1. Vencon Management, Inc. 1 Investing in Hydrogen and Fuel Cell Technology FINANCING THE HYDROGEN ECONOMY AND FUEL CELL INDUSTRY Long Beach, CA Wednesday, May 5, 2010 Presented by: Irvin Barash, President, Vencon, New York

2. Vencon Management, Inc. 2 Global Economic Externalities affecting Hydrogen and Fuel Cells Specialty Economic Growth Opportunities Types of Technologies of Interest to the Commercial Markets PRESENTATION TOPICS

3. Vencon Management, Inc. 3 Global Economic Externalities affecting Hydrogen and Fuel Cells TOPIC 1

4. Vencon Management, Inc. 4 Financing the Hydrogen Economy Relates to the Story Being Told in Simple Terms... …And the Name is a Major Element… …the name, Hydrogen Economy, is perplexing to many…Is Hydrogen a source of currency??…Is the world a Silicon Economy? WHAT IS THE HYDROGEN ECONOMY???

5. Vencon Management, Inc. 5 A 1940’s movie- - Jimmy Stewart wanted to leave banking for solar energy…it was a dream then, but didn’t catch on. A 1940’s talkie, Charlie Chaplin poo-pooed an investment in “Pacific Ocean Power” an ocean energy tech. A major problem is that investors are confused- -DON’T CONFUSE INVESTORS WHAT IS THE “LABELING” OF THE INDUSTRY, ALSO CALLED GREENTECH AND CLEANTECH

6. Vencon Management, Inc. 6 Alternative Energy has been around for centuries…that’s what is confusing. What is the investor/public to understand regarding hydrogen and fuel cells, even energy storage is a different category To attract the substantial investment needed, the Hydrogen Economy must have the alluring “spin”, for one. ACTUALLY, IT HAS….

7. HYDROGEN AND FUEL CELL BUSINESSES SHOULD BE ONE OF THE LEADING GROWTH AREAS IN THIS DECADE Vencon Management, Inc. 7 World Wide Security related markets facing major adjustment to terrorism Global Market Growth for Electricity Reduction of oil imports Global climate change Fossil Fuels Depletion Power Generation Dislocations 7

8. Vencon Management, Inc. 8 Attracting Substantial Private Equity Investors to Existing and New Hydrogen Related Businesses... …Despite the many Developmental and Infrastructure Issues reflective of a Growing Industry. Worldwide about 4000 organizations are involved in fuel cells, hydrogen energy and related technology FINANCING HYDROGEN AND FUEL CELLS COMPANIES REGARDS...

9. Vencon Management, Inc. 9 Specialty Economic Growth Opportunities TOPIC 2

10. Vencon Management, Inc. 10 BECAUSE IT IS THE RISK CAPITAL FOR THE SUCCESS OF EMERGING COMPANIES EQUITY CAPITAL IS THE BACKBONE NEEDED FOR BANK LOANS TO BE AVAILABLE PRIVATE EQUITY REGARDS FINANCIAL AND CORPORATE INVESTORS GOVERNMENT INVESTMENT IS HELPFUL GROWTH OPPORTUNITIES RELATE TO INVESTOR INTEREST

11. WHAT DO INVESTORS LOOK FOR? Vencon Management, Inc. 11 12 RETURN ON INVESTMENT SUPERIOR MANAGEMENT POPULAR INDUSTRY STORY LARGE MARKETS NEAR TERM PROFITABILITY, LESS IMPORTANT

12. Vencon Management, Inc. 12 VENTURE STAGES, Vital to Understand

13. Vencon Management, Inc. 13 STAGES OF VENTURE GROWTH  STAGE 0:: IDEA/CONCEPT  STAGE 1: R&D ALSO REFERRED TO AS PRE-SEED  STAGE 2: INITIAL MARKETING  STAGE 3: COMPANY FORMATION  STAGE 4: BUSINESS TEAM AND PLAN  STAGE 5: MARKETING DEVELOPMENT/PARTNERING  STAGE 6: COMMERCIALIZATION

14. 14 Opportunities- - “convergence” wave as the industry grows. Combine companies which serve the same market, and access a common customer base. Many companies are one product businesses without the proper management, well thought out strategies and vision to be successful as the dynamics of the industry change. Vencon Management, Inc. STRATEGIES FOR ATTRACTING INVESTORS

15. Vencon Management, Inc. 15 Consider Acquisitions to add other Products Undertake Strategic Partnering Access the billions of customers in developing nations. Should the Hydrogen Economy be called a different name ? STRATEGIES

16. Vencon Management, Inc. 16 New Future Revenue Participate in new Innovations Link R&D Programs with New Opportunities New Market Knowledge Enhanced Strategy Options: Marketing/ Technology License/Production Rights Identify Acquisition Candidates Financial Gain POSSIBLE BENEFITS FOR PRIVATE/CORPORATE INVESTORS

17. Vencon Management, Inc. 17 Types of Technologies of Interest to the Commercial Markets TOPIC 3

18. Vencon Management, Inc. 18 Hydrogen Production (including membranes, catalysts, coal based) Photolytic Water Splitting Renewable Electrolysis Biological and Biobased Ultra-High-Temp. Thermalochemical Systems (Solar ) Distributed Reforming OPPORTUNITIES

19. Vencon Management, Inc. 19 Hydrogen Storage Physical Storage Metal Hydrides Carbon-Based Materials Chemical Hydrogen Storage Novels Materials & Concepts OPPORTUNITIES Hydrogen Delivery Liquefaction Pipelines

20. Vencon Management, Inc. 20 FINANCING TECHNOLOGY TYPES

21. Vencon Management, Inc. 21 SUMMARY: LARGEST ECONOMIC TRANSFORMATION EVER

22. 22 CONCLUSIONS New Government/ Industrial Corporation Needed More Entrepreneurs  Private Equity Outreach, as Financing Conferences  Enhanced Strategic Partnering  Enhanced Support for Trade Organizations  Rename segments not based on products or technology, but on markets/applications Vencon Management, Inc.

23. 23 GERMANY: PUBLIC/PRIVATE PARTNERSHIP