Inventory Value Certificate

This investment is issued from time to time by EBIZ RECYCLING CORP., a Private Company, in $25,000 increments and for terms of 6 months or 12 months. It is managed through its US affiliate, EBIZ GLOBAL SERVICES INC. at JP Morgan Chase Bank N.A. in Florida.

The Certificates earn a return of 12% on the amount invested. They are guaranteed by the Company and backed by the Inventories they finance.

The Company, EBIZ RECYCLING CORPORATION, is based in Panama and operates recycling plants in Costa Rica and Puerto Rico as well as other Central American and Caribbean locations. It was started last August by Americans with over 30 years of experience in recycling and waste management with firms like BFI, Smurfit-Stone, Allied and Southeast Paper. Its CEO has been a pioneer in recycling and environmental waste solutions, most notably in plastics, since the early 1990s.

The Company was launched with a $2.5 million investment and an exclusive supply agreement to Smurfit-Stone Container Corporation, one of the largest cardboard box producers in the world with sales exceeding $7 billion per year. In May of this year, Smurfit-Stone was acquired by Rock Tenn Corporation with the combined corporation now the #2 producer of cardboard in the USA with sales in excess of $10 billion annually.

As the US market is shrinking for supplies of waste cardboard and paper, the objective for Rock Tenn Corporation was to create sources of supply in the expanding markets of Latin America and the Caribbean. EBIZ was created because a small venture company could more easily and quickly develop new source markets in areas where the large companies have no experience. The Agreement between Rock Tenn and Ebiz gives Rock Tenn the right to acquire EBIZ after 5 years.

During the past six months, EBIZ has processed over 3,000 tons of paper and cardboard and invoiced in excess of $500,000. It plans to reach a target of 5,000 tons per month within the next 18 months. EBIZ’s Puerto Rico subsidiary has positioned itself in Puerto Rico as the recycling partner to Republic Waste, North America’s 2^nd largest waste management company. In Costa Rica and El Salvador, the EBIZ group has entered into Agreements with several Municipalities to operate recycling centers and develop two BIOGAS waste to energy plants.

The growth of EBIZ is directly related to its ability to secure additional volumes of paper and cardboard. Although Rock Tenn is contracted to purchase / resell all of the EBIZ production up to a minimum of 2,200 tons monthly, the payments per the Agreement are made 30 days after shipment. In order to increase the volume of material sold to Rock Tenn, EBIZ needs to expand its inventory acquisitions and to do so it requires additional Capital dedicated exclusively to this proposition.

For this reason, EBIZ has created Inventory Value Certificates. Each $25,000 certificate will allow EBIZ to increase its monthly production by 150 tons. A total of 14 such Certificates may be authorized during the course of the year.