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INVESTOR

PRESENTATION

November
N b
DYSC.OB
2009
SAFE HARBOR STATEMENT

In conjunction with the provisions of the safe harbor section of the private
securities
i i lilitigation
i i reform
f act off 199
1995, this
hi ddocument contains
i certaini fforward-
d
looking statements pertaining to future anticipated projected plans, performance
and developments, as well as other statements relating to future operations and
results.

Any statements in this document that are not statements of historical fact may
be considered to be forward-looking statements. Written words such as “may”,
“will”
will , “expect”
expect , “believe”
believe , “anticipate”
anticipate , “estimate”
estimate , “intends”
intends , “goal”
goal ,
“objective”, “seek”, ”attempt”, or variations of these or similar words, identify
forward-looking statements.

These statements by their nature are estimates of future results only and
involve substantial risks and uncertainties. There can be no assurance that
actual results will not differ materially from expectations.
COMPANY MISSION

We are a Business Software and Services company


focused on content re-purposing.
p p g
Our mission is to develop the products, services and systems that
facilitate the re-use of published content in a manner that helps
organizations
i ti achieve
hi th
their
i marketing,
k ti communication
i ti and d research
h
goals effectively and in compliance with copyright law and
regulatory rules.

Our initial focus is the pharmaceutical, biotechnology and


healthcare market.

PUBLISHED CONTENT
CONTENT:
AT THE HEART OF EVERYTHING WE DO
WHAT IS CONTENT RE-PURPOSING?

» CONTENT =
Man’s published knowledge (ie: articles, book chapters)

» RE-PURPOSING =
Finding new uses

» CONTENT RE-PURPOSING =
Finding new uses for mankind’s published knowledge
MARKET POSITION

PUBLISHERS CUSTOMERS
EXAMPLE:

ABC Pharmaceuticals has just released a prescription drug they


believe is superior to that of an established competitor.

There are a few seminal scientific articles that prove this and ABC
wouldld lik
like tto di
distribute
t ib t 100
100,000
000 print
i t and
d electronic
l t i copies
i off th
these
articles to physicians.

HOW CAN THIS BE ACCOMPLISHED


EFFECTIVELY AND LEGALLY?
THE PROBLEMS INVOLVED

COPYRIGHT ISSUES:
ABC pharma does NOT o ownn
the Copyright to these
articles. How do they obtain
distribution rights?

DISTRIBUTION ISSUES:
How does ABC pharma manage
controlled electronic distribution
once rights are obtained?

LOGISTICS ISSUES:
How does ABC pharma locate
documents and manage
physical distribution storage
and logistics?
OUR APPROACH

We are developing products and companies that complement each


other in their ability to make content re-use easy for customers and
help Derycz achieve revenues and profits, as well as transform and
revolutionize the published information industry in the United States
and Europe.

In 2009, Derycz focused on organic growth, achieving positive


cash-flow, and getting its stock listed on the Bulletin Board. All
three objectives have been achieved.
THE DERYCZ SCIENTIFIC TEAM

» PETER DERYCZ – CHAIRMAN AND CEO. Twenty years of industry experience. Grew
Infotrieve (a purveyor of scientific articles) to $32 million in sales before selling to a group of Private Equity
investors in 2003.

» JAN PETERSON – DIRECTOR AND HEAD OF PUBLISHER RELATIONS. Jan is an


industry veteran with over twenty years in STM (Scientific, Technical, Medical) publishing and content
development. She established individual article sales as a legitimate revenue stream for publishers and
coined the term “Article Economy”.

» SCOTT AHLBERG – DIRECTOR AND HEAD OF CORPORATE SERVICES.


SERVICES Scott has
eighteen years of rights management, product development and content distribution experience.

» RICHARD McKILLIGAN – CFO AND GENERAL COUNSEL. Mr. McKilligan earned his law
degree from Cornell Law School, his MBA from the University of Chicago and his undergraduate degree in
Accountancy from the University of Illinois at Urbana-Champaign. He is a member of the State Bar of
C lif i th
California, the New
N York
Y k State
St t Bar
B Association
A i ti and d The
Th Fl
Florida
id BBar.

» TRACY FORRESTER – HEAD OF REPRINT OPERATIONS. Fifteen years experience


managing reprints and information/library service operations in both the public and private sectors.

» MARC NISSAN – CHIEF APPLICATION ARCHITECT


ARCHITECT. Thirteen years of solid experience
building stable content delivery and management systems.

» IAN PALMER – HEAD OF MARKETING. Thirteen years of marketing management experience


working for content and technology industry leaders including Medscape, Inc., Safari Books Online, LLC,
Singular Publishing Group, Inc., and Impinj, Inc. ., an RFID technology provider and previous winner of the
Red Herring Top 100 Private Companies of North America Award Award.
OUR COMPANIES

DERYCZ
SCIENTIFIC, INC.

•Recently ranked #1 by industry •Print-on-Demand Services for


analyst
l tO Outsell
t ll Copyright and Regulatory sensitive
printing
•Provides reprints, ePrints and single
copies of articles to its customers •Acquired majority stake in Feb 2007
and launched new services and
•Copyright
Copyright Management & branding in 2008
Enforcement services for publishers
•Logistics management for corporate
•Developed technology with Adobe communications
Systems that allows for controlled
distribution of PDF files •Integrated services are currently
under development
OUR CURRENT PRODUCTS & SERVICES

MIGHTY
LINKOUT Mighty Linkout Machine is an article retrieval solution that increases end user satisfaction and
MACHINE significantly reduces document delivery costs – with no maintenance costs and no IT involvement.

Single article administration and same-day delivery with most articles delivered within a few
STM DOCUMENT
DELIVERY minutes to a few hours, original and clean color articles by default, PDFs without plug-ins, and
flexible ordering options. Optional Rightsphere rights management integration is also available.

eCTD Scientific journal article aggregation and preparation, enabling inclusion within the reference sections
Article of electronic Common Technical Document (eCTD) submissions made to the FDA and other
Service regulatory agencies.

Global article reprints procurement solution that enables healthcare and healthcare communications
REPRINTS NRx companies to efficiently manage and effectively utilize scientific journal articles to increase product
prescriptions and sales.

Group purchasing software service that consolidates fragmented article reprint buying to deliver a
Reprints GPO global spending view and unlock company purchasing power for savings on annual and per order
bulk article reprint purchases.

Publisher Outsourcing service that enables STM publishers to unlock the full financial value of their content
Service b enabling
by bli Reprints
R i t DeskD k tot manage allll or partt off their
th i jjournall article
ti l reprints
i t bbusiness
i – order
d
management, short-run and full web press printing, proactive sales promotion, and secure ePrint
Bureau hosting.
THE FUTURE OF DERYCZ

Derycz envisions itself as a “House of Brands,” ultimately becoming a


holding company for a variety of products and services that feed into
the company
company’ss “Content
Content Unification Theory
Theory.”

Content Unification Theory is the vision behind the Deryzc


Scientific business model. It suggests
gg that access to scholarlyy
STM Literature can be unified through an interconnected set of
products, services and systems, brought together within a
corporation by the integration of human, machine, content,
processes and procedures
procedures.

This corporation is Derycz Scientific.

The company is focusing on organic growth in addition to strategic


acquisitions to help accomplish this mission.
ACQUISITION PIPELINE

WE ARE CAUTIOUSLY LOOKING AT SOME INTERESTING


ACQUISITION OPPORTUNITIES
» TARGET 1 – EUROPE
Acquisition of a profitable Print on Demand and Logistics Company.
Will give the company a springboard from which to grow into Europe
and
d $18M iin additional
ddi i l annuall revenues.
» TARGET 2 – US / UK
Acquisition of a small Internet portal company that focuses on using
published knowledge for Internet healthcare marketing initiatives. This
acquisition would help Derycz deliver services to healthcare Brand
Managers and add $2M in revenue.

» TARGET 3 – US
Acquisition of a profitable Outsourced Information Consulting company.
Will g
give Derycz
y a Consulting g arm with which to further integrate
g Derycz
y
products and services into Pharma. This company will add $10M in new
revenues to Derycz Scientific.
COMPANY HISTORY
» JANUARY 2006
Reprints Desk is created, achieves $1M in revenue in its first 8
months from Pharma and Biotech accounts.
» DECEMBER 2006
Derycz Scientific created as a holding company, absorbs
Reprints Desk and raises $4.5M.
» JUNE 2007
Derycz Scientific reports fiscal year revenue of $3.8M, and completes
integration of Pools Press acquisition.
» JUNE 2008
Derycz reports fiscal year revenue of $12.2M and successfully files
Registration Statement with SEC.
» MAY 2009
Derycz reports net profits of $130K on Q1 revenue of $3.8M (up from $3.4M
in revenue in previous quarter), and lists stock on the OTCBB under symbol
DYSC.OB
» SEPTEMBER 2009
Derycz reports fiscal year 2009 revenue of $14.65M.
SUBSTANTIAL PROGRESS TO DATE

DERYCZ HAS ACHIEVED IT’S ORIGINAL GOALS:


» Proven ability to generate revenue, positive cash-flow, gross and
net profits
» Has become a trusted vendor to the healthcare industry
» Built and kept a strong management team
» We have inserted one of our products into an organization followed
by additional up-selling of related products and services at higher
gross margins
» Derycz has developed products and services with customer
involvement and continues to do so.
» We have become a publicly traded company (DYSC.OB)
RECENT ACHIEVEMENTS

» Reprints Desk named as a “Top 100 Companies that


M tt ” by
Matter” b KM World.
W ld

» Reprints
p Desk ranked #1 by
y industry
y analyst
y Outsell*

» Major agreements established with industry titans


Elsevier Springer
Elsevier, Springer, Nature Publishing Group and
Copyright Clearance Center (among others).

» Derycz has begun to sell into Europe (15% of revenue


now coming from Europe).

*”2008 Document Delivery Vendor Scorecard


CUSTOMERS + GOOD PRODUCTS = REVENUE

Derycz achieved revenues of $14.65M for the fiscal year ending 6/30/2009

16,000,000

14,000,000

12,000,000 Yearly revenues


gross margin

10,000,000

8,000,000

Yearly revenues gross margin

6,000,000 14,000,000

12,000,000

10,000,000

8,000,000

6,000,000

4,000,000 4,000,000

2,000,00
2 000 000

0
Fiscal 2006 Fiscal 2007 Fiscal 2008

2,000,000

0
Fiscal 2006 Fiscal 2007 Fiscal 2008 Fiscal 2009
FINANCIAL HIGHLIGHTS

» $478K in revenue for fiscal year 2006


» $3.85M in revenue for fiscal 2007
» $12.2M in revenue for fiscal 2008
» $$14.65M in revenue for fiscal 2009
» Cash flow positive, $1.85M positive cash flow for 12 months
ending6/30/2009

• DYSC has become an established vendor on purchasing systems of


dozens of large healthcare companies
• Acquisitions under consideration that are accretive to
revenues and profits
• Starting to show signs of net profitability while continuing to focus on
growth and product development
CONSOLIDATED INCOME STATEMENT INFORMATION

For the three months For the three


ended Sept. 30, 2009 months ended
(Unaudited) Sept. 30, 2008

Net sales $ 4,783,699 $ 3,202,726


Cost of Goods Sold 3,885,778 2,556,829
Total operating expenses 1,215,076 851,908

Income (loss) from operations (317,155) (206,011)

Total other income 1,069 -

Net income (loss) $ (310,691) $ (232,666)

Basic and diluted net income (loss) per $ (0.02) $ (0.02)


share

Basic and diluted shares outstanding 12,961,830 12,895,161


CONSOLIDATED BALANCE SHEET INFORMATION
(UNAUDITED)

September 30, 2009


ASSETS
Current Assets:
Cash and cash equivalents $ 1,578,990
Short-term investments 0
Accounts receivable 4 049 946
4,049,946
Total current assets 5,740,915

Total assets $ 6,876,433

LIABILITIES AND STOCKHOLDERS’ EQUITY


Current Liabilities:
Accounts payable $ 3,442,657
Outstanding on credit line 0
Total current liabilities 3,580,180

Total stockholders’ equity 3,215,422

Total liabilities and stockholders’ equity $ 6,876,433


SUMMARY

»We continue to build an exciting company that is


growing rapidly by adding customers
customers, products and
services, as well as through acquisitions of companies that
are a good strategic fit.

»Demonstrated dramatic year-over-year revenue growth.

»Our pplan is to continue to increase revenues with our


core customers. As our value-add increases, we expect our
gross margins to continue to increase as well.

»Derycz Scientific, DYSC.OB, is a new listing on the


Bulletin Board at the very beginning of its life-cycle.
DYSC.OB

Investor Relations:
Erika Moran / Tom Caden
(212) 825-3210
investors@deryczscientific.com

Management:
Peter Derycz, Chairman and CEO
(310) 990 8085
pderycz@reprintsdesk com
pderycz@reprintsdesk.com

www.deryczscientific.com

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