Prepared for: ERCOTSeptember 8, 2009

Ask Yourself…..

What would you attempt to do if you knew you could not

fail?

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Innovation is the spark that lights the fires of industry

ElectricitySteelAutomobilesInternet

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Power Tree Has Developed Breakthrough Electrical Energy Storage

Technology That Will Change Our World

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A Scalable Flywheel That Can Store And Discharge Grid Scale Power In A Green Economically

Viable Manner

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The unit’s kinetic wheel is 120" tall and 48" wide. Total weight of the wheel is approximately 80 thousand pounds. Total weight of the entire unit is approximately 100 thousand pounds depending on size of motor/generator set. Unit exterior containment is 11 feet wide, 11 feet tall and 30 feet long. At Max Operating Level (10,000 rpm): 30 gigawatt seconds 8.1 megawatt hours Power interface is set at 480 volt 800 amp input and output mode for basic system.  

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Economic Metrics (base unit 480v 800 amp): Manufacturing Cost: $200,000 installed cost per kwh: $26lifespan: 25 yearsmaintenance schedule: quarterly Efficiencies:input/output efficiency: 90%Rapid Onset Load Suppression: 80% 

Our Achievements To Date Years of R&D by the inventor resulted in solving the Flywheel

riddle. Commissioned a marketing study to be completed by Dr. Jerry

Jackson Power Tree Corp established in 2008 and funded. Recruited a talented and seasoned team of professionals. Applied for patent through Hamilton Brook Smith & Reynolds. Gen 3 unit built and in operation. Intertek testing of Gen 3 proved efficiencies. Currently patent pending. Established a manufacturing joint venture. Moving into Coconut Creek manufacturing facility. Received Congressional and State support. Signed multiple LOI’s with potential beta site partners

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Distribution

System

ResidentialCustomers

Industrial Customers

Commercial Customer MarketElectric Utility

Market

Transmission System

Power Tree Applications

Power Tree Flywheel Markets

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Application to UtilitiesReduces requirement for new generation

plantsIncreasing capacityPositioning along the gridLoad SmoothingFrequency and voltage regulationRapid onset load suppressionRenewable powerReduction of carbon emissions

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What We Are Currently Working On

Building Gen 4 Unit.Considering and selecting beta site partners.Forging alliances with utilities and other end

users.Finalizing our business model with utilities.Strengthening ties with government (DOE)

and applying for grants and manufacturing tax incentives.

Continue pursuing other potential applications.

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Flywheel CompetitorsTechnology Characteristics Beacon Power (BCON: NASDAQ) Pentadyne Active Power (ACPW: NASDAQ)Other - Batteries Small & Light WeightShort-period discharge capabilities (30 seconds

- 15 minutes )Primarily UPS applications and back up powerPotential utility frequency and voltage control

applications12

Our Competitive Advantage

Built for Scalability Greater Storage Capacity Due to Weight. Greater Efficiencies.Smart SoftwareEconomic viabilityBusiness ModelWide Range Of Applications Throughout

The GridRelative Cost

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Objectives And Plans For The Future

Complete Gen 4 unit by the end of first quarter 2010

Display Gen 4 unit running the Coconut Creek Facility.

Build other units as per requirements of selected beta sites.

Complete beta testing.Make necessary adjustments to unit as

required.Take orders…….

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SummaryBreakthrough Technology in Energy StorageScalable Flywheel Hours of Grid Scale Storage and Discharge

PowerEconomic ViabilityMultiple Applications Economic Arbitrage of Off-Peak/On-Peak PricingCost Efficient Technology for Utilities ExpansionShared Savings Business ModelWind and Solar ApplicationsIncreased Real Estate ValuesChanging the landscape

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