Page 1 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Hydrogen Power Systems, Inc. Reducing Fuel Expense and Pollution for Internal Combustion Engines Escondido, California

Page 2 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Trucks, Cars & Vans Motor Homes Tractors & Combines Boats & Yachts Power Generators Construction & Highway Equipment Internal Combustion Engines of ANY size! Introducing the HPS Series of fully assembled On-Demand Hydrogen Enhanced Combustion Systems for:

Page 3 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved What’s The Bottom Line? How Will This Benefit My Business? Five Ways: 1.Better Mileage, Less Fuel, 2.Lower Maintenance Costs, 3.Lower Emissions & Pollution, 4.Can Be Easily Moved Between Equipment, 5.Possible Tax Credits and Rebates from State and Federal programs.

Page 4 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved 3.Electrolysis breaks water down from 2 H 2 O into 2 H 2 + O 2 4.The System pipes the Hydrogen and Oxygen gases through a pipe to the air cleaner. 5.The gases combine with the air rushing through the air cleaner. 6.The new air/gas mix causes the same amount of fuel to burn more completely, extracting more energy from the same fuel. (Hps processes and components are Patent Pending) So How Does it Work? 1.Our System contains water, metal plates and a chemical to make the water conductive. 2.The vehicle’s alternator sends a current through the System. Oxygen Gas

Page 5 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved What Is “OxyHydrogen Gas”? OxyHydrogen is a mixture of hydrogen (H 2 ) and oxygen (O 2 ) gases, typically in a 2:1 molar ratio, the same proportion as water. It is generated through Electrolysis. I Know About Oxygen, But What Exactly Is Hydrogen Gas? Simplest, most common element in the universe. 15 times lighter than air. Clear, odorless, non-toxic. It’s the “Hydro” in Hydrocarbon, the part of gasoline and diesel we burn that powers our trucks and cars. Hydrogen bubbles ( 2 H 2 ) Oxygen bubbles ( O 2 ) Electrolysis converts water (2 H 2 O) into 2 H 2 + O 2

Page 6 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Yes. It is safe because: As a vapor it dissipates very quickly. It is not liquid so it can not puddle on the ground like gasoline or diesel. It does not give off toxic or carcinogenic fumes. It turns back into pure water. OxyHydrogen Gas is generated “on demand” just before it is used. It is not stored on the vehicle. Because only a few ounces are present at any given time there is no chance of explosion. Image Source: DOT Guidelines for Use of Hydrogen Fuel in Commercial Vehicles - Final Report November 2007 Is OxyHydrogen safe? Gas rises and dissipates Narrow and Vertical area of flammability Liquid Puddle which can spread Vapors low to ground Evaporates slowly

Page 7 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved So, Is OxyHydrogen A Fuel? Not exactly. Because it takes just a tiny amount to make gasoline or diesel burn more completely, OxyHydrogen is considered a “Reactant”. In Chemistry, a “Reactant” is a substance that participates in a chemical reaction, causing something else to happen faster. Even though the small amount of OxyHydrogen “fuel” created is consumed in this process along with the gasoline or diesel, its real purpose is to make the gasoline or diesel burn more completely. This improved combustion is how we reduce emissions and improve fuel economy. + OxyHydrogen = Fuel (Gasoline or Diesel) Better Mileage Lower Emissions More Torque & Power

Page 8 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved What’s The Technology In The Hydrogen Power Systems Device? Simple controls, Easy to maintain, Built-in safety systems, Industrial strength parts, Clear Installation Manual, Corrosion proof components, Comprehensive User Manual, Simple, safe, robust, rugged design, Housed in a weather-proof cabinet that easily bolts to the vehicle or engine chassis. (23” tall by 16” wide by 18” deep)

Page 9 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Hydrogen Fuel Cell Converts Hydrogen into electricity that powers an electric motor HIGH COST Hydrogen Powered Vehicle Heavily Modified Internal Combustion Engine HIGH COST Hydrogen Enhanced Combustion (HEC) Unmodified Internal Combustion Engine LOW COST  Needs a complex tank on the car to hold compressed Hydrogen.  Needs an electric motor instead of a gas or diesel engine.  Fuel Cell combines Hydrogen and Oxygen to create electricity.  Electricity powers the car's motor.  Requires a network of Hydrogen "Gas Stations” to be built across the nation to be feasible.  This technology is 20 to 30 years down the road.  Needs a complex tank on the car to hold compressed Hydrogen.  Heavily modified gas or diesel engine to run just on Hydrogen, not gas or diesel.  The exhaust is plain water.  Requires a network of Hydrogen "Gas Stations” to be built across the nation to be feasible.  This technology is 20 to 30 years down the road.  Needs a 1 to 2 gallon tank to hold water and a small amount of Electrolyte.  No engine modifications needed, works on existing cars and trucks.  Needs a HPS generator and 5 to 70 amps from vehicle’s battery to operate.  Generates Hydrogen and Oxygen that combines with the normal air / fuel mix.  This new mix burns more completely, reducing emissions and fuel expense.  Just add 2 quarts of water every 1,000 miles.  T HIS TECHNOLOGY IS HERE TODAY. What’s the difference between a “Fuel Cell” vehicle, a “Hydrogen Powered” vehicle and a vehicle using “Hydrogen Enhanced Combustion” (HEC)?

Page 10 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Are There Independent Tests That Indicate OxyHydrogen Improves Fuel Economy and Reduces Pollution? YES. Here are a few of the more relevant studies: 10% mileage increase, 39% Pollution. Reduction (Professional Service Industries, Portland) Average 15% diesel fuel reduction with Hydrogen boost technology. (Purdue University ) Reductions of PM:60%, CO:30%, Nox:19% (University of Calgary, Alberta, Canada) Adding small amounts of hydrogen… produced efficient lean operation by increasing the apparent flame speed and reducing ignition lag. ( NASA Lewis Research Center ) Has Hydrogen Power Systems Conducted Tests On HPS Products? YES! 2010 – 18% fuel improvement on a liter Chevy Duramax Turbo Diesel – 24% fuel improvement on a liter Mitsubishi Eclipse – 15% fuel improvement on a 1982 Chevy 6.2 liter Diesel Pickup truck – 63% reduction of particulate matter on the same 1982 Chevy 6.2 liter truck –13.6% fuel improvement on a 1998 Dodge Ram 5.2 liter Van.

Page 11 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved If OxyHydrogen is so great why haven’t I heard about it before? When fuel cost less that $2.00 a gallon there was little economic incentive. But with fuel bouncing between $4 and $5 a gallon a typical 18 Wheel Truck Will Spend $86, on Diesel this year* * (assumes 100,000 miles per year, $4.75 per gallon at 5.5 mpg.) Annual fuel cost increases $1,000 for each 5 cent price increase. (Source: American Transportation Research Institute) Trucking consumes 19% of all U.S. petroleum. Industry spent $141 billion in 2008, up $27 billion from Diesel fuel is now the largest operating expense, surpassing labor.

Page 12 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Will this system protect my engine and vehicle warranty? YES! The HPS series of Hydrogen generators is specifically designed to protect your engine. Our device is defined as an “after-market” product in full compliance with the Magnuson-Moss Warranty Act. Our generators will neither harm your engine nor void your warranty.

Page 13 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Particulates are reduced 5 to 50%. CO is reduced 15 to 80%. CO 2 is reduced 10 to 80%. NO x is reduced 5 to 30%. Hydrocarbons are reduced 20 to 90%. (Data & test results on file) What About Emissions? Independent tests and reports from actual users indicate that, depending on the age and condition of a particular truck,

Page 14 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Series 100 – For vehicles with less than 3.5 liters of Engine Displacement ( Installed in or near the engine compartment. Documented fuel economy improvements between 10% and 24%.) Small cars and trucks can benefit from our Series 100 Hydrogen Generators. Series 100 components typically weigh less than 30 pounds. HPS Systems are matched to each vehicle's specifications, and come with a money back guarantee to improve fuel economy and reduce harmful engine pollution.

Page 15 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved The Series 100 has 4 components that fit in the wheel well, beneath the headlights or other small spaces in or near the engine compartment: 2 Quart Water Tank 1 Quart Bubbler Tank6” by 8” by 3” Electrolyzer 3” by 2” by 2” Computer Buy your system with money you would otherwise pay as Federal Income Tax IRS Form 8910 gives you for a dollar-for-dollar Federal Tax Credit when you convert your car or truck to a Qualified Alternative Fuel Vehicle. Our system converts your vehicle to a Qualified Alternative Fuel Vehicle.

Page 16 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Series For engines between 4 to 7 liters. ( Installed in or near the engine compartment. Documented fuel economy improvements between 13% and 18%. ) Large pickups, delivery vans, school buses, motor homes and yachts. The Series 200 is calibrated to match the requirements of the larger truck, bus or power boat.

Page 17 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Series 300 – Sized for 5 to 15 liters: For large trucks, big RV’s, construction equipment and farm machinery. Also fits generators and fishing boats. ( Documented fuel economy improvements between 10% and 40%. ) At 90 lbs and just 24“ by 18“ by 16“, the uniquely designed Series 300 is easy to install and service. It can be attached like a typical utility box.

Page 18 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Series For Diesel Powered Refrigeration Units (TRUs) The Series 600 is designed for diesel powered trailers that transport perishable goods. It normally bolts to the front of the trailer, just below the TRU. Installation takes less than 4 hours. No modifications to the engine or the engine's settings are required.

Page 19 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved What Are The Technical Details? This schematic is a view of the electrical system.

Page 20 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved What Are The Technical Details? This schematic is a view of the electrical system. Series 100 & 200 Systems 40 Amp Relay 5 Amp to 35 Amp Electronic Control Box

Page 21 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved What Are The Technical Details? This schematic is a view of the electrical system. Series 300 Systems 100 Amp Solenoid 10 Amp to 70 Amp Electronic Control Box

Page 22 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved What Are The Technical Details? This schematic is a view of a Series 300 connected to a typical diesel tractor.

Page 23 of 23 Hydrogen Power Systems Reducing Fuel Expense and Pollution for Internal Combustion Engines August 2011© 2008 Hydrogen Power Systems All Rights Reserved Hydrogen Power Systems, Inc. Reducing Fuel Expense and Pollution for Internal Combustion Engines Escondido, California