Smartcool Systems Inc. Providing effective and reliable energy efficiency solutions for HVAC-R customers around the globe.

Smartcool… …Green technology, green rewards Background In the mid-80’s Australian refrigeration engineer, Tony Murphy observed that strategically unloading a system could maintain temperature and significantly reduce energy consumption. Tony invented the ESM, still a state of the art technology used in rack and chill water systems In 2009, Smartcool International introduced the ECO3 as a consumarized version of ESM for DX systems Smartcool solutions adopted widely across a range of industries for over 25 years, more than 50,000 installations worldwide Smartcool Energy Saving Module (ESM) Smartcool ECO3

Thermodynamic Principle Compressor optimization dynamically adjusts the length of each operating cycle in order to have the compressor run more often at a higher suction pressure where it is most energy efficient. Smartcool achieves greater energy efficiency for the compressor without allowing the compressor to short cycle and without affecting the controlled space temperature.

Thermodynamic Principle Compressor optimization dynamically adjusts the length of each operating cycle in order to have the compressor run more often at a higher suction pressure where it is most energy efficient. Smartcool achieves greater energy efficiency for the compressor without allowing the compressor to short cycle and without affecting the controlled space temperature.

Thermodynamic Principles Explained This is a very busy box! Upon Compressor Start: Suction Pressure High, Head Pressure Low, Condenser Cold These Conditions promote high mass flow rate = high capacity Conditions reverse as capacity (suction) declines to rated value Remember: COP is a function of Suction Pressure (Mollier Chart) The ECO3 internally models system performance looking over past cycles and predicts next cycle minimum run time, inherently maximizing suction pressure By constantly and dynamically adjusting the run cycles, the compressor delivers the highest possible COP - -for that specific system and that specific load pattern Essentially, the ECO3 is modulating excess capacity for higher efficiency All Systems have excess capacity, that is why they cycle During times with no excess capacity, no savings

Design Features of the ECO3 During the ECO3 Design Phase, certain features were essential: On Screen Display to show actual savings, load factor and diagnostic data One and Two Stage Capability Flexibility of installation, anywhere between thermostat and compressor Only needs to see a thermostat call Flexibility of application, AC, Refrigeration, Heat Pump Voltage switching from 24 to 250 VAC, up to 5 amps Robust Design Physically and Electrically hardened Simple operation – one button Simple Installation, 2 dip switches Anti-short cycling logic Software upgradeable Inexpensive

Operational Features of the ECO3 Compressor Optimization is about more than mathematics Customers & Installers have operational requirements to address Smartcool’s 30 years of practical Lessons Learned is incorporated into every product line: Special logic to accommodate the many configurations of two stage systems Special Logic to promote fast morning and defrost temperature recovery Special Logic to prevent short cycling Internal Self-test logic Fail safe product design – reverts to normal thermostat Special logic for installation and onsite testing Internal health monitor circuit Internal signal isolation Annunciators that communicate operation mode User accessible data registers to display performance and diagnostics

What it means for you… For Customers For Distributors Typical savings 15-40% depends primarily on Load Factor If the power bill is $400 per month & 60% is AC The ECO3 may save 25%: So 60% x 25%= 15% Monthly Savings = $720 per year At 10% annual utility Increase= $11,500 over 10 years! For Distributors Kitchen Table close rates 50-75% MSRP $1495.00 (simplex) Profitable on both unit pricing and installation Reliability in the 98-99% range Does not affect warranty (any more than a Honeywell Tstat)

Testimonials Some comments we’ve heard “… lowest electric bill in 11 years.” “Set it and forget it. My electric bill shows it working.” “Sweet revenge for my family’s thermostat wars.” “It’s already installed?” “We had another great month, what discount can I get for 1000 units.” “ We save $200 a month on our [commercial] pool.” “Jesus Bruce, quit calling me.”