X-RADIATION PROCESS

<body topmargin=0 leftmargin=0 marginheight=0 marginwidth=0> <table cellpadding=0 cellspacing=0 border=0 height="100%"><tr> <td valign="top" width=200 BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <IMG SRC="06f572e0.jpg" border=0 width="87" height="46" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> <bR> <bR> <bR> <bR> <bR> <bR> <div> <B>X-RAY BEEF PATTIES IMPROVE SAFETY OF YOUR HAMBURGER.</B></div> <bR> <div> <IMG SRC="073c7ff0.jpg" border=0 width="199" height="255" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"></div> </td> <td valign="top" BGCOLOR="#FFFFFF" TEXT="#080000"> <div> <FONT SIZE="5" COLOR="#000000" FACE="Arial" ><B>HOME</B></FONT>     |     <A HREF="index.htm" TARGET="_top" TITLE="HOME"><U>home</U></A></div> <div> <A HREF="id44.htm" TARGET="_top" TITLE="NEWS "><U>NEWS      </U></A>   |   <A HREF="id39.htm" TARGET="_top" TITLE=" XRAY SCIENCE"><U> X-RAY SCIENCE</U></A>   |   <A HREF="id32.htm" TARGET="_top" TITLE="LINKS"><U>LINKS</U></A>   |   <A HREF="id31.htm" TARGET="_top" TITLE="HOW IT OPERATES"><U>HOW IT OPERATES</U></A>   |   <B>X-RADIATION PROCESS</B>   |   <A HREF="id22.htm" TARGET="_top" TITLE="SELECT FOODS"><U>SELECT FOODS</U></A>   |   <A HREF="id40.htm" TARGET="_top" TITLE="FAQ"><U>FAQ</U></A>   |   <A HREF="id41.htm" TARGET="_top" TITLE="NUTRITION"><U>NUTRITION</U></A>   |   <A HREF="id43.htm" TARGET="_top" TITLE="REGULATORY"><U>REGULATORY</U></A>   |   <A HREF="id42.htm" TARGET="_top" TITLE="APPROVED FOODS"><U>APPROVED FOODS</U></A>   |   <A HREF="id27.htm" TARGET="_top" TITLE="NONFOOD APPLICATIONS"><U>NON-FOOD APPLICATIONS</U></A>   |   <A HREF="id30.htm" TARGET="_top" TITLE="SOIL FUMIGATION"><U>SOIL FUMIGATION</U></A>   |   <A HREF="id47.htm" TARGET="_top" TITLE="_"><U>--Type Title Here--</U></A>   |   <A HREF="id45.htm" TARGET="_top" TITLE="INVESTOR RELATIONS"><U>INVESTOR RELATIONS</U></A></div> <div> X-RADIATION PROCESS</div> <div> <FONT SIZE="2" COLOR="#000000" FACE="Arial" >   </FONT>                                                      <B>INTRODUCTION TO X- RADIATION</B></div> <div> <B>                                                                            PROCESSING </B></div> <bR> <div> <B>HISTORICAL ORIGIN  -  IRRADIATION    </B><FONT SIZE="3" COLOR="#000000" FACE="Arial" ><B> </B></FONT></div> <div> <B>       R</B>adiation, as applied to foods, polymers and cancer patients, has been reviewed and evaluated for both its safety and efficacy in numerous applications, these evaluations having been conducted worldwide in more than forty countries. The earlier radiation evaluations were performed with radioactive Cobalt, and most of the work undertaken through the sponsorship of the International Atomic Energy Agency of the United Nations, all of which was an outgrowth of the U.S. policy of <U>Atoms for Peace</U>. However, the very first application of radiation upon food occurred in Britain, circa 1895.</div> <div>      The term <I><B>irradiation</B></I> was substituted for <I><B>radiation</B></I> during the antinuclear lobbying period of the mid to late 1950's. Irradiation was adopted as the means to differentiate between items exposed to radiation from radioactive isotopes and radiation emitted by anything other than radioactive isotopes- such as ultraviolet radiation from the Sun, and medical x-rays. Unfortunately, the use of the term irradiation stigmatizes the beneficial use of any form of radiation, and therefore has delayed the development of radiation applied for food safety and preservation. For example, ultraviolet radiation disrupts the DNA of microbes to prevent replication (division) to end the microbe strain. <I><B>Gamma radiation</B></I> from radioactive Cobalt 60 will cause the same disruption in microbes, but when used for purposes of food safety, this Gamma radiation <U>must</U> be referred to as <B>irradiation since it originated from a radioactive source</B>. Similarly, when we apply <I><B>x-radiation </B></I>to foods for purposes of food safety the <U>term irradiation is mandated,</U> yet the origin of x-rays is not from a radioactive source but its effect is identical to that of Gamma irradiation. </div> <bR> <div> <B>THREE MOST UTILIZED IRRADIATION TECHNOLOGIES</B>     </div> <div> Irradiation, from several sources, has been clearly shown to be both safe and effective for providing improved food safety and preservation.<FONT SIZE="3" COLOR="#111111" FACE="Arial" > 1. <U>Gamma irradiation</U></FONT> facilities number more than thirty in the United States, with a worldwide total of one hundred. 2. <U>Electron beam</U> facilities operating as processors are fewer in number, and have mostly been utilized in polymer cross-linking and other industrial applications, and a few are utilized for medical and consumer product sterilization. 3. <U>X-ray irradiation</U> has just recently gained broader acceptance for replacing gamma irradiation by Cobalt 60. It is fully anticipated that x-rays will replace gamma for most food processing because of    the improved processing speed of x-rays (4-5 times faster than gamma), improved costs of processing, more precise and controlled application of energy, and avoids using   radioactive materials in the food processing plant.</div> <bR> <div> <B>OPPORTUNITIES FOR X-RADIATION PROCESS </B></div> <div> <B>     </B>The largest potential commercial application of x-radiation is<B> </B>for the massive food supply. There is a continuing need to improve food safety. Also, there is a need to improve the methods of food preservation. And, just as important is the need to apply new, superior, processes for fumigating fresh produce, soils and to meet new EPA standards relative to the use of <I>methyl bromide, and to meet obligations of the Clean Water Act.</I></div> <div>      Each of those areas of concern has been studied, researched and demonstrated to provide outstanding improvements when radiation energy is applied in one of the forms given above - <I><U>x-radiation.  </U></I></div> <div> <B>     </B>As stated previously, x-radiation offers the best economic, technical and environmental solution for improving food safety, preservation and replacing <I>methyl bromide</I> for fumigating fresh produce and agricultural soils. It is purported that x-radiation will be the preferred technology for all new food processing facilities utilizing radiation for improved food safety, because it will be most cost effective and the fastest process with large throughputs.</div> <bR> <div> <B>X-RADIATION IS A FORM OF IONIZING RADIATION</B></div> <div> <B>     </B>X-radiation, just as electron beams and gamma radiation, creates a number of ions in targeted materials as well as in gases through which it travels from source to target. In atmospheric air, X-rays create a significant amount of ozone. By its nature ozone ions are short lived, and return to the stable form of oxygen very shortly after the removal of the ionizing energy.</div> <div>      X-rays do create ions in targeted materials, such as food, creating discrete  radiolytic molecules. These <I>radical</I> molecules are not stable, and  convert to the original stable chemistry present prior to irradiation.</div> <div>      Heating foods, as during cooking, creates thermolytic compounds that nearly duplicate the radiolytic compounds created by irradiation. </div> <div>      Exhaustive research has determined that in no case of irradiated foods has there been created a radiolytic compound that is dangerous for human consumption. In fact, irradiation forms only a fraction of these chemical species compared to the number created through cooking.</div> <bR> <div> <B>RADIATION INTERACTION WITH BIOLOGICAL SUBSTANCES</B></div> <div> <B>     </B>As would be inferred. X-radiation does have an ionizing effect upon biological entities, such as cells, bacteria and viruses. Specifically, x-rays act upon the DNA molecule by removing valence electrons from the double helix strands of the DNA molecule. The DNA molecule is part of the genetic material within living cells, and forms the chemical coding sequence that promotes reproduction. Without the complete code sequence, chromosomes are inactivated, and the genes go without expression. Therefore, x-rays incident upon the DNA material within a bacterium will render it incapable of replication, and the bacterium strain will end - it is dead, or very soon after radiation exposure will be dead.</div> <div>      This radiation interaction with the DNA molecule within bacteria is precisely the mechanism that allows for pasteurization of foods, and the disinfesting of fresh produce. And, when administered at larger energy doses, can sterilize products.</div> <bR> <div> <B>IRRADIATING FOODS EQUIVALENT TO PASTEURIZING FOODS</B></div> <div> <B>     </B>The result of applying x-radiation to foods is simply to<I> pasteurize</I> the food upon reaching a minimum <I>dose </I>of energy found to reduce microbiological pathogens to a level safe for human consumption. In all, the process is similar to heat pasteurization of milk, but where <I>photonic </I>energy is applied rather than <I>thermal</I> energy. With thermal pasteurization, the heat energy causes cells to disintegrate, while x-radiation  destroys the ability for cell reproduction through disruption of the DNA molecule.</div> <div>      It would be rare to require foods be sterilized. Perhaps the only current application of gamma radiation to sterilize foods is performed upon foods accompanying astronauts , and for that matter, most of what goes into the spacecraft, especially those craft intended to land upon the moon, etc.   </div> <bR> <div> <B>LABELING REQUIREMENTS FOR IRRADIATED FOODS</B></div> <div>      Although current federal regulations require that labels, placed upon foods which have been exposed to any form of radiation, have clearly imprinted a warning notice that the contents of the package have been Irradiated , or <U>Exposed to Irradiation. </U>This labeling requirement was set forth in the 1958 Food and Drug Act Amendments as part of the Food Additives amendments, and was done so after the lobbying efforts of the anti-nuclear activists. In contrast, the cooking of canned foods, although it affects food in a nearly identical manner, does not require any warning label. Irradiation processing has hardly been treated in a fair manner because of that scientifically unfounded labeling requirement.</div> <div> In the experience of Agscan Inc. it was discovered that a number of segments of the agriculture-food industry could be exploited for contract food irradiation without either the knowledge or consent of the consumer. Furthermore, for non-food items, such as soil remediation, there are literally no consumer obstacles, and government regulation is still at a minimum, primarily because irradiation of soils has not been researched nor commercialized.</div> <div>      Another area that does not fall under the consumer labeling requirements of FDA is the vast food service industry. Commodities supplied to that industry are exempt from the standard FDA food labeling regulations. Therefore, processed, frozen and fresh foods can be irradiated and shipped to the food service industry, without notification that these foods have been irradiated. </div> <bR> <div> <B>CONSUMER ACCEPTANCE OF  IRRADIATED FOODS</B></div> <div> <B>     </B>Prior to the events of September 11, 2001, the American consumer was barely warm to the notion of purchasing and consuming foods that had been “irradiated”. Shortly after the 9/11 events, a national telephone survey (Porter Novelli) of more than 1,000 consumers found that consumers had changed positions regarding irradiated foods; 63% indicated they would buy and consume irradiated foods. More surprising was the finding that 52% of the public believed that Government should mandate the irradiation of foods as a matter of safety against pathogens and an added aspect of protection against terrorism.</div> <div>      Although these numbers have been modified downward along with the fading memory of 9/11, recent surveys clearly indicate a strong support for providing irradiated (pasteurized) foods, support sufficient to encourage further commercialization of this process.</div> <div>      Also, since 9/11 events, pasteurized foods have moved into more that 5,000 retail groceries in the U.S. Primarily, these foods have been frozen ground beef patties. Also, in 2002 the American Dairy Queen Corporation in Minnesota test marketed pasteurized patties in several of its markets nationwide, and with very positive results. By offering the option of ordering non-irradiated or irradiated patties, the fast food consumer quickly accepted this option, especially after reading the literature Dairy Queen provided to the public at its stores. But, since food services are not required to label their offerings, it is current surprising that Dairy Queen had gone to such efforts to inform its patrons of irradiated patties being offered as an alternative to non-irradiated patties.</div> <div>      It is viewed that in the future, as Agscan (and others) advance both the technology and process demonstration capabilities, more customers will be forthcoming and consumers will more fully embrace food irradiation (radiation) just as it happened decades earlier for the pasteurization of milk. As Agscan learned from comparative test testing of irradiated and non-irradiated fruits and vegetables, when a person tastes from each category and cannot record a discernable difference, opposition to the process quickly drops away.</div> <div>      It is of interest, to compare attitudes toward food irradiation to those expressed against the refrigeration of meat around the turn of the twentieth century. At that time, the California Medical Association stood firmly against refrigeration of meat, claiming it would lose nutritional value and introduce toxic substances into the human diet. History has certainly proved those fears to be completely wrong, and in fact the food safety improvements derived from refrigeration were quickly noted and embraced.  It had been clearly demonstrated to people accustomed to the risk of eating tainted meat that refrigeration greatly reduced that risk.</div> <div>      Consumers can be either slow or fast in accepting new foods, foods prepared or packaged differently from the past. Of course, public awareness, perhaps more “education” of the public, can greatly effect the timing or success of a new product, and certainly for irradiated foods there has been an uphill struggle to gain sufficient acceptance of irradiated foods. In this case, because there are a number of activist organizations publicly opposed to any form of irradiated foods, the consumer has continued to be misinformed (if not clearly mislead) by these organizations appearing to be science based when in fact none are actively science based.</div> <bR> <div> <B>X-RAY PROCESSING FOR THE FOOD/AGRICULTURE INDUSTRY</B></div> <div> <B>     Agscan Inc. </B>has identified a number of applications of x-ray processing in support of the immense food/agriculture industry of California and across the United States. Of considerable importance is the utilization of x-radiation to replace methyl bromide used in fumigating soils (in pre-planting) and for disinfesting   fresh produce. Methyl bromide is currently scheduled for de-listing as a fumigant for soils, and will have only a limited role after 2004 for post harvest fumigation of produce. This cessation of use of the popular fumigant has been mandated in the Montreal Protocol on Substances That Deplete the Ozone Layer. The United States has sought <I>Critical Use Exemptions</I> for continued use of MB fumigants, primarily because a universally acceptable replacement fumigant has not been forthcoming.</div> <div>      There are a number of ongoing problems in both agriculture and food that in the view of Agscan can best (if not only) resolved through the application of x-radiation processing. The replacement of methyl bromide with x-radiation has already been stated. In agriculture there is a continuing need to protect domestic agriculture against the migration of exotic insects traveling with fresh produce shipped from around the world to ports in the United States. Current random inspections have not been truly successful since the low level of inspections, less than 1% at most places and times, has been statistically impossible to prevent the introduction into California agriculture of more than 100 exotic insects each year. Using more and newer insecticides, as has been the practice throughout agriculture, is not the answer to this problem. Causing the x-ray radiation of ALL produce entering the United States is the best answer. And, when Agscan surveyed shippers throughout Mexico, it was found that those shippers were most willing to pay the anticipated small fees to have all their commodities x-ray processed as a means of obtaining a clean bill of health that would prevent any costly delay due to U.S. officials detaining commodities at ports of entry.</div> <div>      What to do with agricultural animal wastes? Agscan clearly sees an economically sound process for recovering vital chemicals from animal waste, co-generating electricity, selling potable water to local irrigation districts and bagged fertilizers to growers.</div> <div>      Much of the market potential for this type of recycling derives from the fact that  farmers have been for the most part banned from dumping this vast amount of waste upon their own lands  for fear of surface and subsurface water contamination. (EPA Ruling, December, 2002).</div> <bR> <div> <B>STRATEGY for COMMER</B><B>CIALIZING X-RADIATION </B></div> <div> <B>     </B>With all of the forgoing clearly in mind, it may be asked if indeed a business can be developed around x-radiation processing of foods. This question primarily arises from the concern that the consumer market is not fully receptive of irradiated foods. However, we have clearly seen that consumer acceptance has increased from just a few short years into the past, and that this acceptance will improve until irradiation of food is accepted by the greater majority of consumers, just as pasteurized milk and refrigerated meats were embraced by the public, simply because it became viewed as very safe and these new processes indeed reduced food borne pathogens. The argument reduced to one of self interest - the consumer was fully aware of the life and death issues of consuming tainted foods, and would accept any process that clearly proved effective against food borne pathogens.</div> <div>      As stated earlier, there are a great number of applications for x-radiation that do not involve consumer acceptance, and do not require warning labels. These applications will amount to large revenues and profits, both for commercialization of x-radiation processing, and certainly attractive to those investing in this type of commercial enterprise.</div> <div> As part of the overall strategy for commercializing x-radiation processing of foods (and non-food items), Agscan is currently completing plans for an x-ray processing facility to be constructed in San Luis Obispo, California, Within this facility numerous development programs will take place, some of which will be demonstrations to growers, food processor and distributors to clearly show the value added aspects of x-ray pasteurization, pre-planting soil fumigation by x-rays and post harvest treatments for various fruits and vegetables. These programs are key for market development of Agscan X-ray processes; there must be a place where prospective customers can have their commodities x-ray processed as a full demonstration of the safety and suitability of the process to resolve problems and provide answers firsthand to those customers.</div> <div>      A second, and equally important activity at this facility will be collaborative research conducted by Agscan and research principals from the California Polytechnic State University in San Luis Obispo. This joint research is extremely important to advancing both market and consumer understanding of the full benefits of the process when applied to numerous commodities and products. This is a unique undertaking in that a commercial firm will join academia for the purposes of advancing science and promoting commercial applications of evolving technology.</div> <div>      The success of commercializing the x-radiation process will be fully dependent upon the success of research  and demonstration programs conducted at the AgScan Inc. X-Radiation facility in San Luis Obispo.</div> <bR> <div> May 2004                          <FONT SIZE="3" COLOR="#3300CC" FACE="Arial" > e-mail   Info@agscan.net </FONT></div> <div>                                </div> <div>                                                (805) 528-1492</div> <div>   </div> <div>                                            <IMG SRC="0cc14140.gif" border=0 width="20" height="20" ALIGN="BOTTOM" HSPACE="0" VSPACE="0"> 2006   AgSCAN Inc.</div> <bR> <bR> <bR> <bR> <bR> <bR> <div>      </div> <bR> <div>       </div> <div>        </div> <bR> </td> </tr></table></body>