TODAY’S PROBLEM: A DEPENDENCE ON PETROLEUM

The global economy runs on petroleum; last year, the world consumed a record-high of 86.7 million barrels per day.i While the vast majority of petroleum is consumed in the form of fuel, 21% of the crude oil refined in the U.S. in 2009 was used for other industrial purposes.ii Due to our society’s dependence on this finite resource, global petroleum supplies are declining at a rapid rate. In a recent report, the International Energy Agency (IEA) announced evidence that the global peak crude oil production occurred in 2006.iii As the world’s population continues to expand exponentially, requiring gasoline, diesel and other hydrocarbon-sourced products to fuel its economic growth, we will face not only constraints in the supply of crude oil, but also the ever-increasing environmental impacts associated with the mining and burning of such fossil fuel. The release of gases into the atmosphere associated with these activities is believed to have a “greenhouse” effect, in Challenges with Many “Green Products” which rising concentrations of greenhouse gases such as Often, products that claim to be sustainable and beneficial carbon dioxide in the to the environment are merely temporary fixes. Many atmosphere contribute to an green products today suffer because they: increase in Earth’s average iv global temperature. This 1.) Are better in one environmental metric, but gradual shift in the Earth’s worse in another, e.g. a 2x concentrated detergent temperature is believed to may require less packaging, but is slower directly contribute to rising to biodegrade. sea levels, alterations of the 2.) Substitute one area of negative environmental Earth’s snow and ice-covered impact for another, e.g. oils extracted from a rare areas, changes in weather, tree are sourced for natural fragrances, but, due to and modifications to various this harvesting, the tree becomes an ecosystems. Researchers endangered species. believe these dramatic shifts 3.) Require a performance tradeoff, e.g. a vegetable are not entirely natural, and oil based industrial lubricant is sustainably-sourced, many have been linked to but oxidizes under high temperatures and congeals human activity; from 1990 to in cold temperatures, failing to lubricate and 2005, the EPA estimates that protect the equipment for which it was designed. emissions of greenhouse gases from human activity increased by 26%.v To address our society’s dependence on petroleum, we must change the way that we fuel and formulate the products in their daily lives. The world needs product solutions that cause little harm to the environment, perform as well as, or better than, current petroleum-based products, and can be supplied for generations to come. Developing sustainable alternatives begins with reliable and impactful technology.

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INDUSTRIAL BIOTECHNOLOGY OFFERS A SUSTAINABLE SOLUTION
New production processes utilizing biotechnology are expected to be available for a variety of markets such as cosmetics, lubricants, consumer packaged goods, flavors and fragrances, polymers and plastics additives, and fuels. Industrial biotechnology has opened new avenues of production that allow green products to offer longterm, sustainable solutions. Biotechnology frees industry from standard chemical processes and limited availability of plant-sourced molecules. Recent advances in biotechnology enable the conversion of biomass feedstock to petroleum alternatives that are unlike other green products currently on the market. Amyris is currently leveraging its biotechnology platform to deliver flexible, renewable product solutions that do not rely on scarce resources and that bring new meaning to the term “sustainability.”

Providing a reliable supply of renewable ingredients and products in a sustainable manner is at the core of Amyris’ biotechnology platform, and remains critical to its commitment to the environment. Through microbial strain engineering, Amyris enables yeast to convert plant sugar – via fermentation of biomass – into the molecules that underlie desired renewable chemicals or fuels. The first molecule Amyris is producing at industrial scale is a hydrocarbon called farnesene (BiofeneTM), which can serve as a building block for a variety of products, including diesel fuel, a surfactant used in cleaning products, an emollient used in skincare, and a lubricant base oil, among many other useful chemicals. Amyris’ production process uses sugarcane grown in the Southeastern part of Brazil, far removed from the Amazon rain forest and other protected biomes. Due to its low production cost, scalability, widespread availability throughout Brazil, as well as certain regions in the U.S., and relative price stability when compared to petroleum, this sugar source is one that can be regrown at little cost to the environment. Although sugarcane is a very reliable feedstock due to its abundance, Amyris’ flexible platform is designed to deal

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with feedstock uncertainty and potential energy volatility, as the yeast technology is able to function with a variety of sugar feedstocks.

AMYRIS NO COMPROMISE® PRODUCTS: HIGH PERFORMANCE SUSTAINABLE ALTERNATIVES
Amyris No Compromise® products are setting the bar high for sustainable chemicals and fuels. Amyris envisions a world in which customers develop a preference for sustainable alternatives to petroleumderived products, or for those derived from other non-sustainable resources, and ask for them by name. At the core of this vision is the belief that customers should not have to decide between environmental benefits and top performance. Amyris expects its products to eliminate the need to make this choice, changing the sustainable product landscape. The following case studies about three of Amyris’ renewable, No Compromise ® products highlight a few of the company’s successes in directly addressing some of the world’s most serious problems.

Case Study – Curing Malaria
Malaria is a preventable, curable disease that claims the lives of more than a million people a year. In Africa alone, malaria causes 20% of all childhood deaths, killing 2,000 children every day.vi Malaria patients can be treated with highly effective Artemisinin-based Combination Therapies (ACTs), but extracting artemisinic acid, a pre-cursor of artemisinin, which comes from the Chinese Sweet Wormwood tree, is expensive and time consuming.vii Lack of access to this vital compound prevents millions of people in the developing world from receiving critical ACTs. Through a five-year grant from the Bill & Melinda Gates Foundation to the Institute for OneWorld Health, Amyris first developed and applied its biotechnology platform to create microbial strains that produce artemisinic acid. Amyris has granted a royalty-free license to this technology to Sanofi-Aventis for the manufacture and commercialization of artemisinin-based drugs with a goal of market availability by 2012. Once commercial scale production is reached, artemisinin will be available to ACT manufacturers and is expected to:

Diversify sources of high-quality artemisinin 3 www.amyris.com

  

Lower the cost of artemisinin production, and, therefore, the price of ACTs, making ACTs more accessible to those who need them most Speed artemisinin to market to more reliably meet demand Prevent shortage-driven price rises common to plant-based commodities

Case Study – Reducing Emissions from Diesel Fuel
Climate change and energy security are pressing issues in today’s economies across the world. The road transportation sector is responsible for 74% of all CO2 emissions from the wider transportation sectorviii and is one of the fastest growing sectors globally. A new generation of truly lowcarbon fuels is vital to curbing greenhouse gas pollution from the transportation sector and reducing our dependence on oil. First generation renewable fuels have been part of the effort to reduce our petroleum dependence and greenhouse gas emissions associated with transportation fuels. However, these renewable fuels have had a number of limitations:   Renewable fuels such as biodiesel are not hydrocarbons; they have lower energy density than petroleum fuels, and thus do not perform well in cold-weather environments. Most first generation renewable fuels cannot be dropped into existing petroleum pipeline and terminal distribution systems; they require segregated transport, storage and handling.

An ideal alternative fuel should work well in today’s engines, drop into current fuels infrastructure, and come from renewable resources. Amyris has developed a performance-driven, pure hydrocarbon renewable diesel fuel made from plant-based sugars. As shown 4 www.amyris.com

above, Amyris renewable diesel features a significantly lower carbon footprint than petroleum-based diesel based on planned production methods, as well as demonstrated reduction of tailpipe hydrocarbon emissions. Amyris renewable diesel is designed to provide these environmental benefits below, with no trade-offs in performance: It delivers energy density, engine performance and storage properties comparable to petroleum diesel, as well as improved lubricity and superior cold weather performance.

Case Study – Saving Sharks
Squalane is a terpene that has been used as a lubricant for fighter planes as well as a bestin-class emollient for skin care formulations. Squalane has traditionally been sourced from the livers of the Squalus genus of dogfish sharks, and the fishing of these sharks for such uses has led to their precipitous decline. In 2006, the European Union imposed deepsea shark fishing limits in the North-East Atlantic, and, since 2008, many cosmetics manufacturers have declared that they have stopped using shark squalane. However, dogfish shark livers continue to be a soughtafter source of squalane, particularly throughout Asia. According to a recent article in ScienceDaily,ix squalane is the second most sought after raw product of sharks after their fins. A technique does exist to extract these compounds from vegetable sources such as olive oil, but shark-derived squalane offers a higher yield and requires shorter processing times.x These factors create an economic incentive for shark fishing at the expense of the dogfish species. In March 2011, Amyris launched its first commercial product, Amyris renewable squalane, a derivative of BiofeneTM created via the Amyris technology platform and fermentation process. Amyris’ squalane provides high levels of purity comparable to squalane derived from shark liver oil. By providing a squalane product through biotechnology, Amyris is addressing the performance and availability issues associated with squalane derived from olive oil, and helping reduce overfishing of dogfish sharks

TOWARD A MORE SUSTAINABLE WORLD
Amyris is committed to providing high-quality, renewable products to market that are designed to perform as well as, or better than, the unsustainable products they will replace. Through innovative biotechnology processes, Amyris is transforming the way alternative products can be developed and used in today’s economy, positioning itself to become a leading provider of renewable No Compromise® chemicals and transportation fuels worldwide.

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CONTACT
If delivering sustainable products without sacrificing performance is important to your company, or if you would like Amyris to assist your business in reaching its sustainability targets, please visit www.amyris.com or contact Ena Cratsenburg at partners@amyris.com.

ABOUT AMYRIS
Amyris is an integrated renewable products company focused on providing sustainable alternatives to a broad range of petroleum-sourced products. Amyris uses its industrial synthetic biology platform to convert plant sugars into a variety of hydrocarbon molecules - flexible building blocks which can be used in a wide range of products. Amyris is commercializing these products both as No Compromise® renewable ingredients in cosmetics, flavors and fragrances, polymers, lubricants and consumer products, and also as No Compromise® renewable diesel and jet fuel. Amyris Brasil S.A., a subsidiary of Amyris, oversees the establishment and expansion of Amyris' production in Brazil. Amyris also has fuel distribution capabilities in the United States through its subsidiary, Amyris Fuels, LLC. More information about Amyris is available at www.amyris.com.

FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements, and any statements other than statements of historical facts could be deemed to be forward-looking statements. These forward-looking statements include, among other things, statements regarding future events (such as statements regarding potential products and anticipated benefits of products) that involve risks and uncertainties. These statements are based on management’s current expectations and actual results and future events may differ materially due to risks and uncertainties, including those associated with any delays or failures in development, production or commercialization of products, our reliance on third parties to achieve our goals, and other risks detailed in the “Risk Factors” section of Amyris’ annual report on Form 10-K filed on March 14, 2011. Amyris disclaims any obligation to update information contained in these forward-looking statements whether as a result of new information, future events, or otherwise. Amyris, Biofene and No Compromise are trademarks or registered trademarks of Amyris, Inc.
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http://www.eia.doe.gov/emeu/steo/pub/contents.html#Overview http://www-958.ibm.com/software/data/cognos/manyeyes/visualizations/petroleum-products-produced-fromone iii http://www.worldenergyoutlook.org/docs/weo2010/WEO2010_es_english.pdf iv http://www.eia.doe.gov/oiaf/1605/ggccebro/chapter1.html v http://www.epa.gov/climatechange/indicators/pdfs/ClimateIndicators_full.pdf vi http://www.who.int/mediacentre/factsheets/fs094/en/index.html vii http://www.lbl.gov/Science-Articles/Archive/sb-PBD-anti-malarial.html viii http://www.iata.org/whatwedo/environment/Pages/climate_change.aspx ix http://www.sciencedaily.com/releases/2010/05/100518230649.htm x http://www.sciencedaily.com/releases/2010/05/100518230649.htm
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