environmentalhouse.com

Market/Opportunity (customer needs, competition, substitute products)

Q. How do visitors perceive this technology? Do they give the technology a thumbs-up or thumbs-down?

A. It was important to Environmental Building Products during R&D to know if there was a demand and how well the concept would be accepted. EBP has received input in various ways. In 1997 we mailed 5000 builders/contractors a short introduction with an opportunity to respond for more information to test interest. We received an overwhelming 10% response.

In '97 we also placed a small three line ad in two of the local newspapers that basically read, "Coming soon! A house you can build yourself. 2 bedroom 2 bath starting at $17,000." We averaged 75 calls per week wanting to receive more information.

By strictly word of mouth, we have received interest for our product in 21 countries. When indicating we were in the R&D stage we still received a few visitors.

We first launched a website Feb 1996. Since that time we have received over 35,000 hits to our website that has not been enhanced to score highly on the search engines. Out of these visits, we again have received a 10% response for those wanting more information and or requesting they be put on our mailing list. Here are a few comments we have received:

I was very excited to find this. This is just what I have been thinking about and thought I would have to invent myself! A.N.

Your site is one of the best I've ever seen. Congrats!!! I'd appreciate anything you could send me regarding building a small retirement home in California. Thank you and keep up the good work. B.O.

I work for a home builder, I am truck boss for a new ready mix concrete division that we have started. I cannot afford to build a house unless I utilize my own labor and your system may be a prayer answered for my family and me. W.B.

I think these are ingenious! J.E.

I am so excited about the possibility of building one myself up here in Tallahassee on our property. Please send pictures & floor plans of models as I am seriously interested.. C.L.

I love this! I can't wait to get started! J.H.

I can't contain my excitement over your product and would very much like to see a completed building, receive additional floor plan information. We have our property, electric, water and septic are in place. Please follow-up I am very excited about this! E.G.

We are very interested in receiving any and all info A.S.A.P., as you can see by our date we are in a crunch to get moving. I am so happy to have found this web site. Please call me fax me or email me A.S.A.P. with the total costs involved. A.O.

In late 1998 a local new TV station visited our R&D facility and produced a 4 minute informative report on the developments of this new technology.

All in all, we will get a resounding "thumbs-up" on interest in our technology.

Q. Who are Environmental Building Products competitors?

A. Environmental Building Products is a breakthrough of modular components that utilize unskilled labor to assemble a structure such as a home or building. No other company has used or is using this approach. Pressed to identify a competitor, the only other technology concerns that might qualify are those trying to speed construction of homes and buildings by offering a modular type system but is still quite out of the reach the do-it-yourselfer and unskilled labor.

Q. Why is Environmental Building Products technology good for developing countries as well as the US?

A. Environmental Building Products technology benefits remain constant whether you market in the US, developed and developing countries: Speed of construction without the costs of skilled labor rates. World markets of all types benefit, especially the millions of people in developing countries which has as its most abundant resource, people. Since we are putting a building solution within the reach of the most disparaged in developing countries. Environmental Building Products technology will fulfill the world housing requirements of providing a building system with extremely low costs.

An example of just how fast our components go together, it takes a skilled mason and 2 helpers 1 hour to lay 20 blocks. After an hour, they will have laid 6.6 sq. ft. of surface area (3 cinder blocks equals 2 sq. ft.). If we assume one helper can place 3 blocks per minute on the conservative side, they would lay 180 of our wall blocks in 1 hour (3 wall blocks equals 1 sq. ft.). After one hour they will have laid or 60 sq. ft. of surface area.

Product/Solution (value proposition, competitive advantage)

Q. What is Environmental Building Products product/service?

A. Environmental Building Products is a technology company providing the ability to utilize the unskilled laborer in construction of a shell of a home or building. Our system is designed for use in the US market as well developing countries. In the US, we specify an insulated block with a mix of polystyrene and wood chips. In other countries, a feasibility study may be conducted to discover its needs and wants.

Q. How does Environmental Building Products technology work?

A. Environmental Building Products technology is a proprietary method and system that uses the molds as a part of its production of the wall block. In simple terms, we take the complexity out of building at the manufacturing end; anyone who can stack a 9 lb. object can build with our system.

The wall block itself consists of a dozen different types of block that align themselves to the block below much like child's toys. The most used block in the system is 16" wide, 8" thick and 3" tall with a brick finish on the inside and outside of the block, providing interior and exterior finishes. It is possible to screw or nail right to the block eliminating the need of vertical wood strips, furring strips; one could attache drywall if a different finish was desired.

Polystyrene and wood chips add insulating qualities eliminating the need to add insulation once the wall is erected. Thermal Mass Effect is an energy saving characteristic of dense material. Thermal mass is a material's capacity to absorb, store and release heat over time. Some advertisements claim R-30 from a lightweight masonry block wall system. With our system, we get a value of R12 before you calculate for thermal mass.

Q. What segment of the populace will be most affected by this technology?

A. The entire human population will receive benefits from a building system that utilizes unskilled labor. Environmental Building Products' vision is to empower disadvantaged segments of the population as well as provide building alternatives to all. These choices will include cost, speed of construction and quality of material that directly result in a better structure with a traditional brick finish.

Technology/IP

Q. What patents does Environmental Building Products hold (in layman's terms) and how will they keep your technology from being snatched up?

A. Patents are currently in place for our building system. We have filed the patents both in the US and 25 of the most strategic countries internationally. We are also planning to file additional patients of newly developed methods that add time savings on the manufacturing end. While the patent process affords some level of protection, the real advantage Environmental Building Products has lies in the years of experience and testing we bring to the table. This concept was years in development and it is highly unlikely that the process is going to be duplicated broken overnight. We have constantly been reviewing input from individuals, builders, contractors, potential license holders via our website and office communication that the Environmental Building Products team is confident there is no comparable technology patented anywhere.

Distribution Strategy

In the US we will start with the local market. Our first goal is to discover and refine the most successful actions with our first manufacturing plant in Largo FL. These strategies made to be easily duplicated by new plants that we will licensed to open or plants we will open ourselves as we grow.

While our main focus for our plant will be local sales, it is still economical to the buyer to have us ship within the continental US while we plan the location for future facilities. Our wall system can be shipped at a cost of approx. $2.00 per mile via truck.

Financial Plan (revenue/investment)

Q. How does Environmental Building Products plan to make money with this venture?

A. Environmental Building Products intends to make money by licensing the core technology, mold lease agreements that will provide license holders with molds and other specialty equipment, such as our concrete cart, de-molding cart and bases that the molds are placed on.

There are two types of licenses that can be acquired. The first is an "Own Use License" allowing builders and developers to produce our product for its own use, not for retail. The second is the "Commercial License" allowing both "Own Use" and commercial distribution for retail and wholesale sales.

We also intend to produce and distribute our product ourselves and open up new facilities as we expand.

A development arm of the company is also planned for those wishing a turn-key solution for construction.

Q. Is Environmental Building Products going public? When?

A. There are no plans to immediately take Environmental Building Products public at this time. We expect our value to increase many-fold once we are at full plant capacity, have licensed customers in the US and other countries. Environmental Building Products executives will revisit the possibility down the road if the investors will realize the most benefit and perhaps to give the investors an opportunity to cash out. At present, the company plans to raise a relatively small amount of cash to reach plant capacity. Production and license revenues will generate enough internal funds - retained earnings ­ to adequately finance future growth.

Q. What is Environmental Building Products window for producing this technology before someone else encroaches or replicates your service/product? Can someone encroach or replicate?

A. While Environmental Building Products has patent protection for the technological approach, anything is possible. But to achieve the same level of product development, it would require at least three years and a crack team dedicated to the effort.