1. USCL (Utility Services Customer Link) Corporation EnergyCite
Tom D. Tamarkin, CEO
Sima Toledano, CFO
2433 Garfield Avenue
Carmichael, California 95608

2. Outline What does USCL deliver USCL integrated solution
USCL’s product advantage for utilities and consumers
Potential U.S. market
Market drivers and dynamics
USCL’s strategy
Competitive landscape
USCL financial highlights
USCL – The business opportunity

3. What does USCL deliver?
USCL provides innovative wireless energy management product line for the utility industry and consumers:
Advanced wireless power meter for the utility industry with real-time WAN to LAN communication
Real-time bi-directional communications path between meter & utility; billing, rate and operations data
In home consumer energy management system EMS -2020
EMS-2020 communicates with USCL EnergyCite™ power meter, major appliance, thermostat, and environmental sensor monitors (SCE module)
USCL is revolutionizing the way people buy electricity and the way utilities do business

4. Patent Pending

6. USCL Products vs. Existing AMR
EMS2020
AMI -USCL
prototype advanced
wireless power meter
USCL products are leading in technology and performance

7. USCL’s Product advantage for the Utilities
Meter reader cost savings, $ 1.86 B annually
Reduces capital expenditures on new generating plant construction
Automatic service outage & restoration reporting
Elimination of electric service connect and disconnect expenses
Reduction of critical peak power demand lowers the overall cost of wholesale power
Reduces demand on the aging transmission and distribution system
Enables ability to charge customers a variable rate based on real-time events such as time of use and peak demand

8. USCL’s Product advantage
Reduces revenue loss from old inaccurate meters and theft of service
Enhances customer service and generates new revenue streams through value added products and services
Reduces billing error related complaints
Provides real time accumulated bill
Home and appliance health monitoring
Provides “subscriber side billing,” greatly reducing network complexity and reducing utility “back end’ processing cost
Allows data to be sent to and from different services meters
appliances, thermostats, temperature & relative humidity sensors, security system components, and other monitored services.
Using USCL’s Advanced Power Meter Result In Enormous $$$ Savings For The Utilities And Increase Customers Satisfaction

9. USCL’s Product advantage for the Consumers
The EMS-2020 provides real-time feedback of electricity, gas and water consumption
Studies show increase of up to 20% in conservation habits.
Consumers can set a monthly budget for each utility service
An alarm will sound if the actual cost is close to exceeding the budget.
Consumers can set the EMS-2020 to control electrical loads and reduce consumption by appliances, lights, etc.
Using the compatible remotely controlled appliance and lighting modules.
EMS2020 reduces customers consumption by up to 20% per month

10. the power and the choice
Consumers
can have
the power and the choice
“. . . a kilowatt saved is a kilowatt earned”.

11. Potential U.S. Market A $33 Billion TAM Electric 150M Accounts $22.5B
Gas M Accounts $ 5.4B
Water 70M Accounts $ 4.9B
Total $32.8B
A $33 Billion TAM

12. Market Drivers
Current high fuel prices and regional inability to meet peak load drive the needs for conservation
The CA Public Utility Commission (CPUC) has directed the major utilities to begin deployment of advanced metering systems in 2006
SCE signed settlement agreement with CPUC to immediately deploy product that will meet its advanced requirements
U.S. D. O. E. Vision 2030 plan calls to replace 150 M meters
Utilities’ need to reduce peak demand
Four million meters wear out annually
Consumers’ desire to save money and personally manage consumption

13. U.S Market Dynamics Cont’
IOU – Investors Owned Utilities: 80 M customers
Includes the three CA IOU Utilities, 14 M:
SCE- South California Edison: 5 Million customers. The electric Utility leader
PG&E – Pacific Gas & Electric Company: 4.5 Million customers
SDG&E – San Diego Gas & Electric Company: 2.1Million customers
Municipal, 35 M-
Examples: SMUD of Sacramento,
REC – Rural Electric Corporative, 35M customers
Regulated by the federal government
Many small groups of ~ 10K customers
Higher pricing, Higher profit

14. U.S Market Dynamics Cont’
The Energy Regulatory Organization
CPUC State
CEC State
FERC U. S. National
DOE U. S. National

15. USCL New Developments
The State of California Public Utility Commission has directed the major utilities to begin deployment of advanced metering systems
USCL is participation in a Pilot at SCE. SCE is a $2B Biz opportunity, as 5 million meters will be replaced shortly
USCL is well positioned with Southern California Edison (SCE.)
SCE is the largest electric only utility in the U. S.
USCL first product release will take place in Q4 2006
Revenue stream expected to start in Q2 2007
USCL is in final stages of exploring Advanced power meter manufacture in China
Will result in up to 30% cost savings for USCL
USCL’s has 95% probability to win the SCE AMI Evaluation Pilot

16. USCL - New Developments Cont’
Partnership agreement in final stage with the world's largest manufacture of meters in China “Kaifa”
Kaifa agrees to commercialize & manufacture the USCL meter to our specification which includes the latest generation ZigBee (IEEE ) wireless WAN to LAN.

17. Strategy USCL’s relationship with China Power meter manufacturing
Relationship with Covansys
Sells directly to utilities
Strategic relationship with major wireless RF Zigbee technology provider
Covansys

18. Competitive Landscape
No current direct competitors
No in-home displays exist
No residential real-time pricing technology exists
State-of-the-art AMR for walk-by monthly reads

19. Financial Highlights 2007 2008 2009 2010 2011 Sales - $ 27,032 75,125
185,482
214,603
222,004
Sales - Units 90
270
720
900
990
Gross Profit
47%
46%
45%
43%
Net Income
5,678
17,341
46,883
47,038
48,567
Cash Flow
(618)
2,221
14,058
54,987
47,056
(Dollars and Units in Thousands)

20. USCL – The Business Opportunity
$33 Billion Potential market
Market Dynamic indicts that Window of opportunity is NOW!!!
USCL provides Innovative Product line with advantages to consumers & utilities
Meets SCE product requirements and more…
SCE is the Utility leader with 5M customers
USCL product development near completion – Product release is expected in Q4’2006
USCL power meter commercial availability is expected in Q2’2007
USCL has demonstrable units exist, granted & pending patents, trademarks-IP
USCL is deploying SCE pilot - $2 billion biz opportunity
USCL has 95% chance to win the AMI SCE meter evaluation pilot; USCL product got excellent feedback from SCE & regulators
USCL has the “industry know how” knowledge
ROI is expected to yield > 20 times in 5 years

21. Appendix

22. EMS EnergyCite
EnergyCite is an innovative energy conservation system for consumers that can cut utility bills by up to 20%
USCL’s EMS-2020 product is validated in the 2002 City of Roseville Electric Annual Report
USCL’s EMS – 2020 is currently participating in SCE beta site pilot funded by the State of CA

23. U. S. Meter Manufacturers
Revenue Grade Electric Utility kWh Power Meters:
Co Installed Base Market Share New Technology
Majors:
Elster (ABB) % Electronic REX
General Electric 25% In development
Landis & Gyr % Electronic Focus
Schlumberger 20% Electronic Centron

24. U. S. Energy Management Manufacturers
Company Target Markets Entry Price
Energy Management Systems Hospitality Industry NA
Honeywell Building Control Commercial & Enterprise NA
Inncom Hospital Industry NA
Siemens PTD Commercial & Enterprises NA
Smart Systems Technologies Inc. Residential, new construction $5,000

25. Management Team CEO: Tom Tamarkin,
Industry pioneer, strong manager, past, COO Datamatic,
Inc., Richardson Texas, & CEO
CFO: Sima Toledano
Twenty years experience in corporate financial
management involving strategic and operational management with various high tech companies including Intel, Fibronics, Elbit and ORS Ltd.
CTO (Acting): Phil Fine,
Past CTO, telecom industry, Department of Defense; BSME United States Military Academy, West Point; MSE, University of Maryland; JD, Santa Clara University

26. IN-PREMISE LOCAL AREA NETWORK
Open standards based communications protocols  will allow for interoperability and a simple plug and play installation approach.  These can include the following:
Temperature Sensors
Humidity Sensor
Hot Water Controls
Thermostats
Air Conditioner (AC) Controls
HVAC Zone Control Dampers
Gas Meter
Water Meter
Electric Meter
PC through Wireless interface
Electric Ranges and Ovens
Electric Dryers
Pool Pumps
Spas
Outdoor Lighting
IN-PREMISE LOCAL AREA NETWORK
(LAN)

27. UTILITY WIDE AREA NETWORK
IN-PREMISE LOCAL AREA NETWORK
(LAN)
An effective Demand Response and consumer energy conservation LAN to WAN interface will allow communications between electric, gas and water meters, an in-premise information display and control panel, and various environmental and load sensors and control devices
UTILITY WIDE AREA NETWORK
(WAN)

28. UTILITY WIDE AREA NETWORK
(WAN)
UTILITY MANAGEMENT SYSTEM
Load Management
Rate Management
Billing System
SCADA Integration
Distribution Automation
Load Profiling
Fiber optical cable
RF Network
RF Mesh Network
Fiber Optical Cable
Broad Band Cable Network
Broad Band over Power Line
Power Line Carrier
Subscriber telephone line
Cellular Telephone Network
REPEATERS/COMMUNICATIONS MEDIA CONVERTERS

29. An in-premise local area network is utilized to allow an AMI enabled  power meter to communicate bi-directionally with various load monitoring and control devices.