2X Incandescent Dec 10, 2012

Advanced Lighting Technologies: Enabling ‘2X Incandescent’ Materials Lighting 2X Bulbs IR Capsule Turnkey equipment Capsule manufacturing Development ADLT – Solon, OH IR Coating Coating machines Coating services Development

What is ‘2X Incandescent’? Filament based – just like incandescent An Advancing Technology Visible light is transmitted Thin-film coatings reflect infrared energy back to the filament to ‘recycle’ into light energy Narrow legs reduce end losses * 1879-1989 data taken from GE Corp R&D report 98CRD027, Feb. 1998 The LpW of the 60 Watt, 120V, 1000 hr incandescent lamp has increased exponentially over its lifetime ADLT launch schedule includes: 32 LpW Q1, 2013 35 LpW Q3, 2013 45 LpW Prior to 2017 45 LpW, 1000 hr life has been proven

Why ‘2X Incandescent’? To date, many consumers have not embraced CFL for varying reasons LED A-line lamps currently have a high initial cost and are not available in higher lumen packages Legislation compliant A-line halogen provides low initial cost but minimum energy savings and compromised light output Incandescent is the lamp of choice for residential applications Warm color, best color rendering (100 CRI) Fully dimmable Compatible with timers and motion sensors Same lamp size lamp and shape Instant light Safe (no mercury, RoHS compliant) 2X Incandescent provides significant energy savings 50% energy savings vs. incandescent 30% energy savings vs. legislation compliant halogen 32 lumens per watt moving to 45 lumens per watt Reduced heat 43W=60W and 72W=100W LC halogen 30W=60W and 50W=100W 2X incandescent 100W Incandescent 50W 2X Incandescent

2X Incandescent: A-Line Products (2013 Launch) 100W 150W 60W 2X Incandescent provides increased energy savings, longer life No longer manufactured beginning Jan 2011 (CA) , Jan 2012 (US) No longer manufactured beginning Jan 2013 (CA), Jan 2012 (US) Based on 821 hours/year residential, Navigant Consulting, 2011 Independently tested by EPRI (Document #1025779 at EPRI.com)

2X Incandescent: Residential PAR Products (Mid 2013) 2X PAR Halogen provides increased energy savings, longer life Not manufactured after July 2012 Projected Based on 889 hours/year, Navigant Consulting, 2011

The Market Residential Installed Base (US) 133 million 1.7 billion 228 million Energy inefficient - Incandescent - Halogen Top 3 Market Barriers First manufacturing cost - requires initial rebate support Consumer awareness – selling ‘energy savings’ while proving quality of light Manufacturing capacity – financing the scale from low to high million units 2X Sales Objectives (2013) Launch A-line, PAR and BR ‘2X’ lamp configurations Build upon ‘2X incandescent awareness’ Establish sales channels: Ecommerce, traceable by zip code Regional retail, targeting territories with rebate support Direct marketing (kits, promotions) 2X Sales Objectives (Next 5 years) Support mass distribution via big box retail Launch ‘3X’ designs

Chicken or Egg? Rebate support typically requires scale and established channel Developing channel and scale initially requires rebate support ADLT is seeking manufacturing rebate support for ‘2X incandescent’ Channel will be developed by rebated territory Traction will support Scale of manufacturing Cost reduction 3X development ADLT is exploring capital investment as well as ‘Made in US’ opportunities

Thank You 2X Incandescent General Information: 2XBulb.com E-commerce: 2XLightDirect.com (Jan 2013) Steve Stockdale 440-836-7614 steve_stockdale@adlt.com