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      to Section 13 or 15(d) of the </font></div>
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      Exchange Act of 1934</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Date
      of
      Report (Date of Earliest Event Reported): January 10, 2006</font></div>
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      SALES NETWORK, INC.</strong></font></div>
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      NC 28117-6830</u></font></div>
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      236-0925 </u></strong></font></div>
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      General
      Instruction A.2. below):</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      1.01 Entry into a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      2.01 Completion of Acquisition or Disposition of Assets.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Overview</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">On
      January 10, 2006, Telecomm Sales Network, Inc. (&#8220;Telecomm&#8221; or the &#8220;Company&#8221;)
      completed the acquisition of EnviroSystems, Inc. (&#8220;EnviroSystems&#8221;) in a reverse
      merger transaction (the &#8220;Merger&#8221;) pursuant to an Agreement and Plan of Merger
      dated as of November 11, 2005, as amended (the &#8220;Merger Agreement&#8221;), by and among
      Telecomm, TSN Acquisition Corporation (&#8220;TAC&#8221;), and EnviroSystems. TAC is a
      wholly owned subsidiary of EnviroSystems Holdings, Inc. (&#8220;Holdings&#8221;) and
      Holdings is a wholly owned subsidiary of Telecomm. Both Holdings and TAC were
      incorporated to effectuate the Merger. Effective at the closing of the Merger
      (i) TAC merged with and into EnviroSystems, with EnviroSystems as the surviving
      corporation, (ii) EnviroSystems became an indirect, wholly-owned subsidiary
      of
      Telecomm and (iii) </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Telecomm
      ceased its prior business and going forward its sole business became that of
      EnviroSystems.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Merger Agreement, all of EnviroSystems preferred stock and all options
      and warrants to acquire EnviroSystems preferred stock were converted into the
      right to receive an aggregate of 6,400,000 shares of Telecomm common stock,
      $.0001 par value per share (the &#8220;Common Stock&#8221;). The shares of Common Stock
      issued in the Merger were issued pursuant to the exemption from the registration
      requirements of the Securities Act of 1933, as amended (the &#8220;Act&#8221;) provided
      under Section 4(2) of the Act and Rule 506 promulgated thereunder. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Concurrent
      with the closing of the Merger, Telecomm sold 4,250,000 shares of its Common
      Stock in a private placement to accredited investors at a price of $2.00 per
      share for aggregate gross proceeds of $8,500,000 (the &#8220;Offering&#8221;). The shares of
      Common Stock sold in the Offering were issued pursuant to the exemption from
      registration provided under Section 4(2) and Regulation 506 of the Act.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Offering, Telecomm paid to Selling Agents (i) a fee equal
      to
      ten (10%) percent of the aggregate purchase price of the shares of Common Stock
      sold in the Offering and (ii) warrants (the &#8220;Agent Warrants&#8221;) to purchase up to
      that number of shares of Common Stock equal to fifteen (15%) percent of the
      shares of Common Stock sold in the Offering. The Agent Warrants are exercisable
      for a four year period at a price per share equal to $2.50 per
      share.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      closing of the Merger and the Offering (the &#8220;Closing&#8221;), Telecomm had 16,000,000
      shares of Common Stock issued and outstanding with holders of the outstanding
      shares of Common Stock, immediately prior to the Closing holding approximately
      33% of the outstanding Common Stock, the EnviroSystems preferred shareholders
      holding approximately 40% of the outstanding Common Stock and the purchasers
      in
      the Offering holding approximately 27% of the outstanding Common
      Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the terms of an Escrow and Lock-Up Agreement, dated as of January 10, 2006,
      all 6,400,000 shares of Common Stock issued to the EnviroSystems preferred
      shareholders in the Merger are subject to a lock-up and will be held in escrow
      (the &#8220;Escrow Shares&#8221;) for a period equal to the longer of 12 months following
      the Closing and 9 months after the effective date of a registration statement
      covering the resale of the shares of Common Stock sold in the Offering,
      provided, that such lock-up period shall not exceed the date 15 months from
      the
      Closing. The Escrow Shares will be used to secure indemnification obligations
      of
      EnviroSystems shareholders to the Company under the Merger Agreement. The Escrow
      Shares are also subject to earlier release in certain instances. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, William Sarine and Tony Summerlin each resigned
      from
      our Board of Directors and from all offices they held with us and J. Lloyd
      Breedlove, Steve Hoelscher, Stephen A. Schneider, Jeffrey Connally and Charles
      Cottrell were appointed to Telecomm&#8217;s Board of Directors. In addition, J. Lloyd
      Breedlove was appointed as President and Chief Executive Officer and Steve
      Hoelscher as Chief Financial Officer, Treasurer and Secretary. As a result
      of
      the foregoing, our Board of Directors now consists of the above five persons.
      For certain biographical and other information regarding newly appointed
      officers and directors, see the disclosure under &#8220;Directors and Executive
      Officers&#8221; in this Report.</font></div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">1</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing description of the Merger Agreement is qualified in its entirety
      by
      the full text of the Merger Agreement filed as Exhibit 99.1 to the Company&#8217;s
      Current Report on Form 8-K filed with the Securities and Exchange Commission
      on
      November 17, 2005. The foregoing description of the Escrow and Lock-Up Agreement
      is qualified in its entirety by the full text of the agreement filed as Exhibit
      10.5 hereto. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      10-SB DISCLOSURE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Prior
      to
      closing of the Merger, Telecomm was a &#8220;shell company&#8221; (as such term is defined
      in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, (the
&#8220;Exchange Act&#8221;)) immediately prior to change in control effected by the Merger.
      Accordingly, set forth below is the information that would be required if
      Telecomm were filing a general form for registration of securities on Form
      10-SB
      under the Exchange Act.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXPLANATORY
      NOTE</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Unless
      otherwise indicated or the context otherwise requires, all references below
      in
      this Current Report on Form 8-K to "we," "us" and the "Company" are to Telecomm
      Sales Network, Inc. a Delaware corporation, together with its indirect
      wholly-owned subsidiary, EnviroSystems, Inc., a Nevada corporation. Specific
      discussions or comments relating only to Telecomm Sales Network prior to the
      Merger will reference &#8220;Telecomm,&#8221; those relating only to EnviroSystems, Inc.
      will reference &#8220;EnviroSystems.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF BUSINESS</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Telecomm
      </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Telecomm
      is a development stage company, incorporated in the State of Delaware in August
      2004, with no material assets and/or operations. Its sole business was to
      provide sales channel and marketing consulting support services to
      telecommunications companies. Prior to the Merger, Telecomm conducted no
      activities except for formulating a business plan and fundraising activities.
      Upon the closing of the Merger, Telecomm&#8217;s indirect wholly owned subsidiary TAC
      merged with and into EnviroSystems, with EnviroSystems as the surviving
      corporation and </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Telecomm
      ceased its prior business and its sole business became that of EnviroSystems,
      Inc.</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>EnviroSystems
      </em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems
      was incorporated in the state of Nevada in 1996, its offices are located at
      1900
      Wyatt Drive, Suite 15, Santa Clara, California, 95054 and its telephone number
      is (408) 566-0100. EnviroSystems&#8217; website address is </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>www.envirosi.com</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      consummation of the Merger, Telecomm will relocate its principal executive
      offices in or around Charlotte, North Carolina and until such relocation is
      completed its office shall remain in Mooresville, North Carolina.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems,
      Inc. (&#8220;EnviroSystems&#8221; or &#8220;ESI&#8221;) has developed and has trade secret rights to
      what we believe to be a unique and proprietary nano-emulsion biocide technology
      platform that has initially been formulated into a hospital grade hard-surface
      disinfectant product. This Product, known as EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Ready to
      Use (&#8220;EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman Bold, Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU&#8221;),
      effectively kills numerous bacteria, fungi, and viruses, including Hepatitis
      B
      and C, HIV, herpes and influenza. In addition to being highly effective as
      a
      broad-spectrum disinfectant, EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      is
      unique in the market place in that it combines this effectiveness in a product
      which is non-toxic, non-corrosive, non-flammable and not harmful to the
      environment. We believe that EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      the only commercial disinfectant registered with the Environmental Protection
      Agency (the &#8220;EPA&#8221;) as a Category IV disinfectant with specific EPA registered
      claims to kill 22 distinct pathogens, including but not limited to, the most
      virulent and disinfectant resistant pathogens such as MRSA (Methicillin
      resistant Staphylococus aureus), VRE (Vancomycin resistant Enterococcus
      faecalis) and Hepatitis B &amp; C, as well as Herpes Simplex I &amp; II,
      Legionella pneumophila, and Ecoli (Escherichia coli OH157).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">2</font></div>
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          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">While
      there are other Category IV disinfectants available on the market, we believe
      that EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      is the
      only non-toxic product which meets the needs of the healthcare, food service,
      and other markets which require the critical broad-spectrum efficacy of our
      product. EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;s
      EPA
      status allows the product, to be marketed without any toxicity warnings on
      its
      label. We believe the EPA registered efficacy and safety advantages distinguish
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU from
      the myriad of bleaching agents, natural products, and other competing
      hospital-grade cleaners and disinfectants on the market. We also believe that
      ESI&#8217;s nano-emulsion technology may be formulated as a sterilant and that it may
      be developed for use as one or more FDA regulated wound cleansing and topical
      healing products for various animal and human markets. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      active biocide ingredient in ESI&#8217;s nano-emulsion and in EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      parachlorometaxylenol (&#8220;PCMX&#8221;) which is a broad spectrum biocide that has been
      available on the market for decades. ESI has formulated PCMX into a unique
      nano-emulsion which enables EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU to
      deliver minute quantities of PCMX directly to the cellular walls of viruses,
      bacteria and fungi to quickly destroy them. The surface of each nano-particle
      has a negative surface charge that is crucial to the targeting mechanism. There
      is an electrostatic attraction between EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;&#8217;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">s
      nano-particles and the microbes. The selective targeting of the microbes by
      these nano-particles is the basis for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;s
      efficacy and safety. Thus, these nano-particles can be described as &#8220;smart
      bombs&#8221; designed to deliver biocide to harmful microbial targets. This direct
      action allows ESI to use lower concentrations of PCMX, only 0.2% of the total
      solution, resulting in EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      products
      that we believe are highly effective yet safe and non-toxic to
      users</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      liquid is available in 8 ounce and 22 ounce spray containers, one gallon
      bottles, 5 gallon pails and 55 gallon drums and has a shelf life of 18 months.
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      also currently sold as heavy duty wipes, under the name &#8220;EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Cleansing Wipes.&#8221; We plan to further develop and test the wipes and register all
      available additional claims with the EPA. We intend to market a wipe with
      similar claims as those for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU once
      EPA registration has been granted. We intend to apply to register our wipe
      technology with the EPA as soon as possible.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Market
      Strategy</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      primary target market for our products is the healthcare industry including
      hospitals, surgi-centers, dialysis and other clinics, reference laboratories
      and
      dental offices where we believe the need for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      greatest. We currently have sales and/or distribution arrangements in the United
      States with Stericycle, Crosstex, Medline and Cardinal Healthcare Systems.
      In
      addition, we have an agreement with Blue Cross Health Services (BCHS) to sell
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      under the label &#8220;TruClean</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;
in
      the
      healthcare market in the United Kingdom where recent testing in a certified
      laboratory led to approval of the product for use in hospitals there. We also
      have a distribution agreement with Andpak to distribute our EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Cleansing Wipes to the aviation industry and we also sell our wipes directly
      to
      JetBlue Airlines. While we intend to initially target the healthcare and related
      industry market, we anticipate offering EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;
      </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      any
      future products derived from our nano-emulsion</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#160;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">to
      any
      and all industrial and consumer markets that may benefit from a safe
      disinfecting product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Because
      we have focused our efforts on research and development, we have not devoted
      substantial funds to sales and marketing efforts, and therefore, since our
      inception in 1996, through September 30, 2005, we have incurred cumulative
      losses of $14,666,201 and sales of less than $1,500,000. We have incurred
      substantial indebtedness and are wholly reliant on the net proceeds raised
      from
      the sale of Common Stock in the Offering. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: -4.5pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that the concept of a non-toxic &#8220;safe&#8221; product that is also a broad
      spectrum disinfectant offers us a unique opportunity to differentiate our
      products in the surface disinfectant market. It is our intention to use our
      product&#8217;s unique characteristics to build acceptance of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU as a
      non-toxic alternative significantly different from other disinfectant products
      and to disrupt the current marketplace for older toxic disinfectants.
</font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Products
      </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      currently manufacture one product, EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU,
      which we market in liquid form as a hospital grade hard surface disinfectant
      and
      as heavy duty wipes which are sold without the EPA approved claims available
      to
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU.
      Both products are based upon our proprietary PCMX formulation and nano-emulsion
      technology. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>EcoTru</em></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><em>&#174;</em></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>
      Ready to Use</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      core
      product is EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      which we sell to certain segments of the US healthcare market under the brand
      name &#8220;EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Professional&#8221; and to the aviation market as &#8220;EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      1453.&#8221;
In addition, several distributors sell EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU as a
      private label product including: Stericycle (Sterisafe</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">)
      and
      Blue Cross Health Services which is selling EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU in
      the UK as TruClean</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      currently available as a ready-to-use disinfectant/cleanser in 8 ounce and
      22
      ounce spray containers, 1 gallon bottles, 5 gallon pails and 55 gallon drums
      and
      has a shelf life of 18 months. EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      also currently sold as heavy duty wipes; we plan to test and register claims
      for
      our heavy duty wipes with the EPA similar to those for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU as
      soon as possible.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      offers a wide spectrum of efficacy and is effective as both an all-purpose
      cleaner and as a hospital grade hard surface disinfectant; thereby providing
      users with cost-savings in material and labor through the elimination of (i)
      the
      need to use multiple products and (ii) the procedures, disposal techniques,
      and
      costs associated with the use of toxic products. We believe that
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      unique in killing the 22 pathogens identified on the product label while
      achieving the EPA&#8217;s lowest possible toxicity rating of IV in the categories
      which the EPA tests for toxicity (including primary skin, eye, lung irritation
      and oral and dermal toxicity). As a result, we are not required to provide
      hazard warnings on the EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      label. . We believe that EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      is safe
      and effective on surfaces ranging from metals, metal alloys, plastics,
      synthetics, rubber, glass, painted surfaces, vinyl and fabrics and is therefore
      an ideal product to use on equipment or surfaces that require disinfecting
      on a
      regular basis. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      received
      registration from the EPA in October of 1998, then again, after development
      and
      testing of the nano-emulsion technology, in 2001, with expanded registration
      that included more bacteria, fungi, and viruses. In 2003 further expansion
      of
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;s
      claims
      were registered through the EPA for MRSA and VRE the resistant bacteria for
      healthcare concerns and for Hepatitis C.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      May
      2003, EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      received
      clearance from the EPA as a safe, non-corrosive disinfectant for use on food
      contact surfaces. While current disinfectants specify they may be used in the
      kitchen, they are generally not registered for food contact surfaces. This
      food
      contact surface approval further expands the potential future applications
      of
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      to
      include use in markets beyond healthcare, industrial and consumer (restaurants,
      hotels, cafeterias, kitchens, food stores, food-processing plants and on food
      preparation equipment). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      is the
      only EPA registered disinfectant to have passed all components of the Aircraft
      Materials Specification (AMS) 1453 test, one of the most stringent materials
      tests to which a product can be submitted. Boeing has included
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      1453 on
      its list of products recommended for use on aircraft it has manufactured. In
      addition, Boeing internally tested EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      under
      its D6-7127 protocols against fabrics, leathers and naughahyde. The results
      demonstrated that EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      does not
      corrode, craze or harm the fabrics, and there was no staining as well.
      Castellini a manufacturer of Italian leather dental chairs, also tested
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      on its
      material and found it non-staining and safe for the fabric.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>EcoTru</em></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><em>&#174;</em></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>
      Cleansing Wipes</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Cleansing Wipes are pre-saturated in EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU and
      are marketed as heavy duty wipes, but not yet as an EPA registered disinfectant,
      for use in hospitals and medical clinics, dental offices, veterinary hospitals,
      aviation equipment, mass transit and cruise lines. We can make no disinfectant
      claims with respect to our wipes until such time as we register such claims
      with
      the EPA. We intend to attempt to register our EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Cleansing Wipes as a disinfectant with the EPA as soon as possible.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Potential
      Future Products</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      future, we may be able to use our nano-emulsion technology platform to develop
      new potential products with claims similar or identical to EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU.
      These products may</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">include,
      an EPA registered wipe (as described above), EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      FMD for
      foot and mouth disease, a sterilant, and a wound cleansing and topical healing
      agent for use on animals and humans.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Nano-emulsion
      Technology </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that our nano-emulsion technology is the first new technology to be
      applied to disinfectants in more than a quarter of a century. Through the use
      of
      nano-emulsion technology, we are able to create a highly efficient and safe
      delivery mechanism for parachlorometaxylenol, which is the antimicrobial
      ingredient used in our formulations. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe our products manufactured using the nano-emulsion technology
      specifically target infectious microorganisms without harming higher life forms
      or the environment. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Parachlorometaxylenol
      (&#8220;PCMX&#8221;)</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">PCMX
      is
      the active antimicrobial ingredient in our nano-emulsion and in
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU.
      PCMX has been used as an effective antimicrobial disinfectant ingredient for
      over five decades, both in the United States and in Europe. PCMX has a broad
      spectrum of activity against bacteria, virus, and fungal species. In other
      formulations using PCMX, its biocide activity has been limited due to the
      inability of such formulations to deliver PCMX directly to the site of action
      within cell membranes, because a water barrier exists between PCMX and
      micro-organism membranes, which are both oily. EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      nano-emulsion &#8220;smart bombs&#8221; efficiently deliver the PCMX across this barrier to
      the site of action in the cell membranes. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to its broad spectrum of activity, PCMX has a very low instance of
      allergic response (it has been used by the cosmetics industry for many years
      as
      a preservative) and it is rapidly degraded in the environment in both the
      presence and the absence of oxygen.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Nano-particle
        Anatomy </em></font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Observing
      the EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      nano-emulsion under a very high degree of magnification, one would see a
      suspension of nano-particles moving very rapidly in distilled de-ionized water.
      These particles are approximately 250 nm across, or about 1/200</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      the
      width of a human hair. The center of the nano-particles is oily or lipophilic,
      as is the target microbial membrane.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Incorporated
      into these nano-particles is PCMX biocide. The surface of each nano-particle
      has
      a negative surface charge that is crucial to the targeting mechanism. There
      is
      an electrostatic attraction between EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      nano-particles and the microbes. The selective targeting of the microbes by
      these nano-particles is the basis for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;s
      efficacy and safety. Thus, these nano-particles can be described as &#8220;smart
      bombs&#8221; designed to deliver biocide to microbial targets. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Nano-Emulsion
      Mechanism</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      use
      of PCMX in a nano-emulsion is the basis for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU&#8217;s
      efficacy and safety. We believe that the physical size of the nano-emulsion
      particles and the electrostatic charge on the surface allows the particles
      to
      selectively target pathogenic microorganisms and deliver the biocide directly
      to
      the microorganisms&#8217; cell membrane, thereby improving efficacy. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By
      delivering the PCMX directly to the cell membrane, EnviroSystems has been able
      to reduce the concentration of the biocide PCMX to 0.2% and yet achieve
      disinfectant efficacy not seen at 15 to 25 fold higher
      concentration.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, we believe by targeting the membrane, it is not necessary to use
      an
      oxidizing biocide to kill the organism. Oxidizing biocides, such as bleach
      and
      hydrogen peroxide, are effective biocides but are indiscriminate, corrosive
      and
      require direct access to the organism. Also, differences in cell surface
      architecture, which is the key to cellular identity, provide the mechanism
      by
      which EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      nano-particles discriminate between a pathogenic microorganism and a human
      cell.
      The difference between the membranes of human cells and gram positive bacteria,
      gram negative bacteria, and Mycobacteria, (which is the organism that causes
      Tuberculosis), is the foundation and focal point for the selective killing
      effect of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      </font></div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Manufacturing</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Production
      of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      occurs in two distinct steps; the first of which is the production of
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate and the second of which is the dilution of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate to produce EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU. We
      use contract manufacturers for each step in the process. We use BioRad
      Laboratories, an EPA registered manufacturer with its main office located in
      Hercules, California, for the production of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate. We do not have a manufacturing agreement with BioRad and all orders
      for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate are conducted on a purchase order basis. We believe that BioRad
      has
      the manufacturing capabilities to continue to meet our volume requirements
      and
      specifications through 2006 and until we are ready to conduct our own in-house
      manufacturing and/or identify another contract manufacturer to replace or
      supplement BioRad&#8217;s production. Production of the concentrate requires that the
      formulation be added in a specific sequence, under controlled time and
      temperature conditions to ensure that the proper chemical reactions take place
      to produce our proprietary nano-emulsion. All lots of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate produced by BioRad are subjected to quality control by us before
      release for use, by selecting random samples from each lot and subjecting them
      to testing. Additionally, we monitor vendor testing of raw materials and review
      production records to ensure EnviroSystems procedures and specifications are
      followed throughout production.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      second step in the process, the dilution of the concentrate to produce
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      performed by Royal Chemical, located in Haywood, California. We do not have
      a
      manufacturing agreement with Royal Chemical and all orders for final products
      are conducted on a purchase order basis. As with the production of the
      concentrate, the preparation of the diluted final product must be done in a
      highly controlled manner so as to not destroy the nano-emulsion. Royal Chemical
      also bottles the EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      liquid and delivers it to us for shipping.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Cleansing Wipes are produced by Pouches, Inc., located in Southern
      California.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      currently have neither the capacity nor EPA site registration to internally
      manufacture our EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate. Manufacture of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate is done on a sub-contract basis, with EPA site registration, by
      BioRad Laboratories and under a non-disclosure/non-compete agreement with ESI.
      We do have limited capacity and EPA site registration to convert
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate to EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU. The
      conversion to EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      done for smaller volume production.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      currently rely upon our contract manufacturers to acquire raw materials used
      in
      our products, including PCMX. Other than PCMX, the other raw materials used
      in
      manufacturing our products are commonly available through a number of suppliers.
      PCMX has one primary supplier in the United States, Clariant Corporation,
      although we believe there are smaller alternative sources in the United States.
      We also believe there are also alternative foreign sources for PCMX.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Future
      Possible Self Manufacture Capability</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      achieving sufficient levels of sales and revenues, we may pursue the development
      of in-house manufacturing capabilities which we believe might reduce our cost
      of
      goods sold and improve our control over our trade secrets. We believe that
      such
      a facility would require approximately 20,000 to 80,000 square feet. Such
      facility would also need to include quality assurance and research and
      development facilities in addition to manufacturing facilities adequate to
      produce liquid EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      products
      (anticipated and current) as well as EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate. We estimate that once a particular site is chosen and permits
      are
      obtained, it will take at least six to nine months to complete installation
      and
      perform short-run production. We currently estimate that the costs for such
      a
      manufacturing facility would be at least $2.0 million. </font></div>
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        </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Research
      and Development </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      date,
      because of a lack of capital, we have not pursued new research and development
      activities and we do not have any full-time research personnel. We intend to
      use
      a portion of the net proceeds of the Offering to engage in research and
      development to expand our product offering from our current core product line,
      depending on the availability of funds, to a widespread array of products to
      fight infectious diseases. In the future, we may also expand our product
      offerings beyond hard surface disinfection to topical applications for humans
      and animals and as an additive/component to other products marketed by major
      pharmaceutical companies.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Government
      Regulation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      disinfectant products are classified as pesticides and are subject to regulation
      by the United States Environmental Protection Agency (&#8220;EPA&#8221;), pursuant to the
      Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) as amended by the
      Food Quality Protection Act (FQPA) of August 3, 1996. FIFRA requires that before
      any person in any state or foreign country can sell or distribute any pesticide
      in the United States, they must obtain a registration from the EPA. The term
      &#8220;pesticide,&#8221; as defined in FIFRA, means any substance or mixture of substances
      intended for preventing, destroying, repelling, or mitigating any pest, virus,
      bacteria, or other micro-organism (except viruses, bacteria, or other
      micro-organism on or in living man or other living animals). Pesticides include
      fungicides, disinfectants, sanitizers, and germicides. After the registration
      process and submission of required data, an accepted label is stamped accepted
      and returned to the registrant for the registered product. Annual Pesticide
      Maintenance Fees are required for registered products. Anyone who
      sells/distributes a pesticide (including antimicrobial products such as
      disinfectants, sanitizers, and germicides) must register that product in every
      state that they intend to sell/distribute and pay a registration fee.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      order
      to &#8220;produce,&#8221; defined to mean &#8220;to manufacture, prepare, propagate, compound, or
      process any pesticide . . . or to repackage or otherwise change the container
      of
      any pesticide . . .&#8221; the applicable plant and/or facility must be EPA
      registered. Upon registration an establishment number is assigned. The label
      and/or container must bear the registration number as well as the establishment
      number. Annual reports are required to be submitted to the EPA indicating the
      amount produced, repackaged/relabeled for the past year, amount sold/distributed
      for the past year within and outside of the U.S., and the amount to be
      produced/repackaged/ relabeled for the current year. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EPA
      regulations also require us to report adverse events associated with our
      products to the EPA. Failure to pay registration fees or provide necessary
      testing data, or evidence that one of our product is the cause of an adverse
      effect on humans or the environment, could result in the cancellation of an
      EPA
      registration.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      one product registered with the United States Environmental Protection Agency,
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU,
      assigned EPA Registration No. 70791-1 which has an EPA registered
      label.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems
      is registered and has been assigned EPA Establishment No. 70791-CA-001. Also
      our
      contract manufacturers are registered EPA establishments. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems&#8217;
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Cleansing Wipes have not been registered with the EPA and, therefore, we cannot
      market the wipes as a disinfectant. We intend to pursue EPA registration for
      the
      wipes as soon as possible. EnviroSystems is registered to and currently sells
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU in
      all of the 50 States in the United States and the District of Columbia, except
      that in the State of California EnviroSystems&#8217; approval is conditional. The
      California Environmental Protection Agency has extended conditional approval
      pending receipt of additional test results for EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU. The
      additional test results must be provided to the California Environmental
      Protection Agency by the end of 2006 unless an additional extension is granted.
      </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Foreign
      Regulation</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Although
      to date we have not had substantial international sales of our products, when
      we
      do sell products in foreign jurisdictions, we will be subject to foreign
      regulations. For example, before we can introduce our products into certain
      markets in the United Kingdom, such products must be listed on the United
      Kingdom&#8217;s National Registry. We expect that we will have to register our
      products in other foreign jurisdictions before we can commence sales in such
      jurisdictions. Compliance with foreign requirements could require substantial
      expenditures and effort.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Competition
      </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      market for products such as ours is highly competitive and we face competition
      from a number of companies, most of which have substantially greater brand
      name
      recognition and financial, research and development, production and other
      resources than we do. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Healthcare</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      competitors in the Healthcare market include Johnson &amp; Johnson, Clorox,
      Steris Corporation, Caltech Industries, Sybron Dental Specialties, Inc., Reckitt
      Benkiser, Sensible Life Products, and Ecolab, Inc. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Many
      of
      our competitors&#8217; products contain ingredients from one of the following four
      families of ingredients: ammonium, phenol, chlorine and or glutaraldehyde.
      We
      believe, one of the common characteristics of these types of active ingredients
      is that they are toxic skin penetrants. EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU has
      the advantage of being non-toxic and non-harmful. Some of our competitors&#8217;
products, including </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bene</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>fect</em></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;
      </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">are,
      according to </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Bene</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>fect</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8217;s
      product literature,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      based on
      natural ingredients that are non-toxic and are Category IV disinfectants. We
      believe that the exclusion of claims made by these products for certain
      pathogens such as MRSA (Methicillin resistant Staphylococus aureus), VRE
      (Vancomycin resistant Enterococcus faecalis) and Hepatitis B &amp; C, as well as
      Herpes Simplex I &amp; II, Legionella pneumophila, and Ecoli (Escherichia coli
      OH157) render these products less attractive to the markets that require
      broad-spectrum efficacy including the important healthcare and food-service
      arenas. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">To
      the
      best of our knowledge, no competitive products have the non-toxic,
      non-corrosive, non-flammable and environmentally friendly features of our
      proprietary EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      formulation, as well as the efficacy against a broad range of micro-organisms
      and virulent pathogens. We believe, to date, our competition has used either
      less expensive toxic materials, diluted with water, to produce their surface
      disinfectants or natural ingredients which do not include the depth of EPA
      registered effectiveness claims granted to EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Hospitality
      Aviation, Military</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      the
      hospitality, aviation and military industry our primary competitors include
      Johnson &amp; Johnson, Ecolab, Inc., Clorox, Sensible Life Products, and Proctor
&amp; Gamble, and others all of which have products with recognized national
      brands that include Clorox, Lysol, Pine Sol, and industry specific products.
      Products used in the hospitality industry generally compete based upon price.
      To
      date, relatively higher per unit costs of our product as compared to our
      competitors has limited our ability to compete in the hospitality industry.
      We
      believe that our principal competitive advantages of our products are their
      safety, non-corrosiveness and efficacy. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Intellectual
      Property </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      not applied for patent protection for our proprietary PCMX formulation or for
      our nano-emulsion technology and instead rely upon trade secret protection
      for
      protection of our formula, formulation, nano-emulsion technology or
      manufacturing process. We continue to review our intellectual property
      protection policy and have evaluated the use of patent versus trade secret
      protection for our intellectual property. While we cannot apply for patents
      on
      our formulation or nano-emulsion technology as a result of the passage of time,
      in the future we may seek other available patent protection. In addition, based
      upon our review of industry practice, we determined that it is more common
      to
      rely upon trade secret protection, rather than patents to protect intellectual
      property, particularly when such intellectual property involves processes such
      as ours. We have instituted strict internal procedures to protect the trade
      secrets and have confidentiality and non-disclosure agreements in place with
      our
      concentrate manufacturer BioRad and with our EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      bottler Royal Chemical.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      will
      continue to evaluate our current trade secret protection and may decide in
      the
      future, if available, to submit use or design patents in certain areas that
      will
      not require us to disclose the trade secrets that give EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      or
      future potentially patentable derivative products a competitive advantage.
      In
      addition, we submitted both the early and the current versions of
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      to a
      major U.S. de-formulation laboratory to see if they could reverse engineer
      our
      products. To date, despite their best efforts to reverse engineer our product,
      they have not been able to provide us with an accurate report of the
      nano-emulsion ingredients or manufacturing process.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      new
      products are brought to market, we intend to carefully analyze each for the
      methodology to be employed in protection of the intellectual property.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to an Intellectual Property Assignment Agreement, effective as of July 30,
      1996,
      between EnviroSystems, American Children&#8217;s Foundation (&#8220;ACF&#8221;), Richard M. Othus
      (&#8220;Othus&#8221;), Andrew D.B. Lambie (&#8220;Lambie&#8221;) and Cascade Chemical Corporation
      (&#8220;Cascade&#8221;), each of ACF, Othus, Lambie and Cascade irrevocably assigned to us
      all of their rights to the chemical formula which we use in the manufacture
      of
      our product. In consideration thereof, we agreed to pay to each of Othus and
      Lambie a royalty equal to 0.25% of gross revenues received by us from sales
      of
      our products throughout the world, less credits and returns, for as long as
      we
      sell products which embody the assigned formula. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      products are sold under a variety of trademarks and trade names. We own all
      of
      the trademarks and trade names we believe to be material to the operation of
      our
      business. EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      is
      currently registered in the United States, Japan, and Taiwan. We expect to
      file
      additional registrations in the European Union countries and
      Canada.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Except
      for the trademarks referred to above, we do not believe any single trademark
      is
      material to the operations of our business as a whole.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employees
      </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Effective
      immediately after the closing of the Merger, we had a total of five (5) full
      time employees. None of our employees are represented by a trade union. We
      anticipate hiring additional full time employees within the next twelve months.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Customers</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      sell
      the majority of our products to customers in the healthcare industry, including
      hospitals, dental offices, physicians&#8217; offices, reference laboratories, long
      term care facilities and veterinary offices. In addition, we also sell our
      products to airlines, the U.S. Government and customers in the hospitality
      industry. As of March 31, 2005 we had approximately 330 customers, most of
      which
      are in the healthcare industry and purchase our products through our
      distributors. Sales to our top ten customers represented approximately 78.4%
      of
      our 2004 sales. Of such sales, approximately 87.3% consisted of sales of our
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU and
      12.7% were EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      Cleansing Wipes. In 2004, JetBlue accounted for 52.4% of sales of our wipes.
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Sales,
      Marketing, Distribution</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      market
      and sell our products primarily through third party distributors and to a lesser
      extent through direct sales. In 2004, sales through distributors accounted
      for
      approximately 75.5% of our sales. We have entered into distribution agreements
      with distributors that service the industry segments that we have targeted
      for
      sales of our products. In the healthcare market, we have entered into
      distribution agreements with Stericycle (which markets EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      under
      the private label &#8220;Sterisafe</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;),
      Medline, Crosstex, and Cardinal Health Systems. In the transportation industry,
      we have entered into a distribution agreement with Andpak, a distributor to
      the
      airline industry (which re-packages and markets EcoTru&#174; under the private label
      EcoTru&#174;1453).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      also entered into distribution agreements with distributors to market our
      products outside of the United States, such as Blue Cross Health Services which
      sells EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      under the private label TruClean</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      in the
      healthcare market in the United Kingdom, and Alpha Scientific Repair Services
      which is a distributor in Canada. To date we have had minimal international
      sales of our products.</font></div>
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      </div>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      direct sales efforts to date have been to healthcare facilities, institutions,
      commercial airlines and local governments and were intended primarily to help
      gain market acceptance, attract major distributors and establish
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      as a
      brand. Direct sales to customers accounted for 11.8% of our 2004 sales, with
      sales to one customer, JetBlue accounting for 10.5% of total sales and 1.3%
      of
      direct sales. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      majority of our products are shipped to customers from our facility at 1900
      Wyatt Drive, Santa Clara, CA. We use third party carriers to deliver our
      products. From time to time, we will arrange for shipments directly from our
      contract bottler Royal Chemical Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Insurance
      Matters </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      maintain a general business liability policy and other coverages specific to
      our
      industry and operations. We also maintain general products liability coverage
      and directors and officers liability coverage. We believe that our insurance
      program provides adequate coverage for all reasonable risks associated with
      operating our business.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>MANAGEMENT&#8217;S
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Introduction</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Telecomm
      had no revenue from operations since its inception. Following the Merger,
      EnviroSystems operations shall constitutes all of Telecomm&#8217;s operations. The
      following discussion and analysis summarizes the significant factors affecting
      EnviroSystems&#8217; results of operations for its 2005 fiscal year compared to
      EnviroSystems&#8217; 2004 fiscal year and our and EnviroSystems&#8217; combined financial
      liquidity and capital resources. Also discussed below are EnviroSystems&#8217; results
      of operations for the nine-month period ended September 30, 2005 compared with
      EnviroSystems results of operations for the nine-month period ended September
      30, 2004. This discussion and analysis should be read in conjunction with the
      financial statements and notes, and pro forma financial statements, included
      with this Report.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Results
      of Operations</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      Revenues. Net revenues were $670,214 in fiscal 2005, compared to net revenues
      of
      $592,058 in fiscal 2004. The $78,156 (13.20%) increase in net revenues in fiscal
      2005 compared to fiscal 2004 was primarily due to increased unit volume of
      product sold.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
      of
      Goods Sold. Cost of goods sold were $661,133 in fiscal 2005, compared to cost
      of
      goods sold of $462,470 in fiscal 2004. The $198,563 (42.93%) increase in cost
      of
      goods sold in fiscal 2005 compared to fiscal 2004 was due to increased overhead
      burden in product sold and write off of certain inventory
      components.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
      Profit. Gross profit was $9,081 in fiscal 2005, compared to gross profit of
      $129,488 in fiscal 2004. The $120,407 (92.99%) decrease in gross profit was
      primarily due to increased sales volume in lower profit margin product and
      the
      increased overhead burden in product sold and write off of certain inventory
      components.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
      Operating Costs. Total operating costs were $2,300,277 in fiscal 2005, compared
      to total operating costs of $3,169,062 in fiscal 2004. The $859,704 (27.13%)
      decrease in total operating costs was due to reduction marketing and sales
      expenses.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
      from
      Operations. Loss from operations was $2,300,277 in fiscal 2005, compared to
      loss
      from operations of $3,039,574 in fiscal 2004. The $739,297 (24.32%) decrease
      in
      loss from operations was due to reduction in operating expenses of $859,704
      offset by reduced gross profit of $120,407.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>The
      six months ended September 30, 2005 compared to the six months ended September
      30, 2004</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Net
      Revenues. Net revenues were $221,251 for the six months ended September 30,
      2005, compared to net revenues of $365,079 for the six months ended September
      30, 2004. The $143,828 (39.40%) decrease in net revenues for the six months
      ended September 30, 2005 compared to the comparable period in 2004 was due
      to
      reduced sales efforts while maintaining existing customer base.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Cost
      of
      Goods Sold. Cost of goods sold were $211,593 for the six months ended September
      30, 2005, compared to cost of goods sold of $359,366 for the six months ended
      September 30, 2004. The $147,773 (41.12%) decrease in cost of goods sold for
      the
      six months ended September 30, 2005 compared to the comparable period in fiscal
      2004 was due to decreased sales volume.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Gross
      Profit. Gross profit was $9,081 for the six months ended September 30, 2005,
      compared to gross profit of $5,713 for the six months ended September 30, 2004.
      The $3,945 (69.05%) increase was primarily due to sale of higher margin
      product.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total
      Operating Costs. Total operating costs were $160,212 for the six months ended
      September 30, 2005, compared to total operating costs of $1,090,208 for the
      six
      months ended September 30, 2004. The $929,996 (85.30%) decrease in total
      operating costs was due to reduction of across the board operating expenses
      and
      $443,528 reduction of obligation to former CEO through settlement
      agreement,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Loss
      from
      Operations. Loss from operations was $150,554 for the six months ended September
      30, 2005, compared to loss from operations of $1,084,495 for the six months
      ended September 30, 2004. The $933,941 (86.12%) decrease in loss from operations
      was due to increase in gross profit of $3,945 and decrease in operating expenses
      of $929,996.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Impact
      of Inflation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Inflation
      has not had a material effect on our results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
      Liquidity and Capital Resources</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the closing of the Offering, we received gross proceeds of
      $8,500,000. Of that amount we have used approximately $1,463,900, to repay
      outstanding indebtedness of EnviroSystems with a balance of approximately
      $673,000 indebtedness to be negotiated. A payment of $426,452 as settlement
      with
      the former CEO was also made. In addition, in connection with the Offering,
      we
      incurred expenses of $893,000 and we paid to selling agents in the offering
      a
      cash fee of $850,000.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      expect
      that the remaining proceeds from the Offering and cash flows from operations
      will be sufficient to pay our other existing obligations and obligations as
      they
      arise for the next twelve months. However, we may require additional working
      capital to expand our business. In the event we are not able to increase working
      capital, we may not be able to expand our business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Off
      Balance Sheet Arrangements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Not
      applicable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Critical
      Accounting Policies</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      significant accounting policies are more fully described in Note 2 to the
      audited financial statements of EnviroSystems. The preparation of financial
      statements in conformity with accounting principles generally accepted in the
      United States of America requires management to make estimates and assumptions
      that affect the reported amounts of assets, liabilities, revenues and expenses,
      and the related disclosures of contingent assets and liabilities. Actual results
      could differ from those estimates under different assumptions or
      conditions.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>RISK
      FACTORS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>Investing
      in our Common Stock involves a high degree of risk. Prospective investors should
      carefully consider the following risks and uncertainties and all other
      information contained or referred to in this Current Report on Form 8-K before
      investing in our Common Stock. The risks and uncertainties described below
      are
      not the only ones facing us. Additional risks and uncertainties that we are
      unaware of, or that we currently deem immaterial, also may become important
      factors that affect us. If any of the following risks occur, our business,
      financial condition or results of operations could be materially and adversely
      affected. In that case, the trading price of our Common Stock could decline,
      and
      you could lose all of your investment. </em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Risks
      Related To Our Business</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      have not applied for patents on our proprietary technology and rely upon trade
      secret protection to protect our intellectual property; it may be difficult
      and
      costly to protect our proprietary rights and we may not be able to ensure their
      protection. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      not applied for patent protection for our proprietary formulas and nano-emulsion
      technology and have decided instead to rely upon trade secret protection to
      protect such intellectual property. Trade secrets are difficult to protect
      and
      while we use reasonable efforts to protect our trade secrets, we cannot assure
      that our employees, consultants, contractors or scientific advisors will not,
      unintentionally or willfully, disclose our trade secrets to competitors or
      other
      third parties. In addition, courts outside the United States are sometimes
      less
      willing to protect trade secrets. Moreover, our competitors may independently
      develop equivalent knowledge, methods and know-how. If we are unable to defend
      our trade secrets from illegal use, or if our competitors develop equivalent
      knowledge, it could have a material adverse effect on our business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
      infringement of our proprietary rights could result in significant litigation
      costs, and any failure to adequately protect our proprietary rights could result
      in our competitors&#8217; offering similar products, potentially resulting in loss of
      a competitive advantage and decreased revenue. Existing patent, copyright,
      trademark and trade secret laws afford only limited protection. In addition,
      the
      laws of some foreign countries do not protect our proprietary rights to the
      same
      extent as do the laws of the United States. Therefore, we may not be able to
      protect our proprietary rights against unauthorized third party use. Enforcing
      a
      claim that a third party illegally obtained and is using our trade secrets
      could
      be expensive and time consuming, and the outcome of such a claim is
      unpredictable. Litigation may be necessary in the future to enforce our
      intellectual property rights, to protect our trade secrets or to determine
      the
      validity and scope of the proprietary rights of others. This litigation could
      result in substantial costs and diversion of resources and could materially
      adversely affect our future operating results.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Potential
      claims alleging infringement of third party&#8217;s intellectual property by us could
      harm our ability to compete and result in significant expense to us and loss
      of
      significant rights.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">From
      time
      to time, third parties may assert patent, copyright, trademark and other
      intellectual property rights to technologies that are important to our business.
      Any claims, with or without merit, could be time-consuming, result in costly
      litigation, divert the efforts of our technical and management personnel, cause
      product shipment delays, disrupt our relationships with our customers or require
      us to enter into royalty or licensing agreements, any of which could have a
      material adverse effect upon our operating results. Royalty or licensing
      agreements, if required, may not be available on terms acceptable to us. If
      a
      claim against us is successful and we cannot obtain a license to the relevant
      technology on acceptable terms, license a substitute technology or redesign
      our
      products to avoid infringement, our business, financial condition and results
      of
      operations would be materially adversely affected. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>To
      date we have had significant operating losses, and an accumulated deficit and
      have had limited revenues and do not expect to be profitable for at least the
      foreseeable future, and cannot predict when we might become profitable, if
      ever.
</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      been operating at a loss each year since our inception, and we expect to
      continue to incur substantial losses for the foreseeable future. Net losses
      for
      the six months ended September 30, 2005 and fiscal years ending March 31, 2005
      and 2004 were $214,315, $2,382,487 and $3,286,376, respectively. Through
      September 30, 2005, we had an accumulated deficit of $14,666,201. We also have
      had limited revenues. Revenues for the six months ended September 30, 2005
      and
      fiscal years ending March 31, 2005 and 2004 were $221,251, $670,214 and
      $592,058, respectively. Further, we may not be able to generate significant
      revenues in the future. In addition, we expect to incur substantial operating
      expenses in order to fund the expansion of our business. As a result, we expect
      to continue to experience substantial negative cash flow for at least the
      foreseeable future and cannot predict when, or even if, we might become
      profitable.</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      operate in a highly regulated industry, which may delay the introduction of
      new
      products, cause withdrawal of products from the market, and have other adverse
      consequences.&#160;&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to applicable environmental and safety laws and regulations, we are required
      to
      obtain and maintain certain governmental permits and approvals, including an
      EPA
      registration for our core product EcoTru RTU. Permits and approvals may be
      subject to revocation, modification or denial under certain circumstances.
      While
      we believe we are in compliance in all material respects with environmental
      laws, there can be no assurance that our operations or activities will not
      result in administrative or private actions, revocation of required permits
      or
      licenses, or fines, penalties or damages, which could have an adverse effect
      on
      us. In addition, we cannot predict the extent to which any legislation or
      regulation may affect the market for our products or our cost of doing business.
      See &#8220;The Company - Government Regulations.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Going
      concern opinions </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      audited financial statements for Telecomm for the period ended September 30,
      2004 and the audited financial statements for EnviroSystems for the year ended
      March 31, 2005, each included an explanatory footnote that such financial
      statements were prepared assuming that Telecomm and EnviroSystems, respectively,
      would continue as a going concern.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      are dependent upon the net proceeds from the Offering to repay our debts, effect
      the Merger and fund our operations. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      had limited revenues and as of March 31, 2005 we had incurred a cumulative
      net
      loss of $14,451,886 and as of September 30, 2005, we had less than $100,000
      in
      available funds. We are therefore, wholly dependent upon the net proceeds of
      the
      Offering to repay our debts, effect the Merger and have working capital to
      continue operations. In order to effect the Merger, approximately $2,900,000
      of
      the net proceeds of the Offering were allocated to repayment of certain of
      our
      debts. The remaining net proceeds have been allocated to funding the costs
      of
      our operations including, but not limited to, hiring marketing and sales
      employees and research and development. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      management will have broad discretion in the application of the net proceeds
      of
      the Offering. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
      the
      repayment of approximately $2,900,000 of our debt, our management will have
      broad discretion to adjust the application and allocation of the remaining
      net
      proceeds of the Offering in order to address changed circumstances and
      opportunities. As a result of the foregoing, our success will be substantially
      dependent upon the discretion and judgment of our management with respect to
      the
      application and allocation of the net proceeds of the Offering. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      do not have sufficient internal manufacturing capabilities to produce sufficient
      quantities of our product to meet current levels of demand and we rely upon
      a
      single supplier for our EcoTru</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><strong>&#174;</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      concentrate and one supplier for final processing and bottling of
      EcoTru</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><strong>&#174;</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      RTU making us vulnerable to supply disruption, which could harm our
      business.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      have
      limited manufacturing capabilities and rely upon two outside suppliers: BioRad
      Industries produces our EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      nano-emulsion concentrate for us, and Royal Chemical converts the concentrate
      into EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU. We
      believe that using just two suppliers to produce EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      helps us to protect our trade secrets by limiting the number of third parties
      that have access to our proprietary information. We do not have contracts with
      our suppliers and rely upon purchase orders for purchasing concentrate and
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU. If
      our suppliers are unable to provide us with product in quantities we require
      or
      meeting our specifications, or if they raise their prices we would be required
      to seek new suppliers. Although we maintain inventories of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate and EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;
      </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RTU
      which
      we believe would be sufficient to provide us with the time to locate alternative
      suppliers, if we are required to find new suppliers, we cannot assure that
      we
      will find alternative suppliers who will supply us with EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate and EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>&#174;
      </sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">RTU
      on
      similar economic terms, which could increase our costs of goods sold and have
      an
      adverse effect on our sales and results of operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition, if our suppliers encounter problems during manufacturing as a result
      of, among other things, failure to follow our protocols and procedures, failure
      to comply with applicable regulations, or equipment malfunction, any of which
      could delay or impede their ability to meet our demand</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">,
      it
      could have a material adverse effect on our business. Further, any interruption
      or delay in the supply of EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      concentrate or EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU, or
      our inability to obtain such goods from alternate sources at acceptable prices
      in a timely manner, could impair our ability to meet our customers demand and
      cause them to cancel orders or switch to competitive products, which would
      harm
      our business.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      rely upon a single supplier for parachlorometaxylenol (PCMX), the active
      ingredient in EcoTru</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><strong>&#174;</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      RTU.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      rely
      upon a single supplier, Clariant Corporation, to provide us with PCMX, which
      is
      the biocide used in our EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU
      products. Clariant Corporation is one of the largest suppliers of PCMX in the
      United States with some smaller sources in the United States. There are also
      some smaller foreign sources. If Clariant Corporation is unable to supply us
      with PCMX in the quantities and on the economic terms that we require, it could
      have a material adverse effect on our business. We have no written agreement
      with Clariant.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      lack sales, marketing and distribution capabilities and depend on third parties
      to market our product. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      do not
      have personnel dedicated solely to sales and marketing of our product and
      therefore we must rely upon third party distributors to market and sell our
      product. These third parties may not be able to market our product successfully
      or may not devote the time and resources to marketing our product that we
      require. We also rely upon third party carriers to distribute and deliver our
      product. As such, our deliveries are to a certain extent out of our control.
      If
      we choose to develop our own sales, marketing or distribution capabilities,
      we
      will need to build a marketing and sales force with technical expertise and
      with
      supporting distribution capabilities, which will require a substantial amount
      of
      management and financial resources that may not be available. If we or a third
      party are not able to adequately sell and distribute our product, our business
      will be materially harmed.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      may face product liability for the products we manufacture and
      sell.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Manufacturing,
      marketing and sale of our products may subject us to product liability claims.
      We currently have insurance coverage against product liability risks up to
      an
      aggregate annual limit of</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">approximately
      $1,000,000</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      However,
      such insurance coverage may not be adequate to satisfy any liability that may
      arise. Regardless of merit or eventual outcome, product liability claims may
      result in decreased demand for a product, injury to our reputation and loss
      of
      revenues. As a result, regardless of whether we are insured, a product liability
      claim or product recall may result in losses that could be material to
      us.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      are dependent upon sales of a single product, </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EcoTru</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><strong>&#174;</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      RTU to the healthcare industry for most of our sales. If our
      EcoTru</strong></font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup><strong>&#174;</strong></sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>
      RTU product fails to gain market acceptance our business will suffer.
</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU is
      currently our only product and sales of this product to customers in the
      healthcare industry account for substantially all of our revenue. We cannot
      provide assurance that we will be successful in convincing additional customers
      in the healthcare market to use our product, or if we can successfully branch
      out into other markets. Certain competitors have products that are established
      in our target markets, and we may not be able to convince users of those
      products to switch to EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU.
      Healthcare professionals may be hesitant to utilize our product given our
      product pricing structure and the fact that we are a relatively small company.
      If our product fails to gain additional acceptance in the healthcare industry,
      our business will be harmed. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>All
      of our operations are conducted at a single location. Any disruption at our
      facility could adversely affect our operations and increase our expenses.
</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
      of
      our operations are conducted at a single location in Santa Clara, California.
      We
      take precautions to safeguard our facility, including insurance, health and
      safety protocols. However, a natural disaster, such as a fire, flood or
      earthquake, could cause substantial delays in our operations, damage or destroy
      our </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">books
      and
      records, computer systems, or inventory, and cause us to incur additional
      expenses. The insurance we maintain against fires, floods, earthquakes and
      other
      natural disasters may not be adequate to cover our losses in any particular
      case. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>If
      we are unable to establish sufficient sales and marketing capabilities or enter
      into and maintain appropriate arrangements with third parties to sell, market
      and distribute our product, our business will be harmed. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      limited experience as a company in the sale, marketing and distribution of
      EcoTru</font><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman, serif"><sup>&#174;</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      RTU. We
      depend upon third parties to sell our product both in the United States and
      internationally. To achieve commercial success, we must develop sales and
      marketing capabilities and enter into and maintain successful arrangements
      with
      others to sell, market and distribute our products. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      we are
      unable to establish and maintain adequate sales, marketing and distribution
      capabilities, independently or with others, we may not be able to generate
      product revenue and may not become profitable. If our current or future partners
      do not perform adequately, or we are unable to locate or retain partners, as
      needed, in particular geographic areas or in particular markets, our ability
      to
      achieve our expected revenue growth rate will be harmed. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      face competition in our markets from a number of large and small companies,
      some
      of which have greater financial, research and development, production and other
      resources than we have. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      products face competition from products which may be used as an alternative
      or
      substitute therefore. In addition we compete with several large companies in
      the
      disinfectant business. To the extent these companies, or new entrants into
      the
      market, offer comparable disinfectant products at lower prices, our business
      could be adversely affected. Our competitive position is based principally
      on
      our nano-emulsion technology, product quality and product safety. Our
      competitors can be expected to continue to improve the design and performance
      of
      their products and to introduce new products with competitive performance
      characteristics. There can be no assurance that we will have sufficient
      resources to maintain our current competitive position. See &#8220;Description of
      Business - Competition.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      have not made certain lease payments due on our lease for our premises located
      at 1900 Wyatt Drive. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      not made certain payments on our lease for our premises located at 1900 Wyatt
      Drive. As of December 31, 2005, we owed our landlord approximately $10,238
      in
      back lease payments. Although our landlord has not, as of the date of this
      Current Report on Form 8-K, commenced legal proceedings against us to recover
      past due lease payments, if such an action is commenced and we are not able
      to
      settle such lawsuit or prevail in such litigation, it could have a material
      adverse impact on our operations.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      may not be able to manage our growth effectively, which could adversely affect
      our operations and financial performance.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      ability to manage and operate our business as we execute our development and
      growth strategy will require effective planning. Significant rapid growth could
      strain our internal resources, and other problems that could adversely affect
      our financial performance. We expect that our efforts to grow will place a
      significant strain on our personnel, management systems, infrastructure and
      other resources. Our ability to manage future growth effectively will also
      require us to successfully attract, train, motivate, retain and manage new
      employees and continue to update and improve our operational, financial and
      management controls and procedures. If we do not manage our growth effectively,
      our operations could be adversely affected, resulting in slower growth and
      a
      failure to achieve or sustain profitability.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      future success depends on retaining our existing key employees and hiring and
      assimilating new key employees. The loss of key employees or the inability
      to
      attract new key employees could limit our ability to execute our growth
      strategy, resulting in lost sales and a slower rate of
      growth.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      success depends in part on our ability to retain key employees including our
      executive officers. Following the Merger we have only entered into an employment
      agreement with one of our executives. Also, we do not currently carry "key
      man"
      insurance on our executives but intend to&#160;obtain it in the near future. It
      would be difficult for us to replace any one of these individuals. In addition,
      as we grow we may need to hire additional key personnel. We may not be able
      to
      identify and attract high quality employees or successfully assimilate new
      employees into our existing management structure.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      cannot predict the impact of our proposed marketing efforts. If these efforts
      are unsuccessful we may not earn enough revenue to become
      profitable.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      success will depend on investing in marketing resources. Our proposed business
      plan includes hiring marketing personnel and a dedicated sales force and
      developing a comprehensive marketing plan for our product. Such a marketing
      plan
      may include attending trade shows and making private demonstrations, advertising
      and promotional materials, advertising campaigns in both print and broadcast
      media, and advertising/promotion-related operations. &#160;We cannot give any
      assurance that these marketing efforts will be successful. If they are not,
      revenues may be insufficient to cover our fixed costs and we may not become
      profitable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      expect to incur additional losses in the future. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      expect
      to incur significant operating losses in the near future. We intend to use
      a
      portion of the net proceeds from the Offering for sales and marketing, research
      and development and operating expenses. We will continue to incur significant
      expenses. We cannot predict when, if ever, we will operate
      profitably.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      might require significant additional capital to support business growth, and
      this capital might not be available.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
        believe that the net proceeds from the Offering, after repayment of our debt
        obligations, will satisfy our current capital needs for approximately eighteen
        (18) to twenty-four (24) months. However, if, among other reasons, our revenue
        and/or expense estimates prove inaccurate, we will be required to raise
        substantial additional capital. Such capital might be raised through public
        or
        private financings, as well as borrowings and other sources. We do not currently
        have any commitments or immediate plans with respect to acquisition financing,
        and there can be no assurance that additional or sufficient financing will
        be
        available, or, if available, that it will be available on acceptable terms.
        The
        failure to obtain required financing by us when needed could result in us
        being
        required to substantially scale back our then operations.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Relationship
        with Principal Shareholders </strong></font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MV
        Nanotech Corp. (&#8220;MV Nanotech&#8221;) beneficially owns in the aggregate approximately
        8.6% (1,375,961 shares) and holders of EnviroSystems preferred stock
        beneficially own approximately 40% (6,400,000 shares) of the outstanding
        shares
        of our Common Stock. As a result, such persons will have substantial influence
        in all matters requiring a vote of our stockholders. This concentration of
        ownership could also have the effect of delaying or preventing a change in
        our
        control or discouraging a potential acquirer from attempting to obtain control
        of us, which in turn could have a material adverse effect on the market price
        of
        the Common Stock or prevent our stockholders from realizing a premium over
        the
        market price for their shares of Common Stock. In addition, MV Nanotech,
        has
        made $850,000 principal amount of bridge loans to EnviroSystems, all of such
        funds, plus interest were repaid from the net proceeds of the Offering.
</font></div><br><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      business may be affected by factors outside of our
      control.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      ability to increase sales, and to profitably distribute and sell our products,
      is subject to a number of risks, including changes in our business relationships
      with our principal distributors, competitive risks such as the entrance of
      additional competitors into our markets, pricing and technological competition,
      risks associated with the development and marketing of new products in order
      to
      remain competitive and risks associated with changes in demand for disinfectants
      which can be affected by economic conditions, health care reform and government
      regulation.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      may incur increased legal, accounting and other expenses as a result of having
      to assimilate EnviroSystems into our business. </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
      the Merger, we will incur will incur significant legal, accounting and other
      expenses in connection with bringing EnviroSystems in compliance with rules
      and
      regulations applicable to public companies that EnviroSystems did not incur
      as a
      private company prior to the Merger. In addition, if our Common Stock is
      eventually listed on Nasdaq or another major exchange, we will incur further
      additional listing and compliance expenses. We expect these new rules and
      regulations to increase our legal and financial compliance costs and to make
      some activities more time-consuming and costly. In addition, we will incur
      additional costs associated with our public company reporting requirements.
      We
      also expect these new rules and regulations to make it more difficult and more
      expensive for us to obtain director and officer liability insurance and we
      may
      be required to accept reduced policy limits and coverage or incur substantially
      higher costs to obtain the same or similar coverage. As a result, it may be
      more
      difficult for us to attract and retain qualified persons to serve on our board
      of directors or as executive officers. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Risks
      Related To Our Common Stock</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
      price of our Common Stock may fluctuate significantly, which could lead to
      losses for stockholders.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Stock
      of public companies can experience extreme price and volume fluctuations, which
      can be unrelated or out of proportion to the operating performance of such
      companies. We expect our stock price will be subject to similar volatility.
      Any
      negative change in the public&#8217;s perception of the prospects of our company or
      companies in our market could also depress our stock price, regardless of our
      actual results. Factors affecting the trading price of our common stock may
      include: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#216;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">variations
                in our operating results; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 18pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#216;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">announcements
                of technological innovations, new products or product enhancements,
                strategic alliances or significant agreements by us or by our competitors;
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#216;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">recruitment
                or departure of key personnel; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#216;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">litigation,
                legislation, regulation or technological developments that adversely
                affect our business; </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#216;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">changes
                in the estimates of our operating results or changes in recommendations
                by
                any securities analyst that elect to follow our common stock; and
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 36pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Wingdings">&#216;&#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">market
                conditions in our industry, the industries of our customers and the
                economy as a whole. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>If
      securities analysts do not publish research or reports about our business or
      if
      they downgrade our stock, the price of our stock could
      decline.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      trading market for our Common Stock may be affected by research and reports
      that
      industry or financial analysts may in the future publish about us or our
      business. We will not control these analysts. There are many large,
      well-established publicly traded companies active in our industry and market,
      which will mean it will be less likely that we receive widespread, if any,
      analyst coverage. Furthermore, if one or more of the analysts who in the future
      elect to cover us, downgrade our stock, our stock price would likely decline
      rapidly. If one or more of these analysts cease coverage of our Company, we
      could lose visibility in the market, which in turn could cause our stock price
      to decline. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>We
      have no intention to pay dividends on our Common Stock.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      the
      foreseeable future, we intend to retain any remaining future earnings, if any,
      to finance our operations and do not anticipate paying any cash dividends with
      respect to our Common Stock. As a result, investors should not expect to receive
      dividends on any of the Shares purchased by them, for a long period of time,
      if
      ever.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      Common Stock is quoted on the OTC Bulletin Board and there may be a limited
      trading market for our Common Stock.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Common Stock is quoted on the OTC Bulletin Board. There is extremely limited
      and
      sporadic trading of our Common Stock, and no assurance can be given, when,
      if
      ever, an active trading market will develop or, if developed, that it will
      be
      sustained. As a result, investors in our Common Stock may be unable to sell
      their shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>If
      the registration statement that we intend to file is declared effective, sales
      of shares of our Common Stock on the open market could reduce the market price
      of our Common Stock.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Common Stock has extremely limited and sporadic trading. Sales of shares of
      the
      Common Stock in the open market could reduce any market price of the Common
      Stock, if a market should develop. An absence of a market for the Common Stock
      would make it more difficult for the Company to raise additional funds through
      an equity financing. Additionally, if the registration statement for the Shares
      should be filed and become effective, the number of shares of Common Stock
      eligible for public sale will increase, which could decrease any such market
      price, if a market were to develop for the shares. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Future
      sales of shares of our common stock may decrease the price for such
      shares.</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">When
      the
      Escrow and Lock-Up Agreement expires on the Common Stock issued to former
      preferred stockholders of EnviroSystems in connection with the Merger, such
      shares will be eligible for resale on the open market, many without any
      restrictions as to size or frequency of such sales. Actual sales, or the
      prospect of sales by our shareholders, may have a negative effect on the market
      price of the shares of our common stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      also
      intend to register certain shares of our common stock that are subject to
      outstanding warrants and stock options, or reserved for issuance under our
      stock
      option plan. Once such shares are registered, they can be freely sold in the
      public market upon exercise of the warrants or options. If any of our
      shareholders either individually or in the aggregate cause a large number of
      securities to be sold in the public market, or if the market perceives that
      these holders intend to sell a large number of securities, such sales or
      anticipated sales could result in a substantial reduction in the trading price
      of shares of our common stock and could also impede our ability to raise future
      capital. Sales of a substantial number of shares of our common stock in the
      public markets, or the perception that these sales may occur, could cause the
      market price of our common stock to decline and could materially impair our
      ability to raise capital through the sale of additional equity securities.
      In
      addition to the 16,000,000</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>&#160;</em></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">shares
      of
      our Common Stock actually issued and outstanding, there will be another
      8,337,500 shares of common stock reserved for future issuance as
      follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(i)</font></div>
            </td>
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1,300,000
                shares reserved for issuance under our Amended 2004 Equity Compensation
                Plan;</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="left" valign="top" width="67%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(ii)</font></div>
            </td>
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2,400,000
                shares reserved for issuance under our 2006 Incentive Stock Plan;
                and</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" valign="top" width="4%">&#160;</td>
            <td align="left" valign="top" width="67%">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" valign="top" width="4%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(iii)</font></div>
            </td>
            <td align="left" valign="top" width="67%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4,637,500
                shares issuable upon exercise of outstanding stock purchase
                warrants.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Our
      Common Stock may be subject to Penny Stock Rules, which could affect
      trading.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Broker-dealer
      practices in connection with transactions in &#8220;penny stocks&#8221; are regulated by
      certain rules adopted by the SEC. Penny stocks generally are equity securities
      with a price of less than $5.00 (other than securities registered on certain
      national securities exchanges or quoted on the NASDAQ Stock Market if current
      price and volume information with respect to transactions in such securities
      is
      provided by the exchange or system). The rules require that a broker-dealer,
      prior to a transaction in a penny stock not otherwise exempt from the rules,
      deliver a standardized risk disclosure document that provides information about
      penny stocks and the risks in the penny stock market. The broker-dealer also
      must provide the customer with current bid and offer quotations for the penny
      stock, the compensation of the broker-dealer and its salesperson in connection
      with the transaction and monthly account statements showing the market value
      of
      each penny stock held in the customer&#8217;s account. In addition, the rules
      generally require that prior to a transaction in a penny stock the broker-dealer
      must make a special written determination that the penny stock is a suitable
      investment for the purchaser and receive the purchaser&#8217;s written agreement to
      the transaction. These disclosure requirements may have the effect of reducing
      the liquidity of penny stocks. If our securities become subject to the penny
      stock rules, investors in our Common Stock may find it more difficult to sell
      their Telecomm securities.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
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      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">19</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CAUTIONARY
      NOTICE REGARDING FORWARD-LOOKING STATEMENTS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Current Report on Form 8-K contains &#8220;forward-looking statements&#8221; that include
      information relating to future events, future financial performance, strategies,
      expectations, competitive environment, regulation and availability of resources.
      These forward-looking statements include, without limitation, statements
      regarding: proposed new services; our expectations concerning litigation,
      regulatory developments or other matters; statements concerning projections,
      predictions, expectations, estimates or forecasts for our business, financial
      and operating results and future economic performance; statements of
      management&#8217;s goals and objectives; and other similar expressions concerning
      matters that are not historical facts. Words such as &#8220;may,&#8221; &#8220;will,&#8221; &#8220;should,&#8221;
&#8220;could,&#8221; &#8220;would,&#8221; &#8220;predicts,&#8221; &#8220;potential,&#8221; &#8220;continue,&#8221; &#8220;expects,&#8221; &#8220;anticipates,&#8221;
&#8220;future,&#8221; &#8220;intends,&#8221; &#8220;plans,&#8221; &#8220;believes&#8221; and &#8220;estimates,&#8221; and similar
      expressions, as well as statements in future tense, identify forward-looking
      statements. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Forward-looking
      statements should not be read as a guarantee of future performance or results,
      and will not necessarily be accurate indications of the times at, or by which,
      that performance or those results will be achieved. Forward-looking statements
      are based on information available at the time they are made and/or management&#8217;s
      good faith belief as of that time with respect to future events, and are subject
      to risks and uncertainties that could cause actual performance or results to
      differ materially from those expressed in or suggested by the forward-looking
      statements. Important factors that could cause these differences include, but
      are not limited to other factors discussed under the headings &#8220;Risk Factors&#8221; and
&#8220;Description of Business.&#8221; </font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Forward-looking
      statements speak only as of the date they are made. You should not put undue
      reliance on any forward-looking statements. We assume no obligation to update
      forward-looking statements to reflect actual results, changes in assumptions
      or
      changes in other factors affecting forward-looking information, except to the
      extent required by applicable securities laws. If we do update one or more
      forward-looking statements, no inference should be drawn that we will make
      additional updates with respect to those or other forward-looking
      statements.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">20</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF PROPERTY</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Facilities
      </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems
      maintains its principal executive offices and space for limited manufacturing
      operations and finished goods warehousing in approximately 5,400 square feet
      of
      leased space at 1900 Wyatt Drive, Suite 15, Santa Clara, California. Rent is
      $5,400 per month and monthly common charges are $810. The term of the lease
      expired on October 31, 2005. EnviroSystems has an agreement with the landlord
      to
      occupy and pay rent on a month-to-month basis until it moves into more suitable
      premises. EnviroSystems also uses a chemical warehouse facility located in
      Gilroy, California, which we use for storage of concentrate goods inventory.
      Rent varies based on usage and has recently been approximately $450 per month
      on
      a month to month basis. Telecomm will remain in its Mooresville North Carolina
      principal executive office temporarily while it locates more suitable premises
      in or around Charlotte, North Carolina.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      believe that our existing facilities are not adequate for the conduct of our
      business as currently configured and as currently contemplated to be conducted
      and therefore, as soon as possible, we intend to look for additional warehouse
      and office.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">21</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Security
      Ownership of Certain Beneficial Owners and Management</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth certain information as of the date immediately
      following the closing of the Merger and the Offering regarding the beneficial
      ownership of our Common Stock by (i) each person who, to our knowledge,
      beneficially owns more than 5% of our Common Stock; (ii) each of our directors
      and executive officers; and (iii) all of our executive officers and directors
      as
      a group:</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: medium none;">&#160;</td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="5" valign="bottom" width="25%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="71%" style="border-bottom: black thin solid;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name
                and address of Beneficial Owner</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: #ffffff thin solid;">&#160;</td>
            <td colspan="2" valign="bottom" width="12%" style="border-bottom: black thin solid;">
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                (1)</strong></font></div>
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                Class</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ffffff thin solid;">&#160;</td>
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Directors
                and Named Executive Officers (2):</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="right" colspan="2" valign="bottom" width="11%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
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            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">J.
                Lloyd Breedlove (3)</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">160,892</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1.01</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
                Hoelscher </font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
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            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
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            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Charles
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            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
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            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
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          <tr bgcolor="white">
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              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jeffrey
                Connally </font></div>
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            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">*</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stephen
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            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">608,922</font></div>
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            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.81</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white solid;">&#160;</td>
            <td width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: black thin solid;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white thin solid;">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">All
                directors and named executive officers as a group (5 persons)
                </font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">769,814</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">4.81</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">&#160;</td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
                5% or Greater Beneficial Owners</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                Ferguson Living Trust UDT 8/13/74 (5)</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,089,739</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">19.31</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 9pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">MV
                Nanotech, Inc.(6) </font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,375,961</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">8.60</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
      Less
      than 1%.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Beneficial
                ownership is calculated based on 16,000,000 shares of our Common
                Stock
                issued and outstanding. Beneficial ownership is determined in accordance
                with Rule 13d-3 of the Securities and Exchange Commission. The number
                of
                shares beneficially owned by a person includes shares of common stock
                subject to options or warrants held by that person that are currently
                exercisable or exercisable within 60 days following the Closing of
                the
                Offering and the Merger. The shares issuable pursuant to those options
                or
                warrants are deemed outstanding for computing the percentage ownership
                of
                the person holding these options and warrants but are not deemed
                outstanding for the purposes of computing the percentage ownership
                of any
                other person. The persons and entities named in the table have sole
                voting
                and sole investment power with respect to the shares set forth opposite
                the stockholder&#8217;s name, subject to community property laws, where
                applicable. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                address for the directors and named executive officers is c/o Telecomm
                Sales Network, Inc., 561-D River Highway, North Carolina
                28117-6830.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                60,892 shares of Telecomm Common Stock that Mr. Breedlove will receive
                in
                the Merger, assuming all of the outstanding options and warrants
                to
                purchase EnviroSystems preferred stock are
                exercised.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Includes
                608,922 shares of Telecomm Common Stock that Mr. Schneider will receive
                in
                the Merger, assuming all of the outstanding options and warrants
                to
                purchase EnviroSystems preferred stock are exercised. Mr. Schneider
                holds
                options to purchase up to 320,000 shares of EnviroSystems preferred
                stock.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(5)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Represents
                the minim number of shares of Common Stock that The Ferguson Living
                Trust
                UDT 8/13/74 (the &#8220;Trust&#8221;) will receive in connection with the Merger. The
                Trust held 1,461,117 shares of EnviroSystems preferred stock and
                warrants
                to purchase up to 162,600 shares of EnviroSystems preferred stock.
                If none
                of the options and warrants to purchase EnviroSystems preferred stock
                are
                exercised, then the Trust&#8217;s 1,461,117 shares of EnviroSystems preferred
                stock will be converted into 3,704,200 Shares of Telecomm Common
                Stock and
                its percentage ownership would be
                23.15.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td style="width: 36pt;">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(6)</font></div>
            </td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Does
                not include (i) four year warrants to purchase up to 3,923,029 shares
                of
                Common Stock at an exercise price of $2.50 per share, which become
                exercisable 90 days after the Closing of the Merger, (ii) 1,854,039
                shares
                of Common Stock and warrants to purchase 76,971 shares of Common
                Stock
                transferred to noteholders of MV Nanotech as described below. MV
                Nanotech
                purchased 3,230,000 shares of Common Stock and warrants to purchase
                4,000,000 shares of Common Stock from the Company in October 2005.
                In
                consideration for the cancellation of an aggregate of $1,430,000,
                of
                indebtedness and other obligations owed to noteholders and other
                creditors
                of MV Nanotech, MV Nanotech issued to such note holders and creditors
                1,854,039 shares of Common Stock and warrants to purchase 76,971
                shares of
                Common Stock. In November 2005, MV Nanotech transferred 100,000 shares
                of
                Common Stock to Mr. Breedlove in partial consideration of Mr. Breedlove&#8217;s
                agreement to become the Company&#8217;s Chief Executive Officer and President.
                MV Nanotech disclaims beneficial ownership of the noteholders&#8217; securities
                and the 100,000 shares of Common Stock transferred to Mr. Breedlove.
                MV
                Nanotech is beneficially owned by Robert Hersch.
                </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">22</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DIRECTORS
      AND EXECUTIVE OFFICERS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table sets forth the name, age and position of each of Telecomm&#8217;s and
      EnviroSystems&#8217; directors, executive officers and significant employees at the
      Closing. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Name</strong></font></div>
            </td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Age</strong></font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Position(s)</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="28%">&#160;</td>
            <td align="left" valign="top" width="6%">&#160;</td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="33%">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">J.
                Lloyd Breedlove</font></div>
            </td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">58</font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President,
                Chief Executive Officer, Chairman </font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Steve
                Hoelscher</font></div>
            </td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">46</font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Chief
                Financial Officer, Secretary, Director </font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Charles
                Cottrell</font></div>
            </td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">62</font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jeffrey
                Connally</font></div>
            </td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">58</font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="28%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stephen
                A. Schneider </font></div>
            </td>
            <td align="left" valign="top" width="6%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">58</font></div>
            </td>
            <td align="left" valign="top" width="3%">&#160;</td>
            <td align="left" valign="top" width="33%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Director</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a name="Anchor-Scott-30929"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>J.
      Lloyd Breedlove </strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">J.
      Lloyd
      Breedlove was appointed President and Chief Executive Officer of Telecomm and
      EnviroSystems and Chairman of Telecomm&#8217;s and EnviroSystems&#8217; Board of Directors
      on January 10, 2006. Since 2004, Mr. Breedlove has served as a member of the
      Board of Directors of EnviroSystems. From June 2003 to present, he has been
      President and Chief Executive Officer of Imalux Corporation a corporation in
      the
      medical imaging equipment industry. Prior thereto, from December 2000 to May
      2003 he was the President and Chief Executive Officer of KIVALO a healthcare
      technology company with emphasis on disease management. From 1991to 1999, Mr.
      Breedlove served as the Executive Vice President and Group President at Steris
      Corporation, a developer and manufacturer of infection and contamination control
      products. From 1989 to 1991, he was the President and Chief Executive Officer
      of
      CRI, a developer of a vascular surgery product and prior thereto he was the
      Director of Sales and held other sales and management positions at Mallinckrodt,
      Inc. a diverse company focusing on supplying products to the healthcare
      industry. Mr. Breedlove has a wide range of experience working with companies
      in
      various stages of development from start-ups to companies with global
      operations. During Mr. Breedlove&#8217;s tenure at Steris, annual sales increased from
      $13 million to greater than $820 million. He has served on numerous advisory
      and
      corporate boards, with an emphasis on establishing healthcare businesses. Mr.
      Breedlove received an MBA from Western Carolina University. Serving in Viet
      Nam,
      he was awarded the Bronze Star, Bronze Star with Oak Leaf Cluster, Vietnamese
      Cross of Gallantry, Air Medal and Purple Heart.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Steve
      Hoelscher</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Mr.
      Hoelscher was appointed Telecomm&#8217;s and EnviroSystems&#8217; Chief Financial Officer,
      Secretary and a member of each of Telecomm&#8217;s and EnviroSystems&#8217; Board of
      Directors on January 10, 2006. Mr. Hoelscher is a Certified Public Accountant
      and has 24 years of accounting and auditing experience. Mr. Hoelscher has been
      the CFO for Mastodon Ventures, Inc., (an affiliate of MV Nanotech) a financial
      consulting business in Austin, Texas, from 2000 to the present. MV Nanotech
      has
      made loans to us in the aggregate amount of $850,000, which amount (plus accrued
      but unpaid interest) will be repaid out of the net proceeds of the Offering.
      Mr.
      Hoelscher is also the Chief Financial Officer of the EnXnet, Inc, a Tulsa,
      Oklahoma based publicly traded technology company since May 21, 2004 and has
      been providing accounting consulting services to the EnXnet since January 2001.
      Mr. Hoelscher will continue to provide limited consultation to Mastodon and
      will
      continue to consult with EnXnet but will devote such time as necessary to the
      performance of his duties to us. Mr. Hoelscher was the Controller for Aperian,
      Inc. an Austin, Texas based publicly traded company from 1997 to 2000. Prior
      to
      joining Aperian, he was the controller for Protos Software Company in
      Georgetown, Texas from 1996 to 1997. Mr. Hoelscher was Audit Manager with Brown,
      Graham and Company, P.C. from 1989 to 1996. Mr. Hoelscher received a Bachelor
      of
      Business Administration from West Texas A&amp;M University (formerly West Texas
      State University) in Canyon, Texas in 1981.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><a name="Anchor-David-53377"/><a name="Schneider2"/><a name="Anchor-Alice-7322"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Charles
      Cottrell</strong></font></a></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Charles
      Cottrell was appointed as a member of Telecomm&#8217;s and EnviroSystems&#8217; Board of
      Directors on January 10, 2006. Since 2001, Mr. Cottrell has served as a
      principal of Mountain Green LLC, a manufacturer and distributor of natural
      cleaning products, located in Scottsdale, Arizona. Prior thereto, from 1979
      to
      1999, he served as the Chairman and Chief Executive Officer of Cottrell Limited,
      an Englewood, Colorado based company providing infection control products and
      services to the national healthcare market. Mr. Cottrell has over 30 years
      experience in bringing new products to market and developing brands. Mr.
      Cottrell received a Bachelor of Science from the University of Pittsburgh,
      and
      attended the Wharton School of Business&#8217; Entrepreneurial Studies and Growth
      Programs and the Harvard University Business School&#8217;s Business
      Owners/President&#8217;s Program.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">23</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Jeffrey
      Connally</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Jeffrey
      Connally was appointed as a member of Telecomm&#8217;s and EnviroSystems&#8217; Board of
      Directors on January 10, 2006. Mr. Connally also serves a director of CM IT
      Solutions, Inc. Mr. Connally is a partner in Gener8biz, Inc., a sales and
      marketing consulting firm which he founded in May of 2003. Mr. Connally leads
      strategic engagements for Gener8biz&#8217; high-tech, healthcare and financial
      services clientele. Prior thereto, in 1998 Mr. Connally was a founder of UpLink
      Corporation where he provided sales and marketing leadership and created the
      marketing, business development, sales, installation and support infrastructure
      for UpLink&#8217;s wireless/GPS-based technology. Mr. Connally has also held executive
      positions with several startup technology companies where he was responsible
      for
      establishing the sales process and channel strategy. Mr. Connally received
      a
      Bachelors in Business Administration from St. Michaels College in 1969 and
      an
      MBA from the University of Texas in 1993.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stephen
      A. Schneider</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Stephen
      A. Schneider was appointed as a member of Telecomm&#8217;s and EnviroSystems&#8217; Board of
      Directors on January 10, 2006. From November 2004 until the closing of the
      Offering and the Merger, Mr. Schneider served as the Interim President and
      Chief
      Executive Officer of EnviroSystems. Mr. Schneider is co-founder and a former
      director of Alexza Pharmaceuticals, Inc., (formerly Alexza Molecular Delivery
      Corporation) (&#8220;Alexza&#8221;), a specialty pharmaceutical company developing drug
      products delivered by inhalation using a proprietary nano/micro-particle
      vaporization technology. Alexza was formed in December 2001, through the merger
      of Alexza Corporation and Molecular Delivery Corporation (&#8220;MDC&#8221;), a company
      engaged in developing new pharmaceutical delivery methods, founded in 1997
      by
      Mr. Schneider. From 2001 to 2003, Mr. Schneider served as President and Chief
      Operating Officer of Alexza. Prior thereto, from 1997 to 2001, he served as
      the
      President and Chief Executive Officer of MDC. From January to March 2004, Mr.
      Schneider served as a consultant to the founder and President of TiNi Alloy
      Company. Mr. Schneider has 20 years experience in the pharmaceutical, medical
      device and medical service industries and has developed a number of early stage,
      start-up companies. Mr. Schneider received a Bachelor of Arts from Earlham
      College, a Master of Arts from the University of Houston, a JD from Golden
      Gate
      University of Law, and attended the Stanford University Graduate School of
      Business&#8217; Stanford Leadership Academy, Executive Program for Growing Companies
      and Finance and Accounting for Non-Finance Executive programs.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Election
      of Directors and Officers </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of our Common Stock are entitled to one (1) vote for each share held on all
      matters submitted to a vote of the stockholders, including the election of
      directors. Cumulative voting with respect to the election of directors is not
      permitted by our Articles of Incorporation. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Board
      of Directors shall be elected at the annual meeting of the shareholders or
      at a
      special meeting called for that purpose. Each director shall hold office until
      the next annual meeting of shareholders and until the director&#8217;s successor is
      elected and qualified. If a vacancy occurs on the Board of Directors, including
      a vacancy resulting from an increase in the number of directors, then the
      shareholders may fill the vacancy at the next annual meeting or at a special
      meeting called for the purpose, or the Board of Directors may fill such
      vacancy.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Compensation
      of Directors</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">It
      is
      intended that each member of our board of directors who is not an employee
      of
      the Company (a &#8220;non-employee director&#8221;) will receive an annual retainer in cash
      and/or shares of Common Stock as determined by our board of directors and all
      directors will be reimbursed for costs and expenses related to attendance at
      meetings of the board of directors. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
        employee directors will not receive any additional compensation for serving
        on
        our board of directors or any committee of our board of directors, and our
        non-employee directors will not receive any compensation from us for their
        roles
        as directors other than the retainer, attendance fees and stock option grants
        described above.</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXECUTIVE
      COMPENSATION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      not paid a salary to our former or current officers. Effective as of the Closing
      of the Offering and the Merger, we will commence paying salaries to our officers
      as described below. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Employment
      Agreements</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      entered into an employment agreement with J. Lloyd Breedlove, pursuant to which
      Mr. Breedlove has agreed to serve as our President, Chief Executive Officer
      and
      Chairman of the Board, effective January 10, 2006. The agreement has a 3 year
      term, commencing as of the Closing of the Offering and the Merger. The agreement
      provides for a base salary of $225,000 during the first year of its term and
      $250,000 during each of the second and third years of its term. In addition,
      upon the Closing of the Merger, we paid to Mr. Breedlove a signing bonus of
      $50,000 and have agreed to grant to Mr. Breedlove 4 year options to purchase
      up
      to 750,000 shares of Common Stock at an exercise price of $2.50 per share,
      vesting over a three year period in equal installments. Under the agreement,
      we
      have the right to terminate Mr. Breedlove without cause upon 12 months prior
      written notice. If Mr. Breedlove is terminated without cause by us, he will
      be
      entitled to receive a lump sum payment equal to the lesser of 12 months of
      the
      base salary then in effect or the balance of this base salary due under the
      agreement for the remainder of the term of the agreement. In addition, Mr.
      Breedlove is entitled to participate in all our benefit programs in effect
      during the term of the agreement and we have agreed to provide Mr. Breedlove
      with a life insurance policy in the face amount of $2,000,000, the beneficiary
      of which to be determined by Mr. Breedlove.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Other
      Compensation</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to the employment agreement with J. Lloyd Breedlove, we intend to
      pay
      Mr. Hoelscher $80,000 per year in consideration for Mr. Hoelscher serving as
      our
      Chief Financial Officer. We have not entered into an employment agreement with
      Mr. Hoelscher.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      may
      also issue to our officers and directors stock options on terms and conditions
      to be determined by our Board of Directors or designated Board
      Committee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>EnviroSystems
      Transactions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      September 2005, EnviroSystems entered into a Settlement and Release Agreement
      with Diana Hoffman (&#8220;Hoffman&#8221;), its former President, Chief Executive Officer
      and Chairman of the Board and at that time a holder of 850,000 shares (83.19%)
      of EnviroSystems&#8217; common stock. Pursuant to the terms of the agreement,
      EnviroSystems paid to Hoffman $312,314.68 as payment of back pay with interest
      and reimbursement of certain expenses, which such amount was paid out of the
      proceeds of the Offering. In connection therewith, in September 2005, MV
      Nanotech Corp. entered into a Stock Purchase Agreement with Hoffman, pursuant
      to
      which MV Nanotech purchased 850,000 shares of EnviroSystems common stock from
      Hoffman for an aggregate purchase price of $85,000.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      November 2005, The Ferguson Living Trust UTD 8/13/74 (the &#8220;Trust&#8221;), the then
      owner of 1,461,117 shares of EnviroSystems preferred stock, which represented
      approximately 57.89% of the issued and outstanding EnviroSystems preferred
      stock, and MV Nanotech Corp. (&#8220;MV Nanotech&#8221;), the then owner of 850,000 shares
      of EnviroSystems common stock, which represented approximately 83.19% of the
      issued and outstanding EnviroSystems common stock, entered into a Voting and
      Support Agreement, pursuant to which each of the Trust and MV Nanotech agreed
      to
      vote all of their respective shares of EnviroSystems common stock and
      EnviroSystems preferred stock in favor of the Merger Agreement and the
      Merger.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>Telecomm
      Transactions</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      October 2005, MV Nanotech purchased from Telecomm 3,230,000 shares of Common
      Stock and warrants to purchase up to 4,000,000 shares of Common Stock for an
      aggregate purchase price of $80,750. Half of the purchase price was paid in
      cash
      and the remaining $40,375 was paid pursuant to a promissory note made by MV
      Nanotech in favor of Telecomm, which is payable on or before December 31, 2005.
      From May through November 2005, MV Nanotech, made bridge loans to EnviroSystems
      in the aggregate principal amount of $850,000 which were used to fund
      EnviroSystems&#8217; operations. All of such aggregate principal amount of bridge
      loans (plus accrued but unpaid interest) will be repaid out of the net proceeds
      of the Offering. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Immediately
      prior to the Closing of the Merger and the Offering, pursuant to two Repurchase
      Agreements, each dated as of October 31, 2005, Telecomm repurchased from each
      of
      William Sarine and Tony Summerlin, Telecomm&#8217;s former officers and directors,
      1,000,000 shares each of Telecomm Common Stock for a price of $12,500 ($25,000
      for all 2,000,000 shares).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: -36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with his employment agreement, MV Nanotech transferred to Lloyd
      Breedlove 100,000 shares of Telecomm Common Stock.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF SECURITIES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      total
      authorized capital stock consists of 100,000,000 shares of Common Stock, par
      value $0.0001 per share and 5,000,000 shares of preferred stock, par value
      $0.0001 per share. After the Closing, 16,000,000 shares of Common Stock were
      issued and outstanding. There are no shares of preferred stock issued or
      outstanding.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following description of our capital stock does not purport to be complete
      and
      is subject to and qualified by our Certificate of Incorporation and By-laws,
      and
      by the provisions of applicable Delaware law. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Common
      Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Holders
      of our Common Stock are entitled to receive dividends out of assets legally
      available therefore at such times and in such amounts as the Board of Directors
      from time to time may determine. Holders of our Common Stock are entitled to
      one
      (1) vote for each share held on all matters submitted to a vote of the
      stockholders. Cumulative voting with respect to the election of directors is
      not
      permitted by our Certificate of Incorporation. Our Common Stock is not entitled
      to preemptive rights and is not subject to conversion or redemption. Upon our
      liquidation, dissolution or winding-up, the assets legally available for
      distribution to stockholders are distributable ratably among the holders of
      the
      Common Stock after payment of liquidation preferences, if any, on any
      outstanding stock having prior rights on such distributions and payment of
      other
      claims of creditors. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Preferred
      Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Certificate of Incorporation authorizes the issuance of shares of preferred
      stock in one or more series. Our Board of Directors has the authority, without
      any vote or action by the shareholders, to create one or more series of
      preferred stock up to the limit of our authorized but unissued shares of
      preferred stock and to fix the number of shares constituting such series and
      the
      designation of such series, the voting powers (if any) of the shares of such
      series and the relative participating, option or other special rights (if any),
      and any qualifications, preferences, limitations or restrictions pertaining
      to
      such series which may be fixed by the Board of Directors pursuant to a
      resolution or resolutions providing for the issuance of such series adopted
      by
      the Board of Directors. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      provisions of a particular series of authorized preferred stock, as designated
      by the Board of Directors, may include restrictions on the payment of dividends
      on Common Stock. Such provisions may also include restrictions on the ability
      of
      the Company to purchase shares of Common Stock or to purchase or redeem shares
      of a particular series of authorized preferred stock. Depending upon the voting
      rights granted to any series of authorized preferred stock, issuance thereof
      could result in a reduction in the voting power of the holders of Common Stock.
      In the event of any dissolution, liquidation or winding up of the Company,
      whether voluntary or involuntary, the holders of the preferred stock will
      receive, in priority over the holders of Common Stock, a liquidation preference
      established by the Board of Directors, together with accumulated and unpaid
      dividends. Depending upon the consideration paid for authorized preferred stock,
      the liquidation preference of authorized preferred stock and other matters,
      the
      issuance of authorized preferred stock could result in a reduction in the assets
      available for distribution to the holders of Common Stock in the event of the
      liquidation of Telecomm.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">There
      are
      no shares of preferred stock designated or issued as of the date
      hereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Warrants</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Offering, we issued Agent Warrants to purchase up to 637,500
      shares of Common Stock to Selling Agents. Such Agent Warrants have an exercise
      price of $2.50 per share. The Agent Warrants are exercisable for four years
      from
      January 10, 2006 at the election of the Agent. The Agent Warrants will be
      exercisable for cash or pursuant to a cashless exercise provision. The shares
      of
      Common Stock underlying the Agent Warrants shall be registered for resale
      pursuant to the Registration Rights Agreement described herein and the Agent
      Warrants shall contain certain anti-dilution provisions which will adjust the
      number of shares underlying the Agent Warrants and the exercise price in the
      event of stock splits, stock dividends, or other re-capitalizations of the
      Company. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, we assumed warrants to purchase EnviroSystems
      Preferred Stock, which, as of the Effective Time of the Merger, became
      exercisable for shares of our Common Stock. All shares of our Common Stock
      issuable upon the exercise of such warrants are included in the 6,400,000 shares
      of Common Stock issued to the EnviroSystems preferred shareholders, and held
      in
      an escrow account, in connection with the Merger. The shares of Common Stock
      issuable upon the exercise of such warrants shall be delivered to the holders
      thereof out of the escrow account, after certain restrictions on transfer have
      terminated. Accordingly, the exercise of any or all of such warrants will not
      cause an increase in our issued and outstanding shares of Common Stock. In
      addition, we will not receive any proceeds from the exercise of such warrants.
      Such proceeds shall be paid to the EnviroSystems Preferred Shareholders pro
      rata. See &#8220;Description of Merger.&#8221; </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      October 2005, we issued warrants to purchase up to 4,000,000 shares of Common
      Stock to MV Nanotech. These warrants have an exercise price of $2.50 per share
      and are exercisable for a period of four years commencing 90 days after the
      issue date. The warrants are exercisable for cash or pursuant to a cashless
      exercise provision. The shares of Common Stock underlying the warrants shall
      be
      registered for resale pursuant to the Registration Rights Agreement described
      herein and the warrants contain certain anti-dilution provisions which will
      adjust the number of shares underlying the warrants and the exercise price
      in
      the event of stock splits, stock dividends, or other re-capitalizations of
      the
      Company. </font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Options</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, we assumed options to purchase EnviroSystems
      Preferred Stock, which, as of the Effective Time of the Merger, became
      exercisable for shares of Common Stock. All shares of Common Stock issuable
      upon
      the exercise of such options are included in the 6,400,000 shares of Common
      Stock issued to the EnviroSystems preferred shareholders, and held in an escrow
      account, in connection with the Merger. The shares of Common Stock issuable
      upon
      the exercise of such options shall be delivered to the holders thereof out
      of
      the escrow account, after certain restrictions on transfer have terminated.
      Accordingly, the exercise of any or all of such options will not cause an
      increase in our issued and outstanding shares of Common Stock. In addition,
      we
      will not receive any proceeds from the exercise of such options. Such proceeds
      shall be paid to the EnviroSystems preferred shareholders pro rata. See
&#8220;Description of Merger.&#8221;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Stock
      Option Plans</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>2004
      Equity Compensation Plan</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      adopted our 2004 Equity Compensation Plan on September 1, 2004. The plan
      provides for the grant of options intended to qualify as &#8220;incentive stock
      options&#8221;, options that are not intended to so qualify or &#8220;nonstatutory stock
      options&#8221; and restricted stock. The total number of shares of common stock
      reserved for issuance under the plan is 1,300,000 shares, subject to adjustment
      in the event of stock split, stock dividend, recapitalization or similar capital
      change. No grants have been made under the plan.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      plan
      is administered by our Board of Directors, which selects the eligible persons
      to
      whom options or stock awards shall be granted, determines the number of shares
      subject to each option or stock award, the exercise price therefore and the
      periods during which options are exercisable, interprets the provisions of
      the
      plan and, subject to certain limitations, may amend the plan. Each option or
      stock award granted under the plan shall be evidenced by a written agreement
      between us and the optionee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grants
      may be made to our employees (including officers) and directors and to certain
      consultants and advisors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      exercise price for incentive stock options granted under the plan may not be
      less than the fair market value of the common stock on the date the option
      is
      granted, except for options granted to 10% stockholders which must have an
      exercise price of not less than 110% of the fair market value of the common
      stock on the date the option is granted. The exercise price for nonstatutory
      options is determined by the Board of Directors. Incentive stock options granted
      under the plan have a maximum term of ten years, except for grants to 10%
      stockholders which are subject to a maximum term of five years. The term of
      nonstatutory stock options is determined by the Board of Directors. Options
      granted under the plan are not transferable, except by will and the laws of
      descent and distribution.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><em>2006
      Telecomm Stock Incentive Plan</em></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, our board of directors adopted, subject to
      shareholder approval, the 2006 Telecomm Stock Incentive Plan (the &#8220;2006 Plan&#8221;).
      The 2006 Plan provides for the grant of incentive stock options, non-statutory
      stock options, restricted stock awards and stock appreciation rights. The number
      of shares of Common Stock that may be issued under the 2006 Plan is 2,400,000
      shares of Common Stock. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      2006
      Plan will be administered by our Board of Directors, which will select the
      eligible persons to whom options or stock awards shall be granted, determine
      the
      number of shares subject to each option or stock award, the exercise price
      therefore and the periods during which options are exercisable, interpret the
      provisions of the plan and, subject to certain limitations, may amend the plan.
      Each option or stock award granted under the plan shall be evidenced by a
      written agreement between us and the optionee.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Grants
      may be made to our employees (including officers) and directors and to certain
      consultants and advisors.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      exercise price for incentive stock options granted under the 2006 Plan may
      not
      be less than the fair market value of the common stock on the date the option
      is
      granted, except for options granted to 10% stockholders which must have an
      exercise price of not less than 110% of the fair market value of the common
      stock on the date the option is granted. The exercise price for nonstatutory
      options will be determined by the Board of Directors. Incentive stock options
      granted under the 2006 Plan will have a maximum term of ten years, except for
      grants to 10% stockholders which are subject to a maximum term of five years.
      The term of nonstatutory stock options will be determined by the Board of
      Directors. Options granted under the plan are not transferable, except by will
      and the laws of descent and distribution.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">28</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Registration
      Rights</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Offering, pursuant to the terms of the Registration Rights
      Agreement, as promptly as reasonably practicable after the Closing of the
      Offering but in no event later that 90 days following the Closing of the
      Offering (the &#8220;Registration Filing Date&#8221;), we are obligated to file a shelf
      registration statement (the &#8220;Registration Statement&#8221;) on Form SB-2 or S-1
      relating to the resale by the holders of the shares of Common Stock purchased
      in
      the Offering, any shares of Common Stock issuable upon exercise of Agents
      Warrants and such additional shares of Common Stock has may be determined by
      us
      (the &#8220;Registrable Securities&#8221;) at our expense. We agreed to use our best efforts
      to cause such registration statement to be declared effective within 90 days
      after the Registration Filing Date provided, however, that we are not obligated
      to effect any such registration, qualification or compliance or keep such
      registration effective: (a) in any particular jurisdiction in which we would
      be
      required to qualify to do business as a foreign corporation or as a dealer
      in
      securities under the securities or blue sky laws of such jurisdiction or to
      execute a general consent to service of process in effecting such registration,
      qualification or compliance, in each case where we have not already done so,
      or
      (b) during any &#8220;blackout period&#8221; during which we determine that the distribution
      of our shares of Common Stock covered by the Registration Statement would be
      detrimental to us and our stockholders, in which case the Registration Filing
      Date will be extended to the date immediately following the last day of such
      &#8220;blackout&#8221; period. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, we have granted to the holders of our Common Stock
      who received such shares in connection with the Merger a </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">one
      (1)
      time right to demand that we file a registration statement, covering the resale
      of such shares at our expense. Such demand must be made no later than sixty
      (60)
      days prior to or one (1) year following the expiration date of the applicable
      lock-up period and must be made in writing and signed by holders owning no
      less
      than 50.1% of the shares of our Common Stock not then freely tradable. We agreed
      to use our reasonable efforts to cause such registration statement to be
      declared effective by the Securities and Exchange Commission as soon as
      possible, but in no event later than 150 days from the date of such
      demand.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Indemnification
      Matters</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Certificate of Incorporation limits the personal liability of our officers
      and
      directors for monetary damages for breach of their fiduciary duty as directors,
      except for (i) liability that cannot be eliminated under the General Corporation
      Law of the State of Delaware (the &#8220;GCL&#8221;), (ii) any breach of such director&#8217;s
      duty of loyalty to the Company or its stockholders, (iii) for acts or omissions
      not in good faith which involve intentional misconduct or a knowing violation
      of
      law, or (iv) for any transaction from which such director derived improper
      personal benefit. Our Bylaws also provide for the Company to indemnify directors
      and officers to the fullest extent permitted by the GCL. These provisions may
      have the practical effect in certain cases of eliminating the ability of
      stockholders to collect monetary damages from directors or
      officers.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      indemnification provisions described above provide coverage for claims arising
      under the Securities Act of 1933 and the Securities Exchange Act of 1934.
      Insofar as indemnification for liabilities arising under the Securities Act
      may
      be permitted to directors, officers and controlling persons of the Company
      pursuant to the Company&#8217;s Certificate of Incorporation, Bylaws, the GCL, or
      otherwise, we have been advised that in the opinion of the SEC, such
      indemnification is against public policy as expressed in the Securities Act
      and
      is, therefore, unenforceable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Transfer
      Agent and Registrar</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      transfer agent and registrar is Registrar and Transfer Company, 10 Commerce
      Drive, Cranford, NJ 07016.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">29</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Market
      Price of and Dividends on Common Equity and Related Stockholder
      Matters</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      shares are currently trading on the OTC Bulletin Board under the stock symbol
      &#8220;TNSW.&#8221; The first day on which the Company&#8217;s shares were traded was September 1,
      2005. The high and the low trades for our shares for each quarter of actual
      trading were:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font id="TAB2" style="COLOR: black; LETTER-SPACING: 9pt"></font>&#160;</div>
    <div align="center">
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          <tr>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>QUARTER</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>HIGH
                ($)</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td align="left" colspan="2" valign="bottom" width="12%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>LOW
                ($)</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="11%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="71%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">September
                1 to September 30, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.45</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.30</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="71%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">October
                1, 2005 to December 31, 2005</font></div>
            </td>
            <td width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3.45</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: white;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">$</font></div>
            </td>
            <td align="right" valign="bottom" width="11%" style="border-bottom: white;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">0.36</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: white;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      trades reflect inter-dealer prices, without retail mark-up, markdown or
      commission and may not represent actual transactions.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      last
      sale price for the Common Stock on January 10, 2006, was $3.20. Because of
      the
      low volume of trading of our Common Stock, however, investors should not view
      this as a reflection of the value of our Common Stock, which value is
      substantially lower. The market price of our Common Stock increased
      substantially after the Merger with EnviroSystems was disclosed. Consequently,
      much of the current value of our Common Stock is tied to speculation about
      the
      value of the Merger with EnviroSystems and the associated financing. Our initial
      investors paid five cents per share and MV Nanotech recently paid $80,750 for
      3,320,000 shares and warrants to purchase four (4) million additional shares.
      We
      believe that these lower prices are a better reflection of the value of our
      shares of Common stock than the market price. In addition, as a result of the
      Merger and the associated financing, the value of our Common Stock will depend
      upon the value of our only asset, the business and assets of EnviroSystems.
      EnviroSystems was a private company whose business, assets and financial
      performance has not been disclosed to the public, prior to this Currrent Report
      on Form 8-K. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Holders
      of Common Stock</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
      the
      closing of the Merger and the Offering, we had 16,000,000 shares of our Common
      Stock issued and outstanding and there were approximately 200 registered
      shareholders of our common stock. Of such shares, 6,400,000 which were issued
      pursuant to the Merger, are subject to an Escrow and Lock-Up Agreement. Included
      in such 6,400,000 shares are approximately 838,850 shares of Common Stock
      issuable upon exercise of EnviroSystems Options and Warrants. In addition,
      warrants to purchase 4,000,000 shares and 637,500 shares of our Common Stock
      were also outstanding as of that date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Dividends</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      have
      neither declared nor paid any cash dividends on our capital stock and do not
      anticipate paying cash dividends in the foreseeable future. We have had no
      revenue or earnings. Our current policy is that if we were to generate revenue
      and earnings we would retain any earnings in order to finance our operations.
      Our board of directors will determine future declaration and payment of
      dividends, if any, in light of the then-current conditions they deem relevant
      and in accordance with applicable corporate law.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">30</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
      Authorized for Issuance under Equity Compensation Plans</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      following table shows information about securities authorized for issuance
      under
      our equity compensation plans as of December 31, 2005: </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" id="ftable" width="100%">

          <tr>
            <td valign="bottom" width="45%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Plan
                Category</strong></font></div>
            </td>
            <td width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number
                of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Securities
                to</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>be
                issued upon</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>exercise
                of</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>outstanding
                options</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(a)</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Weighted-
                average exercise price of outstanding</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(b)</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: medium none;">&#160;</td>
            <td colspan="2" valign="bottom" width="16%" style="border-bottom: medium none;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number
                of Securities remaining for future issuance under equity compensation
                plans(excluding securities reflected in column (a)) </strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>(c)</strong></font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: medium none;">&#160;</td>
          </tr>
          <tr>
            <td align="left" valign="bottom" width="45%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="45%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                compensation plans </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">approved
                by security holders</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">None</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Not
                Applicable</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">1,300,000</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="45%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="45%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Equity
                compensation plans not </font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">approved
                by security holders</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">None</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Not
                Applicable</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">2,400,000*</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="bottom" width="45%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="2%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
            <td align="right" valign="bottom" width="15%">&#160;</td>
            <td align="left" valign="bottom" width="1%">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="bottom" width="45%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Total</font></div>
            </td>
            <td width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">None</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">Not
                Applicable</font></div>
            </td>
            <td align="left" valign="bottom" width="2%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
            <td align="right" valign="bottom" width="15%" style="border-bottom: #ccfacc;">
              <div style="DISPLAY: block; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; MARGIN-LEFT: 0px; TEXT-INDENT: 0px; MARGIN-RIGHT: 0px; FONT-FAMILY: Times New Roman">3,700,000</font></div>
            </td>
            <td align="left" valign="bottom" width="1%" style="border-bottom: #ccfacc;">&#160;</td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*
      Represents shares issuable under the 2006 Stock Incentive Plan which was adopted
      by the board of directors subject to shareholder approval.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Legal
      Proceedings</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      March
      2005, Atypical BioVentures Fund LLC (&#8220;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>ABF</u></strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#8221;)
      filed
      a complaint in the Superior Court of the State of California for the County
      of
      Santa Clara seeking to collect principal and interest in the amount of
      approximately $406,602 due under a Note and Warrant Purchase Agreement, dated
      as
      of June 15, 2004 between EnviroSystems, Inc. and Atypical BioVentures Fund
      LLC.
      In May 2005, EnviroSystems filed a general denial with the court. In May 2005,
      ABF filed an ex parte application for a right to attach order and for an order
      for issuance of a writ of attachment against EnviroSystems&#8217; assets. The court
      granted ABF&#8217;s application. The writ of attachment issued in July 2005. In August
      2005, ABF filed an attachment lien with the California Secretary of State,
      encumbering certain of our assets (not our intellectual property). We are
      currently in negotiations with ABF, we intend to apply a portion of the net
      proceeds of the Offering to pay the principal and unpaid and accrued interest
      due ABF. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Recent
      Sales of Unregistered Securities.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Merger, we issued 6,400,000 shares of our Common Stock
      to
      the holders of EnviroSystems preferred stock in exchange for all the issued
      and
      outstanding shares of EnviroSystems preferred stock. The shares of Common Stock
      issued in the Merger were issued in reliance on the exemption from registration
      afforded by Section 4(2) and Regulation D (Rule 506) under the Securities Act
      of
      1933, as amended (the &#8220;Securities Act&#8221;) and corresponding provisions of state
      securities laws, which exempts transactions by an issuer not involving any
      public offering. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Concurrently
      with the closing of the Merger, we completed the sale of 4,250,000 shares of
      Common Stock in a private placement to accredited investors pursuant to the
      terms of a Confidential Private Placement Memorandum, dated November 16, 2005
      (the &#8220;Offering&#8221;). We received gross proceeds of $8,500,000 from the sale of
      these shares.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Offering was made solely to &#8220;accredited investors,&#8221; as that term is defined in
      Regulation D under the Securities Act. None of the shares of our Common Stock
      were registered under the Securities Act, or the securities laws of any state,
      and were offered and sold in reliance on the exemption from registration
      afforded by Section 4(2) and Regulation D (Rule 506) under the Securities Act
      and corresponding provisions of state securities laws, which exempts
      transactions by an issuer not involving any public offering. We made this
      determination based on the representations of the persons obtaining such
      securities which included, in pertinent part, that such persons were &#8220;accredited
      investors&#8221; within the meaning of Rule 501 of Regulation D promulgated under the
      Securities Act, and that such persons were acquiring such securities for
      investment purposes for their own respective accounts and not as nominees or
      agents, and not with a view to the resale or distribution, and that each such
      persons understood such securities may not be sold or otherwise disposed of
      without registration under the Securities Act or an applicable exemption
      therefrom.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">31</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the Offering, we paid an aggregate cash fee of $850,000, to
      Selling Agents and issued four-year warrants to purchase up to 637,500 shares
      of
      our Common Stock at an exercise price of $2.50 per share. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to a Securities Purchase Agreement dated as of October 31, 2005 (the
&#8220;Agreement&#8221;) by and between Telecomm Sales Network, Inc. (the &#8220;Company&#8221;) and MV
      Nanotech Corp., a Texas corporation (&#8220;MV Nanotech&#8221;), the Company issued and sold
      to MV Nanotech 3,230,000 shares (the &#8220;Shares&#8221;) of the Company&#8217;s restricted
      common stock, par value $0.0001 per share (the &#8220;Common Stock&#8221;) and a warrant
      (the &#8220;Warrant&#8221;) to purchase up to an additional 4,000,000 shares of Common Stock
      (collectively, the &#8220;Securities&#8221;). The Warrant is exercisable for a period of 4
      years commencing 90 days after the date of issuance and has an exercise price
      of
      $2.50 per share. Pursuant to the Agreement, MV Nanotech paid the Company $80,750
      for the Securities, of which $40,375 was paid in cash with the remainder paid
      pursuant to a non-interest bearing promissory note in the principal amount
      of
      $40,375, payable on or before December 31, 2005. The source of funds was MV
      Nanotech&#8217;s available funds.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Indemnification
      of Directors and Officers.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Our
      Certificate of Incorporation eliminates the personal liability of directors
      to
      us and our stockholders for monetary damages for breach of fiduciary duty as
      a
      director to the fullest extent permitted by Section 102 of the Delaware General
      Corporation Law, provided that this provision shall not eliminate or limit
      the
      liability of a director for: (i) any breach of the director&#8217;s duty of loyalty to
      us or our stockholders; (ii) for acts or omissions not in good faith or which
      involve intentional misconduct or a knowing violation of law; (iii) arising
      under Section 174 of the Delaware General Corporation Law (with respect to
      unlawful dividend payments and unlawful stock purchases or redemptions); or
      (iv)
      for any transaction from which the director derived an improper personal
      benefit.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Additionally,
      we have included in our Certificate of Incorporation and our Bylaws provisions
      to indemnify our directors, officers, employees and agents and to purchase
      insurance with respect to liability arising out of the performance of their
      duties as directors, officers, employees and agents as permitted by Section
      145
      of the Delaware General Corporation Law. The Delaware General Corporation Law
      provides further that indemnification shall not be deemed exclusive of any
      other
      rights to which the directors, officers, employees and agents may be entitled
      under any agreement, vote of stockholders or otherwise.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      effect of the foregoing is to require us, to the extent permitted by law, to
      indemnify our officers, directors, employees and agents for any claims arising
      against such person in their official capacities, if such person acted in good
      faith and in a manner that he reasonably believed to be in or not opposed to
      our
      best interests, and, with respect to any criminal action or proceeding, had
      no
      reasonable cause to believe that his conduct was unlawful.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      may
      be permitted to directors, officers and controlling persons of the company
      pursuant to the foregoing, or otherwise, the company has been advised that
      the
      opinion of the Securities and Exchange Commission such indemnification is
      against public policy as expressed in the Securities Act of 1933 and is,
      therefore, unenforceable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>DESCRIPTION
      OF THE MERGER</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>The
      Merger </strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the terms of the Agreement and Plan of Merger, dated as of November 11,
      2005,
      as amended by the Amendment to Merger Agreement dated as of December 15, 2005
      (the &#8220;Merger Agreement&#8221;), between Telecomm, Telecomm&#8217;s indirect wholly owned
      subsidiary, TSN Acquisition Corporation (&#8220;TAC&#8221;) and EnviroSystems, TAC merged
      with and into EnviroSystems, with EnviroSystems as the surviving corporation
      (the &#8220;Merger&#8221;). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the terms of the Agreement, we issued an aggregate of 6,400,000 shares of
      restricted Common Stock to the holders (the &#8220;Preferred Shareholders&#8221;) of
      EnviroSystems preferred stock (the &#8220;Preferred Stock&#8221;) and holders of options and
      warrants to purchase Preferred Stock (the &#8220;EnviroSystems Options and Warrants&#8221;)
      pursuant to the exemption from the registration requirements of the Act provided
      under Section 4(2) of the 1933 Act and Rule 506 promulgated thereunder.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Agreement was approved by the Board of Directors of EnviroSystems on October
      17,
      2005 and was submitted for approval to the common and Preferred Shareholders
      of
      EnviroSystems, voting as separate classes on December 28, 2005. The Agreement
      was approved by the Board of Directors of Telecomm and by the Board of Directors
      of TAC and EnviroSystems Holdings, Inc., the sole shareholder of TAC, by written
      consents each dated November 11, 2005. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">After
      approval by the EnviroSystems common and preferred shareholders and upon filing
      of the Certificate of Merger with the Secretary of State of Nevada (the
&#8220;Effective Time&#8221;), the following occurred:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TAC
                merged with and into EnviroSystems, with EnviroSystems as the surviving
                corporation and as a result becoming an indirect wholly-owned subsidiary
                of Telecomm;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 54pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;
              &#160;&#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Each
                outstanding share of EnviroSystems common stock was cancelled and
                extinguished;</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div>
      <table cellpadding="0" cellspacing="0" id="list" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="right" style="width: 72pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Symbol, serif">&#183;&#160;&#160;
              &#160;</font></td>
            <td>
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
                EnviroSystems Preferred Shareholders and the holders of EnviroSystems
                Options and Warrants received an aggregate of 6,400,000 Shares of
                restricted Common Stock, which such shares of Common Stock were placed
                in
                an escrow account to be held pursuant to an escrow agreement described
                below. </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Merger
      Consideration; Escrow Agreement</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      consideration for the Merger, Telecomm issued an aggregate of 6,400,000
      restricted shares of Telecomm Common Stock (the &#8220;Merger Shares&#8221;) to the
      EnviroSystems Preferred Shareholders and the holders of EnviroSystems Options
      and Warrants. On the closing date of the Merger (the &#8220;Merger Closing&#8221;), all of
      the Merger Shares were deposited by Telecomm into an escrow account pursuant
      to
      the terms of an Escrow Agreement (the &#8220;Escrow Agreement&#8221;) by and among Telecomm,
      the Escrow Agent and the other signatories thereto. Pursuant to the terms of
      the
      Escrow Agreement, the Merger Shares</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">will
      be
      held in escrow for a period equal to the longer of 12 months following the
      closing of the Merger or 9 months after the effective date of a registration
      statement registering the shares of Common Stock sold in the Offering. Provided,
      however, that in no event shall such Merger Shares be held in escrow for a
      period exceeding 15 months from the closing of the Merger. The Escrow Agreement
      also provides for earlier release of the Merger Shares in certain
      instances.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EnviroSystems
      Preferred Stock Conversion</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">At
      the
      Effective Time, each share of EnviroSystems Preferred Stock issued and
      outstanding immediately prior to the Effective Time or reserved for issuance
      upon exercise of all outstanding EnviroSystems Options and Warrants, was
      canceled, extinguished and automatically converted ("Telecomm Preferred
      Conversion Ratio"), into the right to receive, 1.902881 shares of Common Stock
      (subject to adjustment), which equaled, in the aggregate, forty percent (40%)
      of
      the issued and outstanding Common Stock immediately following the Merger Closing
      (the "EnviroSystems 40% Interest"), after giving effect to, and only to, the
      issuance by Telecomm of shares of Common Stock issued (or reserved for issuance
      in the case of warrants, options, convertible or exchangeable securities) to
      (1)
      purchasers of Telecomm Common Stock in this Offering, (2) holders of any Agents&#8217;
Warrants issued in connection with the Offering; and (3) all other issued and
      outstanding shares of Common Stock (collectively, the "Telecomm Post Merger
      Outstanding Shares"). </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>MV
      Nanotech Bridge Loans</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Secured
      Convertible Promissory Notes of EnviroSystems in favor of MV Nanotech Corp.,
      dated March 9, 2004, May 13, 2005, June 9, 2005, September 2, 2005, September
      23, 2005, October 3, 2005 and November 14, 2005, respectively, in the aggregate
      principal amount of $850,000 (the &#8220;Bridge Loans&#8221;) were repaid upon the Merger
      Closing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">&#160;</div>
      <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
        <div id="FTR">
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          </div>
        </div>
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          <div style="WIDTH: 100%; TEXT-ALIGN: center">
            <hr style="COLOR: black" noshade size="2">
          </div>
        </div>
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          </div>
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      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      3.02 Unregistered Sale of Equity Securities.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.01 Changes in Control of Registrant.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.02 Departure of Directors or Principal Officers; Election of Directors;
      Appointment of Principal Officers.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the closing of the Merger (as described in Item 2.01 of this
      Current Report on Form 8-K), effective immediately prior to the completion
      of
      the Merger, Mr. William Sarine and Mr. Tony Summerlin resigned as directors
      of
      Telecomm and from all offices they held with Telecomm. Effective immediately
      upon the closing of the Merger, J. Lloyd Breedlove was appointed as our
      director, chairman of the board, president and chief executive officer and
      Steven Hoelscher was appointed as our director, chief financial officer,
      secretary and treasurer. In addition, Stephen Schneider, Charles Cottrell and
      Jeffrey Connelly were appointed to serve as directors. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      certain biographical and other information regarding the newly appointed
      officers and directors, see the disclosure under the heading &#8220;Directors and
      Executive Officers&#8221; under Item 2.01 of this Current Report on Form 8-K, which
      disclosure is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      5.06 Change in Shell Company Status.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      8.01 Other Events.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      connection with the closing of the Merger, Telecomm relocated its corporate
      headquarters from c/o Skye Source, LLC, 8621Gleneagles Drive, Raleigh, NC 27613.
      Telecomm is in the process of locating a new corporate headquarters in or near
      Charlotte, North Carolina, and is temporarily using its current headquarters
      at
      516-D River Highway, PMB 297, Mooresville, North Carolina 28117-6830. Telecomm&#8217;s
      new phone number is (512) 236-0925.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
      9.01 Financial Statements and Exhibits.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)
      Financial Statements of Business Acquired.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font id="TAB1" style="MARGIN-LEFT: 36pt"></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems&#8217;
      audited financial statements for the fiscal years ended March 31, 2005 and
      2004
      are filed as Exhibit 99.1 to this Current Report on Form 8-K and EnviroSystems&#8217;
unaudited financial statements for the interim period ended September 30, 2005
      and 2004 are filed as Exhibit 99.2 to this Current Report on Form
      8-K.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)
      Pro-Forma Financial Information.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pro
        forma
        information for Telecomm reflecting the Merger has not been provided because
        historically, Telecomm has had no operations and, therefore, a pro forma
        presentation of Telecomm&#8217;s financial information would for the most part be a
        presentation of EnviroSystems&#8217; historical financial statements. The business of
        Telecomm going forward will be the business of EnviroSystems and, accordingly,
        a
        more accurate representation of the effect of the Merger on a pro forma basis
        is
        provided by a review of EnviroSystems&#8217; financial statements provided pursuant to
        Item 9.01(a) above.</font></div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)
      Exhibits.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: ">34</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                Description</strong></font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certification
                of Incorporation (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.2</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By-Laws
                (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Specimen
                Certificate of Common Stock (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004
                Equity Compensation Plan (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
                Purchase Agreement, dated as of October 31, 2005 between MV Nanotech
                Corp.
                and Telecomm Sales Network, Inc. (2)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
                and Plan of Merger, dated as of November 11, 2005 by and between
                Telecomm,
                TSN Acquisition Corporation and EnviroSystems, Inc. (Nonmaterial
                schedules
                and exhibits identified in the Agreement and Plan of Merger have
                been
                omitted pursuant to Item 601b.2 of Regulation S-K. Telecomm Sales
                Network,
                Inc. agrees to furnish supplementally to the Commission upon request
                by
                the Commission a copy of any omitted schedule or exhibit.)
                (3)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.5</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Escrow/Lock-Up
                Agreement, dated as of January 10, 2006 between Telecomm, EnviroSystems
                and the other signatories thereto. (4)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.6</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
                Agreement with Lloyd Breedlove (4)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems&#8217;
                audited financial statements for the fiscal years ended March 31,
                2005 and
                2004 (4)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems&#8217;
                unaudited financial statements for the interim period ended September
                30,
                2005 and 2004 (4)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                as an exhibit to Telecomm&#8217;s Registration Statement on Form SB-2 filed on
                March 16, 2005 and incorporated herein by
                reference.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                as an exhibit to Telecomm&#8217;s Current Report on Form 8-K filed on November
                11, 2005 and incorporated herein by
                reference.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                as an exhibit to Telecomm&#8217;s Current Report on Form 8-K filed on November
                17, 2005 and incorporated herein by
                reference.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                herewith.</font></div>
            </td>
          </tr>

      </table>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">This
      Current Report on Form 8-K may contain, among other things, certain
      forward-looking statements within the meaning of the Private Securities
      Litigation Reform Act of 1995, including, without limitation, statements with
      respect to the Company&#8217;s plans, objectives, expectations and intentions and
      other statements identified by words such as may, could, would, should,
      believes, expects, anticipates, estimates, intends, plans or similar
      expressions. These statements are based upon the current beliefs and
      expectations of the Company&#8217;s management and are subject to significant risks
      and uncertainties. Actual results may differ from those set forth in the
      forward-looking statements. These forward-looking statements involve certain
      risks and uncertainties that are subject to change based on various factors
      (many of which are beyond the Company&#8217;s control).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">35</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">SIGNATURE</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 45pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td colspan="2">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">TELECOMM
                SALES NETWORK, INC.</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Date:&#160;
              January 12, 2006</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">/s/
                J. Lloyd Breedlove</font></div>
            </td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">J.
              Lloyd Breedlove,</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">President
                and Chief Executive Officer</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>EXHIBIT
      INDEX</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div align="left">
      <table cellpadding="0" cellspacing="0" width="100%">

          <tr>
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Number</strong></font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
                Description</strong></font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="10%">&#160;</td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">&#160;</td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Certification
                of Incorporation (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.2</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">By-Laws
                (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Specimen
                Certificate of Common Stock (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2004
                Equity Compensation Plan (1)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.3</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Securities
                Purchase Agreement, dated as of October 31, 2005 between MV Nanotech
                Corp.
                and Telecomm Sales Network, Inc. (2)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.4</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Agreement
                and Plan of Merger, dated as of November 11, 2005 by and between
                Telecomm,
                TSN Acquisition Corporation and EnviroSystems, Inc. (Nonmaterial
                schedules
                and exhibits identified in the Agreement and Plan of Merger have
                been
                omitted pursuant to Item 601b.2 of Regulation S-K. Telecomm Sales
                Network,
                Inc. agrees to furnish supplementally to the Commission upon request
                by
                the Commission a copy of any omitted schedule or exhibit.)
                (3)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.5</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Escrow/Lock-Up
                Agreement, dated as of January 10, 2006 between Telecomm, EnviroSystems
                and the other signatories thereto. (4)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.6</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Employment
                Agreement with Lloyd Breedlove (4)</font></div>
            </td>
          </tr>
          <tr bgcolor="#ccfacc">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems&#8217;
                audited financial statements for the fiscal years ended March 31,
                2005 and
                2004 (4)</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td align="left" valign="top" width="10%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.2</font></div>
            </td>
            <td width="2%">&#160;</td>
            <td align="left" valign="bottom" width="88%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EnviroSystems&#8217;
                unaudited financial statements for the interim period ended September
                30,
                2005 and 2004 (4)</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><br></div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(1)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                as an exhibit to Telecomm&#8217;s Registration Statement on Form SB-2 filed on
                March 16, 2005 and incorporated herein by
                reference.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(2)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                as an exhibit to Telecomm&#8217;s Current Report on Form 8-K filed on November
                11, 2005 and incorporated herein by
                reference.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(3)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                as an exhibit to Telecomm&#8217;s Current Report on Form 8-K filed on November
                17, 2005 and incorporated herein by
                reference.</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 27pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(4)</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Filed
                herewith.</font></div>
            </td>
          </tr>

      </table>
    </div>
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UNITED
      STATES
SECURITIES
      AND EXCHANGE COMMISSION
Washington,
      D.C. 20549
FORM
      8-K
CURRENT
      REPORT
Pursuant
      to Section 13 or 15(d) of the
Securities
      Exchange Act of 1934
Date
      of
      Report (Date of Earliest Event Reported): January 10, 2006
TELECOMM
      SALES NETWORK, INC.
(Exact
      name of registrant as specified in its charter)
Delaware
333-123655
20-1602779
(State
                or other jurisdiction of incorporation)
(Commission
                File Number)
(I.R.S.
                Employer Identification No.)
516-D
      River Highway, PMB 297
Mooresville,
      NC 28117-6830
(Address
      of Principal Executive Offices/Zip Code)
(512)
      236-0925
(Registrant's
      telephone number, including area code)
c/o
      Sky
      Source, LLC
8621
      Gleneagles Drive
Raleigh,
      NC 27613
(Former
      name or former address, if changed since last report)
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (
see
General
      Instruction A.2. below):
o
Written
      communications pursuant to Rule 425 under the Securities Act (17 CFR
      230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(B))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c)) under the Exchange Act (17 CFR
      240.13e-4(c))
Item
      1.01 Entry into a Material Definitive Agreement.
Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.
Item
      2.01 Completion of Acquisition or Disposition of Assets.
Overview
On
      January 10, 2006, Telecomm Sales Network, Inc. ("Telecomm" or the "Company")
      completed the acquisition of EnviroSystems, Inc. ("EnviroSystems") in a reverse
      merger transaction (the "Merger") pursuant to an Agreement and Plan of Merger
      dated as of November 11, 2005, as amended (the "Merger Agreement"), by and among
      Telecomm, TSN Acquisition Corporation ("TAC"), and EnviroSystems. TAC is a
      wholly owned subsidiary of EnviroSystems Holdings, Inc. ("Holdings") and
      Holdings is a wholly owned subsidiary of Telecomm. Both Holdings and TAC were
      incorporated to effectuate the Merger. Effective at the closing of the Merger
      (i) TAC merged with and into EnviroSystems, with EnviroSystems as the surviving
      corporation, (ii) EnviroSystems became an indirect, wholly-owned subsidiary
      of
      Telecomm and (iii)
Telecomm
      ceased its prior business and going forward its sole business became that of
      EnviroSystems.
Pursuant
      to the Merger Agreement, all of EnviroSystems preferred stock and all options
      and warrants to acquire EnviroSystems preferred stock were converted into the
      right to receive an aggregate of 6,400,000 shares of Telecomm common stock,
      $.0001 par value per share (the "Common Stock"). The shares of Common Stock
      issued in the Merger were issued pursuant to the exemption from the registration
      requirements of the Securities Act of 1933, as amended (the "Act") provided
      under Section 4(2) of the Act and Rule 506 promulgated thereunder.
Concurrent
      with the closing of the Merger, Telecomm sold 4,250,000 shares of its Common
      Stock in a private placement to accredited investors at a price of $2.00 per
      share for aggregate gross proceeds of $8,500,000 (the "Offering"). The shares of
      Common Stock sold in the Offering were issued pursuant to the exemption from
      registration provided under Section 4(2) and Regulation 506 of the Act.
In
      connection with the Offering, Telecomm paid to Selling Agents (i) a fee equal
      to
      ten (10%) percent of the aggregate purchase price of the shares of Common Stock
      sold in the Offering and (ii) warrants (the "Agent Warrants") to purchase up to
      that number of shares of Common Stock equal to fifteen (15%) percent of the
      shares of Common Stock sold in the Offering. The Agent Warrants are exercisable
      for a four year period at a price per share equal to $2.50 per
      share.
Upon
      closing of the Merger and the Offering (the "Closing"), Telecomm had 16,000,000
      shares of Common Stock issued and outstanding with holders of the outstanding
      shares of Common Stock, immediately prior to the Closing holding approximately
      33% of the outstanding Common Stock, the EnviroSystems preferred shareholders
      holding approximately 40% of the outstanding Common Stock and the purchasers
      in
      the Offering holding approximately 27% of the outstanding Common
      Stock.
Pursuant
      to the terms of an Escrow and Lock-Up Agreement, dated as of January 10, 2006,
      all 6,400,000 shares of Common Stock issued to the EnviroSystems preferred
      shareholders in the Merger are subject to a lock-up and will be held in escrow
      (the "Escrow Shares") for a period equal to the longer of 12 months following
      the Closing and 9 months after the effective date of a registration statement
      covering the resale of the shares of Common Stock sold in the Offering,
      provided, that such lock-up period shall not exceed the date 15 months from
      the
      Closing. The Escrow Shares will be used to secure indemnification obligations
      of
      EnviroSystems shareholders to the Company under the Merger Agreement. The Escrow
      Shares are also subject to earlier release in certain instances.
In
      connection with the Merger, William Sarine and Tony Summerlin each resigned
      from
      our Board of Directors and from all offices they held with us and J. Lloyd
      Breedlove, Steve Hoelscher, Stephen A. Schneider, Jeffrey Connally and Charles
      Cottrell were appointed to Telecomm's Board of Directors. In addition, J. Lloyd
      Breedlove was appointed as President and Chief Executive Officer and Steve
      Hoelscher as Chief Financial Officer, Treasurer and Secretary. As a result
      of
      the foregoing, our Board of Directors now consists of the above five persons.
      For certain biographical and other information regarding newly appointed
      officers and directors, see the disclosure under "Directors and Executive
      Officers" in this Report.
1
The
      foregoing description of the Merger Agreement is qualified in its entirety
      by
      the full text of the Merger Agreement filed as Exhibit 99.1 to the Company's
      Current Report on Form 8-K filed with the Securities and Exchange Commission
      on
      November 17, 2005. The foregoing description of the Escrow and Lock-Up Agreement
      is qualified in its entirety by the full text of the agreement filed as Exhibit
      10.5 hereto.
FORM
      10-SB DISCLOSURE
Prior
      to
      closing of the Merger, Telecomm was a "shell company" (as such term is defined
      in Rule 12b-2 under the Securities Exchange Act of 1934, as amended, (the
"Exchange Act")) immediately prior to change in control effected by the Merger.
      Accordingly, set forth below is the information that would be required if
      Telecomm were filing a general form for registration of securities on Form
      10-SB
      under the Exchange Act.
EXPLANATORY
      NOTE
Unless
      otherwise indicated or the context otherwise requires, all references below
      in
      this Current Report on Form 8-K to "we," "us" and the "Company" are to Telecomm
      Sales Network, Inc. a Delaware corporation, together with its indirect
      wholly-owned subsidiary, EnviroSystems, Inc., a Nevada corporation. Specific
      discussions or comments relating only to Telecomm Sales Network prior to the
      Merger will reference "Telecomm," those relating only to EnviroSystems, Inc.
      will reference "EnviroSystems."
DESCRIPTION
      OF BUSINESS
Telecomm
Telecomm
      is a development stage company, incorporated in the State of Delaware in August
      2004, with no material assets and/or operations. Its sole business was to
      provide sales channel and marketing consulting support services to
      telecommunications companies. Prior to the Merger, Telecomm conducted no
      activities except for formulating a business plan and fundraising activities.
      Upon the closing of the Merger, Telecomm's indirect wholly owned subsidiary TAC
      merged with and into EnviroSystems, with EnviroSystems as the surviving
      corporation and
Telecomm
      ceased its prior business and its sole business became that of EnviroSystems,
      Inc.
EnviroSystems
EnviroSystems
      was incorporated in the state of Nevada in 1996, its offices are located at
      1900
      Wyatt Drive, Suite 15, Santa Clara, California, 95054 and its telephone number
      is (408) 566-0100. EnviroSystems' website address is
www.envirosi.com
.
Upon
      consummation of the Merger, Telecomm will relocate its principal executive
      offices in or around Charlotte, North Carolina and until such relocation is
      completed its office shall remain in Mooresville, North Carolina.
EnviroSystems,
      Inc. ("EnviroSystems" or "ESI") has developed and has trade secret rights to
      what we believe to be a unique and proprietary nano-emulsion biocide technology
      platform that has initially been formulated into a hospital grade hard-surface
      disinfectant product. This Product, known as EcoTru
®
Ready to
      Use ("EcoTru
®
RTU"),
      effectively kills numerous bacteria, fungi, and viruses, including Hepatitis
      B
      and C, HIV, herpes and influenza. In addition to being highly effective as
      a
      broad-spectrum disinfectant, EcoTru
®
is
      unique in the market place in that it combines this effectiveness in a product
      which is non-toxic, non-corrosive, non-flammable and not harmful to the
      environment. We believe that EcoTru
®
RTU is
      the only commercial disinfectant registered with the Environmental Protection
      Agency (the "EPA") as a Category IV disinfectant with specific EPA registered
      claims to kill 22 distinct pathogens, including but not limited to, the most
      virulent and disinfectant resistant pathogens such as MRSA (Methicillin
      resistant Staphylococus aureus), VRE (Vancomycin resistant Enterococcus
      faecalis) and Hepatitis B & C, as well as Herpes Simplex I & II,
      Legionella pneumophila, and Ecoli (Escherichia coli OH157).
2
While
      there are other Category IV disinfectants available on the market, we believe
      that EcoTru
®
is the
      only non-toxic product which meets the needs of the healthcare, food service,
      and other markets which require the critical broad-spectrum efficacy of our
      product. EcoTru
®
's
      EPA
      status allows the product, to be marketed without any toxicity warnings on
      its
      label. We believe the EPA registered efficacy and safety advantages distinguish
      EcoTru
®
RTU from
      the myriad of bleaching agents, natural products, and other competing
      hospital-grade cleaners and disinfectants on the market. We also believe that
      ESI's nano-emulsion technology may be formulated as a sterilant and that it may
      be developed for use as one or more FDA regulated wound cleansing and topical
      healing products for various animal and human markets.
The
      active biocide ingredient in ESI's nano-emulsion and in EcoTru
®
RTU is
      parachlorometaxylenol ("PCMX") which is a broad spectrum biocide that has been
      available on the market for decades. ESI has formulated PCMX into a unique
      nano-emulsion which enables EcoTru
®
RTU to
      deliver minute quantities of PCMX directly to the cellular walls of viruses,
      bacteria and fungi to quickly destroy them. The surface of each nano-particle
      has a negative surface charge that is crucial to the targeting mechanism. There
      is an electrostatic attraction between EcoTru
®'
s
      nano-particles and the microbes. The selective targeting of the microbes by
      these nano-particles is the basis for EcoTru
®
's
      efficacy and safety. Thus, these nano-particles can be described as "smart
      bombs" designed to deliver biocide to harmful microbial targets. This direct
      action allows ESI to use lower concentrations of PCMX, only 0.2% of the total
      solution, resulting in EcoTru
®
products
      that we believe are highly effective yet safe and non-toxic to
      users
EcoTru
®
RTU
      liquid is available in 8 ounce and 22 ounce spray containers, one gallon
      bottles, 5 gallon pails and 55 gallon drums and has a shelf life of 18 months.
      EcoTru
®
RTU is
      also currently sold as heavy duty wipes, under the name "EcoTru
®
Cleansing Wipes." We plan to further develop and test the wipes and register all
      available additional claims with the EPA. We intend to market a wipe with
      similar claims as those for EcoTru
®
RTU once
      EPA registration has been granted. We intend to apply to register our wipe
      technology with the EPA as soon as possible.
Market
      Strategy
The
      primary target market for our products is the healthcare industry including
      hospitals, surgi-centers, dialysis and other clinics, reference laboratories
      and
      dental offices where we believe the need for EcoTru
®
RTU is
      greatest. We currently have sales and/or distribution arrangements in the United
      States with Stericycle, Crosstex, Medline and Cardinal Healthcare Systems.
      In
      addition, we have an agreement with Blue Cross Health Services (BCHS) to sell
      EcoTru
®
RTU
      under the label "TruClean
®
"
in
      the
      healthcare market in the United Kingdom where recent testing in a certified
      laboratory led to approval of the product for use in hospitals there. We also
      have a distribution agreement with Andpak to distribute our EcoTru
®
Cleansing Wipes to the aviation industry and we also sell our wipes directly
      to
      JetBlue Airlines. While we intend to initially target the healthcare and related
      industry market, we anticipate offering EcoTru
®
and
      any
      future products derived from our nano-emulsion
to
      any
      and all industrial and consumer markets that may benefit from a safe
      disinfecting product.
Because
      we have focused our efforts on research and development, we have not devoted
      substantial funds to sales and marketing efforts, and therefore, since our
      inception in 1996, through September 30, 2005, we have incurred cumulative
      losses of $14,666,201 and sales of less than $1,500,000. We have incurred
      substantial indebtedness and are wholly reliant on the net proceeds raised
      from
      the sale of Common Stock in the Offering.
We
      believe that the concept of a non-toxic "safe" product that is also a broad
      spectrum disinfectant offers us a unique opportunity to differentiate our
      products in the surface disinfectant market. It is our intention to use our
      product's unique characteristics to build acceptance of EcoTru
®
RTU as a
      non-toxic alternative significantly different from other disinfectant products
      and to disrupt the current marketplace for older toxic disinfectants.
3
Products
We
      currently manufacture one product, EcoTru
®
RTU,
      which we market in liquid form as a hospital grade hard surface disinfectant
      and
      as heavy duty wipes which are sold without the EPA approved claims available
      to
      EcoTru
®
RTU.
      Both products are based upon our proprietary PCMX formulation and nano-emulsion
      technology.
EcoTru
®
Ready to Use
Our
      core
      product is EcoTru
®
RTU
      which we sell to certain segments of the US healthcare market under the brand
      name "EcoTru
®
Professional" and to the aviation market as "EcoTru
®
1453."
In addition, several distributors sell EcoTru
®
RTU as a
      private label product including: Stericycle (Sterisafe
®
)
      and
      Blue Cross Health Services which is selling EcoTru
®
RTU in
      the UK as TruClean
®
.
      EcoTru
®
RTU is
      currently available as a ready-to-use disinfectant/cleanser in 8 ounce and
      22
      ounce spray containers, 1 gallon bottles, 5 gallon pails and 55 gallon drums
      and
      has a shelf life of 18 months. EcoTru
®
RTU is
      also currently sold as heavy duty wipes; we plan to test and register claims
      for
      our heavy duty wipes with the EPA similar to those for EcoTru
®
RTU as
      soon as possible.
We
      believe that EcoTru
®
RTU
      offers a wide spectrum of efficacy and is effective as both an all-purpose
      cleaner and as a hospital grade hard surface disinfectant; thereby providing
      users with cost-savings in material and labor through the elimination of (i)
      the
      need to use multiple products and (ii) the procedures, disposal techniques,
      and
      costs associated with the use of toxic products. We believe that
      EcoTru
®
RTU is
      unique in killing the 22 pathogens identified on the product label while
      achieving the EPA's lowest possible toxicity rating of IV in the categories
      which the EPA tests for toxicity (including primary skin, eye, lung irritation
      and oral and dermal toxicity). As a result, we are not required to provide
      hazard warnings on the EcoTru
®
RTU
      label. . We believe that EcoTru
®
is safe
      and effective on surfaces ranging from metals, metal alloys, plastics,
      synthetics, rubber, glass, painted surfaces, vinyl and fabrics and is therefore
      an ideal product to use on equipment or surfaces that require disinfecting
      on a
      regular basis.
EcoTru
®
received
      registration from the EPA in October of 1998, then again, after development
      and
      testing of the nano-emulsion technology, in 2001, with expanded registration
      that included more bacteria, fungi, and viruses. In 2003 further expansion
      of
      EcoTru
®
's
      claims
      were registered through the EPA for MRSA and VRE the resistant bacteria for
      healthcare concerns and for Hepatitis C.
In
      May
      2003, EcoTru
®
received
      clearance from the EPA as a safe, non-corrosive disinfectant for use on food
      contact surfaces. While current disinfectants specify they may be used in the
      kitchen, they are generally not registered for food contact surfaces. This
      food
      contact surface approval further expands the potential future applications
      of
      EcoTru
®
to
      include use in markets beyond healthcare, industrial and consumer (restaurants,
      hotels, cafeterias, kitchens, food stores, food-processing plants and on food
      preparation equipment).
We
      believe that EcoTru
®
is the
      only EPA registered disinfectant to have passed all components of the Aircraft
      Materials Specification (AMS) 1453 test, one of the most stringent materials
      tests to which a product can be submitted. Boeing has included
      EcoTru
®
1453 on
      its list of products recommended for use on aircraft it has manufactured. In
      addition, Boeing internally tested EcoTru
®
under
      its D6-7127 protocols against fabrics, leathers and naughahyde. The results
      demonstrated that EcoTru
®
does not
      corrode, craze or harm the fabrics, and there was no staining as well.
      Castellini a manufacturer of Italian leather dental chairs, also tested
      EcoTru
®
on its
      material and found it non-staining and safe for the fabric.
EcoTru
®
Cleansing Wipes
EcoTru
®
Cleansing Wipes are pre-saturated in EcoTru
®
RTU and
      are marketed as heavy duty wipes, but not yet as an EPA registered disinfectant,
      for use in hospitals and medical clinics, dental offices, veterinary hospitals,
      aviation equipment, mass transit and cruise lines. We can make no disinfectant
      claims with respect to our wipes until such time as we register such claims
      with
      the EPA. We intend to attempt to register our EcoTru
®
Cleansing Wipes as a disinfectant with the EPA as soon as possible.
4
Potential
      Future Products
In
      the
      future, we may be able to use our nano-emulsion technology platform to develop
      new potential products with claims similar or identical to EcoTru
®
RTU.
      These products may
include,
      an EPA registered wipe (as described above), EcoTru
®
FMD for
      foot and mouth disease, a sterilant, and a wound cleansing and topical healing
      agent for use on animals and humans.
Nano-emulsion
      Technology
We
      believe that our nano-emulsion technology is the first new technology to be
      applied to disinfectants in more than a quarter of a century. Through the use
      of
      nano-emulsion technology, we are able to create a highly efficient and safe
      delivery mechanism for parachlorometaxylenol, which is the antimicrobial
      ingredient used in our formulations.
We
      believe our products manufactured using the nano-emulsion technology
      specifically target infectious microorganisms without harming higher life forms
      or the environment.
Parachlorometaxylenol
      ("PCMX")
PCMX
      is
      the active antimicrobial ingredient in our nano-emulsion and in
      EcoTru
®
RTU.
      PCMX has been used as an effective antimicrobial disinfectant ingredient for
      over five decades, both in the United States and in Europe. PCMX has a broad
      spectrum of activity against bacteria, virus, and fungal species. In other
      formulations using PCMX, its biocide activity has been limited due to the
      inability of such formulations to deliver PCMX directly to the site of action
      within cell membranes, because a water barrier exists between PCMX and
      micro-organism membranes, which are both oily. EcoTru
®
nano-emulsion "smart bombs" efficiently deliver the PCMX across this barrier to
      the site of action in the cell membranes.
In
      addition to its broad spectrum of activity, PCMX has a very low instance of
      allergic response (it has been used by the cosmetics industry for many years
      as
      a preservative) and it is rapidly degraded in the environment in both the
      presence and the absence of oxygen.
Nano-particle
        Anatomy
Observing
      the EcoTru
®
nano-emulsion under a very high degree of magnification, one would see a
      suspension of nano-particles moving very rapidly in distilled de-ionized water.
      These particles are approximately 250 nm across, or about 1/200
th
the
      width of a human hair. The center of the nano-particles is oily or lipophilic,
      as is the target microbial membrane.
Incorporated
      into these nano-particles is PCMX biocide. The surface of each nano-particle
      has
      a negative surface charge that is crucial to the targeting mechanism. There
      is
      an electrostatic attraction between EcoTru
®
nano-particles and the microbes. The selective targeting of the microbes by
      these nano-particles is the basis for EcoTru
®
's
      efficacy and safety. Thus, these nano-particles can be described as "smart
      bombs" designed to deliver biocide to microbial targets.
Nano-Emulsion
      Mechanism
The
      use
      of PCMX in a nano-emulsion is the basis for EcoTru
®
RTU's
      efficacy and safety. We believe that the physical size of the nano-emulsion
      particles and the electrostatic charge on the surface allows the particles
      to
      selectively target pathogenic microorganisms and deliver the biocide directly
      to
      the microorganisms' cell membrane, thereby improving efficacy.
By
      delivering the PCMX directly to the cell membrane, EnviroSystems has been able
      to reduce the concentration of the biocide PCMX to 0.2% and yet achieve
      disinfectant efficacy not seen at 15 to 25 fold higher
      concentration.
In
      addition, we believe by targeting the membrane, it is not necessary to use
      an
      oxidizing biocide to kill the organism. Oxidizing biocides, such as bleach
      and
      hydrogen peroxide, are effective biocides but are indiscriminate, corrosive
      and
      require direct access to the organism. Also, differences in cell surface
      architecture, which is the key to cellular identity, provide the mechanism
      by
      which EcoTru
®
nano-particles discriminate between a pathogenic microorganism and a human
      cell.
      The difference between the membranes of human cells and gram positive bacteria,
      gram negative bacteria, and Mycobacteria, (which is the organism that causes
      Tuberculosis), is the foundation and focal point for the selective killing
      effect of EcoTru
®
.
5
Manufacturing
Production
      of EcoTru
®
RTU
      occurs in two distinct steps; the first of which is the production of
      EcoTru
®
concentrate and the second of which is the dilution of EcoTru
®
concentrate to produce EcoTru
®
RTU. We
      use contract manufacturers for each step in the process. We use BioRad
      Laboratories, an EPA registered manufacturer with its main office located in
      Hercules, California, for the production of EcoTru
®
concentrate. We do not have a manufacturing agreement with BioRad and all orders
      for EcoTru
®
concentrate are conducted on a purchase order basis. We believe that BioRad
      has
      the manufacturing capabilities to continue to meet our volume requirements
      and
      specifications through 2006 and until we are ready to conduct our own in-house
      manufacturing and/or identify another contract manufacturer to replace or
      supplement BioRad's production. Production of the concentrate requires that the
      formulation be added in a specific sequence, under controlled time and
      temperature conditions to ensure that the proper chemical reactions take place
      to produce our proprietary nano-emulsion. All lots of EcoTru
®
concentrate produced by BioRad are subjected to quality control by us before
      release for use, by selecting random samples from each lot and subjecting them
      to testing. Additionally, we monitor vendor testing of raw materials and review
      production records to ensure EnviroSystems procedures and specifications are
      followed throughout production.
The
      second step in the process, the dilution of the concentrate to produce
      EcoTru
®
RTU is
      performed by Royal Chemical, located in Haywood, California. We do not have
      a
      manufacturing agreement with Royal Chemical and all orders for final products
      are conducted on a purchase order basis. As with the production of the
      concentrate, the preparation of the diluted final product must be done in a
      highly controlled manner so as to not destroy the nano-emulsion. Royal Chemical
      also bottles the EcoTru
®
RTU
      liquid and delivers it to us for shipping.
Our
      EcoTru
®
Cleansing Wipes are produced by Pouches, Inc., located in Southern
      California.
We
      currently have neither the capacity nor EPA site registration to internally
      manufacture our EcoTru
®
concentrate. Manufacture of EcoTru
®
concentrate is done on a sub-contract basis, with EPA site registration, by
      BioRad Laboratories and under a non-disclosure/non-compete agreement with ESI.
      We do have limited capacity and EPA site registration to convert
      EcoTru
®
concentrate to EcoTru
®
RTU. The
      conversion to EcoTru
®
RTU is
      done for smaller volume production.
We
      currently rely upon our contract manufacturers to acquire raw materials used
      in
      our products, including PCMX. Other than PCMX, the other raw materials used
      in
      manufacturing our products are commonly available through a number of suppliers.
      PCMX has one primary supplier in the United States, Clariant Corporation,
      although we believe there are smaller alternative sources in the United States.
      We also believe there are also alternative foreign sources for PCMX.
Future
      Possible Self Manufacture Capability
Upon
      achieving sufficient levels of sales and revenues, we may pursue the development
      of in-house manufacturing capabilities which we believe might reduce our cost
      of
      goods sold and improve our control over our trade secrets. We believe that
      such
      a facility would require approximately 20,000 to 80,000 square feet. Such
      facility would also need to include quality assurance and research and
      development facilities in addition to manufacturing facilities adequate to
      produce liquid EcoTru
®
products
      (anticipated and current) as well as EcoTru
®
concentrate. We estimate that once a particular site is chosen and permits
      are
      obtained, it will take at least six to nine months to complete installation
      and
      perform short-run production. We currently estimate that the costs for such
      a
      manufacturing facility would be at least $2.0 million.
6
Research
      and Development
To
      date,
      because of a lack of capital, we have not pursued new research and development
      activities and we do not have any full-time research personnel. We intend to
      use
      a portion of the net proceeds of the Offering to engage in research and
      development to expand our product offering from our current core product line,
      depending on the availability of funds, to a widespread array of products to
      fight infectious diseases. In the future, we may also expand our product
      offerings beyond hard surface disinfection to topical applications for humans
      and animals and as an additive/component to other products marketed by major
      pharmaceutical companies.
Government
      Regulation
Our
      disinfectant products are classified as pesticides and are subject to regulation
      by the United States Environmental Protection Agency ("EPA"), pursuant to the
      Federal Insecticide, Fungicide and Rodenticide Act (FIFRA) as amended by the
      Food Quality Protection Act (FQPA) of August 3, 1996. FIFRA requires that before
      any person in any state or foreign country can sell or distribute any pesticide
      in the United States, they must obtain a registration from the EPA. The term
      "pesticide," as defined in FIFRA, means any substance or mixture of substances
      intended for preventing, destroying, repelling, or mitigating any pest, virus,
      bacteria, or other micro-organism (except viruses, bacteria, or other
      micro-organism on or in living man or other living animals). Pesticides include
      fungicides, disinfectants, sanitizers, and germicides. After the registration
      process and submission of required data, an accepted label is stamped accepted
      and returned to the registrant for the registered product. Annual Pesticide
      Maintenance Fees are required for registered products. Anyone who
      sells/distributes a pesticide (including antimicrobial products such as
      disinfectants, sanitizers, and germicides) must register that product in every
      state that they intend to sell/distribute and pay a registration fee.
In
      order
      to "produce," defined to mean "to manufacture, prepare, propagate, compound, or
      process any pesticide . . . or to repackage or otherwise change the container
      of
      any pesticide . . ." the applicable plant and/or facility must be EPA
      registered. Upon registration an establishment number is assigned. The label
      and/or container must bear the registration number as well as the establishment
      number. Annual reports are required to be submitted to the EPA indicating the
      amount produced, repackaged/relabeled for the past year, amount sold/distributed
      for the past year within and outside of the U.S., and the amount to be
      produced/repackaged/ relabeled for the current year.
EPA
      regulations also require us to report adverse events associated with our
      products to the EPA. Failure to pay registration fees or provide necessary
      testing data, or evidence that one of our product is the cause of an adverse
      effect on humans or the environment, could result in the cancellation of an
      EPA
      registration.
We
      have
      one product registered with the United States Environmental Protection Agency,
      EcoTru
®
RTU,
      assigned EPA Registration No. 70791-1 which has an EPA registered
      label.
EnviroSystems
      is registered and has been assigned EPA Establishment No. 70791-CA-001. Also
      our
      contract manufacturers are registered EPA establishments.
EnviroSystems'
      EcoTru
®
Cleansing Wipes have not been registered with the EPA and, therefore, we cannot
      market the wipes as a disinfectant. We intend to pursue EPA registration for
      the
      wipes as soon as possible. EnviroSystems is registered to and currently sells
      EcoTru
®
RTU in
      all of the 50 States in the United States and the District of Columbia, except
      that in the State of California EnviroSystems' approval is conditional. The
      California Environmental Protection Agency has extended conditional approval
      pending receipt of additional test results for EcoTru
®
RTU. The
      additional test results must be provided to the California Environmental
      Protection Agency by the end of 2006 unless an additional extension is granted.
7
Foreign
      Regulation
Although
      to date we have not had substantial international sales of our products, when
      we
      do sell products in foreign jurisdictions, we will be subject to foreign
      regulations. For example, before we can introduce our products into certain
      markets in the United Kingdom, such products must be listed on the United
      Kingdom's National Registry. We expect that we will have to register our
      products in other foreign jurisdictions before we can commence sales in such
      jurisdictions. Compliance with foreign requirements could require substantial
      expenditures and effort.
Competition
The
      market for products such as ours is highly competitive and we face competition
      from a number of companies, most of which have substantially greater brand
      name
      recognition and financial, research and development, production and other
      resources than we do.
Healthcare
Our
      competitors in the Healthcare market include Johnson & Johnson, Clorox,
      Steris Corporation, Caltech Industries, Sybron Dental Specialties, Inc., Reckitt
      Benkiser, Sensible Life Products, and Ecolab, Inc.
Many
      of
      our competitors' products contain ingredients from one of the following four
      families of ingredients: ammonium, phenol, chlorine and or glutaraldehyde.
      We
      believe, one of the common characteristics of these types of active ingredients
      is that they are toxic skin penetrants. EcoTru
®
RTU has
      the advantage of being non-toxic and non-harmful. Some of our competitors'
products, including
Bene
fect
®
are,
      according to
Bene
fect
's
      product literature,
based on
      natural ingredients that are non-toxic and are Category IV disinfectants. We
      believe that the exclusion of claims made by these products for certain
      pathogens such as MRSA (Methicillin resistant Staphylococus aureus), VRE
      (Vancomycin resistant Enterococcus faecalis) and Hepatitis B & C, as well as
      Herpes Simplex I & II, Legionella pneumophila, and Ecoli (Escherichia coli
      OH157) render these products less attractive to the markets that require
      broad-spectrum efficacy including the important healthcare and food-service
      arenas.
To
      the
      best of our knowledge, no competitive products have the non-toxic,
      non-corrosive, non-flammable and environmentally friendly features of our
      proprietary EcoTru
®
RTU
      formulation, as well as the efficacy against a broad range of micro-organisms
      and virulent pathogens. We believe, to date, our competition has used either
      less expensive toxic materials, diluted with water, to produce their surface
      disinfectants or natural ingredients which do not include the depth of EPA
      registered effectiveness claims granted to EcoTru
®
RTU.
Hospitality
      Aviation, Military
In
      the
      hospitality, aviation and military industry our primary competitors include
      Johnson & Johnson, Ecolab, Inc., Clorox, Sensible Life Products, and Proctor
& Gamble, and others all of which have products with recognized national
      brands that include Clorox, Lysol, Pine Sol, and industry specific products.
      Products used in the hospitality industry generally compete based upon price.
      To
      date, relatively higher per unit costs of our product as compared to our
      competitors has limited our ability to compete in the hospitality industry.
      We
      believe that our principal competitive advantages of our products are their
      safety, non-corrosiveness and efficacy.
Intellectual
      Property
We
      have
      not applied for patent protection for our proprietary PCMX formulation or for
      our nano-emulsion technology and instead rely upon trade secret protection
      for
      protection of our formula, formulation, nano-emulsion technology or
      manufacturing process. We continue to review our intellectual property
      protection policy and have evaluated the use of patent versus trade secret
      protection for our intellectual property. While we cannot apply for patents
      on
      our formulation or nano-emulsion technology as a result of the passage of time,
      in the future we may seek other available patent protection. In addition, based
      upon our review of industry practice, we determined that it is more common
      to
      rely upon trade secret protection, rather than patents to protect intellectual
      property, particularly when such intellectual property involves processes such
      as ours. We have instituted strict internal procedures to protect the trade
      secrets and have confidentiality and non-disclosure agreements in place with
      our
      concentrate manufacturer BioRad and with our EcoTru
®
RTU
      bottler Royal Chemical.
8
We
      will
      continue to evaluate our current trade secret protection and may decide in
      the
      future, if available, to submit use or design patents in certain areas that
      will
      not require us to disclose the trade secrets that give EcoTru
®
or
      future potentially patentable derivative products a competitive advantage.
      In
      addition, we submitted both the early and the current versions of
      EcoTru
®
to a
      major U.S. de-formulation laboratory to see if they could reverse engineer
      our
      products. To date, despite their best efforts to reverse engineer our product,
      they have not been able to provide us with an accurate report of the
      nano-emulsion ingredients or manufacturing process.
As
      new
      products are brought to market, we intend to carefully analyze each for the
      methodology to be employed in protection of the intellectual property.
Pursuant
      to an Intellectual Property Assignment Agreement, effective as of July 30,
      1996,
      between EnviroSystems, American Children's Foundation ("ACF"), Richard M. Othus
      ("Othus"), Andrew D.B. Lambie ("Lambie") and Cascade Chemical Corporation
      ("Cascade"), each of ACF, Othus, Lambie and Cascade irrevocably assigned to us
      all of their rights to the chemical formula which we use in the manufacture
      of
      our product. In consideration thereof, we agreed to pay to each of Othus and
      Lambie a royalty equal to 0.25% of gross revenues received by us from sales
      of
      our products throughout the world, less credits and returns, for as long as
      we
      sell products which embody the assigned formula.
Our
      products are sold under a variety of trademarks and trade names. We own all
      of
      the trademarks and trade names we believe to be material to the operation of
      our
      business. EcoTru
®
is
      currently registered in the United States, Japan, and Taiwan. We expect to
      file
      additional registrations in the European Union countries and
      Canada.
Except
      for the trademarks referred to above, we do not believe any single trademark
      is
      material to the operations of our business as a whole.
Employees
Effective
      immediately after the closing of the Merger, we had a total of five (5) full
      time employees. None of our employees are represented by a trade union. We
      anticipate hiring additional full time employees within the next twelve months.
Customers
We
      sell
      the majority of our products to customers in the healthcare industry, including
      hospitals, dental offices, physicians' offices, reference laboratories, long
      term care facilities and veterinary offices. In addition, we also sell our
      products to airlines, the U.S. Government and customers in the hospitality
      industry. As of March 31, 2005 we had approximately 330 customers, most of
      which
      are in the healthcare industry and purchase our products through our
      distributors. Sales to our top ten customers represented approximately 78.4%
      of
      our 2004 sales. Of such sales, approximately 87.3% consisted of sales of our
      EcoTru
®
RTU and
      12.7% were EcoTru
®
Cleansing Wipes. In 2004, JetBlue accounted for 52.4% of sales of our wipes.
Sales,
      Marketing, Distribution
We
      market
      and sell our products primarily through third party distributors and to a lesser
      extent through direct sales. In 2004, sales through distributors accounted
      for
      approximately 75.5% of our sales. We have entered into distribution agreements
      with distributors that service the industry segments that we have targeted
      for
      sales of our products. In the healthcare market, we have entered into
      distribution agreements with Stericycle (which markets EcoTru
®
under
      the private label "Sterisafe
®
"),
      Medline, Crosstex, and Cardinal Health Systems. In the transportation industry,
      we have entered into a distribution agreement with Andpak, a distributor to
      the
      airline industry (which re-packages and markets EcoTru® under the private label
      EcoTru®1453).
We
      have
      also entered into distribution agreements with distributors to market our
      products outside of the United States, such as Blue Cross Health Services which
      sells EcoTru
®
RTU
      under the private label TruClean
®
in the
      healthcare market in the United Kingdom, and Alpha Scientific Repair Services
      which is a distributor in Canada. To date we have had minimal international
      sales of our products.
9
Our
      direct sales efforts to date have been to healthcare facilities, institutions,
      commercial airlines and local governments and were intended primarily to help
      gain market acceptance, attract major distributors and establish
      EcoTru
®
as a
      brand. Direct sales to customers accounted for 11.8% of our 2004 sales, with
      sales to one customer, JetBlue accounting for 10.5% of total sales and 1.3%
      of
      direct sales.
The
      majority of our products are shipped to customers from our facility at 1900
      Wyatt Drive, Santa Clara, CA. We use third party carriers to deliver our
      products. From time to time, we will arrange for shipments directly from our
      contract bottler Royal Chemical Company.
Insurance
      Matters
We
      maintain a general business liability policy and other coverages specific to
      our
      industry and operations. We also maintain general products liability coverage
      and directors and officers liability coverage. We believe that our insurance
      program provides adequate coverage for all reasonable risks associated with
      operating our business.
10
MANAGEMENT'S
      DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
Introduction
Telecomm
      had no revenue from operations since its inception. Following the Merger,
      EnviroSystems operations shall constitutes all of Telecomm's operations. The
      following discussion and analysis summarizes the significant factors affecting
      EnviroSystems' results of operations for its 2005 fiscal year compared to
      EnviroSystems' 2004 fiscal year and our and EnviroSystems' combined financial
      liquidity and capital resources. Also discussed below are EnviroSystems' results
      of operations for the nine-month period ended September 30, 2005 compared with
      EnviroSystems results of operations for the nine-month period ended September
      30, 2004. This discussion and analysis should be read in conjunction with the
      financial statements and notes, and pro forma financial statements, included
      with this Report.
Results
      of Operations
Net
      Revenues. Net revenues were $670,214 in fiscal 2005, compared to net revenues
      of
      $592,058 in fiscal 2004. The $78,156 (13.20%) increase in net revenues in fiscal
      2005 compared to fiscal 2004 was primarily due to increased unit volume of
      product sold.
Cost
      of
      Goods Sold. Cost of goods sold were $661,133 in fiscal 2005, compared to cost
      of
      goods sold of $462,470 in fiscal 2004. The $198,563 (42.93%) increase in cost
      of
      goods sold in fiscal 2005 compared to fiscal 2004 was due to increased overhead
      burden in product sold and write off of certain inventory
      components.
Gross
      Profit. Gross profit was $9,081 in fiscal 2005, compared to gross profit of
      $129,488 in fiscal 2004. The $120,407 (92.99%) decrease in gross profit was
      primarily due to increased sales volume in lower profit margin product and
      the
      increased overhead burden in product sold and write off of certain inventory
      components.
Total
      Operating Costs. Total operating costs were $2,300,277 in fiscal 2005, compared
      to total operating costs of $3,169,062 in fiscal 2004. The $859,704 (27.13%)
      decrease in total operating costs was due to reduction marketing and sales
      expenses.
Loss
      from
      Operations. Loss from operations was $2,300,277 in fiscal 2005, compared to
      loss
      from operations of $3,039,574 in fiscal 2004. The $739,297 (24.32%) decrease
      in
      loss from operations was due to reduction in operating expenses of $859,704
      offset by reduced gross profit of $120,407.
The
      six months ended September 30, 2005 compared to the six months ended September
      30, 2004
Net
      Revenues. Net revenues were $221,251 for the six months ended September 30,
      2005, compared to net revenues of $365,079 for the six months ended September
      30, 2004. The $143,828 (39.40%) decrease in net revenues for the six months
      ended September 30, 2005 compared to the comparable period in 2004 was due
      to
      reduced sales efforts while maintaining existing customer base.
Cost
      of
      Goods Sold. Cost of goods sold were $211,593 for the six months ended September
      30, 2005, compared to cost of goods sold of $359,366 for the six months ended
      September 30, 2004. The $147,773 (41.12%) decrease in cost of goods sold for
      the
      six months ended September 30, 2005 compared to the comparable period in fiscal
      2004 was due to decreased sales volume.
Gross
      Profit. Gross profit was $9,081 for the six months ended September 30, 2005,
      compared to gross profit of $5,713 for the six months ended September 30, 2004.
      The $3,945 (69.05%) increase was primarily due to sale of higher margin
      product.
Total
      Operating Costs. Total operating costs were $160,212 for the six months ended
      September 30, 2005, compared to total operating costs of $1,090,208 for the
      six
      months ended September 30, 2004. The $929,996 (85.30%) decrease in total
      operating costs was due to reduction of across the board operating expenses
      and
      $443,528 reduction of obligation to former CEO through settlement
      agreement,
11
Loss
      from
      Operations. Loss from operations was $150,554 for the six months ended September
      30, 2005, compared to loss from operations of $1,084,495 for the six months
      ended September 30, 2004. The $933,941 (86.12%) decrease in loss from operations
      was due to increase in gross profit of $3,945 and decrease in operating expenses
      of $929,996.
Impact
      of Inflation
Inflation
      has not had a material effect on our results of operations.
Financial
      Liquidity and Capital Resources
In
      connection with the closing of the Offering, we received gross proceeds of
      $8,500,000. Of that amount we have used approximately $1,463,900, to repay
      outstanding indebtedness of EnviroSystems with a balance of approximately
      $673,000 indebtedness to be negotiated. A payment of $426,452 as settlement
      with
      the former CEO was also made. In addition, in connection with the Offering,
      we
      incurred expenses of $893,000 and we paid to selling agents in the offering
      a
      cash fee of $850,000.
We
      expect
      that the remaining proceeds from the Offering and cash flows from operations
      will be sufficient to pay our other existing obligations and obligations as
      they
      arise for the next twelve months. However, we may require additional working
      capital to expand our business. In the event we are not able to increase working
      capital, we may not be able to expand our business.
Off
      Balance Sheet Arrangements
Not
      applicable.
Critical
      Accounting Policies
Our
      significant accounting policies are more fully described in Note 2 to the
      audited financial statements of EnviroSystems. The preparation of financial
      statements in conformity with accounting principles generally accepted in the
      United States of America requires management to make estimates and assumptions
      that affect the reported amounts of assets, liabilities, revenues and expenses,
      and the related disclosures of contingent assets and liabilities. Actual results
      could differ from those estimates under different assumptions or
      conditions.
12
RISK
      FACTORS
Investing
      in our Common Stock involves a high degree of risk. Prospective investors should
      carefully consider the following risks and uncertainties and all other
      information contained or referred to in this Current Report on Form 8-K before
      investing in our Common Stock. The risks and uncertainties described below
      are
      not the only ones facing us. Additional risks and uncertainties that we are
      unaware of, or that we currently deem immaterial, also may become important
      factors that affect us. If any of the following risks occur, our business,
      financial condition or results of operations could be materially and adversely
      affected. In that case, the trading price of our Common Stock could decline,
      and
      you could lose all of your investment.
Risks
      Related To Our Business
We
      have not applied for patents on our proprietary technology and rely upon trade
      secret protection to protect our intellectual property; it may be difficult
      and
      costly to protect our proprietary rights and we may not be able to ensure their
      protection.
We
      have
      not applied for patent protection for our proprietary formulas and nano-emulsion
      technology and have decided instead to rely upon trade secret protection to
      protect such intellectual property. Trade secrets are difficult to protect
      and
      while we use reasonable efforts to protect our trade secrets, we cannot assure
      that our employees, consultants, contractors or scientific advisors will not,
      unintentionally or willfully, disclose our trade secrets to competitors or
      other
      third parties. In addition, courts outside the United States are sometimes
      less
      willing to protect trade secrets. Moreover, our competitors may independently
      develop equivalent knowledge, methods and know-how. If we are unable to defend
      our trade secrets from illegal use, or if our competitors develop equivalent
      knowledge, it could have a material adverse effect on our business.
Any
      infringement of our proprietary rights could result in significant litigation
      costs, and any failure to adequately protect our proprietary rights could result
      in our competitors' offering similar products, potentially resulting in loss of
      a competitive advantage and decreased revenue. Existing patent, copyright,
      trademark and trade secret laws afford only limited protection. In addition,
      the
      laws of some foreign countries do not protect our proprietary rights to the
      same
      extent as do the laws of the United States. Therefore, we may not be able to
      protect our proprietary rights against unauthorized third party use. Enforcing
      a
      claim that a third party illegally obtained and is using our trade secrets
      could
      be expensive and time consuming, and the outcome of such a claim is
      unpredictable. Litigation may be necessary in the future to enforce our
      intellectual property rights, to protect our trade secrets or to determine
      the
      validity and scope of the proprietary rights of others. This litigation could
      result in substantial costs and diversion of resources and could materially
      adversely affect our future operating results.
Potential
      claims alleging infringement of third party's intellectual property by us could
      harm our ability to compete and result in significant expense to us and loss
      of
      significant rights.
From
      time
      to time, third parties may assert patent, copyright, trademark and other
      intellectual property rights to technologies that are important to our business.
      Any claims, with or without merit, could be time-consuming, result in costly
      litigation, divert the efforts of our technical and management personnel, cause
      product shipment delays, disrupt our relationships with our customers or require
      us to enter into royalty or licensing agreements, any of which could have a
      material adverse effect upon our operating results. Royalty or licensing
      agreements, if required, may not be available on terms acceptable to us. If
      a
      claim against us is successful and we cannot obtain a license to the relevant
      technology on acceptable terms, license a substitute technology or redesign
      our
      products to avoid infringement, our business, financial condition and results
      of
      operations would be materially adversely affected.
To
      date we have had significant operating losses, and an accumulated deficit and
      have had limited revenues and do not expect to be profitable for at least the
      foreseeable future, and cannot predict when we might become profitable, if
      ever.
We
      have
      been operating at a loss each year since our inception, and we expect to
      continue to incur substantial losses for the foreseeable future. Net losses
      for
      the six months ended September 30, 2005 and fiscal years ending March 31, 2005
      and 2004 were $214,315, $2,382,487 and $3,286,376, respectively. Through
      September 30, 2005, we had an accumulated deficit of $14,666,201. We also have
      had limited revenues. Revenues for the six months ended September 30, 2005
      and
      fiscal years ending March 31, 2005 and 2004 were $221,251, $670,214 and
      $592,058, respectively. Further, we may not be able to generate significant
      revenues in the future. In addition, we expect to incur substantial operating
      expenses in order to fund the expansion of our business. As a result, we expect
      to continue to experience substantial negative cash flow for at least the
      foreseeable future and cannot predict when, or even if, we might become
      profitable.
13
We
      operate in a highly regulated industry, which may delay the introduction of
      new
      products, cause withdrawal of products from the market, and have other adverse
      consequences.
Pursuant
      to applicable environmental and safety laws and regulations, we are required
      to
      obtain and maintain certain governmental permits and approvals, including an
      EPA
      registration for our core product EcoTru RTU. Permits and approvals may be
      subject to revocation, modification or denial under certain circumstances.
      While
      we believe we are in compliance in all material respects with environmental
      laws, there can be no assurance that our operations or activities will not
      result in administrative or private actions, revocation of required permits
      or
      licenses, or fines, penalties or damages, which could have an adverse effect
      on
      us. In addition, we cannot predict the extent to which any legislation or
      regulation may affect the market for our products or our cost of doing business.
      See "The Company - Government Regulations."
Going
      concern opinions
The
      audited financial statements for Telecomm for the period ended September 30,
      2004 and the audited financial statements for EnviroSystems for the year ended
      March 31, 2005, each included an explanatory footnote that such financial
      statements were prepared assuming that Telecomm and EnviroSystems, respectively,
      would continue as a going concern.
We
      are dependent upon the net proceeds from the Offering to repay our debts, effect
      the Merger and fund our operations.
We
      have
      had limited revenues and as of March 31, 2005 we had incurred a cumulative
      net
      loss of $14,451,886 and as of September 30, 2005, we had less than $100,000
      in
      available funds. We are therefore, wholly dependent upon the net proceeds of
      the
      Offering to repay our debts, effect the Merger and have working capital to
      continue operations. In order to effect the Merger, approximately $2,900,000
      of
      the net proceeds of the Offering were allocated to repayment of certain of
      our
      debts. The remaining net proceeds have been allocated to funding the costs
      of
      our operations including, but not limited to, hiring marketing and sales
      employees and research and development.
Our
      management will have broad discretion in the application of the net proceeds
      of
      the Offering.
After
      the
      repayment of approximately $2,900,000 of our debt, our management will have
      broad discretion to adjust the application and allocation of the remaining
      net
      proceeds of the Offering in order to address changed circumstances and
      opportunities. As a result of the foregoing, our success will be substantially
      dependent upon the discretion and judgment of our management with respect to
      the
      application and allocation of the net proceeds of the Offering.
We
      do not have sufficient internal manufacturing capabilities to produce sufficient
      quantities of our product to meet current levels of demand and we rely upon
      a
      single supplier for our EcoTru
®
concentrate and one supplier for final processing and bottling of
      EcoTru
®
RTU making us vulnerable to supply disruption, which could harm our
      business.
We
have
      limited manufacturing capabilities and rely upon two outside suppliers: BioRad
      Industries produces our EcoTru
®
nano-emulsion concentrate for us, and Royal Chemical converts the concentrate
      into EcoTru
®
RTU. We
      believe that using just two suppliers to produce EcoTru
®
RTU
      helps us to protect our trade secrets by limiting the number of third parties
      that have access to our proprietary information. We do not have contracts with
      our suppliers and rely upon purchase orders for purchasing concentrate and
      EcoTru
®
RTU. If
      our suppliers are unable to provide us with product in quantities we require
      or
      meeting our specifications, or if they raise their prices we would be required
      to seek new suppliers. Although we maintain inventories of EcoTru
®
concentrate and EcoTru
®
RTU
      which
      we believe would be sufficient to provide us with the time to locate alternative
      suppliers, if we are required to find new suppliers, we cannot assure that
      we
      will find alternative suppliers who will supply us with EcoTru
®
concentrate and EcoTru
®
RTU
      on
      similar economic terms, which could increase our costs of goods sold and have
      an
      adverse effect on our sales and results of operations.
14
In
      addition, if our suppliers encounter problems during manufacturing as a result
      of, among other things, failure to follow our protocols and procedures, failure
      to comply with applicable regulations, or equipment malfunction, any of which
      could delay or impede their ability to meet our demand
,
      it
      could have a material adverse effect on our business. Further, any interruption
      or delay in the supply of EcoTru
®
concentrate or EcoTru
®
RTU, or
      our inability to obtain such goods from alternate sources at acceptable prices
      in a timely manner, could impair our ability to meet our customers demand and
      cause them to cancel orders or switch to competitive products, which would
      harm
      our business.
We
      rely upon a single supplier for parachlorometaxylenol (PCMX), the active
      ingredient in EcoTru
®
RTU.
We
      rely
      upon a single supplier, Clariant Corporation, to provide us with PCMX, which
      is
      the biocide used in our EcoTru
®
RTU
      products. Clariant Corporation is one of the largest suppliers of PCMX in the
      United States with some smaller sources in the United States. There are also
      some smaller foreign sources. If Clariant Corporation is unable to supply us
      with PCMX in the quantities and on the economic terms that we require, it could
      have a material adverse effect on our business. We have no written agreement
      with Clariant.
We
      lack sales, marketing and distribution capabilities and depend on third parties
      to market our product.
We
      do not
      have personnel dedicated solely to sales and marketing of our product and
      therefore we must rely upon third party distributors to market and sell our
      product. These third parties may not be able to market our product successfully
      or may not devote the time and resources to marketing our product that we
      require. We also rely upon third party carriers to distribute and deliver our
      product. As such, our deliveries are to a certain extent out of our control.
      If
      we choose to develop our own sales, marketing or distribution capabilities,
      we
      will need to build a marketing and sales force with technical expertise and
      with
      supporting distribution capabilities, which will require a substantial amount
      of
      management and financial resources that may not be available. If we or a third
      party are not able to adequately sell and distribute our product, our business
      will be materially harmed.
We
      may face product liability for the products we manufacture and
      sell.
Manufacturing,
      marketing and sale of our products may subject us to product liability claims.
      We currently have insurance coverage against product liability risks up to
      an
      aggregate annual limit of
approximately
      $1,000,000
.
However,
      such insurance coverage may not be adequate to satisfy any liability that may
      arise. Regardless of merit or eventual outcome, product liability claims may
      result in decreased demand for a product, injury to our reputation and loss
      of
      revenues. As a result, regardless of whether we are insured, a product liability
      claim or product recall may result in losses that could be material to
      us.
We
      are dependent upon sales of a single product,
EcoTru
®
RTU to the healthcare industry for most of our sales. If our
      EcoTru
®
RTU product fails to gain market acceptance our business will suffer.
EcoTru
®
RTU is
      currently our only product and sales of this product to customers in the
      healthcare industry account for substantially all of our revenue. We cannot
      provide assurance that we will be successful in convincing additional customers
      in the healthcare market to use our product, or if we can successfully branch
      out into other markets. Certain competitors have products that are established
      in our target markets, and we may not be able to convince users of those
      products to switch to EcoTru
®
RTU.
      Healthcare professionals may be hesitant to utilize our product given our
      product pricing structure and the fact that we are a relatively small company.
      If our product fails to gain additional acceptance in the healthcare industry,
      our business will be harmed.
All
      of our operations are conducted at a single location. Any disruption at our
      facility could adversely affect our operations and increase our expenses.
All
      of
      our operations are conducted at a single location in Santa Clara, California.
      We
      take precautions to safeguard our facility, including insurance, health and
      safety protocols. However, a natural disaster, such as a fire, flood or
      earthquake, could cause substantial delays in our operations, damage or destroy
      our
books
      and
      records, computer systems, or inventory, and cause us to incur additional
      expenses. The insurance we maintain against fires, floods, earthquakes and
      other
      natural disasters may not be adequate to cover our losses in any particular
      case.
15
If
      we are unable to establish sufficient sales and marketing capabilities or enter
      into and maintain appropriate arrangements with third parties to sell, market
      and distribute our product, our business will be harmed.
We
      have
      limited experience as a company in the sale, marketing and distribution of
      EcoTru
®
RTU. We
      depend upon third parties to sell our product both in the United States and
      internationally. To achieve commercial success, we must develop sales and
      marketing capabilities and enter into and maintain successful arrangements
      with
      others to sell, market and distribute our products.
If
      we are
      unable to establish and maintain adequate sales, marketing and distribution
      capabilities, independently or with others, we may not be able to generate
      product revenue and may not become profitable. If our current or future partners
      do not perform adequately, or we are unable to locate or retain partners, as
      needed, in particular geographic areas or in particular markets, our ability
      to
      achieve our expected revenue growth rate will be harmed.
We
      face competition in our markets from a number of large and small companies,
      some
      of which have greater financial, research and development, production and other
      resources than we have.
Our
      products face competition from products which may be used as an alternative
      or
      substitute therefore. In addition we compete with several large companies in
      the
      disinfectant business. To the extent these companies, or new entrants into
      the
      market, offer comparable disinfectant products at lower prices, our business
      could be adversely affected. Our competitive position is based principally
      on
      our nano-emulsion technology, product quality and product safety. Our
      competitors can be expected to continue to improve the design and performance
      of
      their products and to introduce new products with competitive performance
      characteristics. There can be no assurance that we will have sufficient
      resources to maintain our current competitive position. See "Description of
      Business - Competition."
We
      have not made certain lease payments due on our lease for our premises located
      at 1900 Wyatt Drive.
We
      have
      not made certain payments on our lease for our premises located at 1900 Wyatt
      Drive. As of December 31, 2005, we owed our landlord approximately $10,238
      in
      back lease payments. Although our landlord has not, as of the date of this
      Current Report on Form 8-K, commenced legal proceedings against us to recover
      past due lease payments, if such an action is commenced and we are not able
      to
      settle such lawsuit or prevail in such litigation, it could have a material
      adverse impact on our operations.
We
      may not be able to manage our growth effectively, which could adversely affect
      our operations and financial performance.
The
      ability to manage and operate our business as we execute our development and
      growth strategy will require effective planning. Significant rapid growth could
      strain our internal resources, and other problems that could adversely affect
      our financial performance. We expect that our efforts to grow will place a
      significant strain on our personnel, management systems, infrastructure and
      other resources. Our ability to manage future growth effectively will also
      require us to successfully attract, train, motivate, retain and manage new
      employees and continue to update and improve our operational, financial and
      management controls and procedures. If we do not manage our growth effectively,
      our operations could be adversely affected, resulting in slower growth and
      a
      failure to achieve or sustain profitability.
16
Our
      future success depends on retaining our existing key employees and hiring and
      assimilating new key employees. The loss of key employees or the inability
      to
      attract new key employees could limit our ability to execute our growth
      strategy, resulting in lost sales and a slower rate of
      growth.
Our
      success depends in part on our ability to retain key employees including our
      executive officers. Following the Merger we have only entered into an employment
      agreement with one of our executives. Also, we do not currently carry "key
      man"
      insurance on our executives but intend to obtain it in the near future. It
      would be difficult for us to replace any one of these individuals. In addition,
      as we grow we may need to hire additional key personnel. We may not be able
      to
      identify and attract high quality employees or successfully assimilate new
      employees into our existing management structure.
We
      cannot predict the impact of our proposed marketing efforts. If these efforts
      are unsuccessful we may not earn enough revenue to become
      profitable.
Our
      success will depend on investing in marketing resources. Our proposed business
      plan includes hiring marketing personnel and a dedicated sales force and
      developing a comprehensive marketing plan for our product. Such a marketing
      plan
      may include attending trade shows and making private demonstrations, advertising
      and promotional materials, advertising campaigns in both print and broadcast
      media, and advertising/promotion-related operations.  We cannot give any
      assurance that these marketing efforts will be successful. If they are not,
      revenues may be insufficient to cover our fixed costs and we may not become
      profitable.
We
      expect to incur additional losses in the future.
We
      expect
      to incur significant operating losses in the near future. We intend to use
      a
      portion of the net proceeds from the Offering for sales and marketing, research
      and development and operating expenses. We will continue to incur significant
      expenses. We cannot predict when, if ever, we will operate
      profitably.
We
      might require significant additional capital to support business growth, and
      this capital might not be available.
We
        believe that the net proceeds from the Offering, after repayment of our debt
        obligations, will satisfy our current capital needs for approximately eighteen
        (18) to twenty-four (24) months. However, if, among other reasons, our revenue
        and/or expense estimates prove inaccurate, we will be required to raise
        substantial additional capital. Such capital might be raised through public
        or
        private financings, as well as borrowings and other sources. We do not currently
        have any commitments or immediate plans with respect to acquisition financing,
        and there can be no assurance that additional or sufficient financing will
        be
        available, or, if available, that it will be available on acceptable terms.
        The
        failure to obtain required financing by us when needed could result in us
        being
        required to substantially scale back our then operations.
Relationship
        with Principal Shareholders
MV
        Nanotech Corp. ("MV Nanotech") beneficially owns in the aggregate approximately
        8.6% (1,375,961 shares) and holders of EnviroSystems preferred stock
        beneficially own approximately 40% (6,400,000 shares) of the outstanding
        shares
        of our Common Stock. As a result, such persons will have substantial influence
        in all matters requiring a vote of our stockholders. This concentration of
        ownership could also have the effect of delaying or preventing a change in
        our
        control or discouraging a potential acquirer from attempting to obtain control
        of us, which in turn could have a material adverse effect on the market price
        of
        the Common Stock or prevent our stockholders from realizing a premium over
        the
        market price for their shares of Common Stock. In addition, MV Nanotech,
        has
        made $850,000 principal amount of bridge loans to EnviroSystems, all of such
        funds, plus interest were repaid from the net proceeds of the Offering.
Our
      business may be affected by factors outside of our
      control.
Our
      ability to increase sales, and to profitably distribute and sell our products,
      is subject to a number of risks, including changes in our business relationships
      with our principal distributors, competitive risks such as the entrance of
      additional competitors into our markets, pricing and technological competition,
      risks associated with the development and marketing of new products in order
      to
      remain competitive and risks associated with changes in demand for disinfectants
      which can be affected by economic conditions, health care reform and government
      regulation.
17
We
      may incur increased legal, accounting and other expenses as a result of having
      to assimilate EnviroSystems into our business.
Following
      the Merger, we will incur will incur significant legal, accounting and other
      expenses in connection with bringing EnviroSystems in compliance with rules
      and
      regulations applicable to public companies that EnviroSystems did not incur
      as a
      private company prior to the Merger. In addition, if our Common Stock is
      eventually listed on Nasdaq or another major exchange, we will incur further
      additional listing and compliance expenses. We expect these new rules and
      regulations to increase our legal and financial compliance costs and to make
      some activities more time-consuming and costly. In addition, we will incur
      additional costs associated with our public company reporting requirements.
      We
      also expect these new rules and regulations to make it more difficult and more
      expensive for us to obtain director and officer liability insurance and we
      may
      be required to accept reduced policy limits and coverage or incur substantially
      higher costs to obtain the same or similar coverage. As a result, it may be
      more
      difficult for us to attract and retain qualified persons to serve on our board
      of directors or as executive officers.
Risks
      Related To Our Common Stock
The
      price of our Common Stock may fluctuate significantly, which could lead to
      losses for stockholders.
The
      Stock
      of public companies can experience extreme price and volume fluctuations, which
      can be unrelated or out of proportion to the operating performance of such
      companies. We expect our stock price will be subject to similar volatility.
      Any
      negative change in the public's perception of the prospects of our company or
      companies in our market could also depress our stock price, regardless of our
      actual results. Factors affecting the trading price of our common stock may
      include:
Ø
variations
                in our operating results;
Ø
announcements
                of technological innovations, new products or product enhancements,
                strategic alliances or significant agreements by us or by our competitors;
Ø
recruitment
                or departure of key personnel;
Ø
litigation,
                legislation, regulation or technological developments that adversely
                affect our business;
Ø
changes
                in the estimates of our operating results or changes in recommendations
                by
                any securities analyst that elect to follow our common stock; and
Ø
market
                conditions in our industry, the industries of our customers and the
                economy as a whole.
If
      securities analysts do not publish research or reports about our business or
      if
      they downgrade our stock, the price of our stock could
      decline.
The
      trading market for our Common Stock may be affected by research and reports
      that
      industry or financial analysts may in the future publish about us or our
      business. We will not control these analysts. There are many large,
      well-established publicly traded companies active in our industry and market,
      which will mean it will be less likely that we receive widespread, if any,
      analyst coverage. Furthermore, if one or more of the analysts who in the future
      elect to cover us, downgrade our stock, our stock price would likely decline
      rapidly. If one or more of these analysts cease coverage of our Company, we
      could lose visibility in the market, which in turn could cause our stock price
      to decline.
18
We
      have no intention to pay dividends on our Common Stock.
For
      the
      foreseeable future, we intend to retain any remaining future earnings, if any,
      to finance our operations and do not anticipate paying any cash dividends with
      respect to our Common Stock. As a result, investors should not expect to receive
      dividends on any of the Shares purchased by them, for a long period of time,
      if
      ever.
Our
      Common Stock is quoted on the OTC Bulletin Board and there may be a limited
      trading market for our Common Stock.
Our
      Common Stock is quoted on the OTC Bulletin Board. There is extremely limited
      and
      sporadic trading of our Common Stock, and no assurance can be given, when,
      if
      ever, an active trading market will develop or, if developed, that it will
      be
      sustained. As a result, investors in our Common Stock may be unable to sell
      their shares.
If
      the registration statement that we intend to file is declared effective, sales
      of shares of our Common Stock on the open market could reduce the market price
      of our Common Stock.
Our
      Common Stock has extremely limited and sporadic trading. Sales of shares of
      the
      Common Stock in the open market could reduce any market price of the Common
      Stock, if a market should develop. An absence of a market for the Common Stock
      would make it more difficult for the Company to raise additional funds through
      an equity financing. Additionally, if the registration statement for the Shares
      should be filed and become effective, the number of shares of Common Stock
      eligible for public sale will increase, which could decrease any such market
      price, if a market were to develop for the shares.
Future
      sales of shares of our common stock may decrease the price for such
      shares.
When
      the
      Escrow and Lock-Up Agreement expires on the Common Stock issued to former
      preferred stockholders of EnviroSystems in connection with the Merger, such
      shares will be eligible for resale on the open market, many without any
      restrictions as to size or frequency of such sales. Actual sales, or the
      prospect of sales by our shareholders, may have a negative effect on the market
      price of the shares of our common stock.
We
      also
      intend to register certain shares of our common stock that are subject to
      outstanding warrants and stock options, or reserved for issuance under our
      stock
      option plan. Once such shares are registered, they can be freely sold in the
      public market upon exercise of the warrants or options. If any of our
      shareholders either individually or in the aggregate cause a large number of
      securities to be sold in the public market, or if the market perceives that
      these holders intend to sell a large number of securities, such sales or
      anticipated sales could result in a substantial reduction in the trading price
      of shares of our common stock and could also impede our ability to raise future
      capital. Sales of a substantial number of shares of our common stock in the
      public markets, or the perception that these sales may occur, could cause the
      market price of our common stock to decline and could materially impair our
      ability to raise capital through the sale of additional equity securities.
      In
      addition to the 16,000,000
shares
      of
      our Common Stock actually issued and outstanding, there will be another
      8,337,500 shares of common stock reserved for future issuance as
      follows:
(i)
1,300,000
                shares reserved for issuance under our Amended 2004 Equity Compensation
                Plan;
(ii)
2,400,000
                shares reserved for issuance under our 2006 Incentive Stock Plan;
                and
(iii)
4,637,500
                shares issuable upon exercise of outstanding stock purchase
                warrants.
Our
      Common Stock may be subject to Penny Stock Rules, which could affect
      trading.
Broker-dealer
      practices in connection with transactions in "penny stocks" are regulated by
      certain rules adopted by the SEC. Penny stocks generally are equity securities
      with a price of less than $5.00 (other than securities registered on certain
      national securities exchanges or quoted on the NASDAQ Stock Market if current
      price and volume information with respect to transactions in such securities
      is
      provided by the exchange or system). The rules require that a broker-dealer,
      prior to a transaction in a penny stock not otherwise exempt from the rules,
      deliver a standardized risk disclosure document that provides information about
      penny stocks and the risks in the penny stock market. The broker-dealer also
      must provide the customer with current bid and offer quotations for the penny
      stock, the compensation of the broker-dealer and its salesperson in connection
      with the transaction and monthly account statements showing the market value
      of
      each penny stock held in the customer's account. In addition, the rules
      generally require that prior to a transaction in a penny stock the broker-dealer
      must make a special written determination that the penny stock is a suitable
      investment for the purchaser and receive the purchaser's written agreement to
      the transaction. These disclosure requirements may have the effect of reducing
      the liquidity of penny stocks. If our securities become subject to the penny
      stock rules, investors in our Common Stock may find it more difficult to sell
      their Telecomm securities.
19
CAUTIONARY
      NOTICE REGARDING FORWARD-LOOKING STATEMENTS
This
      Current Report on Form 8-K contains "forward-looking statements" that include
      information relating to future events, future financial performance, strategies,
      expectations, competitive environment, regulation and availability of resources.
      These forward-looking statements include, without limitation, statements
      regarding: proposed new services; our expectations concerning litigation,
      regulatory developments or other matters; statements concerning projections,
      predictions, expectations, estimates or forecasts for our business, financial
      and operating results and future economic performance; statements of
      management's goals and objectives; and other similar expressions concerning
      matters that are not historical facts. Words such as "may," "will," "should,"
"could," "would," "predicts," "potential," "continue," "expects," "anticipates,"
"future," "intends," "plans," "believes" and "estimates," and similar
      expressions, as well as statements in future tense, identify forward-looking
      statements.
Forward-looking
      statements should not be read as a guarantee of future performance or results,
      and will not necessarily be accurate indications of the times at, or by which,
      that performance or those results will be achieved. Forward-looking statements
      are based on information available at the time they are made and/or management's
      good faith belief as of that time with respect to future events, and are subject
      to risks and uncertainties that could cause actual performance or results to
      differ materially from those expressed in or suggested by the forward-looking
      statements. Important factors that could cause these differences include, but
      are not limited to other factors discussed under the headings "Risk Factors" and
"Description of Business."
Forward-looking
      statements speak only as of the date they are made. You should not put undue
      reliance on any forward-looking statements. We assume no obligation to update
      forward-looking statements to reflect actual results, changes in assumptions
      or
      changes in other factors affecting forward-looking information, except to the
      extent required by applicable securities laws. If we do update one or more
      forward-looking statements, no inference should be drawn that we will make
      additional updates with respect to those or other forward-looking
      statements.
20
DESCRIPTION
      OF PROPERTY
Facilities
EnviroSystems
      maintains its principal executive offices and space for limited manufacturing
      operations and finished goods warehousing in approximately 5,400 square feet
      of
      leased space at 1900 Wyatt Drive, Suite 15, Santa Clara, California. Rent is
      $5,400 per month and monthly common charges are $810. The term of the lease
      expired on October 31, 2005. EnviroSystems has an agreement with the landlord
      to
      occupy and pay rent on a month-to-month basis until it moves into more suitable
      premises. EnviroSystems also uses a chemical warehouse facility located in
      Gilroy, California, which we use for storage of concentrate goods inventory.
      Rent varies based on usage and has recently been approximately $450 per month
      on
      a month to month basis. Telecomm will remain in its Mooresville North Carolina
      principal executive office temporarily while it locates more suitable premises
      in or around Charlotte, North Carolina.
We
      believe that our existing facilities are not adequate for the conduct of our
      business as currently configured and as currently contemplated to be conducted
      and therefore, as soon as possible, we intend to look for additional warehouse
      and office.
21
Security
      Ownership of Certain Beneficial Owners and Management
The
      following table sets forth certain information as of the date immediately
      following the closing of the Merger and the Offering regarding the beneficial
      ownership of our Common Stock by (i) each person who, to our knowledge,
      beneficially owns more than 5% of our Common Stock; (ii) each of our directors
      and executive officers; and (iii) all of our executive officers and directors
      as
      a group:
Name
                and address of Beneficial Owner
Amount
                (1)
Percent
of
                Class
Directors
                and Named Executive Officers (2):
J.
                Lloyd Breedlove (3)
160,892
1.01
%
Steve
                Hoelscher
0
*
Charles
                Cottrell
0
*
Jeffrey
                Connally
0
*
Stephen
                A. Schneider (4)
608,922
3.81
%
All
                directors and named executive officers as a group (5 persons)
769,814
4.81
%
Other
                5% or Greater Beneficial Owners
The
                Ferguson Living Trust UDT 8/13/74 (5)
3,089,739
19.31
%
MV
                Nanotech, Inc.(6)
1,375,961
8.60
%
*
      Less
      than 1%.
(1)
Beneficial
                ownership is calculated based on 16,000,000 shares of our Common
                Stock
                issued and outstanding. Beneficial ownership is determined in accordance
                with Rule 13d-3 of the Securities and Exchange Commission. The number
                of
                shares beneficially owned by a person includes shares of common stock
                subject to options or warrants held by that person that are currently
                exercisable or exercisable within 60 days following the Closing of
                the
                Offering and the Merger. The shares issuable pursuant to those options
                or
                warrants are deemed outstanding for computing the percentage ownership
                of
                the person holding these options and warrants but are not deemed
                outstanding for the purposes of computing the percentage ownership
                of any
                other person. The persons and entities named in the table have sole
                voting
                and sole investment power with respect to the shares set forth opposite
                the stockholder's name, subject to community property laws, where
                applicable.
(2)
The
                address for the directors and named executive officers is c/o Telecomm
                Sales Network, Inc., 561-D River Highway, North Carolina
                28117-6830.
(3)
Includes
                60,892 shares of Telecomm Common Stock that Mr. Breedlove will receive
                in
                the Merger, assuming all of the outstanding options and warrants
                to
                purchase EnviroSystems preferred stock are
                exercised.
(4)
Includes
                608,922 shares of Telecomm Common Stock that Mr. Schneider will receive
                in
                the Merger, assuming all of the outstanding options and warrants
                to
                purchase EnviroSystems preferred stock are exercised. Mr. Schneider
                holds
                options to purchase up to 320,000 shares of EnviroSystems preferred
                stock.
(5)
Represents
                the minim number of shares of Common Stock that The Ferguson Living
                Trust
                UDT 8/13/74 (the "Trust") will receive in connection with the Merger. The
                Trust held 1,461,117 shares of EnviroSystems preferred stock and
                warrants
                to purchase up to 162,600 shares of EnviroSystems preferred stock.
                If none
                of the options and warrants to purchase EnviroSystems preferred stock
                are
                exercised, then the Trust's 1,461,117 shares of EnviroSystems preferred
                stock will be converted into 3,704,200 Shares of Telecomm Common
                Stock and
                its percentage ownership would be
                23.15.
(6)
Does
                not include (i) four year warrants to purchase up to 3,923,029 shares
                of
                Common Stock at an exercise price of $2.50 per share, which become
                exercisable 90 days after the Closing of the Merger, (ii) 1,854,039
                shares
                of Common Stock and warrants to purchase 76,971 shares of Common
                Stock
                transferred to noteholders of MV Nanotech as described below. MV
                Nanotech
                purchased 3,230,000 shares of Common Stock and warrants to purchase
                4,000,000 shares of Common Stock from the Company in October 2005.
                In
                consideration for the cancellation of an aggregate of $1,430,000,
                of
                indebtedness and other obligations owed to noteholders and other
                creditors
                of MV Nanotech, MV Nanotech issued to such note holders and creditors
                1,854,039 shares of Common Stock and warrants to purchase 76,971
                shares of
                Common Stock. In November 2005, MV Nanotech transferred 100,000 shares
                of
                Common Stock to Mr. Breedlove in partial consideration of Mr. Breedlove's
                agreement to become the Company's Chief Executive Officer and President.
                MV Nanotech disclaims beneficial ownership of the noteholders' securities
                and the 100,000 shares of Common Stock transferred to Mr. Breedlove.
                MV
                Nanotech is beneficially owned by Robert Hersch.
22
DIRECTORS
      AND EXECUTIVE OFFICERS
The
      following table sets forth the name, age and position of each of Telecomm's and
      EnviroSystems' directors, executive officers and significant employees at the
      Closing.
Name
Age
Position(s)
J.
                Lloyd Breedlove
58
President,
                Chief Executive Officer, Chairman
Steve
                Hoelscher
46
Chief
                Financial Officer, Secretary, Director
Charles
                Cottrell
62
Director
Jeffrey
                Connally
58
Director
Stephen
                A. Schneider
58
Director
J.
      Lloyd Breedlove
J.
      Lloyd
      Breedlove was appointed President and Chief Executive Officer of Telecomm and
      EnviroSystems and Chairman of Telecomm's and EnviroSystems' Board of Directors
      on January 10, 2006. Since 2004, Mr. Breedlove has served as a member of the
      Board of Directors of EnviroSystems. From June 2003 to present, he has been
      President and Chief Executive Officer of Imalux Corporation a corporation in
      the
      medical imaging equipment industry. Prior thereto, from December 2000 to May
      2003 he was the President and Chief Executive Officer of KIVALO a healthcare
      technology company with emphasis on disease management. From 1991to 1999, Mr.
      Breedlove served as the Executive Vice President and Group President at Steris
      Corporation, a developer and manufacturer of infection and contamination control
      products. From 1989 to 1991, he was the President and Chief Executive Officer
      of
      CRI, a developer of a vascular surgery product and prior thereto he was the
      Director of Sales and held other sales and management positions at Mallinckrodt,
      Inc. a diverse company focusing on supplying products to the healthcare
      industry. Mr. Breedlove has a wide range of experience working with companies
      in
      various stages of development from start-ups to companies with global
      operations. During Mr. Breedlove's tenure at Steris, annual sales increased from
      $13 million to greater than $820 million. He has served on numerous advisory
      and
      corporate boards, with an emphasis on establishing healthcare businesses. Mr.
      Breedlove received an MBA from Western Carolina University. Serving in Viet
      Nam,
      he was awarded the Bronze Star, Bronze Star with Oak Leaf Cluster, Vietnamese
      Cross of Gallantry, Air Medal and Purple Heart.
Steve
      Hoelscher
Mr.
      Hoelscher was appointed Telecomm's and EnviroSystems' Chief Financial Officer,
      Secretary and a member of each of Telecomm's and EnviroSystems' Board of
      Directors on January 10, 2006. Mr. Hoelscher is a Certified Public Accountant
      and has 24 years of accounting and auditing experience. Mr. Hoelscher has been
      the CFO for Mastodon Ventures, Inc., (an affiliate of MV Nanotech) a financial
      consulting business in Austin, Texas, from 2000 to the present. MV Nanotech
      has
      made loans to us in the aggregate amount of $850,000, which amount (plus accrued
      but unpaid interest) will be repaid out of the net proceeds of the Offering.
      Mr.
      Hoelscher is also the Chief Financial Officer of the EnXnet, Inc, a Tulsa,
      Oklahoma based publicly traded technology company since May 21, 2004 and has
      been providing accounting consulting services to the EnXnet since January 2001.
      Mr. Hoelscher will continue to provide limited consultation to Mastodon and
      will
      continue to consult with EnXnet but will devote such time as necessary to the
      performance of his duties to us. Mr. Hoelscher was the Controller for Aperian,
      Inc. an Austin, Texas based publicly traded company from 1997 to 2000. Prior
      to
      joining Aperian, he was the controller for Protos Software Company in
      Georgetown, Texas from 1996 to 1997. Mr. Hoelscher was Audit Manager with Brown,
      Graham and Company, P.C. from 1989 to 1996. Mr. Hoelscher received a Bachelor
      of
      Business Administration from West Texas A&M University (formerly West Texas
      State University) in Canyon, Texas in 1981.
Charles
      Cottrell
Charles
      Cottrell was appointed as a member of Telecomm's and EnviroSystems' Board of
      Directors on January 10, 2006. Since 2001, Mr. Cottrell has served as a
      principal of Mountain Green LLC, a manufacturer and distributor of natural
      cleaning products, located in Scottsdale, Arizona. Prior thereto, from 1979
      to
      1999, he served as the Chairman and Chief Executive Officer of Cottrell Limited,
      an Englewood, Colorado based company providing infection control products and
      services to the national healthcare market. Mr. Cottrell has over 30 years
      experience in bringing new products to market and developing brands. Mr.
      Cottrell received a Bachelor of Science from the University of Pittsburgh,
      and
      attended the Wharton School of Business' Entrepreneurial Studies and Growth
      Programs and the Harvard University Business School's Business
      Owners/President's Program.
23
Jeffrey
      Connally
Jeffrey
      Connally was appointed as a member of Telecomm's and EnviroSystems' Board of
      Directors on January 10, 2006. Mr. Connally also serves a director of CM IT
      Solutions, Inc. Mr. Connally is a partner in Gener8biz, Inc., a sales and
      marketing consulting firm which he founded in May of 2003. Mr. Connally leads
      strategic engagements for Gener8biz' high-tech, healthcare and financial
      services clientele. Prior thereto, in 1998 Mr. Connally was a founder of UpLink
      Corporation where he provided sales and marketing leadership and created the
      marketing, business development, sales, installation and support infrastructure
      for UpLink's wireless/GPS-based technology. Mr. Connally has also held executive
      positions with several startup technology companies where he was responsible
      for
      establishing the sales process and channel strategy. Mr. Connally received
      a
      Bachelors in Business Administration from St. Michaels College in 1969 and
      an
      MBA from the University of Texas in 1993.
Stephen
      A. Schneider
Stephen
      A. Schneider was appointed as a member of Telecomm's and EnviroSystems' Board of
      Directors on January 10, 2006. From November 2004 until the closing of the
      Offering and the Merger, Mr. Schneider served as the Interim President and
      Chief
      Executive Officer of EnviroSystems. Mr. Schneider is co-founder and a former
      director of Alexza Pharmaceuticals, Inc., (formerly Alexza Molecular Delivery
      Corporation) ("Alexza"), a specialty pharmaceutical company developing drug
      products delivered by inhalation using a proprietary nano/micro-particle
      vaporization technology. Alexza was formed in December 2001, through the merger
      of Alexza Corporation and Molecular Delivery Corporation ("MDC"), a company
      engaged in developing new pharmaceutical delivery methods, founded in 1997
      by
      Mr. Schneider. From 2001 to 2003, Mr. Schneider served as President and Chief
      Operating Officer of Alexza. Prior thereto, from 1997 to 2001, he served as
      the
      President and Chief Executive Officer of MDC. From January to March 2004, Mr.
      Schneider served as a consultant to the founder and President of TiNi Alloy
      Company. Mr. Schneider has 20 years experience in the pharmaceutical, medical
      device and medical service industries and has developed a number of early stage,
      start-up companies. Mr. Schneider received a Bachelor of Arts from Earlham
      College, a Master of Arts from the University of Houston, a JD from Golden
      Gate
      University of Law, and attended the Stanford University Graduate School of
      Business' Stanford Leadership Academy, Executive Program for Growing Companies
      and Finance and Accounting for Non-Finance Executive programs.
Election
      of Directors and Officers
Holders
      of our Common Stock are entitled to one (1) vote for each share held on all
      matters submitted to a vote of the stockholders, including the election of
      directors. Cumulative voting with respect to the election of directors is not
      permitted by our Articles of Incorporation.
The
      Board
      of Directors shall be elected at the annual meeting of the shareholders or
      at a
      special meeting called for that purpose. Each director shall hold office until
      the next annual meeting of shareholders and until the director's successor is
      elected and qualified. If a vacancy occurs on the Board of Directors, including
      a vacancy resulting from an increase in the number of directors, then the
      shareholders may fill the vacancy at the next annual meeting or at a special
      meeting called for the purpose, or the Board of Directors may fill such
      vacancy.
Compensation
      of Directors
It
      is
      intended that each member of our board of directors who is not an employee
      of
      the Company (a "non-employee director") will receive an annual retainer in cash
      and/or shares of Common Stock as determined by our board of directors and all
      directors will be reimbursed for costs and expenses related to attendance at
      meetings of the board of directors.
Our
        employee directors will not receive any additional compensation for serving
        on
        our board of directors or any committee of our board of directors, and our
        non-employee directors will not receive any compensation from us for their
        roles
        as directors other than the retainer, attendance fees and stock option grants
        described above.
24
EXECUTIVE
      COMPENSATION
We
      have
      not paid a salary to our former or current officers. Effective as of the Closing
      of the Offering and the Merger, we will commence paying salaries to our officers
      as described below.
Employment
      Agreements
We
      have
      entered into an employment agreement with J. Lloyd Breedlove, pursuant to which
      Mr. Breedlove has agreed to serve as our President, Chief Executive Officer
      and
      Chairman of the Board, effective January 10, 2006. The agreement has a 3 year
      term, commencing as of the Closing of the Offering and the Merger. The agreement
      provides for a base salary of $225,000 during the first year of its term and
      $250,000 during each of the second and third years of its term. In addition,
      upon the Closing of the Merger, we paid to Mr. Breedlove a signing bonus of
      $50,000 and have agreed to grant to Mr. Breedlove 4 year options to purchase
      up
      to 750,000 shares of Common Stock at an exercise price of $2.50 per share,
      vesting over a three year period in equal installments. Under the agreement,
      we
      have the right to terminate Mr. Breedlove without cause upon 12 months prior
      written notice. If Mr. Breedlove is terminated without cause by us, he will
      be
      entitled to receive a lump sum payment equal to the lesser of 12 months of
      the
      base salary then in effect or the balance of this base salary due under the
      agreement for the remainder of the term of the agreement. In addition, Mr.
      Breedlove is entitled to participate in all our benefit programs in effect
      during the term of the agreement and we have agreed to provide Mr. Breedlove
      with a life insurance policy in the face amount of $2,000,000, the beneficiary
      of which to be determined by Mr. Breedlove.
Other
      Compensation
In
      addition to the employment agreement with J. Lloyd Breedlove, we intend to
      pay
      Mr. Hoelscher $80,000 per year in consideration for Mr. Hoelscher serving as
      our
      Chief Financial Officer. We have not entered into an employment agreement with
      Mr. Hoelscher.
We
      may
      also issue to our officers and directors stock options on terms and conditions
      to be determined by our Board of Directors or designated Board
      Committee.
25
CERTAIN
      RELATIONSHIPS AND RELATED TRANSACTIONS
EnviroSystems
      Transactions
In
      September 2005, EnviroSystems entered into a Settlement and Release Agreement
      with Diana Hoffman ("Hoffman"), its former President, Chief Executive Officer
      and Chairman of the Board and at that time a holder of 850,000 shares (83.19%)
      of EnviroSystems' common stock. Pursuant to the terms of the agreement,
      EnviroSystems paid to Hoffman $312,314.68 as payment of back pay with interest
      and reimbursement of certain expenses, which such amount was paid out of the
      proceeds of the Offering. In connection therewith, in September 2005, MV
      Nanotech Corp. entered into a Stock Purchase Agreement with Hoffman, pursuant
      to
      which MV Nanotech purchased 850,000 shares of EnviroSystems common stock from
      Hoffman for an aggregate purchase price of $85,000.
In
      November 2005, The Ferguson Living Trust UTD 8/13/74 (the "Trust"), the then
      owner of 1,461,117 shares of EnviroSystems preferred stock, which represented
      approximately 57.89% of the issued and outstanding EnviroSystems preferred
      stock, and MV Nanotech Corp. ("MV Nanotech"), the then owner of 850,000 shares
      of EnviroSystems common stock, which represented approximately 83.19% of the
      issued and outstanding EnviroSystems common stock, entered into a Voting and
      Support Agreement, pursuant to which each of the Trust and MV Nanotech agreed
      to
      vote all of their respective shares of EnviroSystems common stock and
      EnviroSystems preferred stock in favor of the Merger Agreement and the
      Merger.
Telecomm
      Transactions
In
      October 2005, MV Nanotech purchased from Telecomm 3,230,000 shares of Common
      Stock and warrants to purchase up to 4,000,000 shares of Common Stock for an
      aggregate purchase price of $80,750. Half of the purchase price was paid in
      cash
      and the remaining $40,375 was paid pursuant to a promissory note made by MV
      Nanotech in favor of Telecomm, which is payable on or before December 31, 2005.
      From May through November 2005, MV Nanotech, made bridge loans to EnviroSystems
      in the aggregate principal amount of $850,000 which were used to fund
      EnviroSystems' operations. All of such aggregate principal amount of bridge
      loans (plus accrued but unpaid interest) will be repaid out of the net proceeds
      of the Offering.
Immediately
      prior to the Closing of the Merger and the Offering, pursuant to two Repurchase
      Agreements, each dated as of October 31, 2005, Telecomm repurchased from each
      of
      William Sarine and Tony Summerlin, Telecomm's former officers and directors,
      1,000,000 shares each of Telecomm Common Stock for a price of $12,500 ($25,000
      for all 2,000,000 shares).
In
      connection with his employment agreement, MV Nanotech transferred to Lloyd
      Breedlove 100,000 shares of Telecomm Common Stock.
DESCRIPTION
      OF SECURITIES
Our
      total
      authorized capital stock consists of 100,000,000 shares of Common Stock, par
      value $0.0001 per share and 5,000,000 shares of preferred stock, par value
      $0.0001 per share. After the Closing, 16,000,000 shares of Common Stock were
      issued and outstanding. There are no shares of preferred stock issued or
      outstanding.
The
      following description of our capital stock does not purport to be complete
      and
      is subject to and qualified by our Certificate of Incorporation and By-laws,
      and
      by the provisions of applicable Delaware law.
Common
      Stock
Holders
      of our Common Stock are entitled to receive dividends out of assets legally
      available therefore at such times and in such amounts as the Board of Directors
      from time to time may determine. Holders of our Common Stock are entitled to
      one
      (1) vote for each share held on all matters submitted to a vote of the
      stockholders. Cumulative voting with respect to the election of directors is
      not
      permitted by our Certificate of Incorporation. Our Common Stock is not entitled
      to preemptive rights and is not subject to conversion or redemption. Upon our
      liquidation, dissolution or winding-up, the assets legally available for
      distribution to stockholders are distributable ratably among the holders of
      the
      Common Stock after payment of liquidation preferences, if any, on any
      outstanding stock having prior rights on such distributions and payment of
      other
      claims of creditors.
26
Preferred
      Stock
Our
      Certificate of Incorporation authorizes the issuance of shares of preferred
      stock in one or more series. Our Board of Directors has the authority, without
      any vote or action by the shareholders, to create one or more series of
      preferred stock up to the limit of our authorized but unissued shares of
      preferred stock and to fix the number of shares constituting such series and
      the
      designation of such series, the voting powers (if any) of the shares of such
      series and the relative participating, option or other special rights (if any),
      and any qualifications, preferences, limitations or restrictions pertaining
      to
      such series which may be fixed by the Board of Directors pursuant to a
      resolution or resolutions providing for the issuance of such series adopted
      by
      the Board of Directors.
The
      provisions of a particular series of authorized preferred stock, as designated
      by the Board of Directors, may include restrictions on the payment of dividends
      on Common Stock. Such provisions may also include restrictions on the ability
      of
      the Company to purchase shares of Common Stock or to purchase or redeem shares
      of a particular series of authorized preferred stock. Depending upon the voting
      rights granted to any series of authorized preferred stock, issuance thereof
      could result in a reduction in the voting power of the holders of Common Stock.
      In the event of any dissolution, liquidation or winding up of the Company,
      whether voluntary or involuntary, the holders of the preferred stock will
      receive, in priority over the holders of Common Stock, a liquidation preference
      established by the Board of Directors, together with accumulated and unpaid
      dividends. Depending upon the consideration paid for authorized preferred stock,
      the liquidation preference of authorized preferred stock and other matters,
      the
      issuance of authorized preferred stock could result in a reduction in the assets
      available for distribution to the holders of Common Stock in the event of the
      liquidation of Telecomm.
There
      are
      no shares of preferred stock designated or issued as of the date
      hereof.
Warrants
In
      connection with the Offering, we issued Agent Warrants to purchase up to 637,500
      shares of Common Stock to Selling Agents. Such Agent Warrants have an exercise
      price of $2.50 per share. The Agent Warrants are exercisable for four years
      from
      January 10, 2006 at the election of the Agent. The Agent Warrants will be
      exercisable for cash or pursuant to a cashless exercise provision. The shares
      of
      Common Stock underlying the Agent Warrants shall be registered for resale
      pursuant to the Registration Rights Agreement described herein and the Agent
      Warrants shall contain certain anti-dilution provisions which will adjust the
      number of shares underlying the Agent Warrants and the exercise price in the
      event of stock splits, stock dividends, or other re-capitalizations of the
      Company.
In
      connection with the Merger, we assumed warrants to purchase EnviroSystems
      Preferred Stock, which, as of the Effective Time of the Merger, became
      exercisable for shares of our Common Stock. All shares of our Common Stock
      issuable upon the exercise of such warrants are included in the 6,400,000 shares
      of Common Stock issued to the EnviroSystems preferred shareholders, and held
      in
      an escrow account, in connection with the Merger. The shares of Common Stock
      issuable upon the exercise of such warrants shall be delivered to the holders
      thereof out of the escrow account, after certain restrictions on transfer have
      terminated. Accordingly, the exercise of any or all of such warrants will not
      cause an increase in our issued and outstanding shares of Common Stock. In
      addition, we will not receive any proceeds from the exercise of such warrants.
      Such proceeds shall be paid to the EnviroSystems Preferred Shareholders pro
      rata. See "Description of Merger."
In
      October 2005, we issued warrants to purchase up to 4,000,000 shares of Common
      Stock to MV Nanotech. These warrants have an exercise price of $2.50 per share
      and are exercisable for a period of four years commencing 90 days after the
      issue date. The warrants are exercisable for cash or pursuant to a cashless
      exercise provision. The shares of Common Stock underlying the warrants shall
      be
      registered for resale pursuant to the Registration Rights Agreement described
      herein and the warrants contain certain anti-dilution provisions which will
      adjust the number of shares underlying the warrants and the exercise price
      in
      the event of stock splits, stock dividends, or other re-capitalizations of
      the
      Company.
27
Options
In
      connection with the Merger, we assumed options to purchase EnviroSystems
      Preferred Stock, which, as of the Effective Time of the Merger, became
      exercisable for shares of Common Stock. All shares of Common Stock issuable
      upon
      the exercise of such options are included in the 6,400,000 shares of Common
      Stock issued to the EnviroSystems preferred shareholders, and held in an escrow
      account, in connection with the Merger. The shares of Common Stock issuable
      upon
      the exercise of such options shall be delivered to the holders thereof out
      of
      the escrow account, after certain restrictions on transfer have terminated.
      Accordingly, the exercise of any or all of such options will not cause an
      increase in our issued and outstanding shares of Common Stock. In addition,
      we
      will not receive any proceeds from the exercise of such options. Such proceeds
      shall be paid to the EnviroSystems preferred shareholders pro rata. See
"Description of Merger."
Stock
      Option Plans
2004
      Equity Compensation Plan
We
      adopted our 2004 Equity Compensation Plan on September 1, 2004. The plan
      provides for the grant of options intended to qualify as "incentive stock
      options", options that are not intended to so qualify or "nonstatutory stock
      options" and restricted stock. The total number of shares of common stock
      reserved for issuance under the plan is 1,300,000 shares, subject to adjustment
      in the event of stock split, stock dividend, recapitalization or similar capital
      change. No grants have been made under the plan.
The
      plan
      is administered by our Board of Directors, which selects the eligible persons
      to
      whom options or stock awards shall be granted, determines the number of shares
      subject to each option or stock award, the exercise price therefore and the
      periods during which options are exercisable, interprets the provisions of
      the
      plan and, subject to certain limitations, may amend the plan. Each option or
      stock award granted under the plan shall be evidenced by a written agreement
      between us and the optionee.
Grants
      may be made to our employees (including officers) and directors and to certain
      consultants and advisors.
The
      exercise price for incentive stock options granted under the plan may not be
      less than the fair market value of the common stock on the date the option
      is
      granted, except for options granted to 10% stockholders which must have an
      exercise price of not less than 110% of the fair market value of the common
      stock on the date the option is granted. The exercise price for nonstatutory
      options is determined by the Board of Directors. Incentive stock options granted
      under the plan have a maximum term of ten years, except for grants to 10%
      stockholders which are subject to a maximum term of five years. The term of
      nonstatutory stock options is determined by the Board of Directors. Options
      granted under the plan are not transferable, except by will and the laws of
      descent and distribution.
2006
      Telecomm Stock Incentive Plan
In
      connection with the Merger, our board of directors adopted, subject to
      shareholder approval, the 2006 Telecomm Stock Incentive Plan (the "2006 Plan").
      The 2006 Plan provides for the grant of incentive stock options, non-statutory
      stock options, restricted stock awards and stock appreciation rights. The number
      of shares of Common Stock that may be issued under the 2006 Plan is 2,400,000
      shares of Common Stock.
The
      2006
      Plan will be administered by our Board of Directors, which will select the
      eligible persons to whom options or stock awards shall be granted, determine
      the
      number of shares subject to each option or stock award, the exercise price
      therefore and the periods during which options are exercisable, interpret the
      provisions of the plan and, subject to certain limitations, may amend the plan.
      Each option or stock award granted under the plan shall be evidenced by a
      written agreement between us and the optionee.
Grants
      may be made to our employees (including officers) and directors and to certain
      consultants and advisors.
The
      exercise price for incentive stock options granted under the 2006 Plan may
      not
      be less than the fair market value of the common stock on the date the option
      is
      granted, except for options granted to 10% stockholders which must have an
      exercise price of not less than 110% of the fair market value of the common
      stock on the date the option is granted. The exercise price for nonstatutory
      options will be determined by the Board of Directors. Incentive stock options
      granted under the 2006 Plan will have a maximum term of ten years, except for
      grants to 10% stockholders which are subject to a maximum term of five years.
      The term of nonstatutory stock options will be determined by the Board of
      Directors. Options granted under the plan are not transferable, except by will
      and the laws of descent and distribution.
28
Registration
      Rights
In
      connection with the Offering, pursuant to the terms of the Registration Rights
      Agreement, as promptly as reasonably practicable after the Closing of the
      Offering but in no event later that 90 days following the Closing of the
      Offering (the "Registration Filing Date"), we are obligated to file a shelf
      registration statement (the "Registration Statement") on Form SB-2 or S-1
      relating to the resale by the holders of the shares of Common Stock purchased
      in
      the Offering, any shares of Common Stock issuable upon exercise of Agents
      Warrants and such additional shares of Common Stock has may be determined by
      us
      (the "Registrable Securities") at our expense. We agreed to use our best efforts
      to cause such registration statement to be declared effective within 90 days
      after the Registration Filing Date provided, however, that we are not obligated
      to effect any such registration, qualification or compliance or keep such
      registration effective: (a) in any particular jurisdiction in which we would
      be
      required to qualify to do business as a foreign corporation or as a dealer
      in
      securities under the securities or blue sky laws of such jurisdiction or to
      execute a general consent to service of process in effecting such registration,
      qualification or compliance, in each case where we have not already done so,
      or
      (b) during any "blackout period" during which we determine that the distribution
      of our shares of Common Stock covered by the Registration Statement would be
      detrimental to us and our stockholders, in which case the Registration Filing
      Date will be extended to the date immediately following the last day of such
      "blackout" period.
In
      connection with the Merger, we have granted to the holders of our Common Stock
      who received such shares in connection with the Merger a
one
      (1)
      time right to demand that we file a registration statement, covering the resale
      of such shares at our expense. Such demand must be made no later than sixty
      (60)
      days prior to or one (1) year following the expiration date of the applicable
      lock-up period and must be made in writing and signed by holders owning no
      less
      than 50.1% of the shares of our Common Stock not then freely tradable. We agreed
      to use our reasonable efforts to cause such registration statement to be
      declared effective by the Securities and Exchange Commission as soon as
      possible, but in no event later than 150 days from the date of such
      demand.
Indemnification
      Matters
Our
      Certificate of Incorporation limits the personal liability of our officers
      and
      directors for monetary damages for breach of their fiduciary duty as directors,
      except for (i) liability that cannot be eliminated under the General Corporation
      Law of the State of Delaware (the "GCL"), (ii) any breach of such director's
      duty of loyalty to the Company or its stockholders, (iii) for acts or omissions
      not in good faith which involve intentional misconduct or a knowing violation
      of
      law, or (iv) for any transaction from which such director derived improper
      personal benefit. Our Bylaws also provide for the Company to indemnify directors
      and officers to the fullest extent permitted by the GCL. These provisions may
      have the practical effect in certain cases of eliminating the ability of
      stockholders to collect monetary damages from directors or
      officers.
The
      indemnification provisions described above provide coverage for claims arising
      under the Securities Act of 1933 and the Securities Exchange Act of 1934.
      Insofar as indemnification for liabilities arising under the Securities Act
      may
      be permitted to directors, officers and controlling persons of the Company
      pursuant to the Company's Certificate of Incorporation, Bylaws, the GCL, or
      otherwise, we have been advised that in the opinion of the SEC, such
      indemnification is against public policy as expressed in the Securities Act
      and
      is, therefore, unenforceable.
Transfer
      Agent and Registrar
Our
      transfer agent and registrar is Registrar and Transfer Company, 10 Commerce
      Drive, Cranford, NJ 07016.
29
Market
      Price of and Dividends on Common Equity and Related Stockholder
      Matters
Our
      shares are currently trading on the OTC Bulletin Board under the stock symbol
      "TNSW." The first day on which the Company's shares were traded was September 1,
      2005. The high and the low trades for our shares for each quarter of actual
      trading were:
QUARTER
HIGH
                ($)
LOW
                ($)
September
                1 to September 30, 2005
$
0.45
$
0.30
October
                1, 2005 to December 31, 2005
$
3.45
$
0.36
The
      trades reflect inter-dealer prices, without retail mark-up, markdown or
      commission and may not represent actual transactions.
The
      last
      sale price for the Common Stock on January 10, 2006, was $3.20. Because of
      the
      low volume of trading of our Common Stock, however, investors should not view
      this as a reflection of the value of our Common Stock, which value is
      substantially lower. The market price of our Common Stock increased
      substantially after the Merger with EnviroSystems was disclosed. Consequently,
      much of the current value of our Common Stock is tied to speculation about
      the
      value of the Merger with EnviroSystems and the associated financing. Our initial
      investors paid five cents per share and MV Nanotech recently paid $80,750 for
      3,320,000 shares and warrants to purchase four (4) million additional shares.
      We
      believe that these lower prices are a better reflection of the value of our
      shares of Common stock than the market price. In addition, as a result of the
      Merger and the associated financing, the value of our Common Stock will depend
      upon the value of our only asset, the business and assets of EnviroSystems.
      EnviroSystems was a private company whose business, assets and financial
      performance has not been disclosed to the public, prior to this Currrent Report
      on Form 8-K.
Holders
      of Common Stock
After
      the
      closing of the Merger and the Offering, we had 16,000,000 shares of our Common
      Stock issued and outstanding and there were approximately 200 registered
      shareholders of our common stock. Of such shares, 6,400,000 which were issued
      pursuant to the Merger, are subject to an Escrow and Lock-Up Agreement. Included
      in such 6,400,000 shares are approximately 838,850 shares of Common Stock
      issuable upon exercise of EnviroSystems Options and Warrants. In addition,
      warrants to purchase 4,000,000 shares and 637,500 shares of our Common Stock
      were also outstanding as of that date.
Dividends
We
      have
      neither declared nor paid any cash dividends on our capital stock and do not
      anticipate paying cash dividends in the foreseeable future. We have had no
      revenue or earnings. Our current policy is that if we were to generate revenue
      and earnings we would retain any earnings in order to finance our operations.
      Our board of directors will determine future declaration and payment of
      dividends, if any, in light of the then-current conditions they deem relevant
      and in accordance with applicable corporate law.
30
Securities
      Authorized for Issuance under Equity Compensation Plans
The
      following table shows information about securities authorized for issuance
      under
      our equity compensation plans as of December 31, 2005:
Plan
                Category
Number
                of
Securities
                to
be
                issued upon
exercise
                of
outstanding
                options
(a)
Weighted-
                average exercise price of outstanding
(b)
Number
                of Securities remaining for future issuance under equity compensation
                plans(excluding securities reflected in column (a))
(c)
Equity
                compensation plans
approved
                by security holders
None
Not
                Applicable
1,300,000
Equity
                compensation plans not
approved
                by security holders
None
Not
                Applicable
2,400,000*
Total
None
Not
                Applicable
3,700,000
*
      Represents shares issuable under the 2006 Stock Incentive Plan which was adopted
      by the board of directors subject to shareholder approval.
Legal
      Proceedings
In
      March
      2005, Atypical BioVentures Fund LLC ("
ABF
")
      filed
      a complaint in the Superior Court of the State of California for the County
      of
      Santa Clara seeking to collect principal and interest in the amount of
      approximately $406,602 due under a Note and Warrant Purchase Agreement, dated
      as
      of June 15, 2004 between EnviroSystems, Inc. and Atypical BioVentures Fund
      LLC.
      In May 2005, EnviroSystems filed a general denial with the court. In May 2005,
      ABF filed an ex parte application for a right to attach order and for an order
      for issuance of a writ of attachment against EnviroSystems' assets. The court
      granted ABF's application. The writ of attachment issued in July 2005. In August
      2005, ABF filed an attachment lien with the California Secretary of State,
      encumbering certain of our assets (not our intellectual property). We are
      currently in negotiations with ABF, we intend to apply a portion of the net
      proceeds of the Offering to pay the principal and unpaid and accrued interest
      due ABF.
Recent
      Sales of Unregistered Securities.
In
      connection with the Merger, we issued 6,400,000 shares of our Common Stock
      to
      the holders of EnviroSystems preferred stock in exchange for all the issued
      and
      outstanding shares of EnviroSystems preferred stock. The shares of Common Stock
      issued in the Merger were issued in reliance on the exemption from registration
      afforded by Section 4(2) and Regulation D (Rule 506) under the Securities Act
      of
      1933, as amended (the "Securities Act") and corresponding provisions of state
      securities laws, which exempts transactions by an issuer not involving any
      public offering.
Concurrently
      with the closing of the Merger, we completed the sale of 4,250,000 shares of
      Common Stock in a private placement to accredited investors pursuant to the
      terms of a Confidential Private Placement Memorandum, dated November 16, 2005
      (the "Offering"). We received gross proceeds of $8,500,000 from the sale of
      these shares.
The
      Offering was made solely to "accredited investors," as that term is defined in
      Regulation D under the Securities Act. None of the shares of our Common Stock
      were registered under the Securities Act, or the securities laws of any state,
      and were offered and sold in reliance on the exemption from registration
      afforded by Section 4(2) and Regulation D (Rule 506) under the Securities Act
      and corresponding provisions of state securities laws, which exempts
      transactions by an issuer not involving any public offering. We made this
      determination based on the representations of the persons obtaining such
      securities which included, in pertinent part, that such persons were "accredited
      investors" within the meaning of Rule 501 of Regulation D promulgated under the
      Securities Act, and that such persons were acquiring such securities for
      investment purposes for their own respective accounts and not as nominees or
      agents, and not with a view to the resale or distribution, and that each such
      persons understood such securities may not be sold or otherwise disposed of
      without registration under the Securities Act or an applicable exemption
      therefrom.
31
In
      connection with the Offering, we paid an aggregate cash fee of $850,000, to
      Selling Agents and issued four-year warrants to purchase up to 637,500 shares
      of
      our Common Stock at an exercise price of $2.50 per share.
Pursuant
      to a Securities Purchase Agreement dated as of October 31, 2005 (the
"Agreement") by and between Telecomm Sales Network, Inc. (the "Company") and MV
      Nanotech Corp., a Texas corporation ("MV Nanotech"), the Company issued and sold
      to MV Nanotech 3,230,000 shares (the "Shares") of the Company's restricted
      common stock, par value $0.0001 per share (the "Common Stock") and a warrant
      (the "Warrant") to purchase up to an additional 4,000,000 shares of Common Stock
      (collectively, the "Securities"). The Warrant is exercisable for a period of 4
      years commencing 90 days after the date of issuance and has an exercise price
      of
      $2.50 per share. Pursuant to the Agreement, MV Nanotech paid the Company $80,750
      for the Securities, of which $40,375 was paid in cash with the remainder paid
      pursuant to a non-interest bearing promissory note in the principal amount
      of
      $40,375, payable on or before December 31, 2005. The source of funds was MV
      Nanotech's available funds.
Indemnification
      of Directors and Officers.
Our
      Certificate of Incorporation eliminates the personal liability of directors
      to
      us and our stockholders for monetary damages for breach of fiduciary duty as
      a
      director to the fullest extent permitted by Section 102 of the Delaware General
      Corporation Law, provided that this provision shall not eliminate or limit
      the
      liability of a director for: (i) any breach of the director's duty of loyalty to
      us or our stockholders; (ii) for acts or omissions not in good faith or which
      involve intentional misconduct or a knowing violation of law; (iii) arising
      under Section 174 of the Delaware General Corporation Law (with respect to
      unlawful dividend payments and unlawful stock purchases or redemptions); or
      (iv)
      for any transaction from which the director derived an improper personal
      benefit.
Additionally,
      we have included in our Certificate of Incorporation and our Bylaws provisions
      to indemnify our directors, officers, employees and agents and to purchase
      insurance with respect to liability arising out of the performance of their
      duties as directors, officers, employees and agents as permitted by Section
      145
      of the Delaware General Corporation Law. The Delaware General Corporation Law
      provides further that indemnification shall not be deemed exclusive of any
      other
      rights to which the directors, officers, employees and agents may be entitled
      under any agreement, vote of stockholders or otherwise.
The
      effect of the foregoing is to require us, to the extent permitted by law, to
      indemnify our officers, directors, employees and agents for any claims arising
      against such person in their official capacities, if such person acted in good
      faith and in a manner that he reasonably believed to be in or not opposed to
      our
      best interests, and, with respect to any criminal action or proceeding, had
      no
      reasonable cause to believe that his conduct was unlawful.
Insofar
      as indemnification for liabilities arising under the Securities Act of 1933
      may
      be permitted to directors, officers and controlling persons of the company
      pursuant to the foregoing, or otherwise, the company has been advised that
      the
      opinion of the Securities and Exchange Commission such indemnification is
      against public policy as expressed in the Securities Act of 1933 and is,
      therefore, unenforceable.
DESCRIPTION
      OF THE MERGER
The
      Merger
Pursuant
      to the terms of the Agreement and Plan of Merger, dated as of November 11,
      2005,
      as amended by the Amendment to Merger Agreement dated as of December 15, 2005
      (the "Merger Agreement"), between Telecomm, Telecomm's indirect wholly owned
      subsidiary, TSN Acquisition Corporation ("TAC") and EnviroSystems, TAC merged
      with and into EnviroSystems, with EnviroSystems as the surviving corporation
      (the "Merger").
Pursuant
      to the terms of the Agreement, we issued an aggregate of 6,400,000 shares of
      restricted Common Stock to the holders (the "Preferred Shareholders") of
      EnviroSystems preferred stock (the "Preferred Stock") and holders of options and
      warrants to purchase Preferred Stock (the "EnviroSystems Options and Warrants")
      pursuant to the exemption from the registration requirements of the Act provided
      under Section 4(2) of the 1933 Act and Rule 506 promulgated thereunder.
32
The
      Agreement was approved by the Board of Directors of EnviroSystems on October
      17,
      2005 and was submitted for approval to the common and Preferred Shareholders
      of
      EnviroSystems, voting as separate classes on December 28, 2005. The Agreement
      was approved by the Board of Directors of Telecomm and by the Board of Directors
      of TAC and EnviroSystems Holdings, Inc., the sole shareholder of TAC, by written
      consents each dated November 11, 2005.
After
      approval by the EnviroSystems common and preferred shareholders and upon filing
      of the Certificate of Merger with the Secretary of State of Nevada (the
"Effective Time"), the following occurred:
·
TAC
                merged with and into EnviroSystems, with EnviroSystems as the surviving
                corporation and as a result becoming an indirect wholly-owned subsidiary
                of Telecomm;
·
Each
                outstanding share of EnviroSystems common stock was cancelled and
                extinguished;
·
The
                EnviroSystems Preferred Shareholders and the holders of EnviroSystems
                Options and Warrants received an aggregate of 6,400,000 Shares of
                restricted Common Stock, which such shares of Common Stock were placed
                in
                an escrow account to be held pursuant to an escrow agreement described
                below.
Merger
      Consideration; Escrow Agreement
As
      consideration for the Merger, Telecomm issued an aggregate of 6,400,000
      restricted shares of Telecomm Common Stock (the "Merger Shares") to the
      EnviroSystems Preferred Shareholders and the holders of EnviroSystems Options
      and Warrants. On the closing date of the Merger (the "Merger Closing"), all of
      the Merger Shares were deposited by Telecomm into an escrow account pursuant
      to
      the terms of an Escrow Agreement (the "Escrow Agreement") by and among Telecomm,
      the Escrow Agent and the other signatories thereto. Pursuant to the terms of
      the
      Escrow Agreement, the Merger Shares
will
      be
      held in escrow for a period equal to the longer of 12 months following the
      closing of the Merger or 9 months after the effective date of a registration
      statement registering the shares of Common Stock sold in the Offering. Provided,
      however, that in no event shall such Merger Shares be held in escrow for a
      period exceeding 15 months from the closing of the Merger. The Escrow Agreement
      also provides for earlier release of the Merger Shares in certain
      instances.
EnviroSystems
      Preferred Stock Conversion
At
      the
      Effective Time, each share of EnviroSystems Preferred Stock issued and
      outstanding immediately prior to the Effective Time or reserved for issuance
      upon exercise of all outstanding EnviroSystems Options and Warrants, was
      canceled, extinguished and automatically converted ("Telecomm Preferred
      Conversion Ratio"), into the right to receive, 1.902881 shares of Common Stock
      (subject to adjustment), which equaled, in the aggregate, forty percent (40%)
      of
      the issued and outstanding Common Stock immediately following the Merger Closing
      (the "EnviroSystems 40% Interest"), after giving effect to, and only to, the
      issuance by Telecomm of shares of Common Stock issued (or reserved for issuance
      in the case of warrants, options, convertible or exchangeable securities) to
      (1)
      purchasers of Telecomm Common Stock in this Offering, (2) holders of any Agents'
Warrants issued in connection with the Offering; and (3) all other issued and
      outstanding shares of Common Stock (collectively, the "Telecomm Post Merger
      Outstanding Shares").
MV
      Nanotech Bridge Loans
Secured
      Convertible Promissory Notes of EnviroSystems in favor of MV Nanotech Corp.,
      dated March 9, 2004, May 13, 2005, June 9, 2005, September 2, 2005, September
      23, 2005, October 3, 2005 and November 14, 2005, respectively, in the aggregate
      principal amount of $850,000 (the "Bridge Loans") were repaid upon the Merger
      Closing.
33
Item
      3.02 Unregistered Sale of Equity Securities.
Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.
Item
      5.01 Changes in Control of Registrant.
Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.
Item
      5.02 Departure of Directors or Principal Officers; Election of Directors;
      Appointment of Principal Officers.
In
      connection with the closing of the Merger (as described in Item 2.01 of this
      Current Report on Form 8-K), effective immediately prior to the completion
      of
      the Merger, Mr. William Sarine and Mr. Tony Summerlin resigned as directors
      of
      Telecomm and from all offices they held with Telecomm. Effective immediately
      upon the closing of the Merger, J. Lloyd Breedlove was appointed as our
      director, chairman of the board, president and chief executive officer and
      Steven Hoelscher was appointed as our director, chief financial officer,
      secretary and treasurer. In addition, Stephen Schneider, Charles Cottrell and
      Jeffrey Connelly were appointed to serve as directors.
For
      certain biographical and other information regarding the newly appointed
      officers and directors, see the disclosure under the heading "Directors and
      Executive Officers" under Item 2.01 of this Current Report on Form 8-K, which
      disclosure is incorporated herein by reference.
Item
      5.06 Change in Shell Company Status.
Reference
      is made to the disclosure made under Item 2.01 of this Current Report on Form
      8-K, which is incorporated herein by reference.
Item
      8.01 Other Events.
In
      connection with the closing of the Merger, Telecomm relocated its corporate
      headquarters from c/o Skye Source, LLC, 8621Gleneagles Drive, Raleigh, NC 27613.
      Telecomm is in the process of locating a new corporate headquarters in or near
      Charlotte, North Carolina, and is temporarily using its current headquarters
      at
      516-D River Highway, PMB 297, Mooresville, North Carolina 28117-6830. Telecomm's
      new phone number is (512) 236-0925.
Item
      9.01 Financial Statements and Exhibits.
(a)
      Financial Statements of Business Acquired.
EnviroSystems'
      audited financial statements for the fiscal years ended March 31, 2005 and
      2004
      are filed as Exhibit 99.1 to this Current Report on Form 8-K and EnviroSystems'
unaudited financial statements for the interim period ended September 30, 2005
      and 2004 are filed as Exhibit 99.2 to this Current Report on Form
      8-K.
(b)
      Pro-Forma Financial Information.
Pro
        forma
        information for Telecomm reflecting the Merger has not been provided because
        historically, Telecomm has had no operations and, therefore, a pro forma
        presentation of Telecomm's financial information would for the most part be a
        presentation of EnviroSystems' historical financial statements. The business of
        Telecomm going forward will be the business of EnviroSystems and, accordingly,
        a
        more accurate representation of the effect of the Merger on a pro forma basis
        is
        provided by a review of EnviroSystems' financial statements provided pursuant to
        Item 9.01(a) above.
(d)
      Exhibits.
34
Exhibit
Number
Exhibit
                Description
3.1
Certification
                of Incorporation (1)
3.2
By-Laws
                (1)
4.1
Specimen
                Certificate of Common Stock (1)
10.1
2004
                Equity Compensation Plan (1)
10.3
Securities
                Purchase Agreement, dated as of October 31, 2005 between MV Nanotech
                Corp.
                and Telecomm Sales Network, Inc. (2)
10.4
Agreement
                and Plan of Merger, dated as of November 11, 2005 by and between
                Telecomm,
                TSN Acquisition Corporation and EnviroSystems, Inc. (Nonmaterial
                schedules
                and exhibits identified in the Agreement and Plan of Merger have
                been
                omitted pursuant to Item 601b.2 of Regulation S-K. Telecomm Sales
                Network,
                Inc. agrees to furnish supplementally to the Commission upon request
                by
                the Commission a copy of any omitted schedule or exhibit.)
                (3)
10.5
Escrow/Lock-Up
                Agreement, dated as of January 10, 2006 between Telecomm, EnviroSystems
                and the other signatories thereto. (4)
10.6
Employment
                Agreement with Lloyd Breedlove (4)
99.1
EnviroSystems'
                audited financial statements for the fiscal years ended March 31,
                2005 and
                2004 (4)
99.2
EnviroSystems'
                unaudited financial statements for the interim period ended September
                30,
                2005 and 2004 (4)
(1)
Filed
                as an exhibit to Telecomm's Registration Statement on Form SB-2 filed on
                March 16, 2005 and incorporated herein by
                reference.
(2)
Filed
                as an exhibit to Telecomm's Current Report on Form 8-K filed on November
                11, 2005 and incorporated herein by
                reference.
(3)
Filed
                as an exhibit to Telecomm's Current Report on Form 8-K filed on November
                17, 2005 and incorporated herein by
                reference.
(4)
Filed
                herewith.
This
      Current Report on Form 8-K may contain, among other things, certain
      forward-looking statements within the meaning of the Private Securities
      Litigation Reform Act of 1995, including, without limitation, statements with
      respect to the Company's plans, objectives, expectations and intentions and
      other statements identified by words such as may, could, would, should,
      believes, expects, anticipates, estimates, intends, plans or similar
      expressions. These statements are based upon the current beliefs and
      expectations of the Company's management and are subject to significant risks
      and uncertainties. Actual results may differ from those set forth in the
      forward-looking statements. These forward-looking statements involve certain
      risks and uncertainties that are subject to change based on various factors
      (many of which are beyond the Company's control).
35
SIGNATURE
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
TELECOMM
                SALES NETWORK, INC.
Date: 
              January 12, 2006
By:
/s/
                J. Lloyd Breedlove
J.
              Lloyd Breedlove,
President
                and Chief Executive Officer
EXHIBIT
      INDEX
Exhibit
Number
Exhibit
                Description
3.1
Certification
                of Incorporation (1)
3.2
By-Laws
                (1)
4.1
Specimen
                Certificate of Common Stock (1)
10.1
2004
                Equity Compensation Plan (1)
10.3
Securities
                Purchase Agreement, dated as of October 31, 2005 between MV Nanotech
                Corp.
                and Telecomm Sales Network, Inc. (2)
10.4
Agreement
                and Plan of Merger, dated as of November 11, 2005 by and between
                Telecomm,
                TSN Acquisition Corporation and EnviroSystems, Inc. (Nonmaterial
                schedules
                and exhibits identified in the Agreement and Plan of Merger have
                been
                omitted pursuant to Item 601b.2 of Regulation S-K. Telecomm Sales
                Network,
                Inc. agrees to furnish supplementally to the Commission upon request
                by
                the Commission a copy of any omitted schedule or exhibit.)
                (3)
10.5
Escrow/Lock-Up
                Agreement, dated as of January 10, 2006 between Telecomm, EnviroSystems
                and the other signatories thereto. (4)
10.6
Employment
                Agreement with Lloyd Breedlove (4)
99.1
EnviroSystems'
                audited financial statements for the fiscal years ended March 31,
                2005 and
                2004 (4)
99.2
EnviroSystems'
                unaudited financial statements for the interim period ended September
                30,
                2005 and 2004 (4)
(1)
Filed
                as an exhibit to Telecomm's Registration Statement on Form SB-2 filed on
                March 16, 2005 and incorporated herein by
                reference.
(2)
Filed
                as an exhibit to Telecomm's Current Report on Form 8-K filed on November
                11, 2005 and incorporated herein by
                reference.
(3)
Filed
                as an exhibit to Telecomm's Current Report on Form 8-K filed on November
                17, 2005 and incorporated herein by
                reference.
(4)
Filed
                herewith.