Analyst: By Lisa Springer, CFA

Analyst:
Initial Report
October 8th, 2008

10/07
PGOG daily
1.8
1.7
1.6
1.5
1.4
1.3
1.2
1.1
1.0
Perf Go Green Holdings Inc. 0.9
0.8
12 East 52nd Street, 4th Floor
© BigCharts.com
New York, NY 10022 volume
Phone: 212-935-3550 400

Thousands
300
Fax: 917-210-3110
200

100
www.perfgogreen.com 0
Aug Sep Oct

MARKET DATA Company Introduction

Perf Go Green Holdings (PGOG) distributes and markets biode-
gradable, 100% eco-friendly, non-toxic, food contact compliant plas-
Symbol PGOG tic products. The Company’s products, made from recycled plastic,
Exchanges OTC BB
are treated with an oxo-biodegradable proprietary application that
Current Price $1.00
Price Target $3.75 causes the product to break down completely over 12-24 months
Rating Speculative Buy without leaving behind toxic or visible residue. PGOG’s product
Outstanding Shares 33.1 Million portfolio includes biodegradable plastic trash bags, leaf and yard
Market Cap. $34.8 Million waste bags, pet waste disposal bags, and drop cloths for residential
Average 3-m Volume 58,774 and commercials use. The Company began trading on the OTCBB
exchange in May 2008, after its reverse merger with ESYS Holdings
Source: Yahoo Finance, Analyst Estimates Inc.

PGOG uses a proprietary oxo-biodegradable application method to

produce the film for its bags. When discarded in soil in the presence
of microorganisms, moisture and oxygen, the Company’s products
decompose into simple materials found in nature. Through this
process as well as the use of recycled plastics, PGOG effectively
eliminates plastic waste from the environment.

PGOG distributes its products through mass retailers, and has part-
nered with Spectrum Plastics, a leading U.S. manufacturer of plas-
tic packaging, for product sourcing. The Company’s products are
available through major retailers such as Amazon.com, Drugstore.
com, Bashas Family of Stores and Walgreen’s drug stores.

PGOG has also signed agreements with 13 firms that will expand its
presence across the U.S. and Canada, and is negotiating with other
well-known retailers for product distribution. PGOG’s products are
available through nonprofit organizations and government agen-
cies such as SOHO partnership, CEDA and the Parks Department
Perf Go Green Holdings Inc. (OTCBB: PGOG) 1
 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

of Stamford, Conn., which promote environmentally friendly products. PGOG and its products have garnered
top ratings from consumer groups, and the Company was recognized with the 2008 Design Defined Honoree
award at the International Home and Housewares Show.

Investment Highlights
$500 billion market for eco-friendly products

Americans spend an estimated $250 billion on eco-friendly products and services, and spending is forecast to
rise to $500 billion in 2009. Though the U.S. has only 5% of the world’s population, it contributes 25% of global
warming. Concerns over global warming and related environmental issues are causing American consumers to
step up purchases of eco-friendly, biodegradable products. In landfills, for instance, PGOG’s innovative products
break down completely within two years in contrast to conventional plastic bags, which take hundreds of years
to decompose. PGOG has found customers for its products among environmental groups, leading retailers, non-
profits and government agencies.

PGOG’s products are aesthetically designed and affordably priced

The Company’s products are made of recycled plastic and are treated with an oxo-biodegradable proprietary
application that causes the product to decompose completely over time without leaving behind any toxic or
visible residue. PGOG’s products are further differentiated by the Company’s unique patented dispensing sys-
tem. Its eco-friendly plastic bags are durable, competitively priced and aesthetically appealing. The products’
advantages were recognized with the Design Defined Honoree Award at the March 2008 International Home
and Housewares Show. PGOG’s plastic bags have also received the coveted five-star rating from Drugstore.com
customers. Repeat orders from initial retailers indicate the products’ growing popularity and consumer appeal.

Strategic alliances help broaden customer base

The Company distributes its products through leading retailers

such as Walgreens (6,000 plus retail outlets), Bashas supermarkets
(165 outlets), Amazon.com and Drugstore.com. The Grand Hyatt
Hotel in New York City uses Pref Go Green bags in its go green en-
vironmental program and plans to introduce PGOG bags at all 365
of the chain’s hotels. Recently signed partnerships with Sweeney
Wright Wiencek, Rankin Sales and Advanced Marketing Group
will help the Company extend its presence to national retailers
such as Target, Best Buy, Super Value, Kohl’s, Shopko, Sears, Kmart,
Sam’s Club and Wal-Mart. The Company also sells its products to
non-profit organizations that promote eco-friendly products such
as Community and Economic Development Association of Cook
County Inc. (CEDA), New York’s SoHo Partnership, and the Parks
Department of Stamford, Conn. These strategic relationships pro-
vide impetus for the Company’s future sales growth.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 2

 Analyst: By Lisa Springer, CFA
Analyst:
Initial Report
October 8th, 2008

PGOG should begin generating meaningful revenues and cash flow in 2009

In mid-September 2008, the Company began shipping its tall kitchen bags and leaf bags nationwide to chain stores
such as Walgreens. These products are also available online through Amazon.com and Drugstore.com. Com-
mercial trash bags and plastic drop clothes are also being shipped, and research and development for additional
new products is underway. We anticipate PGOG will quickly ramp up product sales to $2.5 in the fourth quarter
of 2008 and are forecasting 2009 revenues exceeding $25 million. The Company anticipates reaching operating
breakeven at annualized sales of around $15 million.

Experienced personnel to direct PGOG’s growth

PGOG’s chairman/CEO Tony Tracy has extensive experience in the plastic bag market. He led the commercial
launch of Perf, an innovative trash bag featuring a unique, patented dispensing system. The Company’s board
includes executives with decades of experience in operations, marketing and accounting, as well as environmen-
talists and government officials. Board members include former New York Governor George Pataki, known for
his environmental initiatives; former chairman of Empire State Development Corp. Charles Gargano; David Bach,
author and well-known guru of green living; Ben Tran, the president of Spectrum Plastics; and Robert Dubner, a
former Price Waterhouse Cooper partner.

Product Offerings

Exhibit 1: PGOG Products

PGOG Products

13 Gallon Tall Doggie Biodegradable Cat Pan

Kitchen Trash Bags Duty Bags Plastic Drop Cloths Liner Bags

30 Gallon Law n Commercial

& Leaf Bags Trash Bags

Source: Company information

Perf Go Green Holdings Inc. (OTCBB: PGOG) 3

 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

Product Strategy
PGOG’s eco-friendly biodegradable plastic products are made from recycled plastic and disintegrate in landfills
over a period of 12-24 months without leaving any traces of toxic residue. By making use of recycled plastic and
manufacturing products that break down completely within a few months, PGOG presents a viable solution to
the problem of plastic waste which is poisoning our environment.
The Company’s products incorporate unique features such as a patented dispensing system and patented per-
foration design. At present, PGOG offers six product categories and is developing new products and venturing
into new plastic categories. PGOG markets kitchen trash and lawn bags through major retailers and has begun
shipping commercial-grade garbage bags in various sizes for office buildings, municipalities, parks and beaches;
kitty litter liner bags in three sizes; Doggie Duty Bags; and 10-foot by 20-foot plastic drop cloths.

Biodegradable Plastics Market

The U.S. consumes almost 10% of the world’s plastic bags

The U.S. accounts for almost 10% of the world’s plastic bag consumption, disposing of 100 billion bags per year,
equivalent to more than 16 million tons of plastic waste annually. At present, less than 2% of plastic is recycled;
the remaining 97.8% is dumped in landfills or disposed of in other ways that cause damage to the environ-
ment.

Exhibit 2: Total MSW Generation (by Material), 2006-251 Million Tons (Before Recycling)

3.3% P aper
12.4%
Glass

33.9% M etals

P lastics
12.9%
Rubber, leather and
textiles
5.5% Wood
5.3% Yard trimmings
7.3%
7.6% Food scraps
11.7%
Other

Source: United States Environment Protection Agency

Perf Go Green Holdings Inc. (OTCBB: PGOG) 4

 Analyst: By Lisa Springer, CFA
Initial Report
October 8th, 2008

Approximately 12 million barrels of oil are used each year to produce plastic bags. With oil prices rising and fossil
fuel sources depleting, an affordable eco-friendly solution that can reduce oil consumption is desperately needed.
Recycling one ton of plastic bags reduces oil consumption by 11 barrels; recycling all 16 million tons of plastic
waste produced annually would cut oil consumption by 176 million barrels.
Plastic takes hundreds of year to decompose
Plastic is a major cause of environmental pollution because of the length of time, measured in thousands of years,
it takes plastic to decompose. The chart below compared the decomposition time of plastic to other waste prod-
ucts.

Plastic takes hundreds of year to decompose

Plastic is a major cause of environmental pollution because of the length of time, measured in thousands of years,
it takes plastic to decompose. The chart below compared the decomposition time of plastic to other waste prod-
ucts.

Exhibit 3: Time required for Different Waste to Degenerate

Plastic Bags 1 Million year s

Tin, aluminium, and other metal
100-500 years
items such as cans
Wood 10-15 years

Cotton doth 2-5 months

Paper 10-30 days

Organic waste such as vegetable and
1-2 weeks
fruit peels, leftover foodstuf f, etc.

TIME

Source: www.edugreen.teri.res.in

U.S. consumers demand an eco-friendly solution

At present, Americans spend an estimated $250 billion annually on “green” products and services; this spending
is forecast to double to $500 billion by 2009. According to Cone Consumer Environmental Survey, almost 32% of
the consumers they surveyed expressed interest in conserving the environment, and 91% of those surveyed had a
positive perception of companies offering eco-friendly products and services.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 5

 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

Exhibit 4: United States Environmental Consciousness

Conserving
energy 93%

Recycling
89%
Americans
Environmental
Consciousness

Conserving
water 86%

Telling
family/friends
about environmental
issues

Source: Cone Consumer Environmental Survey

Exhibit 5: United States Spending on Green Products and Services

500
500

400
In $ Billion

300
250
200

100

0
Current 2009

Source: Company reports

Perf Go Green Holdings Inc. (OTCBB: PGOG) 6

 Analyst: By Lisa Springer, CFA
Initial Report
October 8th, 2008

PGOG offers affordably-priced products for consumers who want to go “green”

PGOG’s bags are competitively priced in-line with conventional plastic bags and are significantly more affordable
than competitor’s biodegradable bags, as shown in the table below. In addition, PGOG’s products don’t have the
limited shelf life associated with competitors’ biodegradable bags made from corn. Corn-based bioplastics tend to
beak down within a few weeks.

Exhibit 6: Price Comparison Bio-Degradable Bags

1.50

1.20

0.90

0.60

0.30

0.0
Repell Bio-Bag Stout Ecosafe Perf Go-Green

Price per piece 30/30 gallons bag Price per piece 13 gallons bag

Source: Compiled from various sources such as amazon.com and ecogreenoffice.com

Business Strategy

In a relatively short period of time, the Company has secured distribution for its eco-friendly biodegradable plas-
tic bags through leading mass merchants, drug store chains and on-line retailers.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 7

 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

Exhibit7: Business Strategy

Brand Building
Initiatives

Setup Go Hiring the

Green 21.0 Right People
Foundation

Business
Strategy

Partnership for Foray into New

Manufacturing Product
with Spectrum Categories

Retail
Push

Source: Beacon Equity Research

Brand Building
The Company is building strong brand awareness for the Perf Go Green name by distributing its products
through well-known retailers such as Amazon.com, Drugstore.com, Bashas Family of Stores and Walgreen’s
drug stores.

PGOG plans to continue to build on this initial momentum through national television, radio and print advertis-
ing, as well as online marketing activities. The Company recently showcased its products at the Chicago Inter-
national Housewares Show, which was attended by 22,000 buyers from around the world. At the show, PGOG
was recognized with the “Hot New Household Product” award and garnered national media attention.

Retail push marketing strategy

The Company is marketing its products through prominent retailers such as Bashas Family of Stores, which has
153 outlets across the United States, and Walgreen’s drug stores, which has more than 6,000 outlets. In addition,
PGOG has signed agreements with 13 representative firms which will help it extend its presence to additional
major retailers across the U.S. and Canada.

Partnerships with marketing agencies

The Company has formed partnerships with:

Perf Go Green Holdings Inc. (OTCBB: PGOG) 8

 Analyst: By Lisa Springer, CFA
Initial Report
October 8th, 2008

• Sweeney Wright Wiencek Inc., (SWW) of Minneapolis, to broker and represent the Company to major retail-
ers, including Target, Best Buy and Super Value.
• Sharon Associates, to broker and represent the Company to key regional and national retailers such as CVS
Pharmacy, Stop & Shop, Shaw’s Supermarkets, Rite-Aid, Hannaford and Wegmans.
• Advanced Marketing Group, to broker and represent the Company to national mass merchandisers such as
Target, Best Buy, Super Value, Kohl’s, Shopko, Sears, Kmart, Sam’s Club and Wal-Mart.
• Roadrunner, to broker and represent PGOG to major retailers nationally, including Kroger, Safeway, Super
Value, Bashes, Albertsons and Whole Foods, among others. Roadrunner has sales offices in Arizona, Utah,
Idaho, Colorado and Ohio.
• Rankin Sales of Wisconsin, to broker and represent the Company to Kohl’s, Shopko, Promotions Unlimited,
Walgreens, Meijer, Duckwall/Alco, Sears and Kmart.

Through these partnerships, the Company may extend its distribution network to more than 12,000 retail outlets
across the United States.

Partnerships with nonprofit organizations

The Company is also partnering with nonprofit organizations such as SOHO, which is a privately funded or-
ganization that works to keep neighborhoods in the Manhattan borough of New York City clean. PGOG also
distributes its products through the Community Economic Development Association of Cook County in Illinois,
which offers energy conservation kits to low-income families. CEDA distributes in excess of 10,000 kits per year to
families in Cook County. The Parks Department of Stamford, Conn., is using PGOG plastic bags in its parks and
recreation areas.

Commercial customers

The Company has secured the Grand Hyatt Hotel in New York City as a corporate customer. Grand Hyatt has
made PGOG bags part of the “go–green” program at its anchor New York City hotel. This program will likely be
rolled out at all 365 hotels that comprise the Grand Hyatt chain worldwide.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 9

 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

Introduce new products

The Company is introducing new products which will help PGOG increase sales and broaden its customer base.
PGOG has launched new products in six prominent categories. Two categories, namely 13-gallon tall kitchen
garbage bags and 30-gallon garage, yard and leaf bags have been launched nationwide in chain stores, including
Walgreen’s. Other categories such as commercial garbage bags in various sizes for office buildings, municipali-
ties, parks and beaches; kitty litter liner bags in three sizes; Doggie Duty Bags; and 10-foot by 20-foot plastic drop
cloths are also being shipped.

Recruit strong board members

PGOG has recruited prominent business and government leaders and a well-known environmentalist to its
board. Former New York governor, George Pataki, and the former chairman of Empire State Development Corp.,
Charles Gargano, serve on PGOG’s board of directors. Other directors include David Bach, the New York Times
best-selling author and green living expert; Ben Tran, president of Spectrum Plastics, a $250 million in sales
packaging firm; and Robert Dubner, a former partner of the Price Waterhouse Coopers accounting firm. Each
board member brings unique expertise and relationships to the table that will help PGOG rapidly build brand
awareness, credibility and nation-wide distribution channels.

Manufacturing partnership with Spectrum Plastics

The Company has partnered with Spectrum Plastics for the manufacturing of its products. Spectrum Plastics is
a leading manufacturer and distributor of plastic bags and other plastic products with annual sales exceeding
$250 million. Spectrum manufactures and supplies printed bags to the world’s top retailers, including Wal-Mart,
3M and Target, as well as to restaurants, supermarkets and industrial companies.

Go Green 21.0 Foundation

PGOG founded the Go Green 21.0 Foundation to foster and promote green education initiatives around the
world. The foundation provides a platform for individuals to connect with a community of environmentally-
conscious, well-informed consumers and work together to develop solutions to environmental issues.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 10

 Analyst: By Lisa Springer, CFA
Initial Report
October 8th, 2008

Competitive Analysis
Growing awareness of environmental issues is encouraging both public and private companies to develop and
market eco-friendly product lines. The leading conventional plastic bag brands are Glad, which belongs to the
Clorox Company (NYSE:CLX) and Hefty, which is owned by Pactiv Corp. (NYSE:PTV). PGOG also competes
with companies developing eco-friendly disposable products such as such as China Green Technologies (OTCBB:
CAGM), Biopack Environmental Solutions (OTCBB: BPAC) and Cereplast (OTCBB: CERP). Closely-help compa-
nies competing in the biodegradable bag market include AL-PACK Enterprises, Plastic Solutions Inc., Biogrou-
pUSA Inc., and Repell-em Consumer Products. Some of the Company’s publicly-traded competitors are described
below:

Clorox Company (NYSE: CLX) is a manufacturer and marketer of consumer products. The company markets
brand name products, including its namesake bleach and cleaning products. It manufactures products in more
than 15 countries and markets in more than 100 countries. Products are sold primarily through mass merchandis-
ers, grocery stores and other retail outlets. The Company operates through two segments: North America and
International.

The products of the North America segment include laundry additives under the Clorox, Clorox 2 and Javex
brands; cleaning products, primarily under the Clorox, Formula 409, Liquid-Plumber, Pine-Sol, S.O.S and Tilex
brands; natural cleaning products under the Green Works brand; water-filtration systems and filters under the
Brita brand; products for institutional, janitorial, healthcare and food-service markets; auto-care products, pri-
marily under the Armor All and STP brands; plastic bags, wraps and containers, under the Glad brand; cat litter
products, primarily under the Fresh Step and Scoop Away brands; food products, primarily under the Hidden
Valley and K C Masterpiece brands; charcoal products under the Kingsford and Match Light brands; and natural
personal care products under the Burt’s Bees brand. Clorox Company reported FY 2008 sales were $5.3 billion.

Pactiv Corporation (NYSE: PTV) is a producer of consumer and foodservice/food packaging products. Pactiv
operates in two segments: Consumer Products and Foodservice/Food Packaging. Its other non-operating segment
relates to corporate and administrative-service operations and retiree-benefit income and expense. Consumer
Products manufactures and sells disposable plastic, foam, molded-fiber, pressed-paperboard and aluminum-
packaging products to grocery stores, mass merchandisers and discount chains. Products include waste bags,
food-storage bags, and disposable tableware and cookware. Pactiv sells many of its consumer products under
the well-known Hefty brand name. Foodservice/Food Packaging manufactures and sells foam, clear plastic, alu-
minum, pressed-paperboard and molded-fiber packaging to customers in the food distribution channel. These
customers include foodservice distributors, restaurants, institutional foodservice outlets, food processors and gro-
cery chains. Pactiv Corporation recorded 2007 sales of $3.3 billion.

The Company’s business operates 44 manufacturing facilities in North America and one in Germany. Pactiv also
has joint-venture interests in a corrugated-converting operation in Shaoxing, China (62.5%-owned) and in a fold-
ing-carton operation in Dongguan, China (51%-owned). It derives 95% of its sales from North America. In June
2007, the Company completed the acquisition of Prairie Packaging Inc., a manufacturer of disposable tableware
products.

China Green Material Technologies Inc. (OTCBB: CAGM) develops, manufactures and markets biodegradable
products. It operates in the People’s Republic of China and was initially known as Ubrandit.com. Its biodegrad-
able products are made using macromolecule starch-based compounds that are non-hazardous, microwaveable,
fire retardant, odor-free and durable under extreme temperatures. In addition, the company focuses on more than

Perf Go Green Holdings Inc. (OTCBB: PGOG) 11

 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

100 different end products classified into four different categories: disposable tableware and food carriers, agri-
cultural film, garbage bags, and packaging and packing materials. The company’s manufacturing facility has an
annual production capacity of 15,000 tons. On February 9, 2007, CHFY acquired Advanced Green Materials, Inc.
(AGM), by merging the latter into a wholly owned subsidiary.

Biopack Environmental Solutions Inc. (OTCBB: BPAC) develops, manufactures, distributes and markets biode-
gradable food containers and disposable industrial packaging for consumer products. The company focuses on
food chains, primarily based in Europe and the U.S. In 2002 it launched its brand “Roots Biopack” and started
marketing their biodegradable products. The company offers a range of services from product designing and
development, product testing, quality assurance as well as sales and marketing extensively across the globe.
The company is ramping up manufacturing capacity in 2008 with the goal of becoming a major player in green
packaging.

Cereplast Inc. (OTCBB: CERP) develops, manufactures and commercializes bio-based resins. These act as sub-
stitutes for petroleum-based plastics in converting processes such as injection molding, thermoforming, blow
molding and extrusions. The company began marketing its bio-based resins products in 2006. It uses renewable
resources (such as starches of corn, wheat and potato), which are biodegradable and also compostable, to manu-
facture bio-resins. These bio-based resins are used to manufacture disposable utensils, plates, cups and straws.

Financial Analysis
Income statement

PGOG is a development-stage company, and has yet to generate meaningful product sales. Since its November
2007 inception, the Company’s activities have focused primarily on capital raising, establishing an infrastruc-
ture, developing and marketing its products, and recruiting skilled managers and workers. Revenues for the
quarter ended June 30, 2008, and since the Company’s inception totaled $1,000 and consisted mainly of initial
sales through Amazon.com and sales to a municipality. PGOG expects sales to ramp up significantly in the sec-
ond half of 2008 as products that have been ordered becomes available to ship to initial customers who include
Walgreen’s, Bashas’, and Internet retailers Amazon.com and Drugstore.com.
PGOG’s loss from operations totaled $11.4 million for the period from the Company’s inception in November
2007 through the most recent quarter ended June 30, 2008. Operating expenses totaled $11. 4 million over the
same period and consisted mainly of general and administrative expenses, which included non-cash stock com-
pensation charge of $9.0 million.
Exhibit 8: Income Statement Data
Period ended
First quarter ended
November 15, 2007 -
June 30, 2008*
June 30, 2008

Revenue $1,000 $1,000

Cost of Goods Sold $1,000 $1,000
Total Operating Expenses $10,815,000 $11,442,000
Operating Income ($10,815,000) ($$11,442,000)
Net Income / (Loss) ($32,851,000) ($34,276,000)

Source: Company Reports, Pink Sheets

Perf Go Green Holdings Inc. (OTCBB: PGOG) 12

 Analyst: By Lisa Springer, CFA
Initial Report
October 8th, 2008

PGOG will have ongoing costs for vesting options already granted which are expected to total approximately
$2.2 million per quarter. The Company has recorded other non-operating expenses totaling $22.8 million since its
inception, which relate mainly to derivative liability expenses.

Liquidity and capital requirements

As of June 30, 2008, the Company had cash of $5.3 million, a working capital deficit excluding cash balances of
approximately $24.3 million, and a stockholders’ equity deficit of approximately $22.4 million.

Exhibit 9: Balance Sheet Data

June 30, 2008

Cash and Cash Equivalents $5,280,000

Net Working Capital (Excluding Cash) ($24,257,000)
Total Assets $8,000,000
Total Long Term Liabilities $178,000
Total Current Liabilities $30,178,000
Stockholders´ Equity (Deficit) ($22,356,000)

Source: Company 10-Q, Pink Sheets

Since its inception, the Company has raised t$2.1 million through private equity placements, $0.75 million through
issue of bridge notes and warrants, and $ 5.9 million through convertible debentures and warrants. We think it
likely that the Company will try to raise an additional $5-10 million over the next several months through equity
financing to fund its aggressive ad campaign and support the rollout of it Go Green brand and products on a na-
tionwide basis.

Revenue outlook

We anticipate a very rapid ramp-up for PGOG’s revenues in 2009 and over the next three to five years as a result of
the environmental advantages of the Company’s biodegradable bag technology, PGOG’s steady progress in estab-
lishing distribution channels through leading national retailers, and a steady stream of extensions to its existing
product lines. The annual U.S. market for trash bags alone exceeds $3.0 billion; we believe the potential market
PGOG may address with product line extensions could easily create a $5.0 billion annual sales opportunity.

Based on our conversations with management, we project PGOG’s fourth quarter 2008 sales in a $2.5 million
range. The September rollout of the Company’s biodegradable trash and yard waste bags at Walgreens stores and
through online retailers Amazon.com and Drugstore.com will create strong sales momentum going into the 2008
fourth quarter. We also anticipate new mass merchandisers and grocery chains added to PGOG’s distribution
channels this year and next year will fuel growth in the Company’s sales to approximately $25 million next year
and $65 million in 2010. We further expect sales to expand at a 60%-70% compound annual rate through 2012,
with sales reaching approximately $125 million in 2011 and $200 million by 2012.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 13

 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

Projected Revenues $ in millions

200

150

100

50

0
2008E 2009E 2010E 2011E 2012E

Year

We expect PGOG to become profitable during 2009 and look for earnings growth to exceed revenue growth be-
tween 2010 and 2012 as the Company benefits from efficiency gains and growing brand name awareness on its
rapidly expanding revenue base.

Valuation considerations

Deriving a target price for PGOG is complicated by the lack of comparable peer data. Most of PGOG’s peers
in the biodegradable bags and packaging market are development-stage companies that have yet to generate
meaningful revenue or earnings. PGOG also competes with the established Hefty and Glad brand names owned
by multi-billion dollar consumer products companies. The Clorox Company was recently trading at a 1.7 times
Price/Sales multiple and a 16 times Price/Earnings multiple, while Pactiv Corporation trades at a 1.0 time Price/
Sales multiple and a 13 times Price/Earnings multiple.

“Green” products companies such as PGOG typically trade at a premium to others due to strong demand for
eco-friendly products. We think PGOG warrants a much higher Price/Sales multiple than Clorox Company or
Pactiv Corporation because of its innovative biodegradable products and faster anticipated growth rate. We
value PGOG at a 5.0 times Price/Sales multiple and derive a $3.75 price target for the Company by multiplying
our $25 million 2009 sales estimate by a 5.0 times Price/Sales multiple. As a result, we are initiating coverage of
Perf Go Green Holdings Inc. with a Speculative Buy rating and a $3.75 target. We think these shares offer ex-
ceptional upside potential for shareholders but caution prospective investors that PGOG must overcome many
challenges to implement its growth plan. One of the Company’s major challenges will be taking retail store shelf
space away from its larger, more established competitors. We therefore urge readers to consider the risk factors
discussed below before investing in PGOG.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 14

 Analyst: By Lisa Springer, CFA
Initial Report
October 8th, 2008

Risk Analysis
History of losses

The Company is in an early development state and has recorded significant operating and net losses. Going for-
ward, PGOG expects to record costs for ongoing vesting of options already granted of approximately $2.2 million
per quarter.

Reliance on Spectrum Plastics

The Company relies on Spectrum Plastics for 100% of its product manufacturing. Unexpected disruptions in
manufacturing or delays in delivery by Spectrum may result in cancelled orders and reduced revenues and profits
for PGOG.

Competitive landscape

Glad and Hefty are well-established brand names in the plastic bag market. These brands are owned by two very
large, multi-national consumer products companies: the Clorox Company and Pactiv Corp. Both of these com-
panies have significantly greater marketing and financial resources than PGOG. Together these two competitors
control 75% of the shelf space allotted to plastic products by most retailers.

Biodegradability of products not yet verified

The Company’s claim that its products are biodegradable is based on Environmental Products Inc.’s (EPI) claim
that its Totally Degradable Plastic Additives (TDPA) will cause plastics to break down and Spectrum Plastic’s
process for manufacturing biodegradable products. If PGOG’s plastic bags don’t biodegrade as advertised, the
Company will likely lose revenues and market share.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 15

 Analyst: Lisa Springer, CFA
Initial Report
October 8th, 2008

Management Team

Tony Tracy Mr. Tracy is a successful entrepreneur and the designer of 10 patented household, exercise equipment and
personal grooming products. Mr. Tracy entered the trash bag market seven years ago with the launch
Chairman and CEO of Perf, a trash bag with a patented dispensing system that was sold in Wal-Mart stores and other chain
stores.

Michael Caridi Mr. Caridi is chairman of Majic Group, which provides services to various industries, including residential
construction and ground-up commercial construction for Fortune 500 corporations.
Chief Operating Officer

Linda Daniels Ms. Daniels has more than 20 years experience in business-to-business and business-to-consumer mar-
keting across varied industries. Ms. Daniels has produced marketing strategies for well-known brands
Chief Marketing Officer such as IBM, Xerox, NYSE, CNBC, MSNBC, Citigroup Smith Barney and Prudential Securities. She is the
founder and president of The Punch Factory, a marketing consultancy firm that assists in brand building.

Mr. Stewart is a CPA with 28 years in the accounting field and his own firm since 1986. He has provided
Alan Stewart accounting, bookkeeping, financial statement and tax preparation services to more than 100 corporate and
Chief Financial Officer partnership clients.

Perf Go Green Holdings Inc. (OTCBB: PGOG) 16

 Analyst: By Lisa Springer, CFA
Initial Report
October 8th, 2008

Disclaimer
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may lose some or all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stock
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party compensation received has been disclosed within each individual profile in accordance with section 17(b) of the Securities Act of 1933. This compensation
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terially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s
most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in
the report and not place undue reliance upon such statements.

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pleteness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We
have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and
we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which
we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information
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I, Lisa Springer, CFA, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in
this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I
certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Lisa Springer, MBA, CFA - Senior Analyst Lisa serves Beacon Research Partners as a research analyst. She brings to the company over 15 years experience in equity research and
investment marketing. Prior to joining Beacon, Lisa worked as an equity analyst for an independent research provider. She has also held positions as investor relations officer for a
NYSE-listed company and director of financial analysis for a large consulting firm. Lisa earned an MBA from the University of Chicago and is a Chartered Financial Analyst (CFA).

Perf Go Green Holdings Inc. (OTCBB: PGOG) 17