipal authorities. That will be our initial focus in France. We will of course not confine our efforts to sewage sludge opportunities only.
    Can you explain the different revenue streams that could flow to ESI from the ONDEO-Degremont license agreement and the events that need to occur to trigger revenue receipt by ESI?

    CEO Denis Glennon
    The specific terms of the license agreement are confidential. Generally, the revenue streams include the up-front license fee, and on future plants constructed by ONDEO-Degremont, technology fees and royalties. The events that trigger revenue receipt are the execution of the license agreement and the award of contracts for ENERSLUDGE™ plants.
    Can you reveal the up-front payment by ONDEO-Degremont to ESI for the exclusive license agreement?

    CEO Denis Glennon
    No, the specific terms of the license agreement are confidential.
    What aspects of ENERSLUDGE™ plants will most affect the size of future revenue flows to ESI? For instance, will future ESI revenue under the ONDEO-Degremont license agreement be most sensitive to plant size?

    CEO Denis Glennon
    The two factors that will affect the quantum of revenue are the extent of the “ENERSLUDGE™ technology package,” that is, the design, equipment, commissioning, and operational services ESI delivers and the nameplate capacity or design throughput of each plant.
    Thank you Denis.


    Signs Enersludge License Agreement

    HOMEX - Perth

    Environmental Solutions International Ltd (ESI) is pleased to
    announce that it has signed an exclusive license agreement for its
    Oil-from-Sludge ENERSLUDGE(TM) technology with ONDEO-Degremont, the
    world's leading water management company. ONDEO-Degremont will have
    exclusive rights to market and implement ENERSLUDGE(TM) projects in
    France and elsewhere, on a project-by-project basis.

    Based on the experience of over 10,000 plants built around the world,
    ONDEO-Degremont is the water treatment plant specialist within ONDEO.
    With a workforce of 3,000 and a turnover of EUR 868 million in 2001,
    ONDEO-Degremont designs and builds water treatment plants mainly
    using its own processes and technologies to offer customers
    guaranteed performance and results. Those installations are designed
    for drinking water, seawater and brackish water, wastewater and
    sludge treatments.

    Mastering all aspects of water treatment processes and armed with
    proven solutions as well as technical expertise ranging from design
    through construction and plant operation, ONDEO-Degremont is a
    full-line builder and provider of water treatment solutions.

    In general terms ESI will receive a license fee and on future plants
    constructed by ONDEO-Degremont, technology fees and royalties. The
    two companies are currently working closely on a number of
    ENERSLUDGE(TM) opportunities in the French market now that the license
    agreement is in place.

    ESI Managing Director, Denis Glennon AO said: "this is a resounding
    vote of confidence for not only the ENERSLUDGE(TM) technology, but
    also ESI's technical know-how and expertise. The agreement is the
    culmination of over 12 months of discussions between the two
    companies during which a comprehensive technical and commercial due
    diligence and visits to the Australian ENERSLUDGE(TM) plant were
    undertaken by ONDEO-Degremont. The European market is at the
    forefront of the demand for new solutions to the growing global
    problem of sewage sludge disposal. Now, the biggest player in this
    market has chosen ENERSLUDGE(TM) as a sustainable and cost effective

    "The agreement is an important step forward for ESI, as it will give
    ENERSLUDGE(TM) a significant presence in the important French market.
    There are also many spin-off opportunities that a close working
    relationship with ONDEO-Degremont can have for ESI's expertise".

    Mr Glennon said that finding business partners in Europe and North
    America for the marketing of ENERSLUDGE(TM) is a major strategic
    objective for ESI.

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