Zonal Energy Savings USA Business Plan March 3, 2014

1. Zonal Energy Savings USABusiness PlanMarch 3, 2014

2. Overview • Our product will reduce the cost to heat and cool a home or business. • It does this by converting a single-zone heating or cooling system into multiple individual zones without changing the existing duct work. • We have demonstrated this with our working prototype. • Our US market alone includes over 130 million homes, businesses, government offices, hospitals, and senior care facilities.

3. Product Environment • Energy costs continue to rise. • Environmental groups demand greater regulation and conservation. • Alternative energy generation is being embraced. • Heating and cooling systems distribute air indiscriminately. • Building air quality needs to be improved. People are looking for something different.

4. Our Products • ZonalGreenTM • Energy saving device to convert a single-zone heating and cooling system into a multi-zone system. • Reduces energy costs by as much as 50%.  • Recoup investment in less than 5 years. • Self-Installable • Two patents issued. • Completed a working prototype. • Install one Controller and Vent in each room.

5. ZonalGreenTM Easily installable Controller and Vent

6. Our Products • ZonalBlueTM • Incorporates an ultraviolet (UVC) lamp into the ZonalGreenTM to improve air quality.  • UVC is used to treat the incoming air stream in each zone killing germs, viruses, mold and mildew. • Non-provisional patent.

7. Our Products • ZonalBaseboardTM (under development) • Functionally identical to ZonalGreenTM.  • Convert baseboard and radiator-based systems. • 14 million U.S. homes use baseboard or radiator heating.

8. How It Works Don’t waste energy heating unoccupied rooms.

9. Market Segmentation • There are 127 million residential housing units in America totaling more that 550 million individual rooms. • There are 806,000 hospital beds and 1.6 million nursing home beds in America. • There are 30 million office workers in America. • The world population is 22.5 times that of the United States.

10. Distribution Methods • HVAC installers and distributors. • Large retailers. • New home installation. • Direct Sales (MLM). • Commercial sales. • Government, medical, and utility sales. • Ecommerce

11. Rebate Incentives Programs are constantly being revised. Past and present programs include: • Federal • Residential Energy Credits • State • California’s “Cash for appliances” Program. • Utilities • Consumers Energy (MI) appliance rebate • Consolidated Edison (NY) residential HVAC program.

12. Competition • Baffle / Damper systems • Four to Five times the cost to buy and install. • Improper operation may void furnace warranty. • Access to ductwork may be impractical. • Ductless Split systems • Six to Seven times the cost to buy and install. • Requires through-the-wall installation to the outside of the home. • Higher installation costs for interior rooms.

13. Competition (Cont’d) • Free standing heaters and air conditioners • Not programmable. • Takes up space. • Alternative energy systems • Expensive to buy and install. • Subjected to the outside elements.

14. Competitive Advantage • No direct competition. • Modify a typical home for approximately $2000. • Can be installed by the average consumer. • 7-day programmability not found in boosters, room heaters, or roll-around air conditioners. • A tenth of the cost of alternative energy systems. • Kill germs, viruses, mold and mildew with ZonalBlueTM.

15. Goals & Objectives • Year 1 • Take ZonalGreenTM to final design & packaging. • Implement manufacturing plan capable of producing at a rate of 50,000 units per month. • Sell 5,000 units. • Year 2 • Complete ZonalBlueTM, Zonal BaseboardTM and thermostat designs. • Complete Ecommerce website.

16. Goals & Objectives (Cont’d) • Year 3 • Complete fully integrated PC-based system. • Implement Smart Home technology. • Expand into worldwide markets with specific power and climate requirements. • Evaluate the integration of complementary electronics.

17. Projected Revenue • Sale price is $360 for Controller and Vent pair. • Anticipate a second year sales volume of 100,000 units with a net profit of $9.9 million. • Capturing just 1% of the US residential market annually results in gross sales of $2 billion.

18. Projected Yearly Profit

19. Profit and Loss

20. Current Status • Working prototype complete. • Modifications on-going. • ZonalBlue is being designed. • Business plan is complete. • Legal entity is established. • Engineering and Marketing management in place. • Manufacturing facilities being evaluated. • Patents secured.

21. The Team • CEO - Anthony B. Eoga • Developer of the three (3) key patents used to develop ZonalGreenTM and ZonalBlueTM. • 40 year career in the pharmaceutical industry. • Extensive experience in the sale & acquisition of more than 200 small retail businesses and new ventures. • Developed over 150 international patents.

22. The Team • VP, Engineering – Robert Galanty • Founder of Magnum Opus Custom Electronic Engineering. • Over 35 years in engineering designing microprocessor-based devices. • VP, Software Development – Robert Cox • Over 30 years in engineering designing hardware and software for commercial, military, and NASA applications. • Operated as an independent consultant for 10 years.

23. Conclusion • With rising energy costs, and an infrastructure already stressed, ZonalGreenTM will provide relief to the residential and commercial customer. • With three patents and an operational prototype, investor risk has been minimized. • Once operational, Zonal Energy Savings USA will be poised to tap into this multi-billion dollar industry.

24. Contact Information Zonal Energy Savings USA 321 Rexland Drive Boonton, NJ 07005 Anthony B. Eoga, CEO aeoga@att.net 973-335-7134