1. Residential 50-Gallon Heat Pump Water Heater

2. New 50-Gallon Heat Pump Water Heater Designed-in superior performance –Most efficient residential heat pump water heater 2.75 Energy Factor for $170 annual cost, means big savings! –ENERGY STAR ® qualified –Highest hot water delivery with First Hour Rating of 67.5 gallons –Quiet operation with 51 dBa sound level

3. Cost Savings Lowest annual operating cost at $170 –$170 vs. $520 for standard electric = $350 annual savings –$170 vs. $195 for competitive heat pump = $25 annual savings Payback typically 2 to 3 years –Incentives and local/utility rebates make payback more attractive Ten year savings of $3,500 will pay for the next water heater! Keep your money in your home, with American’s new high efficiency heat pump water heater

4. Hot Water Delivery Uniform Plumbing Code guidelines for a 3 bedroom/3.5 bathroom home require minimum 67 gallon first hour delivery –Listing of high efficiency 50-gallon heat pump water heaters that meet this criteria includes…. ONLY American –This level also meets requirement for homes with 4 bedrooms and 2.5 bathrooms

5. Ease of Installation (1) Designed-in easy installation –Easier handling Carton is corrugated; lightweight, easy to open, easy to recycle May be transported on its side Can be stacked 2 units high –Dimensions; product is a bit larger than conventional electric water heaters 63” Tall x 22” Diameter 196 lbs. shipping weight

6. Ease of Installation (2) Designed-in easy installation –Side water connections are easy access, avoid interaction with critical top-mounted compressor components –Condensate drainage efficiently handled Non-corroding drain pan Primary & backup drain ports Safety circuit for optional condensate pump overflow protection –Junction box is side mounted for easy access & safety, away from water connections, within reach

7. Ease of Operation Designed-in easy operation –Intuitive, eye-level electronic interface enables control of temperature setting, operating mode –Easy access, washable & reusable air filter ensuring optimum efficiency –Diagnostic display stores & reports service code history –SmartPort positions water heater for state of the art connectivity to home management & utility smart grid applications via smart phone, tablet, or pad

8. Control System Three character LED display Control system operating modes: –Efficiency –Hybrid –Electric –Vacation (program up to 99 days) Dry fire protection SmartPort connectivity Advanced diagnostics –Error code history

9. Key Innovative Features Designed-in innovative features –Condensate drain safety circuit – a condensate pump may be wired into the user interface, & will disable compressor (default to backup elements) should condensate drain clog or fail –SmartPort – conveniently mounted above user interface, this port enables two-way communications between the water heater & future home management and/or utility smart grid application via an optional control module

10. Operational Strengths Quiet operation –A. O. Smith heat pump is rated at 51dBa, reported as the most quiet sound level of all heat pumps on the market Easy programmability –Simple buttons enable you to choose from among 3 operating modes & vacation mode –Vacation mode programmable up to 99 days

11. Competitive Advantages Outstanding performance vs. competition AWH competitor Published Energy Factor 2.752.4 Annual Cost (DOE test) $170 $195 First Hour Rating (gallons) 67.565 Sound level (dBa) 5155 Height (inches) 6360.5 Weight (pounds) 180179

12. Feature Comparison vs. competition User Interface Air Filter Condensate Drain

13. Product & Competitive Advantage Americancompetitor Xcompetitor Y American Advantage? Energy Factor2.752.42.45  Annual Operating Cost $170 $195 $191  First Hour Delivery67.56557  HP Operating Range45 to 120 37 to 120none Diameter (in.)2221.7521draw Height (in.)6360.575.5  Clearances (in.)678  Weight (lbs)180179180draw Shipping Weight (lbs.)196195226  Inlet/Outletsidetopsideperception issue Sound Level (Fan)51dBa55 dBanot published  Backup ElementsCopper Incoloynone Anode MaterialAl, Mg, or KA90Mg  Dry Fire ProtectionYesNoYes  CommunicationsSmartPortACMEcoNetdraw Insulation Thickness2"1.5"2.5"perception issue

14. Value Proposition $350 annual savings vs. standard electric Attractive Payback Scenarios –2-3 years – without incentives or rebates –1-2 years – with tax credit and/or incentives Most cost effective energy saving appliance available Environmentally-Friendly –Reduces greenhouse gas emissions