San Diego

First 100% All NaturalLiquid Carbon Dioxide Drycleaner on the West

Coast

Carbonating Since April 2001

GORDON SHAW

Hangers Cleaners-Torrey HillsCarbonating Since November 2005

Hangers Cleaners-Mission Valley

Carbonating Since April 2001

Gordon ShawFairlane Cleaners - 1978

Gordon ShawFairlane Cleaners - 1984

Gordon ShawFairlane Cleaners 1986

High Throughput Perc Transfer Technology

First 100% All NaturalLiquid Carbon Dioxide

Drycleaner on the West Coast

San DiegoCO2 Drycleaning April 2001-May

2008

• MICO2 Machine Mission Valley - 15,690 loads for 784,000 pounds. April 2001-Date

• MICO2 Machine Torrey Hills - 4,620 loads for 231,000 pounds. December 2005-Date

Liquid Carbon Dioxide Drycleaning Impact on Business

• Store Locations-Competitive Advantage and Differentiation When Vying for Locations

• Employees – Attract and Retain the Best

• Owner’s Gratification-Extreme Pride and Altruism in my Operation – I Love What I’m Doing!• Public Relations

• Thirteen TV News Stories

• Twelve Periodicals – Including Consumer Report and Newsweek• Four-part Story on MSNBC.com

• Two Live Radio Talk Shows

• More than 500 Promos on SD Padres TV Broadcasts

• Raving Fans!!!

• Seven City, County, State Awards and Commendations

Liquid Carbon Dioxide Drycleaning Impact on Business – Raving Fans

Selected Survey Results-October 2003• 53 Customers (21%) Travel More Than Three Miles. Including 20, 35, and 45 miles

• Where Do You Want a Hangers?-52 Responses.

• My Favorite - “Everywhere”

• What Things Do We Do Right?-417 Comments• 53 Praised Our Cleaning and Pressing

• 53 Used the Word “Great”

• 22 Favor our Environmentally Friendly Process

• 11 Liked the Lack of Smell

• 6 Said ”Thank You for What You are Doing”

• 4 Specifically Praised the “CO2 Process”

Liquid Carbon Dioxide Drycleaning Impact on Business – Raving Fans

My Favorite Quotes

• “The Best in San Diego”

• “Best Drycleaner I’ve Ever Used”

• “No One Compares to You”

• “You’re Awesome”

• “Best Cleaners I’ve Ever Used”

• “You Rule”

• “Not Like Most Hole in the Wall Cleaners”

• “I’m So Glad to Have a Hangers Nearby”

• “I Admire Your Values”

• “I The Way My Clothes Smell”

Precautions for CO2 Drycleaning

• Machine cost is higher…Must plan on a sizable “high end”operation

• Machine options are limited…

Must be sophisticated and expect nuances

• Operational expenses are higher…

Must plan on higher priced operation

• Customers LOVE CO2 Drycleaning…Must remain humble

• Hangers Cleaners Opened on April 16, 2001, and accepted the first pair of pants at 7:05AM• Since that date, Total Revenue for Hangers Cleaners has exceeded $7,500,000.00

• Since that date, over 1,040,000 pieces have been Drycleaned in CO2

• Our current Revenue per piece for drycleaned garments is $5.94

LIQUID CARBON DIOXIDE DRYCLEANING IS COMMERCIALLY

VIABLE, and THRIVING in SAN DIEGO

Thank You,

Gotta Go Now!