Reminding home owners to replace their air filters AIR FILTER ALERT Reminding home owners to replace their air filters

The Company Air Filter Alert, Inc (The Company) was founded in Los Angeles, Ca in 2003. The Company has developed a patent pending “ Air Filter Alert” system (the Product), which reminds residential users when to change their air filter. The Company’s target market is the US residential market including 100 million homes, 23 million apartment units, and 19 million condominium units, serviced by air filter distributors and your contractor customers. The Company’s secondary market includes luxury boats, recreational vehicles and camper/trailers.

The Product: Air Filter Alert™ This patented “Smart Product” reminds homeowners to replace or clean their air filters, either after the passage of time or when the filter gets dirty, whichever occurs first.

Monitoring Systems The device utilizes TWO monitoring systems 1) a programmable timer that can be set to a recommended filter replacement period, and 2) an airflow monitoring system that automatically reads up to 8 variable speeds.

Technical Information Hardware: The hardware for (The Product) consists of a micro-controller, an airflow monitoring system, a LED segment display, a noisemaker, a light and a button. Two AA batteries power the system. Software: The CPU monitors the passage of time and measures the airflow. It establishes an initial baseline air flow speed at the return air grill when a new air filter is installed. The device recognizes variable fan speeds and can establish a total of 8 baseline speeds and remind the user to change their air filter when any one of the baseline speeds is restricted by 20%.

Compared to other reminder systems… In the past, pressure differential gauges have been used to determine the replacement time for air filters. However, results and effectiveness may vary dramatically based on the type of filter; and can be significantly effected if the duct system contains any leaks or holes. The Air Filter Alert uses new technology to monitor the relative drop in air flow speed, providing an extremely accurate system to determine the efficient time to replace or clean your air filter.

Installation Process The Air Filter Alert is battery operated, easily activated and programmed, and installed on the return air grill. After activation, the user can program the timer to match the recommended lifespan of an air filter measured in months. The Air Monitoring Device automatically establishes a baseline of air flow speed with a clean filter. When the filter becomes dirty and restricts the air flow by 20%, the alarm is activated.

Product Testing & Market Analysis Tested by: ITS Labs Aegis Labs FCC Compliant Class B Market Analysis: The majority of homeowners forget to replace their air filters on time, causing poor indoor air quality, higher energy bills, and lost air filter sales.. According to NAFA, an AC system operating with an air filter that is 50% clogged with dirt, can cost up to $26 per month in extra energy costs. In a $2 billion air filter market, NAFA members including filter manufactures and distributors are losing millions of dollars through lost sales due to homeowners forgetting to replace air filters as needed.

NAFA Endorsement A committed Partnership In August 2003, NAFA endorsed the Air Filter Alert; authorizing the use of the NAFA logo on its packaging and marketing materials. In exchange Air Filter Alert,Inc agreed to pay NAFA an on-going commission from sales . On February 2, 2004 Air Filter Alert Inc presented NAFA with its first check of $720. Air Filter Alert, Inc is committed to growing its sales and with your help, we can all increase our sales and raise even more money for the association.

How does the Air Filter Alert Benefit Homeowners Improves Indoor Air Quality: By reminding homeowners to replace their air filter before the collection of dust, spores and other contaminants are spread through the house. Saves Money by reducing Residential Energy Costs….on average of up to $26 per month according to NAFA Protects AC system from premature damage caused by overheating or frozen coils.

NAFA Energy Costs Graph

Optimum Final Pressure Drop Energy Costs Optimum Final Pressure Drop Total Cost TA+TB Power C B Cost per Hour A The broken vertical line is segment T-A which equals the power segment and T-B which equals the filter costs. When they are added (segment A-C is the same length as T-B) they form the line T-C which represents the total cost per hour of filter and time T. Optimum time (pressure drop) to change the filter is when the total cost is the lowest. Filter Life T Time Final Pressure Drop

Benefits to NAFA Members 1. Add a new high profit margin product to your product line. 2. Supply your contractors with a new indoor air quality product to sell to their customers. Perhaps to be used by contractors as an incentive to sign a service contract. 3. Increase your core business by reminding homeowners to replace air filters. 4. Support your association, to continue providing great events like this convention.

Impact on Air Filter Sales What would a 5,10,15, 20% increase in filter sales represent to your business? What would selling 1 case of Air Filter Alerts each week to contractors generate in profits for your company? Answer: $5600 per year What would selling 5 cases of Air Filter Alert per week generate in profits? Answer $28,000……..That’s $28,000 in net profits

Summary The Air Filter Alert” provides a unique opportunity to the Air Filter industry, specifically to NAFA distributors and to your residential consumers. The Company is positioned to improve indoor air quality and reduce energy costs for homeowners, while dramatically increasing the sale of air filters by alerting consumers to replace dirty filters in a timely manner. I am looking forward to presenting an even larger contribution to NAFA at our next meeting. Thank you for the opportunity to meet with you today.