1. Excavation Alert Systems, LLC.
Damage Prevention Systems for Buried Infrastructure
Ryan Dunn
660 Hunters Place, STE 102
Charlottesville, VA 22911

2. 500,000 mi. Transmission & 2,100,000 mi. Distribution
3,000 Pipeline Companies:
500,000 mi. Transmission & 2,100,000 mi. Distribution
Growth (Shale):
$187B in new pipelines.
24,400 mi/year transmission.
50,000 mi/year distribution.
High Consequence Areas (HCAs):
35,000 miles transmission (7%).
2,100,000 miles distribution (100%).

3. PROBLEM: Excavation Damage
Leading cause of significant pipeline incidents.
: 318 incidents
27 fatalities.
114 serious injuries.
Cost: $1.9B.
57% of excavation incidents caused by:
Failure to call a locating service (32%).
Failure to correctly mark utility (25%).

4. Protocols & Proactive Devices: Passive Visual Indicators:
Monitoring and Sensor Systems:

5. Directly warns excavation crew, PREVENTING accidents.
ExcAlertTM SOLUTION:
Directly warns excavation crew, PREVENTING accidents.
Visual (colored smoke).
Sound.
No proactivity required.
New and retrofit installations.
Inexpensive: ~1% of pipeline cost.
Safe for use near natural gas pipelines.
Long life, no maintenance, weatherproof.

6. Sound Producing Diaphragm
Product Details:
PVC Pipe with designed breakpoints.
High longitudinal strength for installation.
Easily broken with excavator shear force.
Clear path to surface for signal when broken.
Small hole diameter required for retrofit.
High effective area when installed at angle.
Easily produced in varying lengths for pipelines at different depths.
Multiple configurations in pending patents: PCT/US2012/071096
Sound Producing Diaphragm
Smoke Generator
Retrofit Installation Vehicle
GPR Image

7. Innovative Business Model:
Year ROI
System Cost Pass Through
Reduced Insurance Premiums
Improved Triple Bottom Line
Business Fundamentals:
ExcAlert product:
Solves a significant problem & saves money.
Sustainable competitive advantage.
Experienced & well rounded team.
Large & growing market.
Structurally attractive industry.
Low technical risk with significant return at exit.
How to create a pull in a regulation driven industry?
Create a 5-10 year ROI for pipeline companies.
Strategic relationships with leading pipeline insurance companies to offer reduced premiums on ExcAlertTM protected pipelines.
Utility companies can pass system cost through to rate payers.
Improves “Triple Bottom Line” initiatives: Safety, Health & Environment.

8. ? RYAN DUNN FOUNDER & CEO BRYAN WRIGHT J.D. IP & INDUSTRY EXPERT
CEO, ElectraWatch, Inc.
Successful product commercialization.
Electrical Engineering & Engineering Management, Dartmouth College.
RYAN DUNN
FOUNDER & CEO
VA Bar & TX Bar Oil and Gas section.
“Super Lawyer” for IP law, VA Super Lawyers magazine. AV Rated.
BRYAN WRIGHT J.D.
IP & INDUSTRY EXPERT
30 years experience in operation and management of IP based companies.
Resident Advisor & Entrepreneurial Mentor, Darden / Batten Institute.
Financial Expert.
ROBERT TOBEY C.P.A.
OPERATIONS & CFO
Strategic first hire.
Significant experience at major pipeline company.
Leverage experience and connections for business development.
MAJOR PIPELINE EMPLOYEE
BUSINESS DEVELOPMENT ?
INVESTORS & ADVISORS:
LEN WOLOWIEC
President, Universal Steel America
Pipeline Connections in Houston, TX.
GEORGE PHILLIPS
Senior Vice President, Rutherfoord
Pipeline Insurance Industry Expert

9. $1.6MM $3MM Company Information: Series A - $1.6MM of $3MM Raised:
Virginia LLC. headquartered in Charlottesville, VA.
$65k in seed funding from founders.
Functional Prototype Stage.
Strong IP (PCT/US2012/ pending).
Initial strategic relationships.
Series A - $1.6MM of $3MM Raised:
$1.6MM
$3MM
Awarded $1.5MM in VA tobacco commission funding on 9/16/13.
Equity capital at significantly below market rates.
Requires $1.5MM in matching funding and manufacturing in VA tobacco region.
$100k Charlottesville based Angel.
Funding Use:
Strategic hires from pipeline industry: Business Development & Sales.
Design improvements: improved performance, mass manufacturing.
Statistical Testing: soil types, freeze thaw cycles, longevity, large test bed.
Working Capital.
Business Fundamentals:
ExcAlert product:
Solves a significant problem & saves money.
Sustainable competitive advantage.
Experienced & well rounded team.
Large & growing market.
Structurally attractive industry.
Low technical risk with significant return at exit.

10. BACKUP SLIDES ExcAlert product: Experienced & well rounded team.
Business Fundamentals:
ExcAlert product:
Solves a significant problem & saves money.
Sustainable competitive advantage.
Experienced & well rounded team.
Large & growing market.
Structurally attractive industry.
Low technical risk with significant return at exit.

11. Commercialization Timeline:
VOLUME MANUFACTURING
$3MM
INVESTMENT
SALE OF COMPANY:
MONITORING SYSTEM COMPANIES
OIL & NATURAL GAS COMPANIES
PIPELINE INSTALLATION COMPANIES
PIPE PRODUCERS
RETROFIT INSTALLATION VEHICLE
FINAL DESIGN
COMPLETE
BUILD
TEAM
FORM
COMPANY
PHMSA
DEMO
PIPELINE INSTALLATIONS
INSURANCE
ACCEPTANCE
FILE PATENT

12. Proforma: Projections: Revenue & COGS: Sales Example: Revenue: COGS:
Devices: $30k/mi
Installation: $20k/mi with vehicle
$50k/mi = ~1% of $4MM/mi pipeline cost
COGS:
Devices: $7,450/mi
Installation: $6,786/mi with vehicle
Gross Margins = 72%
Sales Example:
40 mile ExcAlert Installation:
Revenue: $50k/mi * 40mi = $2MM
COGS: $14k/mi * 40mi = $560k
Gross Margin: $1.44MM (72%)

13. United States Pipeline Market:
3,000 Pipeline companies.
2010: $9.7B profit on $31B in revenues.
$930MM annually on preventative technologies.
500,000 miles of transmission pipelines.
2,100,000 miles of distribution pipelines.
Target Market: Pipelines in High Consequence Areas (HCAs):
35,000 miles transmission pipeline (7%).
2,100,000 miles distribution pipeline (100%).
Target Market Growth (Shale):
$187B investment next 25 years ($7.5B/year).
24,400 mi/year trans. (1,709 HCA mi/year).
50,000 mi/year dist. (50,000 HCA mi/year).
Secondary Markets:
35MM mi of buried infrastructure in U.S.
Power transmission & fiber optic backbone lines.
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