This document summarizes George Bye's presentation on hybrid/electric propulsion systems for general aviation aircraft. Bye has over 20 years of experience in aviation and is the CEO of an energy technology company. He discusses the benefits of electric propulsion systems, including improved efficiency and reduced fuel costs and emissions. The technology overview outlines improvements in battery, motor, and charging technologies that are bringing electric propulsion within reach for small aircraft under 250 horsepower. Bye's company is developing a hybrid electric propulsion system for certification and aims to have an all-electric certified aircraft within 5 years. Adoption of these technologies could significantly reduce operating costs for aircraft owners and training schools.

1. Hybrid/Electric Propulsion Systems George Bye, CEO – Bye Energy July 30, 2009

3. Aviation Technology Group, Designed the Javelin

4. ATP rating, >4,000 hours (USAF T-38, C-141B)2

5. Integrator of alternative energy and renewable fuel technologies for business and general aviation 3

6. Why Hybrid/Electric Propulsion for GA? Alternative Energy Propulsion Systems NEED FOR OPS EFFICIENCY Threat: High Ops Cost Potentially Limits Utility VOLATILE FUEL COSTS Threat: Unpredictable Cost Limits Planning Effectiveness INTERNATIONAL PETRO SUPPLY Threat: Aviation Fuel Potentially Limited/Costly ENVIRONMENTAL CONCERNS Threat: Noise, CO2 Pollution FUTURE FOR GA Threat: Loss of Flexibility; Efficiency; Security 4

8. Lithium-ion advancements

9. Electric motor efficiencies

10. Growing market acceptance5

12. Lighter Weight

13. Improved Safety

14. Faster Charging

15. Greater Efficiency

16. Longer Cycle Life

17. Less Heat

18. Lower CostEnergy storage technology nearly within reach of meeting light aircraft (less than 250 hp) requirements 6

19. Electric Propulsion Program (EPP) Develop, certify and market an electric propulsion system alternative to the internal combustion engine for the general aviation aircraft market Clean Quiet Clean Quiet Many Benefits Efficient Efficient Safe Safe Less Complex Less Complex Economical Economical 7 Proprietary & Confidential 7

20. Primary System Components Electric Motor Modular, high efficiency, light- weight, air cooled, brushless, electric motor ESU (Energy Storage Unit) Li-Ion battery cells in 3 packs configured for certification, redundancy and safety Controller Regulates power to engine and monitors and controls ESUs Charging System Provides electricity to batteries safely and efficiently ESU 1 & 2 Electric Engine ESU 3 & Computer Controller 8

21. Electric Storage Unit (ESU) FIRE NO FIRE 9

22. Electric Motor UQM Technologies 10 10

23. Supplemental Power Options Regenerative Drag Devices Solar Cells Supplements energy collection ~20% Thin film solar cells 11

25. Thermal Stealth

26. Long Duration

27. Improved Logistics12

28. Anticipated Timelines Proposed Bye Aerospace Hybrid UAV Proposed all-electric FAA certified aircraft Phase 1 (12 months): Bench test electric motor and battery combinations Phase 2 (12 months): Test hybrid UAV, hybrid/electric aircraft for FAA certification Phase 3 (12 to 18 months): Test full size EV aircraft for FAA certification 13

29. Owner Ops Cost Opportunity Training School Operator Savings 1. 800 hour per year training school operation x 5 gph average fuel burn x $5.00 per gallon = $140,000 total fuel savings over 7 year period 2. Li-Ion Battery ‘7 year lease’ trade-in program = Mitigates ESU expense, (15% down, 5.5% interest = $1,129/mos.). Brings the up-front cost of the C-162 ‘E’ back to ~$111,500 14

30. Cost Opportunity Price Reductions Increase Aircraft Utility and Sales Electric motor and controller cost is $4,000 in production, expected to reduce another $1,000 in high volume production. Thin film PV efficiency is expected to increase 50% while its cost is expected to drop by 50% over the next 5 years. Current cost of $2,000 per kWh in Li-Ion batteries is expected to drop to $1,000 per kWh while efficiency is expected to improve from 205 wh/kg to 300 wh/kg in the next 5 years. 15

32. 500 new sold per year16

34. 650 new sold per year (in a ‘typical year’)17

36. AdequateBase of R & D

38. Media/Communications (TV, Cell Ph)

39. Info Tech (PC, Internet)18

40. Thank you! www.ByeEnergy.com