Exousia Advanced Materials, Inc. is a Texas-based, public company (EXOU) that manufactures advanced industrial products for worldwide applications and markets in transportation, marine, petrochemical, energy and construction. Exousia is organized around four segments: Advanced Materials, Industrial Coatings, SIP Building Systems and China Operations. The Exousia strategy is to enable industrial customers to make superior products, deliver enhanced services and become more competitive. The Company is commercializing its products in both domestic and international markets. Domestically, Exousia is developing markets and customers for its industrial coatings, advanced polymers, and building systems. Internationally, Exousia is implementing manufacturing and marketing operations in China to produce and sell industrial coatings for China’s rapidly developing infrastructure. Exousia has also entered into strategic distributor alliances and supply relationships with large Chinese companies. Long-term the Company plans to manufacture and sell its entire product line into high-growth Asian economies. Company management consists of industry veterans with broad experience in engineering, financial and operational matters. Exousia headquarters are located in Sugar Land - about 30 minutes from the center of Houston. Exousia was founded in 2005.

FLAGSHIP PRODUCTS

Exousia products address large manufacturing, construction and industrial applications in worldwide markets. The Company utilizes its proprietary Core Science in plastic polymers and engineered particles to manufacture resins, additives, coatings, and structural materials. Exousia’s Core Science, including its patented RPA™ Resin and VISTAMER® Rubber materials, are integrated into a number of composite industrial products such as Industrial Coatings, TRUSS CORE™ Structural Components and E-CORE Structural Foam. Exousia is also a supplier of structurally insulated panel (SIP) building systems.

RPA RESIN

RPA Resin is a family of polymers used primarily in manufacturing. The key differentiator of RPA is that it successfully bonds plastic and rubber materials to form a new category of plastic resin. RPA enables the development of thermoplastic elastomer alloys that overcome earlier problems of poor strength and performance. These new materials have applications in the automotive, building, recreation, marine, and household goods industries. Exousia is currently developing markets for RPA large-scale transportation and shipping applications.

VISTAMER®RUBBER

VISTAMER Rubber is a cryogenically ground particulate rubber that has been surface activated by a patented reactive gas process. The process chemically alters the rubber particles to form reactive functional groups on the surface of the material. This results in superior adhesion between the particles and the polymer it is added. VISTAMER also provides additional performance benefits including improved impact resistance, tear resistance, adhesive strength, traction, toughness, flexibility and abrasion resistance. Exousia uses VISTAMER as a performance additive to create and enhance its other industrial products, such as industrial coatings and structural components. Exousia also markets VISTAMER in bulk to non-competing manufacturers.

AEGEON & POWER SHIELD INDUSTRIAL COATINGS WITH VISTAMER RUBBER

Exousia manufactures coatings for industrial applications and markets, such as petrochemical, marine, and industrial equipment and infrastructure. These coatings are marketed in North America under the AEGEON trade name, and in Asia as Power Shield.In addition to its standard coatings, Exousia also manufactures high-grade coatings with VISTAMER Rubber particles that exhibit a range of increased performance benefits in such areas as corrosion control, abrasion resistance and anti-skid surfaces. As VISTAMER is a proprietary polymer, Exousia is the only company in the world that manufactures VISTAMER-based coatings. The Company considers this a significant point of product differentiation.

SIPS BUILDING SYSTEMS

Exousia supplies SIPs building systems for the construction of residential and commercial building developments. SIPs building systems including frames, roofs, interior and exterior walls, and interior partitions are shipped in complete packages for assembly into finished buildings on site. Homes that would take 1-2 months to frame can go up in a few days, resulting in significantly decreased labor costs. SIPs structures are also far more energy efficient, which fits with the trend toward “green” living. The company is focusing its market development efforts on supplying affordable building systems for sizable, Government-funded housing developments. SIPs projects typically generate revenue of about twelve to sixteen dollars per square-foot of panel, and a typical home with 1,500 square feet of living space will require approximately 3,800 square feet of panels.

TRUSS-CORE PANELS

TRUSS CORE is a strong, low-weight structural composite that provides a high-performance substitute in applications that would normally utilize lower-strength, heavier plywood. TRUSS CORE can also be laminated between sheets of RPA to create a highly impact and deflection resistant structural material with superior compressive and shear strength, wear resistance, and durability. TRUSS CORE is also UV and moisture resistant. Leading applications for TRUSS CORE panels include vehicle truck floors and sidewalls, ceilings, bulkhead walls, divider walls and numerous other sizable applications where high strength and low relative weight are critical. For example, Exousia is developing a lighter, stronger solution to replace floors for large cargo containers, of which there are 20 million worldwide.

ECORE STRUCTURAL FOAM

E-CORE™ integrates urethane, carbon spheres and VISTAMER to create high-strength structural foam that can be laminated between sheets of other materials, including RPA.The result is a composite structural panel that is highly competitive in heavy-duty applications where plywood or similar materials are used, such as marine decking. E-CORE panels are lighter than laminated plywood; yet provide a strong, high-impact material that is moisture resistant. E-CORE panels also provide protection against harsh weather and UV radiation.

POSITIONED FOR GROWTH

Exousia is positioned for solid growth potential in the global construction, transportation, marine, petrochemical and energy sectors. Within these sectors Exousia competes in the plastics, industrial coatings and structural material industries, which together are estimated to generate over $500 billion worldwide. Exousia’s patented technology positions them to compete in $20-25 Billion of this market, or approximately 5 %. The Company is actively commercializing its products in both North America and Asia, and is developing a number of distribution alliances, building projects, and customer relationships. Exousia has a US manufacturing facility for industrial coatings, and is developing a manufacturing plant in China for production later in 2008. Exousia has announced key distributors in China, which include large annual quotas. The Company has also developed strategic relationships that will allow it to supply SIPs (structurally insulated panels) housing to Native American nations as a sub-contractor in Government-funded projects. Revenues in Q2, 2008 surpassed those of Q1 by over 200%.

EXPLOSIVE GROWTH IN CHINA

China is an outstanding market for industrial coatings. The rapid population growth in China combined with the urbanization and industrialization of the economy has resulted in strong demand for coatings to protect the country’s industrial and public infrastructure. According to a 2005 independent market survey by GCiS China Services, “anti-corrosion coatings in China are a large market with significant growth providing ample opportunities for foreign coatings suppliers.” The report further revealed that the market in China was about 100 million gallons in 2004, with key industrial coating segments growing up to 20% annually. This dynamic growth far exceeds mature economies such as North America and Europe, and mirrors the greater Asian region. According to a 2006 report by international coating supplier Akzo Nobel, “much of the growth in Asia can be attributed directly to the massive Chinese market, which accounted for 30% of total regional sales by value in 2005.” In addition to the strong market demand and economic projections in China, the Chinese government actively supports foreign business development. Exousia has made a long-term commitment to developing a presence in both China and Asia.