The document details the development and certification process of a cng/diesel hybrid engine system by Dhybrid, including the technological challenges and competition from other companies. The company plans to sell 20,000 systems over three years, with initial partnerships and significant investments in engine conversions already established. It outlines financial projections, potential market gains, and strategies to navigate the regulatory landscape in achieving EPA certification for their systems.

1. CNG/Diesel HybridCNG/Diesel HybridCNG/Diesel HybridCNG/Diesel Hybrid
4/13/20124/13/20124/13/20124/13/2012 Park City Angels |Park City Angels |Park City Angels |Park City Angels | Response to IssuesResponse to IssuesResponse to IssuesResponse to Issues 1111

2. 4/13/20124/13/20124/13/20124/13/2012 TechnologyTechnologyTechnologyTechnology 2222

3. Stand alone dHybrid ECU
Fully encrypted software/programming
A synergistic liaison between OEM and
dHybrid™ ECUs
Multiple patents pending + Proprietary
knowhow
4/13/20124/13/20124/13/20124/13/2012 TechnologyTechnologyTechnologyTechnology 3333

4. EPA and CARB certifications required to sell Class 8
engine
Challenge is daunting – no firm has complied with the
task of meeting the rigorous tests
First engine family to be addressed is the Cummins
871, which with two other families represents 86% of
the overall market
Company is set to enter labs on April 30 and final
certification is expected within 6 weeks
Overall cost is expected to be $275,000K
Dynamic control over all elements of combustion allow
significant confidence EPA certification will be achieved.
4/13/20124/13/20124/13/20124/13/2012 TechnologyTechnologyTechnologyTechnology 4444

5. Bi-fuel is the “Sweet Spot” of the
industry
No one has done it because “it ain’t as
easy as it looks.”
Others are working on bi-fuel, and
entries from two classes of industry
participants, are expected in the
intermediate term
4/13/20124/13/20124/13/20124/13/2012 CompetitionCompetitionCompetitionCompetition 5555

6. Engine Manufacturers:
◦ Cummins Westport (CWI) is JV of Cummins and Westport
Retrofit Suppliers:
◦ Clean Air Power was founded in 1991 and is AIM-listed
Raised $83M and have 66 patents granted or applied for
Dual-FuelTM tech
Launched Volvo heavy duty Euro 5 as diesel as latest of 1750
vehicles for 50 customers worldwide (excluding USA)
◦ EcoDual
Sells dual-fuel conversion for Outside Useful Life Cummins
ISX engines of which 1M+ are in service
Plans to release “multiple systems certified for newer trucks”
over “the next 12 months
4/13/20124/13/20124/13/20124/13/2012 CompetitionCompetitionCompetitionCompetition 6666

7. Complete the EPA certification process on
Cummins 871 07 emissions standard
Finalize equity financing, and purchase dyno
and emissions equipment
Complete installation of emission lab
Fill staffing requirements
Acquire current models of Cummins, Detroit,
and Navistar engines and development retrofit
kits
Enter relationship(s) with partner(s) to roll
fueling network out sequentially in key
markets
4/13/20124/13/20124/13/20124/13/2012 Marketing and SalesMarketing and SalesMarketing and SalesMarketing and Sales 7777

8. Nationwide Press Release upon EPA certification
Concurrently, the initial carrier plans to announce
purchase of the first 800 systems
Publish efficiency gains
Publish durability test miles
Sales staff currently identifying trucking
companies which own the Cummins ISX 871
Demo model taken to trucking company execs
Existing Nationwide service networks, such as
Inland Kenworth to sell, service and install
system
4/13/20124/13/20124/13/20124/13/2012 Marketing and SalesMarketing and SalesMarketing and SalesMarketing and Sales 8888

9. System installed by trucking companies
dHybrid discounts system cost to trucking
company and trains the company to install
and service their own fleet.
System installed by existing repair and
service networks.
dHybrid discounts system to service
networks for installation
dHybrid trains service networks to install
and service the system
Service networks trained to be primary
system service and support.
4/13/20124/13/20124/13/20124/13/2012 Marketing and SalesMarketing and SalesMarketing and SalesMarketing and Sales 9999

10. Dedicated CNG Trucks (100% CNG Trucks)
Dedicated LNG (Liquefied Natural Gas) Trucks
Hybridization (Diesel Electric)
Electric
Super Fuels (Additives, Hydrogen, Blends)
Undiscovered Fuels
Transportation Model Accommodations (Shorter
Routes, More Frequent Driver changes, more
frequent fuel stops to accommodate dedicated
CNG and LNG)
Refinement of existing technologies (synthetic
lubricants, ECM, etc.)
Undiscovered Technologies
4/13/20124/13/20124/13/20124/13/2012 Trends and DevelopmentsTrends and DevelopmentsTrends and DevelopmentsTrends and Developments 10101010

11. The initial trucking customer is one of the largest
fleets operators in North America
This carrier invested in excess of $2M at the outset
for initial engine conversions and equity
The agreement provides for purchase of a significant
number of conversions under favorable pricing
Discussions are proceeding on changes to the original
agreement sought by each party
The initial carrier has actively promoted dHybrid in the
marketplace
04/13/201204/13/201204/13/201204/13/2012 SwiftSwiftSwiftSwift 12121212

12. First Engine for EPA Certification (Cummins ISX871) is the dominantFirst Engine for EPA Certification (Cummins ISX871) is the dominantFirst Engine for EPA Certification (Cummins ISX871) is the dominantFirst Engine for EPA Certification (Cummins ISX871) is the dominant
engine currently in service in the Swift fleet.engine currently in service in the Swift fleet.engine currently in service in the Swift fleet.engine currently in service in the Swift fleet.
Swift is obligated to purchase 800 dHybrid Systems forSwift is obligated to purchase 800 dHybrid Systems forSwift is obligated to purchase 800 dHybrid Systems forSwift is obligated to purchase 800 dHybrid Systems for $16,000,000$16,000,000$16,000,000$16,000,000,,,,
within a year after EPA Certification of the Cummins ISX871 engine.within a year after EPA Certification of the Cummins ISX871 engine.within a year after EPA Certification of the Cummins ISX871 engine.within a year after EPA Certification of the Cummins ISX871 engine.
Swift has the option to purchase up to11,700 dHybrid Systems throughSwift has the option to purchase up to11,700 dHybrid Systems throughSwift has the option to purchase up to11,700 dHybrid Systems throughSwift has the option to purchase up to11,700 dHybrid Systems through
May 21, 2016, at $20,000 per system.May 21, 2016, at $20,000 per system.May 21, 2016, at $20,000 per system.May 21, 2016, at $20,000 per system.
When exercising its option to purchase, for every 325 systems that SwiftWhen exercising its option to purchase, for every 325 systems that SwiftWhen exercising its option to purchase, for every 325 systems that SwiftWhen exercising its option to purchase, for every 325 systems that Swift
purchases, it acquires an additional 1% equity in dHybrid, up to 36%.purchases, it acquires an additional 1% equity in dHybrid, up to 36%.purchases, it acquires an additional 1% equity in dHybrid, up to 36%.purchases, it acquires an additional 1% equity in dHybrid, up to 36%.
Swift spends approximately $600,000,000 a year on diesel fuel, utilizingSwift spends approximately $600,000,000 a year on diesel fuel, utilizingSwift spends approximately $600,000,000 a year on diesel fuel, utilizingSwift spends approximately $600,000,000 a year on diesel fuel, utilizing
dHybrid systems will substantially improve Swift’s gross profit.dHybrid systems will substantially improve Swift’s gross profit.dHybrid systems will substantially improve Swift’s gross profit.dHybrid systems will substantially improve Swift’s gross profit.
To be a “front runner” and competitive in its industry Swift must buyTo be a “front runner” and competitive in its industry Swift must buyTo be a “front runner” and competitive in its industry Swift must buyTo be a “front runner” and competitive in its industry Swift must buy
systems.systems.systems.systems.
Swift cannot seek alternative source of supply until May 2018.Swift cannot seek alternative source of supply until May 2018.Swift cannot seek alternative source of supply until May 2018.Swift cannot seek alternative source of supply until May 2018.
Other Swift issues will be the subject of discussion.Other Swift issues will be the subject of discussion.Other Swift issues will be the subject of discussion.Other Swift issues will be the subject of discussion.
4/13/20124/13/20124/13/20124/13/2012 SwiftSwiftSwiftSwift 11111111

13. Trevor Milton – Founder & CEO
◦ Successful serial entrepreneur. Founded and sold SGS Alarms. Founded classified site upillar.com.
William Milton – Vice President of Operations
◦ Operations Manager at Union Pacific Railroad and industrial development in Las Vegas. BS degrees in
accounting and psychology from Brigham Young University
Tony Allen – Chief Legal Counsel
◦ Former in-house Legal Counsel for ProPay, Inc., one of the largest merchant processors in the country. BS
degree from Brigham Young University and JD/MBA degrees from University of California/Berkley
S.S. – Chief Technology Officer
◦ Attained twelve years of automotive systems engineering and product development experience at General
Motors, Mercury Marine and Parker Hannifin. BS and MS from Univ. of Michigan
Timothy Hunt – Implementation Consultant
◦ CEO of Go Natural CNG managing entry into Class 8 trucking market
4/13/20124/13/20124/13/20124/13/2012 Management TeamManagement TeamManagement TeamManagement Team 14141414

14. Continue to firm up management team with senior additions:
Ronald White – CFO
Successful venture capitalist with seven IPOs (including Nextel) from $400 million pool; 25 years of experience
as CFO and advisor in the over-the-road trucking industry; cofounded Olympus Angels; MBA from HBS
In discussions with team of three well-known trucking
industry sales executives to increase sales reach and success
Plan to expand the board with industry expert and
representative of equity investors
4/13/20124/13/20124/13/20124/13/2012 Management TeamManagement TeamManagement TeamManagement Team 14141414

15. dHybrid goal is to sell 20,000 systems over the
next 3 years.
Compelling savings to trucking companies
Unique Supply Chain fundamentals can support
this growth
Emphasize product development and IP protection
to maintain technology leadership
Full engine control is the most important factor for
safety, durability and EPA certification
Product now ready for EPA testing
Pre-financing valuation is open to discussion
4/13/20124/13/20124/13/20124/13/2012 ValuationValuationValuationValuation 16161616

16. 2012 2013 2014
Revenue 8,940,000 52,800,000 105,600,000
CoGS 7,318,148 39,600,000 82,368,000
Gross Profit 1,621,852 13,200,000 23,232,000
Operating Costs 1,452,880 7,392,000 12,672,000
Operating Income 168,972 5,808,000 10,560,000
dHybrid P&L Projections 2012-2014
4/13/20124/13/20124/13/20124/13/2012 ValuationValuationValuationValuation 17171717

17. Cash invested to date totals $1.9M
Raising $1M through:
◦ Bridge offering to individual Accredited Investors
◦ Preferred stock financing for Angel groups
Use of funds as follows:
◦ Product development $250,000
◦ Sales and marketing 100,000
◦ Production and inventory 90,000
◦ Working capital 560,000
Total $1,000,000
4/13/20124/13/20124/13/20124/13/2012 ValuationValuationValuationValuation 18181818

18. dHybrid’s marketplace strategy will create relationships
with numerous potential acquirers
◦ Engine manufacturers such as Cummins (which
invested $20M in its JV with Westport)
◦ Oil companies (most of which have significant gas
holdings which are complimentary to trucking cycle)
◦ Entrepreneurs like T. Boone Pickens and/or financial
buyers such as private equity firms
◦ Natural Gas Pipeline and Truckstop Companies
An IPO would be a clear possibility if dHybrid is able to
achieve its strategic positioning goals and achieve its
financial projections
4/13/20124/13/20124/13/20124/13/2012 ValuationValuationValuationValuation 19191919

19. Questions?

20. MARKET

21. Fuel Savings:
◦ Annual savings/truck equal $23,400
◦ Truck fleet average cost per mile equals $.65
Environmental Regulations:
◦ Caterpillar was #1 in engines shipped but exited
through inability to meet stringent 2010 Federally-
mandated emission standards
◦ New fuel consumption and emission standards set
for 2014 may force some engine manufacturers to
move to dHybrid-type solution or radically
improved diesel solutions (not yet developed)

22. Primary market is 2M Class 8 Big Rigs
◦ At $34K/engine which turn over every 5 years
yields annual addressable market of $13.6B
Secondary market is 5M Medium Duty
Diesel Trucks
◦ At $25K/engine which turn over every 8 years
yielding annual revenues of $15.6B

23. $1.2 Million
$2.4 Million
20,000 40,000

24. PROPOSITION

25. CNG is typically 1/3 the cost of Diesel
◦ Example: Team drivers would generate $10,000
savings in 3 months
Preliminary tests: 20% less C02, 28% less N0x
More power and efficiency than Diesel alone
Profitable green alternative
Decreases DPF regeneration time
Greater range than CNG alone

26. 15.3 Months*
*120,000 miles per year,
6.6 mpg, $3.85 per gallon
System Cost $30,000
Team driver ROI much faster
2 yrs.
1 yr.
Heavy Duty
Years

27. Stock Diesel Fuel Cost* $89.81 (.62¢ per mile)
dHybrid Cost ** = $62.97 (.43¢ per mile)
dHybrid Savings = 30.9% (.19¢ per mile savings)
*Trip Mileage = 142.7
23.32 Gallons of Diesel
@ $3.85 per gallon
Trip Cost = $89.81
**Trip Mileage = 142.7
12.44 Gallons of Diesel @ $3.85 per gallon
11.856 GGEs of CNG @ $1.25 per gallon
Trip Cost = $62.97

28. Normal Route: Corinne, UT to Las Vegas, NV
Average Savings Per Trip = 30%
Average Cost Per Mile = $.44
Diesel only average cost per mile = $.65
Total Savings to Date=
$23,348.14

29. .00¢
.01¢
.02¢
.03¢
.04¢
.05¢
.06¢
.07¢
.08¢
.09¢
.10¢
.11¢
.12¢
.13¢
.14¢
.15¢
.16¢
.17¢
.18¢
.19¢
.20¢
.21¢
.22¢
.23¢
.24¢

30. 0
100
200
300
400
500
600
700
PartsPartsPartsParts----perperperper----MillionofSampleMillionofSampleMillionofSampleMillionofSample
Trip AverageTrip AverageTrip AverageTrip Average
28% Improvement of NOx28% Improvement of NOx28% Improvement of NOx28% Improvement of NOx
NOx Diesel Only
NOx Dual Fuel #1
Nox Dual Fuel #2

31. 0
1
2
3
4
5
6
7
PartsPartsPartsParts----perperperper----MillionofSampleMillionofSampleMillionofSampleMillionofSample
Trip AverageTrip AverageTrip AverageTrip Average
20% Improvement of CO220% Improvement of CO220% Improvement of CO220% Improvement of CO2
CO2 Diesel Only
CO2 Dual Fuel #1
CO2 Dual Fuel #2

32. 0
0.001
0.002
0.003
0.004
0.005
0.006
0.007
0.008
PartsPartsPartsParts----perperperper----MillionofSampleMillionofSampleMillionofSampleMillionofSample
Trip AverageTrip AverageTrip AverageTrip Average
CO levels are now nearly at stock and improvingCO levels are now nearly at stock and improvingCO levels are now nearly at stock and improvingCO levels are now nearly at stock and improving
CO Diesel Only
CO Dual Fuel #1
CO Dual Fuel #2