Appli-Tronics Presents

1. Appli-TronicsPresents Ultra Safe Vehicle MTTS Appli-Tronics Proprietary Information

2. What Is The Product • Ultra-Safe Vehicle • Non-Frictional Anti-Lock Braking • Trailer Operation Using System Sensors • Consolidated Control System • Automated Control of The Trailer Appli -Tronics Proprietary Information

3. Appli-Tronics Proprietary Information

4. McLaughlin Truck Trailer Control System What does this System Provide? This Control System automatically maintains the Trailer Stability during all operations Appli-Tronics Proprietary Information

5. Battery Assembly Interface Electronics Steering Motor Electro-Magnetic Assembly Steering Pivot Steering Linkage Steering Worm Gear Electronics Assembly Electro Magnetic Assembly Rotor Output Drive Plate Rotor Position Sensor Electro Magnetics Housing Wheel Rim Magnetic Assembly Bearings Trailer Platform Assembly Proposed Electro-Magnetic Assembly Appli-Tronics Proprietary Information

6. Proposed Electro-Magnetics Assembly Electro Magnetics Housing ElectroMagnetic Assembly Wheel Rim Vehicle Mounting interface Rotor Position Sensor Magnetic Assembly Bearings Appli-Tronics Proprietary Information

7. The Existing Truck/Trailer Rigs are unsafe • 5,104 Deaths in year 2000 caused by trucks • 729 Truck Passenger Deaths • 4,375 Passengers in Vehicle Deaths • 74% Deaths were occupants in Passenger Vehicles Ref: www.hwysafety_facts/fatality_facts0/trucks_table_1.htm Why is this type System needed? Appli-Tronics Proprietary Information

8. Who Benefits From This Product? • Insurance Companies –Reduced Payouts • Truckers/Operators/Unions • – Reduced Operating Costs; Safety; Reduced Stress • Owners – Reduced Operating Costs • Industry – Greater Reliability • All Drivers – Safer Highways Appli-Tronics Proprietary Information

9. Key Safety Features • Ultimate Anti-Lock Braking • Anti-Jackknifing • Nearby Proximity Sensing • Low Overhead Pass Sensing • Self Centering Trailer Control – Backing • Collision Avoidance – Blind Spot • Short Turn Capability – No Wide Turns Appli-Tronics Proprietary Information

10. Who Benefits From This Product “Continued” • Automobile Owners – Highway Safety • DOT – More Reliable Interstate Deliveries • DOE – Reduced Fuel Consumption • Military – Greater Control in Rough Terrain Appli-Tronics Proprietary Information

11. Where Can Our System Be Used • Trucks Trailers Buses • Trains Motor Homes Tractors • Airplanes Construction Equipment • Cars Forklifts Production Appli-Tronics Proprietary Information

12. Hazardous Conditions This system will make a difference With the driving conditions faced every day on the Highways, we are in constant danger from emergency situations. Driving in congested traffic almost guarantees vehicle accidents. Appli-Tronics Proprietary Information

13. What’s Different? • Absolute Trailer Control – Safety With Control • No Jackknifing or Trailer Tip-over • Electronic Controlled Anti-Lock Braking • Dual Redundant System for Safety • Power Regeneration – Energy Conservation • Uphill Drive Assist – Reduced Travel Time • Collision Avoidance System-Saves Lives and Damage • Controlled Stop When Trailer becomes Disengaged • Energy Savings Appli-Tronics Proprietary Information

14. McLaughlin Truck Trailer Control System Ultimate Benefits Energy and Ecology Conservation Reduced Operating Costs - Economically Saving Human Lives - Fewer accidents Safer Vehicle – Safer Highways Operator Security – Less Stress and Fatigue Operator Friendly – Ease of Operation Appli-Tronics Proprietary Information

15. McLaughlin Truck Trailer Control System • Major Benefits • Increased Profits • Minimal Payback Time 2 Yrs • Owner/Operator Payback ~ 5 to 10 Appli-Tronics Proprietary Information

16. McLaughlin Truck Trailer Control System SECONDS Of the Most Terrifying Event in Their Lives Appli-Tronics Proprietary Information

17. Brief – System Offerings This system offers; • Increased range per Tank of Fuel • Reduced hilly travel time • Energy conservation • Controlled Trailer Operations • Reduced Operator Stress Appli-Tronics Proprietary Information

18. Trucker Benefits Must Come Down What Goes up Save Money Conserve Energy Save Lives Ease of Operation To Increase Efficiency Reduce Costs and Increase Profits This System Will Accomplish These Tasks Appli-Tronics Proprietary Information

19. Trucking Industry Benefits • Trucking Industry – Major Reduction in Losses • Higher Profits – Greater Efficiency (~25%) • Insurance Agencies – Reduced Rates (10%-20%) • Ease in Operation - Automatic Responses • Collision Avoidance • Lower Maintenance • Improve On-Time Deliveries Appli-Tronics Proprietary Information

20. How Can These Claims Be Made? • In Controlled Systems • Operational Safety is Not Guesswork • Anti-Lock Braking is More Effective • System Stability is Automatic • Emergency Situations Controlled Automatically • Trailer Control Virtually Eliminates Jackknifing • Collision Avoidance Saves Lives and Vehicles. • Energy is Conserved Appli-Tronics Proprietary Information

21. Government AssistanceThrough Grants • DOT - Department Of Transportation • DOE - Department Of Energy • DARPA - Defense Advance Research Projects Agency • State Highway Commission • Federal Highway Commission • State Highway Maintenance Appli-Tronics Proprietary Information

22. Where is our Market? In the U.S. alone there is approximately 30 Million Trucks 500,000 Commercial Planes 60,000 Military Planes 90 Million Cars 20 Million Busses And The rest of the world Appli-Tronics Proprietary Information

23. Government and Operators Gain • DOT: Saves Lives and Reduces Maintenance • DOE: Energy – Safe Vehicle for Hazardous Material • DARPA: Defense with Efficiency and Safety • Truckers Union: Security on the road • All Drivers: Safer Highways • States: Lower Highway Maintenance Costs • Police: Fewer Responses for Highway Accidents Appli-Tronics Proprietary Information

24. How will we begin the System Development? • Phase I • Design /Test Two Electro-Magnetic Assemblies • Design and build Control Electronics • Design Test fixtures • Install Unit on a Test Bench Appli-Tronics Proprietary Information

25. Phase II • Test Dual Controller with System Arbitrator • Integrate Control Electronics on Test Bench • Update Software for Dual Controller System • Built Steering Mechanism for Trailer • Integrate Steering Platform on test Bench Appli-Tronics Proprietary Information

26. Phase III- Pre-Production • Build Electro-Magnetic Modules • Build Power Driver Modules • Build Control Electronics • Build trailer Platform • Build Truck Sensing Modules • Integrate and test system on the bench • Debug Hardware and Software Appli-Tronics Proprietary Information

27. Phase IV – System Installation • Install system on test vehicle • Perform Tests - Debug Anomalies • Test on Paved Hilly Test Area • Build 2nd and 3rd Pre-Production Systems • Testing on Hilly Area - Update Systems • Continue Testing for one Month Appli-Tronics Proprietary Information

28. Phase V • Incorporate updates • Confirm operations • Demonstrate to potential customers • State and Federal Representatives • Insurance Companies • Truckers Union Representatives • Truck and Trailer Manufacturers • Offer Test Drive to Qualified Drivers • Take Orders Appli-Tronics Proprietary Information

29. Team Member Benefits • Long Term Gains • High Return On Investment • Reduced Risk Of Failure • Maximum Growth Potential • Product Expansion – Add On Devices • Market Expansion – Other Vehicles Appli-Tronics Proprietary Information

30. 1st Production Year Anticipated Revenue 2nd Production Year Anticipated Revenue Appli-Tronics Proprietary Information

31. System Introduction • First system on-the-road will drive demand • Once in operation the demand will increase • Backlog will drive Company expansion • Expansion will dictate additional locations Appli-Tronics Proprietary Information

32. Why is this System Needed • We are all at risk on the highways • A Safe Vehicle is the ultimate approach • Reduced costs and higher profits • Lives saved - Operator Stress reduced • Family not be exposed to unsafe highways • Invest now – Make highways a better place • Payback is more than just money Appli-Tronics Proprietary Information

33. Summary • Safety First • Our lives and the lives of our loved ones will no longer be in jeopardy on the highways Appli-Tronics Proprietary Information

34. Summary “Continued” • Payback Second • Operators/Owners benefit • Reduction in Operating costs • increased efficiency. • Insurance companies • reduce their losses • Reduce Owners insurance Cost Appli-Tronics Proprietary Information

35. Summary “Continued” Applicable Market The Whole World is our Market Includes any Vehicle with Brakes Appli-Tronics Proprietary Information

36. Company Return on Investment • Production breakeven within 2 years • Development costs returned in 5 years • Production line expansion during year 3 • Additional products to be added by year 3 • Optional Diversified Product Line Appli-Tronics Proprietary Information

37. Appli-Tronics Contact Information Appli-Tronics 4203 W. 141st St Hawthorne, California 90250-7203 President: R. J. McLaughlin Phone/Fax: (310) 747-4996 Cell Phone: (310) 908-6974 Email: jeromelind@sbcglobal.net Appli-Tronics Proprietary Information