This document is the property of ePower engine systems llc and is confidential. Reproduction or release of this document or any of its contents is not permitted without written consent of the company.

Investor Contact:

Andy ClaypoleTel: 412 225 7969

ePower Engine Systems LLCPO Box 225

Leetsdale, PA 15056

Company Background

Confidential 1

•Established to develop and market a highly fuel efficient engine system for Class 8 heavy trucks

•Hybrid series diesel electric technology

•System development has focused on retrofit market opportunities initially, leading to OEM sales later

Target Vehicle Classification

Confidential

Light Duty Medium Duty

Heavy Duty

Class 10-6,000 lb

Class 414,001-16,000 lb

Class 726,001-33,000 lb

Class 26,001-10,000 lb

Class 516,001-19,500 lb

Class 833,001-150,000 lb

Class 310,001-14,000 lb

Class 619,501-26,000 lb

Class 8 Heavy Duty Trucks are the largest and most ubiquitous in the logistics chain for moving goods in the U.S. and Europe. In 2007 Class 8 trucks in the U.S. drove 128.4 Billion Miles for an average of 45,000 Miles and consumed $2.46 Billion in diesel fuel.

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Addressable Market Size

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Total Market Size (USA) : 2.7 Million Vehicles

Age of Vehicles 0-16 YearsAverage Age : 7-8 years

0-5 Years845,000 vehicles

6-11 Years1,010,000 vehicles

12-16 Years845,000 vehicles

Probably too young for conversion.

Original drive train still under warranty. Conversion can be made but not likely

until older fleet vehicles have been

converted.

Probably too old for conversion. Payback on investment would

start to look questionable.

Conversion can be made but not likely until younger fleet vehicles have been

converted.

Sweet spot. Original drive train out of

warranty - lots of life still left in the

vehicle.

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Problem Statement

Confidential

- U.S. Transportation System: Nearly 70% of freight is moved by truck in the U.S. resulting in $660.3 Billion in revenue for the trucking industry in 2008.

- Class 8 Heavy Duty Trucks are the largest and most ubiquitous in the logistics chain for moving goods in the U.S. and Europe. In 2007 Class 8 trucks in the U.S. drove 128.4 Billion miles for an average of 45,000 miles and consumed $2.46 Billion in diesel fuel.

- As a percentage of trucks in the U.S. Transportation System, Class 8 vehicles represent only 2.7% but consume 21.6% of the total fuel used.

- Records by the U.S. DOT show that for the past forty years beginning in 1970 the average fuel economy for the Class 8 truck segment was 4.8 mpg.

- Diesel fuel costs of Class 8 Heavy Duty Trucks are rising at 3-7% per year and are now 30-50% of the operating costs of truck fleets in the U.S. and Europe.

- Class 8 trucks are ranked 2nd behind air transportation in terms of CO2 emissions (117 grams per ton mile).

- The leading global Class 8 OEMs have indicated as recently as 2010 that their target for fuel efficiency increase utilizing improvements in a wide range of components besides the drivetrain is 8-9 mpg by 2020.

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Government Response

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President Obama Announces First Ever Savings Standard for Heavy-Duty Trucks, Buses

August 9, 2011. Washington D.C. - Under the comprehensive new national program, trucks and buses built in 2014 through 2018 will reduce oil consumption by a projected 530 million barrels and greenhouse gas (GHG) pollution by approximately 270 million metric tons. Like the Administration’s historic car standards, this program – which relies heavily on off-the-shelf technologies – was developed in coordination with truck and engine manufacturers, fleet owners, the State of California, environmental groups and other stakeholders.  By the 2018 model year, the program is expected to achieve significant savings relative to current levels, across vehicle types.  Certain combination tractors – commonly known as big-rigs or semi-trucks – will be required to achieve up to approximately 20 percent reduction in fuel consumption and greenhouse gas emissions by model year 2018, saving up to 4 gallons of fuel for every 100 miles travelled.

Standard Goal – Class 8 Trucks(Estimated)

2011 mpg 2018 mpg 5.2 6.8

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DoE Super Truck Program

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Program Launched in 2010 with $115.0 million in FundingGoals:

-By 2015, improve heavy truck fuel economy (engine thermal efficiency) by 20% with demonstration in commercial vehicle platforms.

- By 2018, improve heavy truck fuel economy by 30% compared to 2009 baseline.

Participants:

Cummins Inc. (Columbus, Indiana) - Develop and demonstrate a highly efficient and clean diesel engine, an advanced waste heat recovery system, an aerodynamic Peterbilt tractor and trailer combination, and a fuel cell auxiliary power unit to reduce engine idling. Focus is on engine efficiency. Funding Amount: $38.8 million

Daimler Trucks North America, LLC (Portland, Oregon) - Develop and demonstrate technologies including engine downsizing, electrification of auxiliary systems such as oil and water pumps, waste heat recovery, improved aerodynamics and hybridization. Focus is on hybridization. Funding Amount: $39.5 million

Navistar, Inc. (Fort Wayne, Indiana) - Develop and demonstrate technologies to improvetruck-trailer aerodynamics, combustion efficiency, waste heat recovery, hybridization, idle reduction, and reduced rolling resistance tires. Focus is on aerodynamics. Funding Amount: $37.3 million

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U.S. EPA and NHSTA

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U.S. EPA and NHSTA Standards for Medium and Heavy-Duty Trucks: 2017

Source: NHTSA

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ePower Response

Confidential

50-65% Reduction in Fuel Use

0

3

6

9

12

15M

iles

per

Gal

lon

Current Average

DoE Target‘Supertruck’

ePowerSystem

5.2mpg 10.4mpg100% improvement

30% incremental cost 11,538 46,152

Gallons saved per year per

vehicle*

$ saved per year per vehicle*

* Assumes 120,000 miles per year and diesel at $4.00 / gallon 8

Primary Driver

0

1.00

2.00

3.00

4.00

5.00

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Diesel Fuel Price & ePower Savings

$/G

allo

n

ePower annual savings at $2.50 per gallon:

$30,000Payback time : approx. 24 months

ePower annual savings at $4 per gallon:

$45,000Payback time : approx. 18 months

Source : EIA United States Energy AdministrationSavings based on 120,00 miles per year, 5.5mpg average fuel consumption conventional drive trainDoes not include subsidies which may be available at Federal and State level

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Cost / Benefit Illustration

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System Cost

Year 1Savings

Year 2Savings

Year 3Savings

Year 4Savings

Year 5Savings

$ 0

00

’s

0

150

Breakeven

Does not include subsidies which may be available at Federal and State levelAssumes 120,000 miles per year and diesel at $4.00 / gallon 10

Concept Inspiration

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ePower Engine System’s Hybrid System Drive Unit: Concept Inspiration Comes from the Current State-of-the-Art Diesel Electric Locomotive

Drive System

Diesel electric hybrid locomotive technology has enabled the Railway Transportation Industry to increase freight rail fuel efficiency 104 percent since 1980. In 2009, railroads generated 67 percent more ton-miles than in 1980, while using 18 percent less fuel.

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I.P. Development

Confidential

ePower’s Core Proprietary Technology value proposition revolves around the way it uses relatively low-cost off-the-shelf components to control the amount and delivery of the electricity from the AC generator to and from the electric motor and, when needed, the charging of and flow of electricity from the battery pack to the electric motor.

• IP strategy is to protect its system design, component interaction and component integration.

• Initial prior art search undertaken 1st half 2009, patent memorandum and invention disclosures developed.

• ePower engaged patent attorneys Pietragallo Gordon Alfano Bosick & Respanti, LLP in September 2009 to undertake a full review of prior art relating to diesel electric series hybrid propulsion systems.

• Pietragallo issue favorable patentability opinion, October 2009.

• Provisional Patent Application No. 61/297,094 filed January 2010 covering 15 initial claims.

• Patent assigned by Mr. Jay Bowman to ePower in 2010.

• Conversion to a conventional patent application, along with concomitant international patent filings was completed in January 2011.

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I.P. Development

Confidential

Integration Delivers a System that is Greater than the Sum of its Parts

With Deep Intellectual Property and Patent Pending Protection Throughout

Diesel Engine &AC Generator

Power Electronics

Shifting & Control Unit

Electric Motor

Battery & ManagementSystem

ePowerDrive Unit

ePower has 27 Pending Patent Claims

•Instant peak torque•AC induction motor•No rare earth metals•High efficiency•High durability

•Lead acid technology•Rapid pulse charging•State of Charge active management•Active temp. control

•Small, efficient unit•Active AC power management•Ability to provide external power while not moving

•Unique integration of AC and DC power •Power management/direction software•‘Driving experience’ fully programable•Trade secrets

•Electronic selection forward/reverse•Dynamic braking functionality•Electronic jake brake

Comprehensive, Proprietary Technology

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Vehicle Conversion

Confidential

ePower Generation 2.0 Commercial Prototype Drive Unit: 2005 Peterbilt 387 Conversion

Peterbilt 387 Preparation Vehicle’s Standard Engine and Transmission Removed

Diesel Engine & AC Generator Set Ready to be Installed

Battery boxes ready for installation

Drive Unit Installed and Truck Ready for Delivery

Electric Drive Motor Being Installed

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Converted Vehicle

Confidential

Converted Peterbilt 387: Exterior and Interior View, Truck Specifications, Demo Video

Demo Video: http://www.youtube.com/watch?v=DeU9CB68K-M

Exterior View Interior View

Truck Specifications and Operation: Compared to a standard Peterbilt 387 with a 485 hp. diesel engine and 10 speed transmission the converted vehicle has an ePower drive unit with a 197 hp diesel engine, AC generator and electric drive motor with a transmission range of forward, neutral and reverse (control box is now located where the standard gearshift used to be in the truck cabin). While operating a standard Peterbilt 387 requires a driver to start the vehicle and shift several times to reach optimum highway speed the same vehicle retrofitted with the ePower drive unit requires the driver to just start the vehicle and shift it once into drive to reach optimum highway speed.

Control Box

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Mid-America Truck Show

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First Public Display of ePower Retrofitted Peterbilt 387

March 31 – April 1, 2011Mid-America Truck Show

* 1,000 Visitors

* 78 Requests for more information from controlling 7,000 vehicles

* High degree of international interest from all regions (Americas, Europe, Asia Pacific)

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Current Competitive Systems

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Global Market Opportunity

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All regions globally facing issues related to:

Reducing oil consumptionDeveloped economies at plateau while developing economies grow at very rapid rate. China now # 2 in terms of consumption, but per capita is only 1/10th of USA.

Reducing CO2 emissionsMajor concern for all governments, particularly strong focus in Europe.

Economic impact of rising fuel pricesSavings achievable in USA are high, however USA has relatively low fuel costs compared to ie. Europe at 2-2.5x cost per gallon.

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