1. Marketing Plan Mili Patel, Chris Castaldini, Melissa Revenaugh, Melodie Shimomura, and Hari Panem August 9, 2010

2. Agenda  Product Overview  Market Analysis  Opportunities & Challenges  Target Market & Value Proposition  Marketing Strategies  Pricing & Payback Model  Success Metrics  Q&A

3. Product Overview What is the Power Burner?  Uses natural gas to co-generate heat and power  Attaches to thermal equipment by replacing the legacy burner  Utilizes 100% of the waste heat pushing the Combined Heat and Power (CHP) efficiency to 82%  Generates electricity @ $0.025 kW/h  Offers less than a 2-year payback without considering incentives

4. Market Analysis  Massive market opportunity (~$84B)  Green and sustainable technology markets are booming –Increased awareness of environmental issues –84% of businesses say energy efficiency is a priority for new construction and retrofit projects –Large companies and VC’s are fueling the buzz  Large scale industries more cognizant of sources of renewable energy –Expected growth in energy consumption –Rising cost of energy  Federal Government regulation (ARB Rule 7, Reg. 9)  Indirect competition: Fuel Cell, Solar PV & CHP System

5. Opportunities & Challenges Opportunities  No direct competition  1/3 of the CA market is required to meet new NOx emission standards  44% of organizations require a 3 year payback or less Challenges  Limited resources  Industry is slow to adopt new and untested technology  Low brand awareness  Negative view of CHP

6. Target Market Available Global MarketLeva’s Target Market / Sales Operating Years Customer Segment Installed Units (Retrofit Market) Target Market Size (Units) Target Market Location Yrs 1 – 4 Industrial / Commercial (Large) $33.6B / 249K Units 3,192California Yrs 5 – 6 Industrial / Commercial (Large/Mid) $58.4B / 449K Units 416,364 NA /Europe /BRIC Yrs 7+ Industrial / Commercial (All) $85.8B / 659K Units 704,164Global

7. Value Proposition For industrial and commercial organizations, Leva Energy provides the Power Burner, which unlike the competition, offers a cost-effective, efficient energy solution with a shorter payback and minimal switching costs. Higher Electricity Prices Energy Efficiency Emission Regulations

8. Marketing Objectives  Positioning –First CHP company to launch a power-generating burner making distributed generation economically viable  Short-term strategies (1 – 2 years) –Introduce Leva Energy Power Burner to market –Establish strategic partnerships with resellers and distributors –Create brand awareness  Long-term strategies (3 – 7 years) –Increase brand equity –Increase market penetration –Expansion into North America and International markets

9. Short-term Strategy In Order of Priority:  Recruit channel partners –Resellers and distributors  Beta Testing –Hitachi  Develop marketing and sales tools –Animated Power Burner video –“Rep Only” webpage  Form strategic alliances with select utility companies  Establish Salesforce.com CRM database

10. Long-term Strategy In Order of Priority:  Establish Energy Star SPP partnership  Join trade associations  Establish CHP Partnership Program through the EPA  Develop Leva Energy direct sales channel  Launch PR campaign  Continue R&D (Power Burner 135, 270 & 400)  Establish OEM co-marketing & sales partnerships  Print advertisements

11. Pricing/Payback Model Capital Expenditure  Equipment  Installation  Service plan ($0.005 per kWh) Power Purchase Agreement  Discounted power  Installation & service  10-year agreement Customer Pays: Equipment$135,000 Installation$20,000 Service$4,000 Total$159,000 Savings$84,240 / Year Payback Period1.89 Years Customer Pays: Power$0.06 kWh Installation$20,000 Service$4,000 Total$24,000 Savings$21,840 / Year Payback Period1.10 Years

12. Success Metrics  Develop separate and unique sales channels –3 Resellers –4 Distributors –3 OEMs  Positive cash flow by year 4  1% market share by year 7  Bring to market “generation 2” models by end of 2012

13. Questions?