Innovations Technology. Forward. 2013

KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012 Mission KCF Technologies develops embedded intelligence solutions and accelerates the transition to commercial products through strategic partnerships. Market Differentiator Rapid technology development Facility & Capabilities 10,000 sq.ft 30 staff (mostly engineers) Quick Facts Founded in 2000 > 60% Y/Y avg. growth Phase 2, nearly every SBIR Commercial outcome for every Phase 2 project 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012 2

Our Focus: Improve competitiveness with “embedded intelligence” Today’s Realities: ↓ Margins ↓ Headcount ↓ Inventories ↑ Competition ↑ Energy Cost Impact of Failure Use information technology to your assets perform better … make them smart and give them a voice $ 1983 Today Cost of Information 1983 1993 2003 2013 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Give the Machines a Voice ? KCF Technologies SmartDiagnostics®: Wireless Condition Monitoring on Rotating Machinery Only if you can get useful information Reliability of Industrial Equipment Enable predictive maintenance Reduce preventive maintenance Minimize human error Create automatic alarms (email, text) Give the Machines a Voice 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

1) Condition Monitoring in Unconventional Gas Operations Value: Increase reliability, reduce downtime with wireless condition monitoring Readiness: Commercially available ATEX Class 1 Div 2 pending Source: Weir Minerals - SPM 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Monitoring Example: Gladiator Water Pump Monitor vibration and temperature Track pump health on site and through the cloud 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

2) Low-Cost Air Quality Monitoring for Early Warning of Community Impacts Value: Deploy low-cost wireless gas sensors to detect changes in air quality in communities Readiness: Concept, leveraging SmartDiagnostics® low-cost wireless and Cloud infrastructure Seeking EPA/DEP/DOE R&D funding Partners: LMA, Drexel, KWJ Sensors Source: PA DEP “Laporte Model Air Sampling Protocol” July 19, 2012 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Existing Capability & Installations Production Machines Prevent downtime Integrate with Plant Mgmt System > 2000 machines / plant 68 Plants in SE HVAC Systems Prevent downtime Increase efficiency Operate in the Cloud Started 2006-08 Today 5 Buildings 5yr Plan for 1000+ machines Common to universities nation-wide Wind Turbine Systems (Blade  Generator) Prevent downtime Reduce maintenance $ Central monitoring of UK wide fleet via Cloud > 2000 Wind turbines in UK Already identifying real problems Industrial Refrigeration Optimize maintenance Increase efficiency Simple to use walk- around system - replace consultant ROI ~8months Better data since more single monthly samples free breeze energy systems uk 11/5/2012 KCF Technologies, Inc. -- © Copyright 2013

Energy Harvesting & Wireless Sensors Harvesters Wireless Vibration Sensor Vibration Monitoring Software Vibration Wireless Receiver Thermal Solar 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Technology Transition Strategy Technology Development - Capabilities Focused - Technical Diversity - Leverage Gov’t Funding Strategic Partnerships - Business case - Technical case - Integration & testing - Limited number of complementary partners Market Entry - Direct Product Introduction - Partner Product Joint Development - OEM / Royalty share Example: KCF SmartTether for VideoRay ROVs 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Making Harvester Powered Wireless Sensors Work Energy Harvesting Power Management Circuit Extremely low power, high bandwidth radio protocol Vibration Monitoring System 2004 2005 2006 2007 2008 2009 2010 2011 2012 Industrial Wireless Sensors (DOE) Harvester Power Prosthetic Limbs (ARMY) Energy Harvesting Wireless Sensors for Helicopter HUMS (NAVY) Load Energy Harvesting Embedded Wireless Sensors (NAVY) High Temp Thermal Harvesting Wireless Sensors (DOE) Magnetic Field Energy Harvesting Wireless Sensors (NAVY) 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

KCF Technologies Low-power Wireless Full-spectrum vibration machine diagnostics Robust Wireless Communications Easy Installation & Setup Automatic Alerting 10X Battery Life 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012 Thank You! Jeremy Frank President 336 South Fraser Street State College, PA 16801 Phone: 1-814-867-4097 Mobile: 1-814-883-1499 Email: jfrank@kcftech.com www.kcfech.com David Shannon VP of Business Development 336 South Fraser Street State College, PA 16801 Phone: 1-814-867-4097 Mobile: 1-814-883-9293 Email: jfrank@kcftech.com www.kcfech.com 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012