I. Company Brief :

1) Foundation: March 2003

2) Business category:

i) R&D networks: Product development, Outsourcing

ii) PET –CARE : Marketing/Sales & Distribution

- Channel : Animal Hospital nationwide

- Dog&Cat Shampoo/Rinse/Medicated Shampoo

ii) Oriental Herb Cosmetics :

- Anti-acne products/Hair-care items/

In Cosmetics ( Edible Skin care cosmetics) etc.

3) Collaboration partners:

- Amway(Korea) & Aekyung Ind. Co., Ltd./

Somang cosmetics company / Hi-living Company etc.

i) History & Business field

Top-Ranking PET-CARE Company Local Market Leader ( R& D Networks)Local Market Leader ( R& D Networks)

CHD MEDICSCHD MEDICS

• Market Leading company• Top Quality Products • Strong Brand Power• Top quality Human Resources:

Mutual collaboration with 10(ten) Doctorship engineers & Technicians including Doctor of Veterinary (3)Engineer(1)Ph.D of Dermatology(1)Ph.D of Chemical Engineering(1)Ph.D of Pharmacy (1)Ph.D of Biz. Administration(1)Ph.D of Agriculture(1)Former KFDA General manager (1)

Top Quality Product

CO-WORK:W/ Multi Labs &

Universities

Global Expansion

Customer Satisfaction(Reliabilty)

•Technical Know-How

• Patent registered:

Antimicrobial Effect formula,

Micro-capusulation technology,

PIC(Perfect Idean Cleansing)system

• Safety Test ( on dog’s skin & eye )/

Stability Test

.

UniquenessPatent registered:

-Antimicrobial effect-Special complexes of Key Ingredients

Know How accumulated:

Multi careers related to develop many famous Korean cosmetics brands and hair - care items.

ii) R&D collaboration network & outsourcing Relationships:

SOMETHING-NEWDIFFERENTIATED PRODUCT

Collaborations with :-Seoul National University

(College of Veterinary )-Sookmyung Women’s University

-Chungbuk National University-Dr. H.D. Shin Laboratory

-Chungnam National University(College of Medicine)

Domestic Research Relationships:

Why should PRUNUS be?“The skin of dogs is weaker than that of people!”

1) Use of the minimized materials to reduce stimuli and reactions to the skin of dogs:

– Important to choose an appropriate shampoo given that the skin of dogs is weaker than that of people

– The main component of shampoo: Anion Detergent ( approximately 40%-50%), varying from cheap materials to expensive living –ingredient amino acid derivatives

– PRUNUS Products:: Use natural plants and living –ingredient amino acid derivatives Surfactants

2) Trustable Quality of Products– PRUNUS developed through collaboration with the prestigious universities:

Seoul National University (College of Veterinary Medicine)/ Sookmyung Women’s University ( Pharmaceutical Institution)/ Chungbuk National University(College of Veterinary Medicine)

3) Safety /Stability Test:- Skin irritation test- Eye irritation test→ Proved Safety (near zero)

PRUNUSCHD Medics Co., Ltd.

Domestic and foreign products Comparison

1. Scientific approach to customers based on trust and image

Philosophy of PRUNUS : “The skin of dogs is weaker than that of people!”Developed through collaboration with the prestigious universities: Seoul National University (College of Veterinary Medicine)/ Sookmyung Women’s University (Pharmaceutical Institution)/ Chungbuk National University(College of Veterinary Medicine)

Developed without collaboration

2. Functional Features 1. Perfect Ideal Cleansing(Patent, low-stimulus, effective to cleanse sensitive parts)2. Silicon Coating Effect(Soft, polished, skin-protective)3. Natural antimicrobial material (Patent)4. In-Microcapsulation technique (Patent)

1. Cleansing effect( Skin vulnerable to be reactive due to excessive cleansing ability)2. Shampoo and Rinse effect( Ordinary effect)

3. Efficacy/Effect Efficacy proved by Seoul National University (College of Veterinary Medicine)Effect proved by Sookmyung Women’s University (Pharmaceutical Institution)

See Appendix

4. Safety → Proved to be safe based on the test result which is near zero Chungbuk National University(College of Veterinary Medicine)

No test to prove the qualities of the domestic and foreign products

See Appendix

5. ETC. - creative containers and package-ETC.

Use of ordinary free mold

Features of PRUNUS (Comparison with domestic and foreign products)Features of PRUNUS (Comparison with domestic and foreign products)

PRUNUS Product LINE - UP

PRUNUS Skin Clinic Shampoo

(Chlohexidine Gluconate 4%, Natural antimicrobial material included)(Chlohexidine Gluconate 4%, Natural antimicrobial material included)

I. Product Concept

For the first time, CHD Medics developed a clinic shampoo which is made from the main component, Chlohexidine Gluconate ( 1%, 2%, 4%), pomegranate bark extract, and natural herb components , through collaboration with Seoul National University (College of Veterinary Medicine) and Sookmyung Women’s University ( Pharmaceutical Institution). In addition, its effect and efficacy of antimicrobial activity was laboratory- tested by Gyungbuk National University (College of Veterinary Medicine).

The clinical efficacy was tested by Seoul National University (College of Veterinary) with the clients (dogs) who get frequent skin infection. The safety test for dogs’ skin and eye mucous membrane was conducted by Chungbuk National University (College of Veterinary), as well as the safety test for the skin of people who cleanse dogs with the clinical shampoo. The test for the skin and eye mucous membrane of dogs and rabbits proved that this clinical shampoo is safe, indicating the result was near zero. Such a shampoo with a high concentration of Chlohexidine Gluconate (4%) and an exceptional safety enables to cleanse the even wrinkled mucous membrane, due to PIC System developed by CHD Medics, of which mild ingredients in formula make it possible.

Also, this high quality shampoo is ideally composed of amino acid derivative surfactant as a component of living human skin, edible non-ionic surfactant, and natural herb extracts.

I. Product Concept

For the first time, CHD Medics developed a clinic shampoo which is made from the main component, Chlohexidine Gluconate ( 1%, 2%, 4%), pomegranate bark extract, and natural herb components , through collaboration with Seoul National University (College of Veterinary Medicine) and Sookmyung Women’s University ( Pharmaceutical Institution). In addition, its effect and efficacy of antimicrobial activity was laboratory- tested by Gyungbuk National University (College of Veterinary Medicine).

The clinical efficacy was tested by Seoul National University (College of Veterinary) with the clients (dogs) who get frequent skin infection. The safety test for dogs’ skin and eye mucous membrane was conducted by Chungbuk National University (College of Veterinary), as well as the safety test for the skin of people who cleanse dogs with the clinical shampoo. The test for the skin and eye mucous membrane of dogs and rabbits proved that this clinical shampoo is safe, indicating the result was near zero. Such a shampoo with a high concentration of Chlohexidine Gluconate (4%) and an exceptional safety enables to cleanse the even wrinkled mucous membrane, due to PIC System developed by CHD Medics, of which mild ingredients in formula make it possible.

Also, this high quality shampoo is ideally composed of amino acid derivative surfactant as a component of living human skin, edible non-ionic surfactant, and natural herb extracts.

Anion surfactant as the main component of shampoo, (40~50% of anion surfactant is contained), varies from cheap materials from petroleum to natural plants and amino acid derivative surfactant as a component of living human skin, which are several dozen times as expensive as cheap ones. Skin irritability and side effects are closely related to which anion surfactant is utilized.

Especially, the main efficacy component, Chlohexidine Gluconate, is very unstable, so the degree of activity might drastically decrease depending on shampoo components, which cause to reduce the efficacy and effect of Chlohexidine Gluconate. Accordingly, the technique of stabilizing Chlohexidine Gluconate in other shampoo components decides the quality of a shampoo in terms of efficacy and effect.

In general, shampoos with a high concentration of Chlohexidine Gluconate are likely to need 100-1000 times as much Chlohexidine Gluconate as necessary, because Chlohexidine Gluconate inhibitors change Chlohexidine Gluconate to liquid precipitation. Namely, the effect of Chlohexidine Gluconate rapidly reduces. The PRUNUS Skin Clinical Shampoo made by CHD Medics is stabilized through a specialized formula.

According to the clinical test results from the Veterinary Institution at Seoul National University, the efficacy and effect tests of The PRUNUS Skin Clinical Shampoo showed that the product with a high concentration of Chlohexidine Gluconate (4%) needs the shortest time to treat and it takes a week for the clinical symptoms to be improved more than 50%, compared with other products (1% and 2 % concentration )Moreover, the product with a high concentration of Chlohexidine Gluconate (4%) is superior for removing keratine and dandruff, as well as it does not show skin dryness and keratosis. Consequently, the increase in the times of applying does no harm. In particular, it is proven as a safe product which does not affect of the skin of people.

Anion surfactant as the main component of shampoo, (40~50% of anion surfactant is contained), varies from cheap materials from petroleum to natural plants and amino acid derivative surfactant as a component of living human skin, which are several dozen times as expensive as cheap ones. Skin irritability and side effects are closely related to which anion surfactant is utilized.

Especially, the main efficacy component, Chlohexidine Gluconate, is very unstable, so the degree of activity might drastically decrease depending on shampoo components, which cause to reduce the efficacy and effect of Chlohexidine Gluconate. Accordingly, the technique of stabilizing Chlohexidine Gluconate in other shampoo components decides the quality of a shampoo in terms of efficacy and effect.

In general, shampoos with a high concentration of Chlohexidine Gluconate are likely to need 100-1000 times as much Chlohexidine Gluconate as necessary, because Chlohexidine Gluconate inhibitors change Chlohexidine Gluconate to liquid precipitation. Namely, the effect of Chlohexidine Gluconate rapidly reduces. The PRUNUS Skin Clinical Shampoo made by CHD Medics is stabilized through a specialized formula.

According to the clinical test results from the Veterinary Institution at Seoul National University, the efficacy and effect tests of The PRUNUS Skin Clinical Shampoo showed that the product with a high concentration of Chlohexidine Gluconate (4%) needs the shortest time to treat and it takes a week for the clinical symptoms to be improved more than 50%, compared with other products (1% and 2 % concentration )Moreover, the product with a high concentration of Chlohexidine Gluconate (4%) is superior for removing keratine and dandruff, as well as it does not show skin dryness and keratosis. Consequently, the increase in the times of applying does no harm. In particular, it is proven as a safe product which does not affect of the skin of people.

II. Features of Product

1. The product with a high concentration of Chlohexidine Gluconate (4%) showed significant clinical effect, and with this product, it takes shorter to be treated.

2. PIC SYSTEM (Perfect Ideal Cleansing Effect): demonstrates the superior effect of cleansing with a mild clinical shampoo.

3. Natural antimicrobial ingredients and herb extracts enables this shampoo to be effective for moisturizing, softness/ glossiness, and strength.

4. Safety Guaranteed : Test of the skin and eye irritation of dogs and rabbits ( the result is near zero)

5. Protection of human skin

6. Possible to adjust the shampoo usage times : Mild ingredients in formula enable to increase the usage times

II. Features of Product

1. The product with a high concentration of Chlohexidine Gluconate (4%) showed significant clinical effect, and with this product, it takes shorter to be treated.

2. PIC SYSTEM (Perfect Ideal Cleansing Effect): demonstrates the superior effect of cleansing with a mild clinical shampoo.

3. Natural antimicrobial ingredients and herb extracts enables this shampoo to be effective for moisturizing, softness/ glossiness, and strength.

4. Safety Guaranteed : Test of the skin and eye irritation of dogs and rabbits ( the result is near zero)

5. Protection of human skin

6. Possible to adjust the shampoo usage times : Mild ingredients in formula enable to increase the usage times

III. Stability and Safety of Product

1. Stability of Product

Chlohexidine Gluconate, is very unstable, so the degree of activity might drastically decrease depending on shampoo components, which cause to reduce the efficacy and effect of Chlohexidine Gluconate. In other words, the decreased effect and efficacy reduces the capability to treat. However, the PRUNUS Skin Clinical Shampoo of CHD Medics is stabilized through a specialized formula. 2. Safety of Product

The dog’s skin is weaker than that of people, so ordinary shampoos with cheap synthetic detergents might do huge damages to the skin of dogs. Especially, Safety is the most important for a product with a high concentration of Chlohexidine Gluconate (4%). Thus, it is noteworthy that the safety of the PRUNUS Skin Clinical Shampoo is proven through the test regarding skin and eye irritations of dogs and rabbits conducted by Chungbuk National University (College of Veterinary), which indicates the result was near zero. In addition, the safety test result manifested that the shampoo is safe for the skin of people.

III. Stability and Safety of Product

1. Stability of Product

Chlohexidine Gluconate, is very unstable, so the degree of activity might drastically decrease depending on shampoo components, which cause to reduce the efficacy and effect of Chlohexidine Gluconate. In other words, the decreased effect and efficacy reduces the capability to treat. However, the PRUNUS Skin Clinical Shampoo of CHD Medics is stabilized through a specialized formula. 2. Safety of Product

The dog’s skin is weaker than that of people, so ordinary shampoos with cheap synthetic detergents might do huge damages to the skin of dogs. Especially, Safety is the most important for a product with a high concentration of Chlohexidine Gluconate (4%). Thus, it is noteworthy that the safety of the PRUNUS Skin Clinical Shampoo is proven through the test regarding skin and eye irritations of dogs and rabbits conducted by Chungbuk National University (College of Veterinary), which indicates the result was near zero. In addition, the safety test result manifested that the shampoo is safe for the skin of people.

www.chdmedics.com

PIC SYSTEM (Patent) -mild ingredients in formula enables to clean mucous membrane

Efficacy and Effect Test

by Seoul Natioanl University

Safety test for dogs’ skin and eye mucous

membrane by Chungbuk National

University

Natural antimicrobial material(Patent)

Sookmyung Women’s University

( Pharmaceutical Institution).

More effective pomegranate bark extract than Benjoperoxide

amino acid derivative surfactant

1. Excellent efficacy and effect for a variety of skin diseases except chronic atopy2. No skin dryness and keratosis3. Improved hair cuticles 4. Safe to people’s skin 5. Can increase usage times

Proved Safety Near zero

Antimicrobialb activity laboratory- tested

by Gyungbuk National University

Stabilization technique of high concentration of

Chlohexidine Gluconate

More than 50 % full recovery within 10 days

(CHLORHEXIDINE 4%)

Table 1: Percentage chlorhexidine in the shampoos tested and time required for microbial elimination at 1/25 dilutions

Percentagechlorhexidine

Time to microbial elimination(min)

S Intermedius M pachydermatis

1(CHD MEDICS 1%)

<2 <2

2(CHD MEDICS 2%)

<2 <2

4(CHD MEDICS 4%)

<2 <2

Safety/Stability Test for the Active Ingredients; Chlorhexidine Digluconate & Antimicrobial Extracts (Patent registered)

Safety/Stability Test for the Active Ingredients; Chlorhexidine Digluconate & Antimicrobial Extracts (Patent registered)

By Seoul National University ( College of Vet.)

1. Excellent efficacy and effect for a variety of

skin diseases except chronic atopy

2. No skin dryness and keratosis which are

usually seen in ordinary clinical shampoos

3. Improved hair cuticles

4. Safe to people’s skin

5. Possible to increase usage times due to no

side effect

such as dryness or keratosis

Safety Test : Rabbit’s skin & Eye

Safety approved ( non- irritation )

[skin Test ] [Eye Test]

Safety Test : Dog’s skin & Eye

PRUNUS Product Line - Up

Item Specifications Volume

1. Natural Herb

Shampoo

-Herb scented , soft & mild shampoo for dog

-Safety Test : on dog’s skin / eye

-530 G

-4 L

2. Premier Herb

Shampoo

-Multi functional doggy Shampoo, Rinse and Treatment effect added.

-To soothe the pet’s skin and extra conditioners to help make the coat shiny

-530 G

-4 L

3. Medicated Shampoo

(Skin-Clinic Shampoo )

- Active Key Ingredients : Chlorhexidine Gluconate (4%) included .

- Medicated Doggy Shampoo for dermititis, excessively dry skin and scrapes/scurf and antimicrobial effcts.

-200 G

-4 L

4. Sanitary Cleansing

Gel

-Smart item / Easy to clean out dirt and contamination on dog’s foot and other parts without washing after a walk.

- 500G

5. Premier Essence

Pack Rinse

-Nourishing & shiny effect on dog’s skin and hair after washing.

-Favoured fragrance

- 530 G

-4 L

6. Stylist Essence

Perfume

- Multi functional Perfume to get rid of dog’s bad smell

-A premier grade & long lasting fragrance

-250 ML

7. Premier Cat

Shampoo

-Mild & soft Cat shampoo ; Natural Herb Extracts included

-Safety Test

-530 G

8. Skin Care Shampoo

(Something –New Project)

-- Total Skin –Care Shampoo (Chlorhexidine Gluconate 1%)

--Skin Clinic & Skin Care

--530 G

• ACTIVE INGREDIENT : Chlorhexidine Digluconate Solution 20% (Chlorhexidine 4%)

• INDICATIONS : For mild to severe dermatologic conditions where a full-strength antimicrobial,

cleansing and deodorizing shampoo may be of benefit.

• DIRECTIONS : Wet coat thoroughly with water. Apply and lather medicated skin clinic shampoo

over the entire body, allowing for 5 to 10 minutes of contact time.

Rinse completely with water. Repeat if necessary or as directed by your veterinarian.

• CAUTIONS : For topical use only on dogs, cats and horses. Avoid contact with eyes. Not for otic use.

If irritation develops, discontinue use and consult your veterinarian.

• STORAGE : Store at room temperature. Protect from freezing.