Phoenix Energy Systems Phoenix Energy Systems provides low-cost, truly aesthetic renewable wind power appliances to residential, business, and Government customers. Introducing the Windspire® Wind to Power ~ Power to Inspire Wm. David Hamilton – President, Phoenix Energy Systems 972-814-3283 J. Matthew Hamilton – Vice President, Phoenix Energy Systems 512-246-9195

Phoenix Energy Systems provides low-cost,

truly aesthetic

renewable wind

power appliances

to residential,

business, and

Government

customers.

Renewable Energy Problems Solar based, dominated by Photovoltaic (PV) Wind focused on large propeller based systems for the ‘Farm & Barn’ community. Both approaches are Expensive Energy is currently produced away from consumption requiring expensive transmission and creating bottleneck problems.

Solar based, dominated by Photovoltaic (PV)

Wind focused on large propeller based systems for the ‘Farm & Barn’ community.

Both approaches are Expensive

Energy is currently produced away from consumption requiring expensive transmission and creating bottleneck problems.

Huge Markets – Common Platform Residential Resellers PV, wind, elect. Commercial Building Architects Agriculture Ag resellers Schools Architects Remote Telecom Antenna Mfgs Lighting systems Designers/Big Box Remote Highway Water Systems $30B Market $10B Market $10B Market $3B Market $2B Market $2B Market $1B Market $1B Market

Residential

Resellers PV, wind, elect.

Commercial Building

Architects

Agriculture

Ag resellers

Schools

Architects

Remote Telecom

Antenna Mfgs

Lighting systems

Designers/Big Box

Remote Highway

Water Systems

$30B Market

$10B Market

$10B Market

$3B Market

$2B Market

$2B Market

$1B Market

$1B Market

Applications Grid Tied houses, buildings, lighting, schools Integrated unit with easy installation and low cost DC based off grid, agriculture, telecom, remote sites Integrated generator and power electronics Battery based storage opens more markets Power electronics interface

Grid Tied houses, buildings, lighting, schools

Integrated unit with easy installation and low cost

DC based off grid, agriculture, telecom, remote sites

Integrated generator and power electronics

Battery based storage opens more markets

Power electronics interface

Next Generation Platforms Key Dynamic: Leverages Current Platform Design; Upgrade Annual Energy Production! Low Wind – 8ft Diameter Rotor Doubles Swept Area from 80 Sq. Ft to 160 Sq. Ft. Larger Airfoils and Struts Upgraded Generator: Tighter Windings to Get Higher Voltage New Diameter Will Lower Rotor RPMs and Provide More Torque Preliminary Analysis: 4,000 kWh’s in a Class 2 Wind ; 5,000 kWh’s in a Class 3 Wind Potential Upgrade Solution for Current 1.2kW; Opens New Market in Class 2 Wind 3kW Preliminary Rotor Analysis is Complete Design for New Generator and Inverter are in Process New Foundation, Pole, and Bearings Require Further Analysis People are Willing to Pay for Solution to Power 80 – 100% of Annual Electrical Usage!

Key Dynamic:

Leverages Current Platform Design; Upgrade Annual Energy Production!

Low Wind – 8ft Diameter Rotor

Doubles Swept Area from 80 Sq. Ft to 160 Sq. Ft.

Larger Airfoils and Struts

Upgraded Generator: Tighter Windings to Get Higher Voltage

New Diameter Will Lower Rotor RPMs and Provide More Torque

Preliminary Analysis: 4,000 kWh’s in a Class 2 Wind ; 5,000 kWh’s in a Class 3 Wind

Potential Upgrade Solution for Current 1.2kW; Opens New Market in Class 2 Wind

3kW

Preliminary Rotor Analysis is Complete

Design for New Generator and Inverter are in Process

New Foundation, Pole, and Bearings Require Further Analysis

People are Willing to Pay for Solution to Power 80 – 100% of Annual Electrical Usage!

PUC Building China Basin – San Francisco

Dubai Waterbus Stations

Adobe Windspires

International Car Show – Detroit 2009

International Car Show – Detroit 2009

Residential Home – Reno Nevada

Renewable Product Comparison at 1kW System – Mariah is lowest price by far Phoenix Energy Windspire Propeller Based Photovoltaic (PV) Type Vertical Axis Wind Horizontal Axis Wind Solar Size 30 Ft Tall 57 Ft Tall 105 Sq Ft Noise < 44 [email_address] > 85 dB None Safety Low Speed Simple electronics High Speed Chem based Unit Price $4,995 $6,619 $5,500 Installation $1,000 $2,552 $5,674 Total Cost $5,995 $9,171 $11,174

Life Cost of Electricity Generated 1 kW system, no subsidies Phoenix Propeller PV Installed Cost $5,995 $9,129 $11,174 kWh Generated 50,000 50,000 35,680 Cost per kWh 12.0 ¢ 18.3 ¢ 31.3 ¢

Phoenix Energy Systems - Cost in California $5995 – Installed Cost of Unit -$2500 -- California Grant $2.50 per watt ------------ $3495 -- Net Cost to Customer Grant Payback is 4.2 years at tier 3 utility rate Federal Tax benefit is $2,000!!!!!!!! Requirements: Must be certified unit Must track production Requires a five year warranty Must be privately owned Must be professionally installed for full rebate

$5995 – Installed Cost of Unit

-$2500 -- California Grant $2.50 per watt

------------

$3495 -- Net Cost to Customer Grant

Payback is 4.2 years at tier 3 utility rate

Federal Tax benefit is $2,000!!!!!!!!

Requirements:

Must be certified unit

Must track production

Requires a five year warranty

Must be privately owned

Must be professionally installed for full rebate

Current Sales Channel Status Dealers 40 Dealers Signed Up 60 Dealers Expected by End of 2008 Current Dealers Requesting Multiple Units Now Architects / Housing Developers 30 Architects / Designers Engaged By the End of 2008 West Coast Green Conference: Approached by Many Commercial LEEDS Builders Federal, State and Local Municipalities New York RFEI (Request for Expression of Interest) Submitted 3 Major States / Municipalities / Government Contracts New York, Nevada, Houston Working with Nevada WindGenerations Program to Provide Rebate for Windspire Installations International Two Countries Moving to Volume: France / Costa Rica Preparing to Ship Containers in Early ’09 Approached at West Coast Green by Individuals Wanting to Ship Product to: New Zealand, Australia, Israel, and US Virgin Islands Many Others Requesting Territory Rights

Dealers

40 Dealers Signed Up

60 Dealers Expected by End of 2008

Current Dealers Requesting Multiple Units Now

Architects / Housing Developers

30 Architects / Designers Engaged By the End of 2008

West Coast Green Conference: Approached by Many Commercial LEEDS Builders

Federal, State and Local Municipalities

New York RFEI (Request for Expression of Interest) Submitted

3 Major States / Municipalities / Government Contracts

New York, Nevada, Houston

Working with Nevada WindGenerations Program to Provide Rebate for Windspire Installations

International

Two Countries Moving to Volume: France / Costa Rica

Preparing to Ship Containers in Early ’09

Approached at West Coast Green by Individuals Wanting to Ship Product to: New Zealand, Australia, Israel, and US Virgin Islands

Many Others Requesting Territory Rights

Unique Features Aesthetically pleasing, low profile Virtually silent Flexible design, scales by height and width for various applications from lighting to municipal backup UL certified, real world independent power testing High efficiency generator, integrated inverter Durable steel and aluminum construction, 20 year life Simple installation, extremely low maintenance Any color you want Self-starts in low wind, without needing any motor Wireless performance monitor

Aesthetically pleasing, low profile

Virtually silent

Flexible design, scales by height and width for various applications from lighting to municipal backup

UL certified, real world independent power testing

High efficiency generator, integrated inverter

Durable steel and aluminum construction, 20 year life

Simple installation, extremely low maintenance

Any color you want

Self-starts in low wind, without needing any motor

Wireless performance monitor

Intellectual Property 6 Pending Patents - High aspect ratio turbine rotors - Vertical axis turbines with rotating cantilever shaft support - Low drag turbine system - Free-standing hinged turbine pole - International compatible inverter connection method - Battery charging operation for vertical rotors 2 Issued Patents - High efficiency cog-free generator - Small Wind System Turbine

6 Pending Patents

- High aspect ratio turbine rotors

- Vertical axis turbines with rotating cantilever shaft support

- Low drag turbine system

- Free-standing hinged turbine pole

- International compatible inverter connection method

- Battery charging operation for vertical rotors

2 Issued Patents

- High efficiency cog-free generator

- Small Wind System Turbine

Generator Testing - Prof. Andrzej Trzynadlowski University of Nevada, Reno High efficiency Cog-free Simple

High efficiency

Cog-free

Simple

Inverter Grid tie UL 1741 IEEE 1547 FCC compliant RoHS compliant ZigBee modem Autotransformer – international

Grid tie

UL 1741

IEEE 1547

FCC compliant

RoHS compliant

ZigBee modem

Autotransformer – international

Rotor Tested - Sandia National Laboratories

Rotor Dynamics Texas A&M University Cantilever bearing system - Solution to first conical whirl mode

Power Curve Fig. 5.22 Power coefficient vs TSR of the three-bladed rotor without and with blade struts corrections Design guidance and real world expectations

Phoenix Energy Systems