ADDRESSING THE GLOBAL COMPUTER & ELECTRONICS RECYCLING CRISIS

Facts-at-a-Glance

• CEO/President, Founder: James W. Kao
• Founded: October 1, 2003
• Headquarters: Palo Alto, California
• GreenCitizen’s mission is to be the global leader in the recovery, accountability and science for the recycling of electronics.

About GreenCitizen
GreenCitizen is revolutionizing the global recovery, de-manufacturing, recycling and accountability of end-of-life electronics for consumers and organizations, saving the earth from harmful electronic waste. The company provides convenience as well as strong financial and information-based incentives that reward all parties— consumers, corporations, manufacturers, retailers, and environmental-governmental agencies— for doing their part to recycle electronics (e-recycle) responsibly.

The major catalyst for motivating businesses to embrace e-recycling is GreenCitizen’s Global Total Accountability Management System (GTAMS). It is the only system in the world designed to hold all parties responsible for, and to provide documentation for, actual contributions to proper electronics recycling efforts. GreenCitizen will set new global standards in the technology of e-recycling through the research and development efforts of its Sustainable Technology Applied Research (STAR) Lab. The STAR Lab will be dedicated to advancing the science of e-recycling to better eliminate environmental waste and to develop patentable, licensable processes and materials to optimize e-recycling.

Market Opportunity
The human need for large-scale, highly responsible, economically sound e-recycling is critical because the health of people and the environment depend on it. The components of e-waste; lead, mercury, cadmium, and flame retardants, are all persistent, bioaccumulative toxins (PBTs) that cause birth defects and damage to coronary, respiratory, nervous, and skeletal systems. The need is urgent because already the size of e-waste is vast; there are over 450 million units of obsolete electronics stockpiled in the U.S., already constituting about 4% of the US municipal solid waste stream. E-waste is also growing at an alarming pace. By 2008, it is estimated that the U.S. alone will have generated 1.5 billion units of unused electronics.

Research has shown that citizens want to recycle, but at present, the process is painful and the price high. Employing bold new business partnerships, logistical convenience, and information technology, GreenCitizen will ignite e-recycling on all fronts. Consumers will receive both financial incentives to recycle and promotions for new product purchases when they do. Businesses will gain new product sales, new customers and detailed GTAMS e-recycling reports, allowing them to substantiate their investment in e-recycling and demonstrate to government, environmental groups and consumers their e-recycling accomplishments. And when government organizations begin legislating mandatory recycling, as they have across Western Europe and in California, GreenCitizen will be one of the only businesses able to fulfill these quality standards and quantity demands.

Technology
Prior to GreenCitizen, de-manufacturing processes and their environmental soundness were difficult to track and verify. No other e-recycling company can validate what electronics they have recycled, what processes they have used and where toxic materials have ended up. GreenCitizen's Total Accountability Management System (GTAMS) uniquely tracks recycled items from pickup in a developed country through to the shipping and de-manufacturing process in a GreenCitizen facility located in a developing country. The system enables complete accountability of all items in the de-manufacturing process worldwide.

GreenCitizen’s de-manufacturing facilities in developing countries will be of the highest standards and will enable a dramatic increase in the volume and quality of e-recycling worldwide. Moreover, the business model used in these facilities reverse the trend of environmental damage to these countries while creating better paying jobs for workers.

As a foundation to all GreenCitizen’s e-waste recycling is its STAR Lab. Leading researchers worldwide will work together to develop technologies and processes that will place GreenCitizen at the technological forefront of effective and economical e-waste recycling. The STAR Lab, funded by 10% of GreenCitizen revenues, will start licensing technologies in early 2006 to further support its research efforts. The STAR Lab will also invent better original materials and repurpose recycled materials to foster the creation of new electronics products that are more environmentally friendly.

CEO/President,Founder
James W. Kao is an experienced startup CEO with a track record of delivering results in startup and Fortune 500 environments. Mr. Kao has raised over
$24 million of funding from leading VCs and angel investors. He co-founded Managize in 2000, a supply chain management company, and sold it to Escalate, Inc. in 2001.

Prior to Managize, Mr. Kao founded and led eALITY from inception to 65 customers with an initial investment of just $300,000. Mr. Kao served as CEO
of The Right Sizing Group, a data warehouse consultancy, whose clients included Wells Fargo Bank, Charles Schwab, Intuit, Mervyn's, and TransAmerica Corp. He also played a key marketing role in driving Oracle’s business at HP from $40 million to $200 million in three years. Mr. Kao also held management positions in engineering, sales, marketing and consulting with Oracle, HP, and IBM. He received a BS in Math/Computer Science from UCLA and an MBA from the UCLA Anderson School of Management.