1. Prepared for: ERCOT September 8, 2009

2. Ask Yourself….. What would you attempt to do if you knew you could not fail? 2

3. Innovation is the spark that lights the fires of industry Electricity Steel Automobiles Internet 3

4. 4 Power Tree Has Developed Breakthrough Electrical Energy Storage Technology That Will Change Our World

5. 5 A Scalable Flywheel That Can Store And Discharge Grid Scale Power In A Green Economically Viable Manner

6. 6 The unit’s kinetic wheel is 120" tall and 48" wide. Total weight of the wheel is approximately 80 thousand pounds. Total weight of the entire unit is approximately 100 thousand pounds depending on size of motor/generator set. Unit exterior containment is 11 feet wide, 11 feet tall and 30 feet long. At Max Operating Level (10,000 rpm): 30 gigawatt seconds 8.1 megawatt hours Power interface is set at 480 volt 800 amp input and output mode for basic system.

7. 7 Economic Metrics (base unit 480v 800 amp): Manufacturing Cost: $200,000 installed cost per kwh: $26 lifespan: 25 years maintenance schedule: quarterly Efficiencies: input/output efficiency: 90% Rapid Onset Load Suppression: 80%

8. Our Achievements To Date Years of R&D by the inventor resulted in solving the Flywheel riddle. Commissioned a marketing study to be completed by Dr. Jerry Jackson Power Tree Corp established in 2008 and funded. Recruited a talented and seasoned team of professionals. Applied for patent through Hamilton Brook Smith & Reynolds. Gen 3 unit built and in operation. Intertek testing of Gen 3 proved efficiencies. Currently patent pending. Established a manufacturing joint venture. Moving into Coconut Creek manufacturing facility. Received Congressional and State support. Signed multiple LOI’s with potential beta site partners 8

9. Distribution System Residential Customers Industrial Customers Commercial Customer Market Electric Utility Market Transmission System Power Tree Applications Power Tree Flywheel Markets 9

10. Application to Utilities Reduces requirement for new generation plants Increasing capacity Positioning along the grid Load Smoothing Frequency and voltage regulation Rapid onset load suppression Renewable power Reduction of carbon emissions 10

11. What We Are Currently Working On Building Gen 4 Unit. Considering and selecting beta site partners. Forging alliances with utilities and other end users. Finalizing our business model with utilities. Strengthening ties with government (DOE) and applying for grants and manufacturing tax incentives. Continue pursuing other potential applications. 11

12. Flywheel Competitors Technology Characteristics Beacon Power (BCON: NASDAQ) Pentadyne Active Power (ACPW: NASDAQ) Other - Batteries Small & Light Weight Short-period discharge capabilities (30 seconds - 15 minutes ) Primarily UPS applications and back up power Potential utility frequency and voltage control applications 12

13. Our Competitive Advantage Built for Scalability Greater Storage Capacity Due to Weight. Greater Efficiencies. Smart Software Economic viability Business Model Wide Range Of Applications Throughout The Grid Relative Cost 13

14. Objectives And Plans For The Future Complete Gen 4 unit by the end of first quarter 2010 Display Gen 4 unit running the Coconut Creek Facility. Build other units as per requirements of selected beta sites. Complete beta testing. Make necessary adjustments to unit as required. Take orders……. 14

15. Summary Breakthrough Technology in Energy Storage Scalable Flywheel Hours of Grid Scale Storage and Discharge Power Economic Viability Multiple Applications Economic Arbitrage of Off-Peak/On-Peak Pricing Cost Efficient Technology for Utilities Expansion Shared Savings Business Model Wind and Solar Applications Increased Real Estate Values Changing the landscape 15