Jordan Rd., Suite 106 San Antonio, Texas

What does the past tell us about our future?

“Every forty years a new generation is formed through birth and immigration.” This has not changed in 600 years. Sources: ”Generations” by Strauss & Howe (Morrow, 1992) “The Fourth Turning” by Strauss & Howe (Broadway, 1997)

“Every eighty years, or every two generations, we see an economic and technological revolution. This occurs because generations swing back and forth between being more individualistic and being more conformist”. Source: “The Roaring 2000’s” by Harry Dent (Simon & Schuster, 1998)

“The individualistic generations are entrepreneurial and bring in radical new social trends and technologies, challenging the old status quo just as it is maturing and losing productivity.” Source: “The Roaring 2000’s” by Harry Dent (Simon & Schuster, 1998)

“The conformist generation that follows, being more systematic and managerial, builds the new emerging companies and technologies into mass-market institutions.” Source: “The Roaring 2000’s” by Harry Dent (Simon & Schuster, 1998)

“The last economic revolution revolved around cars, electricity, phones, and most of today’s Fortune 500 industries.” Source: “The Roaring 2000’s” by Harry Dent (Simon & Schuster, 1998)

The Last Technological Revolution was Launched by Henry Ford’s Model T Assembly Line

The Catalysts for the Current Technological Revolution were Computers and the Internet

How can we determine who the next Fortune 500 companies will be, which companies will remain and how will the their technologies enter the marketplace?

The Introduction of the Automobile Followed This S-curve Prinicipal

It has been roughly eighty years since fossil fuel powered cars reached the 90% adoption mark.

By 2015 Hybrid and Battery Electric Vehicles will Reach the 10% Market Adoption Rate

15 Years

Hybrid Electric Vehicles Reached a 2.7% Market Share in It Took 8 Years to Do So.

8 Years

Electric Vehicles are Expected to Reach 10% Market Adoption by 2020.

10 Years

Our Business is Advanced Technology Automotive Systems VS Technology is focused on three core technologies; Switched Reluctance Motor drive systems, Nickel Zinc Batteries and Composite Material Structures that augment the first two areas which serve the growing needs of the new global automotive industry. 22 Advanced Composites Switched Reluctance Drives Nickel Zinc Batteries

VST Advanced Composites 15 Years Experience Proprietary Molding Processes Multiple Vehicle Programs OEM Supplier Proven Structures Cost Effective Manufacturing

VST Switched Reluctance Drives Ideal Motor Technology No Magnets High Efficiency Low Cost Fault Tolerant High Starting Torque High RPM Capable High Temperature

Why Switched Reluctance? Permanent Magnets in Brushless DC Motors are Comprised of Rare Earth Minerals Which are 97% Controlled by China. AC Induction Motors Do Not Use Magnets But are 5-10% Less Efficient than Switched Reluctance Motors.

VST Nickel Zinc Batteries Lead Acid is heavy. NiMH is less power dense. NiMH is more costly. Lithium is expensive. Lithium is limited. NiZn is abundant. NiZn is low cost. NiZn is the path to ZnAir. NiZn is completely green Cycles 100% DOD

Why Nickel Zinc? OEM Lithium Ion battery packs currently cost $650/kWh. Nissan has stated that by 2015 they will have broken the $500/kWh for a Lithium Ion battery pack. It is generally accepted that a battery pack that cost $400/kWh is on par with the cost of an engine and associated emission controls. A VST Nickel Zinc battery pack would cost around $250/kWh and not be prone to thermal issues, supply issues and toxicity issues.

VST Business Model

VST Market Size OEM Motor Drives –The motor drives market is expected to exceed $800 million in 2010 with an AAGR of 24% according to BCC Research. –The global market for motors for such vehicles, including hybrids, plug-in hybrids and battery electric vehicles will grow from $550 million in fiscal year 2009 to $11 billion in fiscal year Source: Toshiba –By 2015, the U.S. will be the largest market for EVs, selling approximately 640,000 vehicles. Source: BCC Research OEM Battery Packs –The rapidly growing market for traction batteries will exceed $55 billion in only ten years according to IdTechEx "Vehicle Traction Batteries " –The traction battery market has an annual growth rate of about 5% according to Freedonia Group. –China will record the largest gains and surpass the U.S. as the largest market by –Between 2010 and 2020, the market for the start-and-stop batteries is expected to expand from about $100 million to $2.1 billion. Source: Johnson Controls Fleet Consumers –Sales of hybrid vehicles in the fleet sector will total nearly 4 million worldwide between 2009 and The VST PHEV conversion system will pursue this market sector. 29 Battery Electric Vehicle Market Size – Frost & Sullivan