1. Potential U.S. Market $32.8B Total $ 4.9B 70M Accounts Water $ 5.4B
Gas
$22.5B
150M Accounts
Electric

2. AMR Well Established in the United States
40 Million electric, gas, and water meters served
15% of the electric market served
Itron with Schlumberger meter unit
CellNet
DCSI
Hunt Technologies
Elster Meter & proprietary AMR

3. Barriers to Entry of Electrical Utility AMR Market
Strong competitive beachhead established Itron, CellNet, Hunt Technologies, DCSI
Utilities typically require proven installed base of > 100K units
Current business driven by cost. Every penny counts!
ANSI testing and certification costs in excess of $70,000
Meter Companies have existing AMR partners

4. The Solution Results From the Problem
California is capacity bound for the next 5 years
California must reduce peak demand by 5 % by 2008 to support current population growth
Total available market is $7 Billion USD

5. USCL Pushes California Government
California Energy Commission SSP Wrap-up
California Public Utilities Commission July Administrative Law Ruling
AMI must be considered
California’s Utilities submitted proposals to CPUC ending 15 October 2004
Four Month period of CPUC and CEC study
Vendor & Public interaction
Governor Arnold Schwarzenegger & Staff are committed to Dynamic Pricing
Missing component (Key Success Factor) is In-home customer information display

6. USCL’s EMS-2020 allows implementation of AMI consistent with Dynamic Pricing Tariffs
EMS-2020 becomes the customer information display defined in SPP
Provides usage, cost and current rate information
Connects the customer and utility Utilities Services Customer Link

7. It started in Idaho
Idaho Public Utilities Commission issued mandate to replace all old-fashion meters
TOU rates and AMR now required
USCL helped shape and finalize IPUC Legal Order
California will now lead the way
---Senator Tom Torlakson

8. California Public Utilities Commission Funds USCL EMS-2020 Project
Find SCE and County of LA logos and include on slide
The CPUC has funded a project with SCE and LACO for 350 USCL EMS-2020 units
Highly visible
Governor
CPUC
CEC
President of SCE
President of PG&E
President of Sempra Energy (San Diego Gas & Electric)

9. Energy Management Technology Water Meter Manufacturing
USCL & ARAD The Power of Synergy
EnergyCite
a division of USCL Corp.
Cutting Edge
Energy Management Technology
60 Years of
Water Meter Manufacturing
Pioneers in Wireless Technology
Integrating Electric, Water, and Gas
1 + and the result … 1 = 11

10. Run that by me again… the Governor and vice Prime Minister personally announced USCL and Arad Tech’s cooperation?
1 May, Tel Aviv, Israel
Governor Arnold Schwarzenegger and Vice Prime Minister Ehud Olmert
Tom Tamarkin, Danny Winter, Alan Edelstein, and Emily Tamarkin

11. USCL and Arad Technologies “Agree to Agree.”

12. Several USCL Board of Directors, advisors and Arad
Technologies Management after “Agreeing to Agree.”

13. Southern California Edison and Los Angeles County
Project Schedule
10 Power meters with USCL IUM and radio board to SCE meter shop 26 September
2 EMS-2020 units to SCE meter shop 26 September
Southern California Edison meter shop to spend 75 to 90 days testing
SCE should approve the kWh meter with USCL IUM and radio and EMS-2020 by 28 December
USCL to ship 350 meters and IUM radio units 1 February 2005
Deployment to begin 15 February 2005
System includes:
350 Power meters with USCL IUM radio modules
350 EMS-2020 units
5 (or more if needed) data concentrators and modems

14. USCL Action Plan USCL will implement V9 EMS-2020 Color LCD
Touch Screen
RAM based Smart Card
USCL will implement external USCL IUM and radio module with photo optical meter interface
USCL Will implement USCL radio or Arad radio, schedule permitting
USCL will implement USCL data concentrators or Arad Fixed Readers, schedule permitting

15. Opportunities & Possibilities
Cross licensing of technology
Opportunity for parties to produce product
Opportunity to penetrate California Market
Opportunity to become approved by California’s Utilities which will lead the nation and become de-facto approval standard
Strategic plan to leap frog the competition & overcome the “me to” stigma

16. Pricing and monitoring, all in real-time!
EMS-2020 & AMR Topology USCL Integrated Solutions
Broadband/Cable
Land-line Telephone
Power LIne Carrier
RF Repeater Network
CellularTechnology
Hybrid of above
Utility
Customer
iSUM
kWh
Meter
Network/
Internet
Network
EMS-2020
Host Computer
Monitor
RF USB/ to
Pre-Processing
Home Computer
ARAD Technologies, Ltd.
RF Wireless
Gas Meter
RF to Set-top
Television Box
Water Meter
Home
Network
Gateway
ARAD Technologies, Ltd.
Pricing and monitoring, all in real-time!

17. Summary In the United States AMR is becoming obsolete
AMR is being replaced with AMI and RTM
USCL and Arad Technologies can work together to penetrate the $32 Billion USD market opportunity