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CNP, Inc.

Investor Presentation

Month/Year

CNP, Inc. - Introduction

CNP, Inc. was founded in 1985 to create high quality industrial products from recycled plastics.

CNP, Inc.’s principals are Jane Smith (President) and John Williams (Vice President). The principals own 65% of the Company’s stock.

The Company is raising $3 million to increase production, develop new products, and hire key management team members.

CNP, Inc. - Investment Highlights

CNP, Inc. is an exceptional investment opportunity:

Strong revenue growth and EBITDA margins

Innovative and experienced management team

Market leader in the areas of product quality and customer satisfaction

Environmentally friendly products

CNP, Inc. - Company Overview

Products/Services Designs, manufactures, and sells industrial products

made from recycled plastic

Customers End users are landscapers, contractors, and “do-it-

yourselfers”

Sales & Marketing President and VP are responsible for sales and

marketing activities

Operations Manufacturing supervisor handles day-to-day

production

CNP, Inc - Industry Overview

Market Size U.S. landscaping market is $10 billion

U.S. landscaping market grew at a compound annual growth rate of 8% from 2002 to 2007

Growth Opportunities Technological innovations leading to

increased acceptance of recycled plastic (higher durability and lower cost)

“Green” movement is driving demand for environmentally friendly products

CNP, Inc. - Competition

CNP, Inc. competes with regional and national companies that produce natural and plastic industrial products

Principal Areas Product CNP, Inc.

Company of Operation Focus Website Key Differentiator

ABC, Inc. National

Natural and

recycled products

abc.com Weak customer service

XYZ, Inc. CaliforniaNatural

productsxyz.com No plastic product offering

New Co. Central Valley

Natural and

recycled products

newco.net Undercapitalized; weak

mgmt team

Old Co. California

Natural and

recycled products

oldco.com Weak customer service;

dated product offering

Strong Co. National

Natural and

recycled products

strong.com None noted

CNP, Inc. - Management

Jane Smith – President Founder, primarily responsible for product

development and sales Developed all current products and corporate

identity CNP’s key customer liaison Expert in recycled plastics

John Williams – Vice President Responsible for marketing and business development Joined CNP in 1990

Tom Jones - Manufacturing Supervisor Responsible for factory workforce and operations Joined CNP in 1995 Point person for CNP production expansion

CNP, Inc. - Background & Historical Financials

22 yrs old (founded 1985) 40 employees All manufacturing in Fresno

factory 5 years of steady growth

Sales stalled in 2005 Healthy retail and trade business Mgmt team operating at capacity Currently in expansion mode,

but limited working capital Stable, profitable, but no fuel for

growth

2001 2002 2003 2004 2005 2006

Sales 3,515$ 4,112$ 5,632$ 6,104$ 6,232$ 8,314$

Gross Profit 959 1,295 2,168 2,362 2,164 3,060

Gross Margin 27.3% 31.5% 38.5% 38.7% 34.7% 36.8%

EBITDA 323 423 945 1,056 943 1,292

EBITDA Margin 9.2% 10.3% 16.8% 17.3% 15.1% 15.5%

CNP, Inc. - Projected Financials

11.2% CAGR from 2007-2012 Gross margin reaches 40% in

2010 2012 projected EBITDA is

$2.8M EBITDA margin reaches 18% in

2010

Capital used to expand production, develop products, and enhance mgmt team

Mgmt team additions includes sales and ops. positions

2007P 2008P 2009P 2010P 2011P 2012P

Sales 9,225$ 10,332$ 11,572$ 12,903$ 14,064$ 15,681$

Gross Profit 3,413 3,947 4,594 5,161 5,626 6,272

Gross Margin 37.0% 38.2% 39.7% 40.0% 40.0% 40.0%

EBITDA 1,421 1,703 1,967 2,323 2,532 2,823

EBITDA Margin 15.4% 16.5% 17.0% 18.0% 18.0% 18.0%

CNP, Inc. - Exit Strategies

Sale to Strategic Acquiror CNP has been approached by competitors

re: acquisition in the recent past Sale to a Private Investor

CNP’s strong market position and financial performance will make it an attractive acquisition candidate for private individual and institutional investors

Recapitalization Management is interested in operating the

business long-term and will consider a recapitalization to provide investors with an exit

CNP, Inc: Summary

CNP, Inc is an exceptional investment opportunity:

Strong revenue growth and EBITDA margins

Innovative and experienced management team

Market leader in the areas of product quality and customer satisfaction

Environmentally friendly products

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CNP, Inc.