reclamation products, services and technologies is estimated to be in the tens of billions of dollars.

Currently, SDH Group has one operational LLC (Tampa Bay Recycling) and three fully developed LLCs. The base LLC is Vehicle Environmental Solutions (VES) will establish a state-of-the-art indoor, environmentally benign, semi-automated automobile reclamation facility, capable of processing up to 20 thousand (per shift) end-of-life automobiles per annum, and produce substantial concentrations of reclaimed component materials and parts. The semi-automated disassembly line is patented and operational in 4 locations in Europe. SDH Group intends on purchasing the patents and company that produces the disassembly line and is in negotiations with the owners. The other developed and planned LLC work as "cousins" to VES. An example is Pt-Rh, LLC which was developed to extract and refine the three types of Platinum that are used in all catalytic converters. This company alone in its first year of operation could generate $20 million in profits. Other companies include Used Tire Solutions and Global Plastic Recycling as two more "cousins" in generating revenues for SDH Group.

Issues

There are more than 50 million automobiles manufactured per year in the United States, with in excess of 13 million automobiles that are reaching the end of their useful life each year and this trend seems to be growing every year. Far more than 10 million vehicles are scrapped annually in one form or another, in the United States alone. Most of these automobiles end up in junkyards, where employees, with little regard for environmental impact, partially dismantle vehicles to satisfy individual customer orders. The remaining hulk (an industry term) is usually sent off to a scrap dealer (shredder). Shredders are primarily interested in getting rid of the vehicle and their process is very unfriendly to the environment. The yards place each vehicle into the machine which, of course, shreds the vehicle. Seeing that they do not disassemble the vehicle, the shreddings are mixed and therefore contaminated and cannot be utilized for recycling. In all cases, the hulk contains significant amounts of materials/parts that, if reclaimed in large quantities, separated and generically identified, would have enhanced value.

Marketing, Sales and Customers

There is a supply and demand issue with this type of environmental recycling. On the supply side, SDH Group has been in talks with two major automobile insurance companies. Aside from a formal contract, it has been agreed that SDH/VES will accept all the insurance companies' end of life vehicles (ELV), which will average approximately 300 automobiles per week. On the demand side, SDH/VES has lined up buyers for approximately 98% of all auto parts, metals, plastics, glass harvested. Approximate gross value per vehicle is $1,700. One shift can disassemble up to 800 ELV per month.

Competition

In the United States, the automobile reclamation industry is ad hock and fragmented. The few attempts to consolidate have failed because no economies of scale resulted from the roll-ups (e.g.: Ford's Greenleaf program, LKQ - a CarMax affiliate, and Parts America.) The VES systems technology approach is a needed fundamental change to the industry. The existing markets and emerging new markets, for reclaimed automotive materials and parts are constantly looking for a one-stop-shop, because the costs are less. There is a supply and a large demand for these used auto parts and scrap metals, plastics and glass.

Other Potential Business/Technological Acquisitions:

As noted, SDH Group continually seeks emerging products, processes and technologies in the areas of reclamation, resource recovery and energy alternatives, so to develop into commercial ventures. The following are three possibilities where extensive research has been accomplished and the companies/technologies can be obtained:

1. SDH Group is currently in Joint Venture talks with a California engineering company that has developed a system to extract the three types of platinum in catalytic converters and refining these metals to 99% purity. This patented process could generate and additional $20,000,000 (net) in the first year, just in platinum sales.

2. Crude Oil Emulsions is a naturally occurring sludge that oil drillers must remove at the well. This sludge is often used power generation at power plants or burn in industrial kilns. However, much of this sludge is just left into pools for disposal. SDH Group could purchase the technology that would separate the sludge back into pipeline grade crude oil, water and clean sentiment.

3. SDH Group has just begun talks with an engineer that has developed a system that would make any automobile a hybrid-electric vehicle for under $10,000 each.

4. VES will generate millions of pounds of scrap tires per year. SDH Group has found a system that could be used in recycling the elements within tires into a diesel fuel.

5. SDH Group is in negotiations to purchase the company that owns the patents on the disassembly line that will be utilized at all VES locations.

Exit Strategy

The exit strategy will include SDH Group will include filing a Form 10 with the Securities and Exchange Commission (SEC), which will give the company fully-reporting status. Once approved, SDH Group will file a 15c211 with FINRA (formerly the NASD) and become a fully trading company. SDH Group will initially be trading on the OTC.BB, but will transfer to the American Exchange (AMEX) as soon as possible. This process will allow SDH Group to raise additional capital for further expansion. SDH Group plans on filing with the SEC by the end of September or early October 2008 and raise approximately $10,000,000 upon approval.