HISTORY

THE GOOD NEIGHBOR SYSTEM

In the fall of 2000, Purina Mills, LLC allocated funds to perform field research using products invented by Gary Rapp to control swine odor. At that time, there were two components used to treat deep pit buildings. After treating two farms in Indiana, results indicated that pig performance improved enough to cover treatment costs and provide a return to the end user.

During 2001 and 2002, we treated two farms in Maryland that were under significant pressure from the Maryland Department of the Environment. The treatment proved successful in both improving pig performance and in controlling emissions. Please see the attached Exhibit A for a summary of the improvement in animal performance and the overall cost/benefit of utilizing this program.

In the fall of 2002, Purina Mills, LLC negotiated an exclusive two year license agreement with Rapp and Associates to market, sell and distribute the products. At that time, we created the Good Neighbor System name. Also at this time, Rapp obtained a patent for his process. Purina also successfully helped Rapp obtain a manufacturing agreement with CFB, Inc., a privately held chemical blending company in Bristol, In.

In the winter of 2002, Rapp invented another product to treat the environment within the swine facilities. This has now been incorporated into the Good Neighbor System as well. Rapp is expecting to receive a patent on this product some time this year.

In 2003, the Good Neighbor System was officially launched to the Land O Lakes' swine and poultry sales teams. The marketing strategy was to have field days at the sites in Maryland so producers could actually see and smell the program. Attending one of these field days was Dale Miller, the editor of National Hog Farmer. The system impressed him enough to write a lengthy article in the September issue of the magazine. This was not typical for this publication to provide free press for a product being sold by an allied industry.

In December of 2003, Johns Hopkins University, at the request of the EPA, initiated a research trial with one of the farms in Maryland to test air quality, particulate matter and air borne pathogens. They had a control building and a treated building. At this time, the data is being analyzed and will be eventually formalized into a research document for publication. The initial response from Dr. Tim Buckley, associate professor at Johns Hopkins University, is “You have a winner.” The data they are processing is confidential and proprietary until published, however they have shared some of their observations of their research with us and it is very powerful regarding emission reductions.

CURRENT/FUTURE:

Going forward, the immediate emphasis is to initiate more trial work in the field with the goal of obtaining more third party verification. This is critical to the overall success and adaptation of this process with commercial farms. In addition to the farms in Maryland, there are two additional farms, one in Nebraska and one in Indiana, who are utilizing the Good Neighbor System. The results from these two operations will be combined with the results from the Maryland operations and be used to further demonstrate the value of the program. In addition to swine, the first laying hen trial has been initiated in Ohio in February of this year, and has the potential of becoming an immediate market opportunity for the program as well.

2004 will be the year in which USDA and the EPA will begin a two year study to determine emission rates from confined animal feeding operations (CAFOs). Once these rates are established, then all CAFOs will become regulated by defined standards, and failure to comply will result in fines, penalties and potential closure. When this occurs, the marketing strategy for the Good Neighbor System will take a different approach. The economic value of the program will no longer have to be justified by animal performance; it will be justified by being able to comply with the new regulations. Combining this approach, with solid evidence of improved animal performance and well being, will position this system far ahead of other treatment programs that simply address the emission factors.

To date, the focus surrounding the Good Neighbor System has been exclusively on the commercial livestock sector. We believe there is a significant opportunity in the “Lifestyle” sector as well. This sector includes horses, rabbits, sheep, goats and even domestic pets. At this time, we are just beginning to determine the market needs and evaluate the products currently in existence that attempt to address these needs. Once that is determined, we will identify how the Good Neighbor System could potentially fit into that market and then move forward with product research and testing.