An important factor to consider in your analysis of this material is that the addition of a
drum filling facility to sell the oil in 55 gallon drums will add singificantly to the plant earnings.
The annual earnings stated earlier of  $18,905,067 are the result of  approximately
$7,290,000 per year of net income derived from selling the plasticizer oil in drums lots
rather than in 6800 gallon tanker loads.

Our plants will process 28,000 tons of shreds in a four reactor plant or about 2.8 million tires
per year and, consequently, generate net operating income of   $18,905,067 annually,
before taxes and depreciation and debt service. 

Pyrolysis technology has been applied for over 75 years in many chemical processing activities. 
Pyrolysis was used in Germany during World War II to supply 90% of their aviation fuel.
After the war, an engineer-scientist on the team, Mr. Franz Rotter, designed a similar system to
recycle scrap tires to recover oil, carbon and steel. Twenty years ago Rotter moved to Portland,
Oregon where he continued his work.  The technology was developed and installed in
Pennsylvania in 1985 where it has operated commercially since installation.

Over a several year period, it has become apparent that for a tire recycling plant to be
successful it should not rely on tipping fees.  It was very clear that a national trend in scrap
tire legislation would encourage the development of  fee supported shredding operations
whereby scrap tires would be plentiful as raw material for pyrolysis plants.

Consequently, FRT asked Gilbert Denison to join the company as senior vice president.
Dr. Denison is the chemical engineer who is responsible for today's auto and truck tire. Dr.
Denison developed EPDM rubber in 1962 while working for Exxon.  Dr. Denison's expertise
in building tires is applied in our recycling efforts.  His extensive experience as a polymer-
manufacturing specialist provides the patented and proprietary values to the enhancement
technology for the output of our tire pyrolysis plants. 

As a result our research and tests, it was determined that a pyrolysis (depolymerization)
system can produce very high grade products if these products are depolymerized and
extracted properly during the process.  The solvent oil from a tire has a market value of
$2.72 per gallon; sold in bulk quantities and $5.15 per gallon in drum lots.  The carbon
black has a market value of $0.80 per pound.  Two major U.S. manufacturers of carbon
black have closed down their U.S. facilities because of  environmental restrictions.
The U.S. auto industry has mandated 25% recycled content in all materials going into new
cars and trucks.  This will have a positive effect in marketing  "recycled" carbon black and
increasing the demand for recycled content in tires and other rubber goods.

The technology we utilize is well-proven, the pyrolysis of tires produces consistent,
commercial grade products equivalent to N-326 carbon black and ASTM 104A plasticizer
oil.  The market for these products is large and growing.  If we recycled every scrap tire
produced annually in the U.S., 281,000,000 tires, we could supply only one half the
annual U.S. demand for carbon black.