Our Business

Catalytic Solutions, Inc. is a vertically integrated global manufacturer and distributor of emissions control systems and products, focused in the heavy duty diesel (HDD) and light duty vehicle (LDV) markets. Utilizing our proprietary patented Mixed Phase Catalyst (MPC^®) technology, Catalytic Solutions' emissions control systems and products are designed to deliver high value to our customers while benefiting the global environment through air quality improvement, sustainability and energy efficiency.

Catalytic Solutions, a California corporation formed in 1996, has over 25 years of experience in the HDD systems market through our HDD division and our proven technical and manufacturing competence in the LDV catalyst market meets auto makers’ most stringent requirements.  Our Catalyst division has supplied over 9 million catalyst parts to LDV customers since 1996.

Our business is organized into two divisions:

• HDD Systems division. The HDD Systems division is a leading environmental business specializing in the design and manufacture of verified exhaust emissions control solutions. Globally, the HDD Systems division offers a full range of products for the original equipment manufacturer (OEM), occupational health driven and verified retrofit markets through Catalytic Solutions’ Engine Control Systems (ECS) subsidiary.  These ECS-branded products are used to reduce exhaust emissions created by on-road, off-road and stationary diesel and alternative fuel engines including propane and natural gas.

• Catalyst division. CSI’s Catalyst division houses our proprietary MPC^® technology.  This technology enables Catalytic Solutions to produce catalyst formulations for gasoline, diesel and natural gas induced emissions that offer superior performance, proven durability and cost effectiveness for multiple markets and a wide range of applications. Using our proprietary MPC^® technology, the Catalyst division has produced a family of unique high-performance catalysts — with base-metals or low platinum group metal (PGM) and zero-PGM content — to provide increased catalytic performance and value for technology-driven automotive industry customers.

The Company was successfully admitted to AIM (AIM: CTS and CTSU), a market operated by the London Stock Exchange plc, in November 2006.

The Company currently has operations in the USA, Canada, France, Japan, Sweden and an Asian joint venture.

Our Core Business Strategy

Our strategy is to grow a diversified, vertically integrated emissions control business. We are focused on certain segments that will benefit most from our unique catalyst technology and strengths in the HDD emission systems space. Over the last several years, our Catalyst division has made several advances in low platinum group metal and zero- platinum group metal technology, as well as in the ability to tailor catalyst performance to particular environments. In addition, our catalyst technology has been proven to provide benefit outside the traditional LDV and gasoline markets such as the HDD markets. Our HDD Systems division has a proven track record spanning several decades and has one of the broadest ranges of EPA and CARB verified emission systems and products. Vertical integration enables us to offer systems products incorporating customized catalysts. This ability is unique in the emission control industry.

Vertical Integration

We believe that our strategy of vertical integration provides several advantages in each of our divisions. These advantages include reduced manufacturing and delivery times, lower costs, direct sourcing of raw materials and quality control. We also believe that it offers significant added value to our customers by providing a full range of vertically integrated services including catalyst design and customization, subsystem concept design and application engineering, product prototyping and development, and efficient pre-production, short-run and high volume manufacturing. We believe that our vertical integration differentiates us from many of our competitors and provides value to our customers who can rely on us to be an integrated supplier. We intend to continue to leverage our vertically integrated services to create greater value for our customers in the design and manufacture of our products.

Capitalize on growing market for heavy duty diesel systems

 Our HDD Systems division operates in a market that is expected to grow substantially over the next decade as new emission targets for nitrogen oxide reduction are legislated in North America and Europe, and similar legislation is enacted in major countries such as China and India. In addition, we expect to benefit from the trend toward additional government spending to reduce emissions as evidenced by the American Recovery and Reinvestment Act of 2009 (commonly referred to as the “Stimulus Bill”). With a broad array of existing products, new products in the pipeline and with the benefit of our catalyst technology, we expect to benefit from this market growth.

Focused growth of catalyst business

Our Catalyst division is focused on gaining more business from existing LDV customers and selectively acquiring new customers who value the benefits of our technology. In addition, this division will increase its presence in the growing off-road and on-road HDD catalyst markets through organic growth and key partnerships. The development and production of catalysts to supply the HDD Systems division is a top priority.

Partnerships and Acquisitions

Our HDD Systems division has been strengthened through the expansion of our North American distribution channel and through partnerships with major companies operating in the on-road HDD markets. We may selectively enter new partnerships to acquire new technologies or distribution capabilities. In addition, given the fragmented nature of this industry, we expect to target complementary businesses for acquisition.

Our Catalyst division participates in a joint venture in Asia. This division will continue to seek partnerships that may encompass technology sharing, manufacturing or distribution, in order to expand presence in the HDD on-road and off-road markets. Opportunities to monetize our intellectual property estate outside these areas may be pursued through sale and licensing or through partnerships to maximize the return on our investment.

Corporate Timeline

	Incorporated in California, U.S.A. in January by Stephen Golden, Ph.D. to develop and commercialize high performance emissions control catalysts. William Anderson, formerly CEO of a Santa Barbara computer components company, joined Dr. Golden in founding the Company and became its CEO guiding the Company’s early development.
	Began commercial application of automotive technology by making gasoline engine catalysts for Car Sound, a significant manufacturer of aftermarket automotive exhaust systems. First U.S. patent received.
	Established operating agreements with Honda that led to catalyst production for the Japanese market in 2001 and to the introduction of the Company's catalysts on the 2004 Honda Accord model.
	Won North American 2008 Honda Accord catalyst business. Selected as the catalyst supplier by General Motors for selected U.S. vehicle platforms with shipments beginning in 2004.
	Built its first semi-automated production line for the mass production of catalytic coated substrates for Honda. Selected by Ford Motor Company as the catalyst supplier for selected U.S. vehicle platforms with shipments beginning in 2004. QS 9000 Certification received.
	Began a strategic relationship with General Electric to develop new applications for the power generation market. Began a strategic relationship with BASF to develop new chemical manufacturing catalysts. ISO 14001 Certification received.
	Charles Call, an operating executive with extensive experience in engineered materials and products, joined Catalytic Solutions as CEO to transform the Company into a fully developed manufacturing and marketing enterprise. Second, higher throughput line installed for mass production of parts for Ford and General Motors.
	Won and began production catalyst business for Honda Step-Wagon (Japanese model). Won and began production catalyst business for General Motors’ Malibu, Pontiac, Solstice and Saturn Ion.
	Acquired Applied Utility Systems, an engineering technology business focused on emissions reduction and energy efficiency improvement in power generation and industrial boiler markets.  The business is referred to as our “Energy Systems Business.” Successful admission to AIM of the London Stock Exchange (AIM: CTS). ISO/TS 16949 Certification received.
	Acquired Engine Control Systems, a technology-based emission control systems business.  The business is referred to as our “Heavy-Duty Diesel Systems Business.” Commercial partnership with Asara Group DMCC “Asara” or “Mintec” established in which Asara became the exclusive agent and distributor of the Company’s catalysts for markets in Central Asia. ISO 9001 Certification received.          NEWS HIGHLIGHTS Selected by Big West Oil LLC., a Flying J Inc. company, as contractor for four process heaters and boilers. Received authorization to supply and began production of catalysts for Honda’s model year 2008 Accord.
	Formed a joint venture company, TC Catalyst Incorporated (TCC) with Tanaka Kikinzoku Kogyo KK (TKK), a leading Japanese provider of PGM products and technologies to supply emission reduction catalysts for gasoline and diesel engines throughout Asia.          NEWS HIGHLIGHTS Bernard H. Cherry appointed to Board of Directors. Won orders for four SCR systems for package boiler applications for installation at three leading U.S. food processing companies. Approved to supply and began production of catalysts for Renault D4/D7 engine platform. Established an unrestricted trading line (CTSU). First order ships under Asara/Mintec agreement. Entered into a loan and security agreement with Cycad Group, LLC. Construction of Czech Republic manufacturing plant commenced. Nikhil A. Mehta joined as CFO and appointed to Board of Directors. Began supplying catalysts for the Honda’s model year 2008 Acura TSX. Won orders for five SCR systems for boilers from Jacobs Engineering Group Inc. Realigned LDV and HDD catalyst business Won an order from Holman Boiler Works, Inc. for five SCR systems for boilers installed at a major Dallas area hospital’s energy plants Signed Holman Boiler Works, Inc. as preferred sales representative for SCR and CO systems for boilers Received CARB approval for ECS Purifilter™ H as a Level 3 Plus device enabling sales into California Won orders from Foster Wheeler Ltd. for five SCR systems for process heaters installed at a refinery in Whiting, Indiana and a refinery conversion project in Port Arthur, Texas
	NEWS HIGHLIGHTS Received conditional product verification from CARB for the ECS Purifilter™ H as a Level 3 Plus device for a wide-range of HDD off-road engines. Received product verification from CARB for the ECS Purifilter Plus™ for a wide-range of HDD on-road engines. Won $9 million order from PCL Industrial Services, Inc. to provide SCR solutions for a major oil company. HDD Systems business positioned to supply retrofit products under Stimulus Bill. Received product verification from the EPA for the ECS Purifilter Plus™ for a wide-range of HDD on-road engines. TermiNOx™D approved for EPA’s Emerging Technology Program. Sold Energy Systems business to Johnson Matthey for $10 million.
	Announced proposed merger with Clean Diesel Technologies, Inc.