“Green” Environment Demands

2. The initiatives by the Central Government of the Peoples Republic of China in the areas of heating and housing reform, under the Ministry of Construction, is the catalyst in moving towards a “greener” environment. Canadian housing and heating sectors are world leaders in effective and environmentally friendly – “green” – heating and housing solutions. In a country as large and as diverse as Canada, reliability and serviceability are key factors in maintaining the effectiveness and the environmental integrity of these products. Our consumers and government agencies are also demanding …and we must meet or exceed those demands with our products. “Green” Environment Demands

3. There are many factors in the context of heating for environmental efficiency. Heat transfer . . . fuel to water System efficiency in the apartment to heat the space and/or the domestic water Proper installation and maintenance Correct utilization of power and fuel supplies Consistency of fuel supply heat output Adjusting controls outside operating specifications Without preparing the product for these factors, efficiencies could be reduced by up to 50%. Environmental Efficiencies

4. Products • We are pleased to introduce our product designed specifically for the market in China – The model CM-1C • Full approval in China by Beijing Gas. • Full approval in North America as most efficient naturally aspirated boiler in the North American market. • Fully compatible to China Market.

5. FeaturesthattheCM-1Cunitoffers: Operates on natural gas, city gas or liquid petroleum gases (LPG) Operates in extreme hard water environments Can be retrofitted to existing housing/commercial – and is readily installed in virtually all new housing configurations Is safe and can be installed anywhere in a building provided that there is exhaust to the outside and a fresh air source Is reliable and can be easily maintained Is efficient and very cost effective Is proven technology – IT WORKS! Technical Specifications for the CM-1C Area 130 to 150 Sq. m Natural Gas Capacity Rating 15 – 20 KW Recovery 117 li/hr Water size 32 mm Gas size 13 mm LPM Domestic 6 – 12 li/min Features

6. How do we ensure quality control in our product? Our plant in Calgary is fully robotic and produces a leading edge product at the very highest quality control standard! Our quality testing regime is the high standards of ISO 9002 We will meet or exceed the quality standards in the North American market on every unit that is shipped to China! This approach will prepare us well for transferring the technology to our joint venture partner in China once the product has been fully adapted to that market. Quality and Standards

7. We are committed to a product that is solid, uncomplicated technology We are committed to the highest quality, efficiency, reliability and sturdiness We are committed to installation and maintenance procedures and manuals that will set Conematic apart as a leader in after sales support. Our production will be designed to suit the needs of our customers and will always produce a quality product that clearly meets the needs of our customers. We will continue to work with SAIT and our other strategic alliances, both in Canada and China, to ensure that Conematic will be recognized as the preferred alternative in heating and domestic hot water applications now and in the future. Our export version of the Conematic Heating System will meet the needs of our customers in design, production, training and after sales support. Conematic is the answer for your heating and domestic water needs! Commitment