Forbis Energy Solutions, Inc.

1. Forbis Energy Solutions, Inc. © Forbis Energy Solutions Inc, 2002

2. The Product • Forbis Roof System • Reflective shade cloth layer with/without evaporative cooling • Gap permits evaporation cycle • Reduced roof temperature • Reduces energy costs

3. The Environmental Pain • Annual emissions avoided through reduced power consumption • 80,000 sq ft retail building • 60 Tons CO2 • 0.2 Tons NOx • EPA Air Quality Non-Attainment Areas (Houston, Dallas, San Antonio, Los Angeles, Atlanta……) • Reduction of “Heat Island Effect” • Executive order 13123 • Reduce Federal energy consumption by 30% by 2005

4. The Environmental Pain (source: http://eetd.lbl.gov/HeatIsland/ )

5. The Financial Pain • Retailer Operating Cost Reduction • Cooling/Heating costs (>50% total power use) • Utility peak demand rates/rebates • Austin Energy charges $14.03 per kW during peak demand periods • $200 rebate per kW of peak demand reduction for energy saving technologies • Mechanical equipment life • Roof life • Not included in financials: • Insurance credits for hail resistance • Emissions credits • 2 Year estimated payback period

6. The Financial Pain Estimated annual cost savings by city for reflective roof coatings, additional winter losses included (source: http://eetd.lbl.gov/HeatIsland/ )

7. Target Customers • National, growing, retail grocery stores (Kroger, H.E.B., Safeway, etc). • Large national retailers (Walgreen’s, Kohl’s, Target, etc.) • Large shopping centers (Regency, LPC, Trammel Crow) • Shopping malls, (Simon) • Single user buildings (Brinker International). • Institutional (schools, hospitals, military, government) • Convention Centers • Airport terminals

8. Potential Market Size and Growth • Total Market: • 5.46 Billion square feet of retail space. • 27,968 U.S. retail shopping centers less than 100,000 square feet. • Target Market: heavily air conditioned grocers. • 2,512 Albertson’s, 1,747 Safeway’s, 3,473 Kroger’s, 275 H.E.B’s, 120 Brookshire’s • 8,127+ units or 812,700,000+ square feet. • Beachhead: 275 units @ 50k or 13,750,000 s.f • Secondary target: single user retail stores • Public buildings: schools, GSA, military, etc

9. Technology Status • The technology is protected by US patent # 6,161,362 (Issued12/19/2000). • Analytical model using DOE 2.1E • Conservative assumptions (underestimates roof losses) • Results indicate $0.15 - 0.27/ft2 savings • Texas Commission of Environmental Technology Grant • $162,000 Requested • Near full-scale test • Design optimization • May 17 Award

10. Production • Startup & Corp Offices: Austin, TX, • Austin Technology Incubator or, • Clean Energy Incubator • Volume Production: San Antonio, TX • Kelly USA, http://www.kellyusa.com/ • Activated Free Trade Zone • State Enterprise Zone • No State or City Income or Corporate Tax • Industrial Revenue Bonds • Double Freeport Tax Exemption • Training programs and assistance grants • Raw materials outsourced • Eventual reverse integration into shade cloth mfg

11. Distribution • Direct sales to national accounts. • Direct sales to institutional accounts. • Direct sales to government accounts. • Alliance with major roofing manufacturer like Johns Manville • Build to order to regional roofing contractors.

12. Competition

13. Financials

14. Funding Requirements • $3,000,000 requested • Beta testing • Further certification (EPA Energy Star, UL, local utility rebate programs, etc) • Market rollout with rapid scale up • Production, distribution setup • Additional patent protection

15. Key Alliances • Commercial • Roofing products distributor. • International Council of Shopping Centers • National Retail Federation • American Institute of Architects • Construction Specification Institute • Government • Environmental Protection Agency • Texas Natural Resource Commission • Texas Department of Insurance

16. Management Team • Jack Forbis – Co-Inventor, CEO & President • Ann Forbis – Co-Inventor, Vice President • Rob Smithson – COO; 14 years experience in global automotive & aerospace, co-founder of ATI graduate company, MSSTC, MSME • David Shaw – CMO; 20 years commercial real estate & real estate development experience, MSSTC, BBA - Finance • Matthew Sulman (Australia) – International Market Advisor & Counsel; Barristor & Solicitor, Trademark Atty • Baker & Botts, Intellectual Property and Legal council

17. Board of Advisors • John Delatour - Managing Director, Regency Centers • D. Kent Lance – Partner, Hill Partners • Tony Dona - President, Trammel Crow Holdings • Scott Dabney - President, D & D Financial Partners • Greg Wilkinson - CEO, Hill & Wilkinson Construction • Bill Albers - Retired CFO, Centex Homes • Tom Harvey - AIA, ACHA, Sr. V.P., HKS Architects • Bob Shaw - AIA, Partner, F&S Partners

18. Milestones 2005 2002 2003 2004 2007 2006 EPA Approval Incorporate Institutional Market “A” Round Financing Beta Trial Alliances, Mgmt Team Complete Start EPA Approval Process Retailer Market Product Launch Government Market Initial Public Offering Design Complete First Sale

19. Risks • Organizational Structure (scaling, spinouts, ownership) • Inability to scale rapidly/lack of funding • Long government contract cycles • Slow paying large retail accounts. • Existing manufacturers squeeze the distribution channel.

20. Key Competitive Advantages • Rare combination: • Simple, yet patent-protected • Very cost-effective • Addresses key environmental problems • Immense market

21. Questions • “Pain is inevitable. Suffering is optional”- Adlai Stevenson • “Hot weather is inevitable. Suffering is optional” - Forbis Energy Inc.

22. Competitive Advantage • Direct cost savings • Massive market • Patented with further patents pending • Management/Advisory team • Lower cost/higher ROI • Environmentally friendly product • Insurance advantage • Easy to install • Off-the-shelf components

23. Financials – Our Costs

24. Reflective Coating Deterioration

25. Membrane Deterioration Hypalon Deterioration PVC Crazing Seam Failure