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Pei Executive Summary 2 62909


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Vertical Axis Wind Turbine Generator safe for birds & bats, efficient, developed for low wind environments

Vertical Axis Wind Turbine Generator safe for birds & bats, efficient, developed for low wind environments

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  • 1. EXECUTIVE SUMMARY PREVAILING ENERGY INC. 6/28/2009 COMPANY OVERVIEW: Prevailing Energy, Inc (“Prevailing Energy” or the Transaction: “Company”), formed in 2005, is a developer, manufacturer and $3 million equity investment supplier of patent pending vertical axis wind turbine technology. The Industry: Company’s specific target markets are the world wide business and Vertical axis wind turbine residential markets. The company is presently located at 4943 Marin technology Drive, Oceanside, CA. Collectively, management has many years of Contacts: wind turbine and electronic technology experience specifically in the Larry Frew areas of vertical axis wind technology development, sales and CEO Prevailing Energy Inc. business development. Prevailing Energy has patent pending wind C: (760) 310-7461 technology that no other company in the world has. It can replace F: (760) 732-3790 exiting technology at substantial cost savings and increased power output. The three main product lines have already been recognized Process as superior to its competition providing it with the opportunity to 1. Execute NDA. substantially increase its customer base and share in an emerging 2. Distribute Information Memorandum. scalable vertical axis wind turbine world wide market. 2. Conference call to introduce company and management INDUSTRY OVERVIEW: and to discuss preferred The current world wind turbine replacement market is estimated at investment structure. 96 Billion US Dollars. At Prevailing Energy, we believe we can 3. Management meeting and presentation. capture a significant percentage of the existing world wide wind 4. Investor due diligence. replacement market. Over the past six years global wind power 5. Execute term sheet capacity continues to grow at average accumulative rate of 29% per year. TRENDS AND OPPORTUNITY: Currently, vertical axis wind turbine MARKET sales are being driven by both higher energy prices, existing and new state and local air quality regulations, federal, state, and local grants and tax incentives. As generating costs continue to fall and as public concern about climate change escalates, the world is fast turning to wind for its electricity. Since 1995, world wind generating capacity has increased an astounding fivefold. In stark contrast, the use of coal—the principal alternative for generating electricity—peaked in 1996 and has declined by 6 percent since then. The VATG is based on proven technology that was developed by Brandt Goldsworthy in the late 1980’s, and possesses competitive advantages over other wind devices and alternative renewable energy technologies. The VATG systems in the 1-kilowatt to 1million watt range of rated output can be installed in series on roofs and open areas of office buildings, shopping centers, and other commercial facilities in urban areas with low to moderate wind speed conditions with no environmental impact on the surrounding community. For this reason, Prevailing Energy will first target the premium priced, $12 Billion worldwide secondary generation power market (defined as less than 2.5MW grid-connected or non-grid connected locations). Prevailing Energy is already focusing on a range of commercial opportunities in each of four key geographical regions: North America, Europe, Japan and China, and Australia. PRODUCTS: Product/Description Competitive Advantage Zephyr 150KW to 1MW Patent • Simpler: One moving part. One moving part means longer Pending warranty, more efficiency and more power output in low wind environments. Outputs 1.9 times similar horizontal; turbines. Prevailing Energy Inc. –Confidential- Do Not Copy or Distribute Without Permission 4943 Marin Drive Oceanside, CA 92056 Tel: (760) 310-7461 • Fax: 760) 732-3790 -1-
  • 2. EXECUTIVE SUMMARY PREVAILING ENERGY INC. 6/28/2009 Product/Description Competitive Advantage This VATG is designed for larger • Direct drive: There are no gears, belts, or brushes in the applications such as wind farms or turbine assembly. Having no gears, belts or brushes also improves the industrial applications. Prevailing efficiency of the unit and also making more power available in low Energy’s Market in these sizes would be winds. At the present time the transmissions of the horizontals to sell Power to the customers at a turbines last less than a year. So maintenance costs, down time discounted rate than what they are (months), and replacement issues are a serious problems. paying today. Prevailing Energy will • No Threat to Birds or Bats: The VATG design greatly reduces determine a project size and value to the the risk of bird kills occurring because the lower outer diameter end user. rotational speeds keep the turbine visible and safe from bird collisions. At the present time there is litigation against the Altamont Wind Farm by Environmental Agencies for bird kills. CEC estimates there are 1,766 to 4,721 bird kills a year. The courts have mandated they shut down for the winter months to try to protect the birds causing an estimated 9 million dollar loss in generation. Zephyr 3KW to 150KW Patent • Less Noise Impact: The conventional wind turbines currently Pending available today cannot be installed in the vicinity of animals or people because the spinning blades of these turbines make loud irritating sounds while rotating. The VATG of Prevailing Energy is virtually silent. Due to the convenient size of these • Not directional: No wind vaneing. There is no mechanism to VATG, the market that fits with them is keep the turbine facing the wind; this makes the system simpler and the residential, small business and Farm more efficient. This allows Prevailing Energy to have a longer warranty Market. One or two of the Zephyr 3KW than anyone else and produce power at low wind speeds when the units can supply up to 90% of the power other horizontal wind turbines rotors are not even turning. needed for a medium sized single family • Lower height requirements: Conventional wind turbines need home, small business and farm. In this to be elevated over 100 feet into the air to work efficiently. The VATG circumstance, Prevailing Energy would will require only 25-30 feet of height from ground level to do the same provide the VATG’s to the end users for job and will meet many city and local height requirements for such a their power requirements. structure. Both the turbines and the generators are stackable, increasing power output capacity from a single footprint. Zephyr 1KW to 3KW Patent • Reduced Cost of Kilowatt Hour Usage: Installation is less Pending expensive than similar installations of conventional Wind Turbines. This VATG is designed specifically for the Because of the simplicity of design and the direct drive mechanisms Marine or Recreational Vehicle markets. make the VATG cost less than conventional Turbines. The maintenance These markets currently utilize an oil cost is reduced due to a simpler direct drive mechanism and the based powered generator that have Turbine is mounted closer to the ground limitations such as noise and cost of the fuel. The Zephyr 1KW or 3KW eliminates both of these limitations. • Less Visual Impact: Because of the compact size and displacement of the VATG, the VATG will stand less obtrusively within the surrounding community and can be painted to blend in with its surroundings. ACCOMPLISHMENTS: Prevailing Energy has developed and is currently commercializing the world's first economically viable and scalable Vertical Axis Wind Turbine electric generation system. Prevailing Energy’s VATG Technology offers a proven, low-cost, reliable, easily scalable, non-polluting, aesthetically pleasing, non-audible and safe source of renewable energy. The Turbine Generator can operate in low wind speed environments. Prevailing Energy Has patent pending technology that protects our market share for future growth. We are developing a new type of Vertical Axis Wind Turbine Generator. The sizes are completely scalable and we are investigating diameters from 10 inches to 30 feet. While the 10-inch model has a predicted output of 12 Watts in a 10 mph wind the 30-foot VATG output is to be more than 5000 Watts in the same wind. CAPITALIZATION: Since inception, the Company has raised close to half a million dollars from high net worth individuals and management. Management and employees owns 90%, the remainder Prevailing Energy Inc. –Confidential- Do Not Copy or Distribute Without Permission 4943 Marin Drive Oceanside, CA 92056 Tel: (760) 310-7461 • Fax: 760) 732-3790 -2-
  • 3. EXECUTIVE SUMMARY PREVAILING ENERGY INC. 6/28/2009 is owned by individuals and third parties who have provided services to the Company. Prevailing Energy Inc. –Confidential- Do Not Copy or Distribute Without Permission 4943 Marin Drive Oceanside, CA 92056 Tel: (760) 310-7461 • Fax: 760) 732-3790 -3-
  • 4. EXECUTIVE SUMMARY PREVAILING ENERGY INC. 6/28/2009 KEY MANAGEMENT: Larry H Frew President and CEO has more than 25 years experience in the electronics industry. He has been instrumental in engineering and product design programs that span a variety of commercial markets, including high-reliability military projects and medical programs. Prior to his association with Prevailing Energy, Inc., Mr. Frew was Director of Engineering of ZoneWorx, Inc., and was responsible for all of the basic research, engineering development, engineering Manufacturing, and designs that combined analog and digital concepts and components which led to the ZoneWorx technology. He has been a principal in five successful company start-ups. Mr. Frew graduated from The Ohio State University in 1979 with an Electrical Engineering degree and post-graduate work in microprocessor architecture, optical properties of silicon, and advanced energy conversion. Mr. Frew has a minor degree in nuclear energy. Mr. Frew started his career as a faculty member in the Astronomy Department at The Ohio State University. One of Mr. Frew’s designs for a Bendix Oceanics’ state-of-the-art SONAR tracking system for NATO was highlighted in the feature film, The Hunt for Red October. John D. Sandberg, CFO and Secretary, is an experienced Financial Manager with a diverse background in manufacturing, serving as both a consultant and employee, developing strategies, systems, policies and procedures, with successful implementations in MRP and ERP environments. Most recently Mr. Sandberg served as Controller at Nicollet Process Engineering, Inc. from 1995, and played a key role in bringing it public in 1996. Prior to that Mr. Sandberg served as Controller for Nystrom Inc. a manufacturer and distributor of sheet metal access products, roof and floor hatches, and fire extinguisher cabinets. He was with the company from 1991 to 1995 and successfully managed and executed a turn-around from several years of losses to substantial profits in 1992, 1993 and 1994. Mr. Sandberg owned an alarm monitoring business and was a financial consultant from 1988 to 1991. Prior to running his own business, he served as Controller at American Monarch Corporation for three years and as financial analyst and cost manager at Resistance Technology for two years. From 1966 to 1983 Mr. Sandberg was a manager of financial planning and cost at McQuay, Inc. a manufacturer of OEM coils, air conditioning and heating equipment, cast metals, and heavy road equipment. Mr. Sandberg graduated from Mankato University in 1965. He served two years in the armed forces in 1965 and 1966. He has been a member of many financial associations, and has served as financial advisor for many non-profit organizations. Thomas K. Quick, Director of Technical Sales, Prior to joining Prevailing Energy, Inc., Mr. Quick was Division Manager for the die cast division at Nicollet Process Engineering, Inc., an industry leader in die cast monitoring and control products. Responsibilities included all sales, marketing, product specification and customer service. Prior to joining Nicollet Process Engineering, Mr. Quick spent 13 years in quality management and quality engineering with leading die cast manufacturing companies. Mr. Quick has completed upper level course work in quality assurance management including up to 250 hours of Statistical Process Control training (SPC). Mr. Quick’s 21 years of experience in the die cast industry and process control brings to Prevailing Energy, Inc., an extensive knowledge base and strong sales and marketing skills. Robert D. McCarthy, Director of Marketing, has over 23 years experience focused on marketing and sales for business and real estate transactions. Mr. McCarthy is currently a co-owner in a nation wide mortgage banking operation. Mr. McCarthy has been a business owner and manager in the real estate industry for the last 19 years. Mr. McCarthy has a BA in communications from California State University Northridge. INVESTMENT: Prevailing Energy is seeking $3 Million in return for a minority ownership position in the company and a board seat. Such funding will be allocated towards continued product development and verification. Prevailing Energy Inc. –Confidential- Do Not Copy or Distribute Without Permission 4943 Marin Drive Oceanside, CA 92056 Tel: (760) 310-7461 • Fax: 760) 732-3790 -4-