SPACEMAKER SYSTEMS INCJacq van der Merwe June 2010

http://www.spacemakerinc.com

Who we areSpaceMaker Systems Inc is the sales & marketing arm of Storage Management Systems. We are part of the Park Plus Group, based in Oakland New Jersey. We design, develop and manufacture material handling products that are sold worldwide. Our current focus is the development a channel & supply partner network in North America to manufacture, sell and service Pallet Mole.

Corporate Structure

Park Plus Inc SMS RSA SpaceMaker

USA

SMS Holdings

100% 80% 50%

Park Plus Inc

High Density Vehicle Storage

“Big Dipper”

WAREHOUSE OFFERINGS

• Pallet Mole Racking

• Racking & Shelving• Hänel HDVS

Systems• ONYX – Size &

Weighing Systems

We build deep tunnels

Our Customers

http://www.youtube.com/watch?v=hh24-NGYmWY

Today is about the Pallet Mole

Mole in Action

Pallet Mole I

Pallet Mole is an automated pallet retrieval system. It provides high density storage of pallets in so called “deep tunnels”. The pallet mole is effective in a low SKU, high number of pallet position environment. It competes with drive thru racking and flow racking, but is more cost-effective.

Typical Operation

Understanding the Market

Size of the Market Country 08 GDP in $ billion RACK MARKET ($mil) EST. % Flow & Drive Target Market ($m) No of Positions No of Moles

USA $14,600 $1,400 15.00% $210 600,000 600

CANADA $1,500 $229 15.00% $34 98,143 98

MEXICO $1,090 $120 15.00% $18 51,429 51

RSA $276 $41 15.00% $6 17,571 18

TOTAL ESTIMATED SIZE OF MOLE MARKET IN NORTH AMERICA $269 750

Pallet Storage Modes

Warehouse Shipping Mix

Market per Territory

12

34

S1

S20

200

400

600

800

1000

1200

1400

Territories

Value

Size of market

Series1 Series2

Mex

RSA

Can

USA

Total = 750

Typical CostingINDICATIVE DEALER MARGINS Totals

1,000 POSITION x 20 SKU SYSTEM

Basic Racks (± 44,000 lbs) $50,000.00

Mole Rails & Brackets $65,000.00

Moles & Spares $90,000.00

Installation (Non Union) $19,240.00

TOT Dealer Margin $59,244.00

Final Retail Price ~ Total $283,484.00

Final Retail Price ~ per SKU $283.48Dealer Profit on Deal $59,244.00

Dealer Ave GP% 20.90%Note: Above margin assumes 10% mark-up on Racks & 36% mark-up on Mole.

A New Way of SellingALTERNATIVE SALES MODEL ~ OPERATIONAL LEASE

Tot Cost Cost per Position

Sell Price of 1200 Pos x 20 SKU System $330,024.00 $330.02

Operational lease over 5 years @ 10% ~ p.m. $7,012.00 $7.01

Operational lease over 7 years @ 10% ~ p.m. $5,480.00 $5.48

Notes:• Dealer gets full margin upfront• Customer has no capital outlay• Improved R.O.R on Capital• Fixed cost over term• Free Maintenance & Service• Free up-grades

Partner Value Proposition Increase the scope of racking solutions you provide

Increase the size of your target market & deal value

Improve the average GP % of your racking solutions significantly

Create an ongoing after sales revenue stream

Share 50/50 in a local marketing campaign through a rebate system

Be able to offer customers alternative financing options for racking

Be on the forefront of new racking technologies

Service & Support

Customer gets 1 year warrantee (free parts/pay for service)

Mole to be serviced once per quarter / every 400 hours

Recommended Price of Service ~ $300 per Mole + parts + travel

Dealers to stock critical list of parts

Dealers to train technicians for local support

The Competition

Drive Thru Racking

Flow Racking

All Purpose Racking

Ignorance!

Service & Support

Customer gets 1 year warrantee (free parts/pay for service)

Mole to be serviced once per quarter

Recommended Price of Service ~ $300 per mole + parts + travel

Dealer to stock critical list of parts

Dealer to train 2 x support technicians

Strategic Objectives Market Share, Brand Recognition & National Presence

One or two Strategic Partners that can help us achieve our goals

A committed & enabled Dealer Network

90% Sales Footprint in North America

Sustained marketing effort

Short Term ~ Early Success

TargetsUSA 50Canada

9

Mexico 4

Thank You