Smart Emissions Reducer. Fuel Economy & Emissions Data & Report

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Smart Emissions Reducer Field Results Fuel Economy & Emissions Data & Report Field Data Interpreted and Prepared for Extreme Energy Solutions by: Ecosceptor, LLC Mountain View, CA (805) 588-6487 November 12, 2012 1

Table of Contents At A Glance 3 Fuel Economy 3 Emissions 4 Full Report 5 Disclaimer 5 The players 5 Fuel Economy 7 UTZ Quality Snack Foods 7 American Passenger 7 Ajax Turner 7 Winnebago County, IL 7 Andover Township, NJ 8 Boone County Schools, WV 8 Nova Analytical 8 Roush Industries 8 Fuel Economy Summary 9 Emissions 10 Winnebago County, IL 11 Andover Township, NJ 12 California Air Resources Board (CARB) 12 CanTEST 12 Nova Analytical 13 Roush Industries 13 Emissions Summary 14 Addendums 15 2

At A Glance Fuel Economy Gas Diesel UTZ 16.95% 4.43% Am Pass 24% Ajax 30.77% Win Co. 9.60% 29% And Twp 44.81% 9.50% Boone 24.34% Nova 16.20% Roush 2.02% Average 18.35% 19.75% Over the course of the past several years, Extreme Energy Solutions has accumulated lab and field results. The fuel economy chart to the left summarizes the results from 3 privately owned companies (UTZ, American Passenger, and Ajax Turner), 3 municipalities (Winnebago County, IL; Andover Township, NJ; and Boone County Schools, WV), as well as 3 research labs (CanTEST, Nova Analytical, and Roush Industries). When reviewing the fuel economy and emissions data, there is certainly a biased trend toward significant improvement. However, it should be noted that there are also exceptions to the trends. The chart to the left represents fuel economy increases reported from the various entities. There were 2 vehicles in the field studies that reported a loss in fuel economy. If considering the Smart Emissions Reducer exclusively on the basis of fuel economy increases, it would be advantageous for you to participate in the 90 Day Trial Program with a minimum of 3 vehicles (3 gasoline and 3 diesel if your fleet consists of a mix) before making a major purchasing decision. 50.00% 45.00% 40.00% 35.00% 30.00% 25.00% 20.00% Gas Diesel 15.00% 10.00% 5.00% 0.00% UTZ Am Pass Ajax Win Co. And Twp Boone Nova Roush Average 3

Emissions THC CO CO 2 NO X PM Win G -90.51% -39.15% -0.58% -94.55% Win D -42.77% And G -50% 0.02% -3.56% 0% And D -69% CARB -1.40% -3.48% -6.60% Can -77% Nova -33.35% -71.45% -16.20% -27.90% Roush -7.36% -32.56% -1.99% 5.72% Emissions data has been accumulated from private companies, municipalities, as well as research testing labs over the past several years. This chart summarizes the data and offers average reductions in hydrocarbons (HC/THC), carbon monoxide (CO), carbon dioxide (CO 2 ), and oxides of nitrogen (NO X ) for gasoline engines, as well as opacity Avg -43.27% -29.33% -5.58% -24.67% -55.89% readings (PM) on diesel engines. As can be seen just from the data on the chart, numbers vary from vehicle to vehicle, and from entity to entity. It should be noted that all of the listed toxins, with the exception of PM (opacity), have shown an increase on at least one vehicle in the various reports. Again, if you are considering the Smart Emissions Reducer as a means of reducing emissions for compliance or other reasons, it is recommended you test on 3 gasoline and 3 diesel vehicles before making a major purchasing decision. Be sure adequate testing and record keeping is performed to ensure your emissions reduction needs are met. Avg Roush Nova Can CARB And D And G PM NOX CO2 CO THC Win D Win G -100.00% -80.00% -60.00% -40.00% -20.00% 0.00% 20.00% 4

Full Report Extreme Energy Solutions and SMART Air Fuel Saver have been conducting laboratory testing as well as field trials where fuel economy and emissions have been monitored and reported. This Report is a comprehensive compilation of this data, as well as an interpretation of averages. Disclaimer Since much of the data utilized within this Report has come from end users, there are no guarantees of scientific accuracy and monitoring. However, the trends are consistent for the most part, and can represent the overall performance of the Smart Emissions Reducer in the real world. Data utilized from credible sources (such as Nova Analytical, CanTEST and Roush) should be given more credibility than a field report using an inexpensive 5-gas analyzer. This Report has been compiled with as much accuracy and credibility as possible within the limitations of the data provided. Some of the reports primarily encompass emissions reporting, and some of the reports focus primarily on fuel economy. Therefore, this Report has been broken down into 2 separate sections; Fuel Economy, and Emissions Reduction. Some of the entities will be used in both sections, as they have presented data representing both. The Players Data and information used in this Report are acquired from the following entities: Andover Township, New Jersey UTZ Quality Snack Foods, Pennsylvania Winnebago County, Illinois American Passenger, California Boone County Schools, West Virginia Ajax Turner, Tennessee Nova Analytical, New York CanTest, British Columbia California Air Resources Board (CARB), California Roush Industries, Michigan 5

Fuel Economy Gasoline and diesel engines have many distinct differences. First, there is a difference in the energy content of the fuel. Gasoline is rated at 20,750 BTU s per pound and diesel at 19,500 BTU s per pound. There are more gallons/pound in diesel than gasoline due to the difference in densities. Gasoline engines are spark ignited, while diesels are compression ignited. In addition to gasoline and diesel, biodiesel, E-85, alcohol, propane, natural gas, and hydrogen are considered viable alternative fuel sources. Since none of these alternative fuels have been used in field or lab testing, there is no data available for such comparisons. The following entities have contributed data that will be used in the Fuel Economy section of this Report: UTZ Quality Foods American Passenger Ajax Turner Winnebago County, IL Andover Township, NJ Boone County Schools, WV Nova Analytical Roush Industries Each entity shall be evaluated separately, then the data from each shall be averaged together to show a cumulative average. Again, gasoline and diesel applications shall be scrutinized separately. 6

UTZ Quality Snack Foods Before After %Increase Diesel 15.28 15.54 1.70% Diesel 13.84 14.83 7.15% Average 4.43% Gas 6.72 8.22 22.32% Gas 5.75 8.86 54.09% Gas 5.48 8.14 48.54% Gas 8.49 8.66 2.00% Gas 7.6 8.01 5.39% Gas 8.13 9.45 13.24% Gas 8.4 9.03 7.50% Gas 8.74 9.33 6.75% Gas 8.49 9.41 10.84% Gas 9.19 9.08-1.20% Average 16.95% UTZ calculates an average annual mileage of 20k miles per vehicle. The list provided consists of vehicles that have been tested for as long as 15 months, and as short as 6 months. Their fleet consists of Grummand style delivery vans, and their cargo consists of potato chips and such. They provided 2 diesel vehicles for testing. These vehicles averaged 4.43% increased fuel economy. The 10 gasoline vehicles provided for testing ranged from a 54.09% increase to a -1.20% loss in fuel economy. They averaged 16.95% increase overall. UTZ has committed to ongoing rolling production, with approximately 20% of their fleet being retrofitted with the Smart Emissions Reducer every quarter, with 100% retrofit projected by Spring of 2014. American Passenger American Passenger did not provide individual vehicle data, but offered a cumulative average. They operate 17 busses, each powered by a 7.3 liter Power Stroke diesel engine. They reported a 24% increase in fuel economy fleet wide over the course of 2 years. Ajax Turner Ajax Turner only tested one tractor, a 2000 International 4900 with the DT 466 diesel engine. Over the course of 6 months they reported a 30.77% increase in fuel economy. Winnebago County, IL Winnebago County Highway Department participated in the SAFS 90 day trial and had positive fuel economy results to report. Although individual vehicle fuel economy numbers were not provided to EES, they claim their gasoline vehicles enjoyed a 8.9% to 10.3% increase in fuel economy and their diesel vehicles achieved an overall 29% increase in fuel economy. 7

Andover Township, NJ Before After %Increase Diesel 10.79 12.27 13.72% Diesel 8.09 10.55 30.41% Diesel* 4.69 2.97-36.70% Diesel 2.16 2.82 30.56% Average 9.50% Gas 10.8 16.03 48.43% Gas 10.2 14.4 41.18% Average 44.81% Andover Township, New Jersey conducted a 5 month trial on 6 vehicles; 4 diesel powered vehicles, and 2 gasoline powered vehicles. The chart shows the third diesel with an asterisk* next to it, and a corresponding loss in fuel economy. It was noted in the report that this vehicle traveled less than 1000 miles during the entire 5 month test. As can be noted in the Roush test, it takes time for the Smart Emissions Reducer to stabilize and reach equilibrium with the engine. Initially after the installation, fuel economy and emissions both suffer for a short period of time. After accumulating miles, thermal cycles, and time, readings stabilize favorably. If the average diesel fuel economy were calculated without the questioned vehicle, the overall average would have been 24.9% increase in fuel economy. Boone County Schools, WV Boone County tested a 2004 International T T444E with the 7.3 liter diesel engine for a 9 month period (fiscal school year). They compared data from the previous school year on the same vehicle and established that the Smart Emissions Reducer was able to deliver a 24.34% increase in fuel economy. Nova Analytical Nova Analytical tested a diesel engine on behalf of Southern Rail. No direct fuel economy data was collected; however, as can be noted in the Emissions section of this Report, when CO 2 levels drop by a percentage, fuel economy increases by a corresponding percentage (reference Roush Testing Report). Testing was performed on 2 separate vehicles. The results were a 27.5% and 4.9% reduction in CO 2 gasses in the exhaust. Although not scientifically accurate, it could be extrapolated that these vehicles experienced a 26.5-28.5% increase and 3.9-5.9% increase in fuel economy. The average of the 2 vehicles would approximate an increase in fuel economy of 16.2%. Roush Industries Three light duty trucks were tested at Roush. Testing was performed in an A B, pause, B A fashion, where 3.8k to 5.4k miles were accumulated during the pause. The highest fuel economy gain was 7.23% for one of the test segments. The individual averages were 1.70%, 2.53%, and 1.84% improvement in fuel economy. This averages out to an increase of 2.02%. 8

Fuel Economy Summary Gas Diesel UTZ 16.95% 4.43% Am Pass 24% Ajax 30.77% Win Co. 9.60% 29% And Twp 44.81% 9.50% Boone 24.34% Nova 16.20% Roush 2.02% Average 18.35% 19.75% This chart represents the averages from all the data submitted from the various entities. Where several vehicles were used in testing, the average was used from the company/lab. As can be seen in the chart, the numbers fall within a wide range. Some gasoline vehicles achieved well over 44.81% (which is how Andover Township was able to report an average of 44.81%) and At least one diesel at 30.77%. Obviously individual results vary by a rather large margin. Lowest gasoline fuel economy gain reported was from Roush at a mere 2.02% increase, while Andover Township, NJ reported a fleet average of 44.81%. For the diesel applications, gains ranged from 4.43% (UTZ) to an impressive 30.77% (Ajax Turner). 9

Emissions Emissions testing on gasoline and diesel vehicles are a bit different, with slightly different targets. Gasoline engines are typically monitored for 5 major exhaust constituents; Total Hydrocarbons (THC), Carbon Monoxide (CO), Carbon Dioxide (CO 2 ), Oxides of Nitrogen (NO X ), and Oxygen (O 2 ). Oxygen is usually only monitored as a cheater gas to ensure the probe is properly inserted into the exhaust, and there are no exhaust leaks. Regulated pollutants consist of THC + CO + NO X. The Carbon Footprint consists of THC + CO + CO 2. Depending on the test equipment, diesel engine testing may only monitor opacity (Particulate Matter, or PM), or may include THC, PM, CO, CO 2, NO X, SO X (Oxides of Sulphur), and O 2 gasses. Most of the data provided looks only at PM opacity. Field data provided was primarily monitored on mobile test equipment measuring the percentage (%) of total exhaust gasses. The laboratory tests were monitored on scientific quality equipment and measured either in percentages (%) or grams per mile (gpm). Field data should be considered with less emphasis than laboratory data due to the exacting nature of the test equipment. The following entities have submitted emissions data that has been included in this Report: Winnebago County, IL Andover Township, NJ California Air Resource Board (CARB) CanTEST Nova Analytical Roush Industries 10

Winnebago County, IL CO 2 HC CO NO X PM 1 Before 14.8 106 0.39 14 1 After 10 10 0.01 25 Change -1.80% -90.56% -97.44% 78.57% 2 Before 15 -.01 0.04 0 2 After 15 0.04 0.05 0.02 Change 0.00% 0.04 20% 0.02 3 Before 14.9 -.01 0.05 4 3 After 15 0.02 0.03 10 Change 0.06% 0.02-40.00% 150% Average -0.58% -90.51% -39.15% 94.55% 4 Before 6.43 4 After 1.87 Change -70.92% 5 Before 6.43 5 After 4.32 Change -32.81% 6 Before 6.43 6 After 2.88 Change -55.21% 7 Before 18.1 7 After 15.9 Change -12.15% Average -42.77% The 3 of the 4 gasoline and all 4 diesel vehicles used in the Fuel Economy section of this Report are used in the Emissions section. The 4 th gasoline vehicle did not have emissions data. It should be noted that the gasoline vehicles were tested using Extreme Energy Solution s Snap-On 5-Gas emissions analyzer. The fact that 2 of the entries showed a -0.01 ppm reading under the HC column offers reason for suspicion. Furthermore, the baseline reading on 3 of the 4 diesel engines was 6.43%, and seems coincidental. Nevertheless, overall average emissions reduction under the gasoline category showed a reduction in CO 2 by 0.58%, HC by 90.56%, CO by 39.15%, and NO X actually increased by 94.55%. In the diesel category, overall opacity (PM) reduction was 42.77%. 11

Andover Township, NJ THC CO CO 2 NO X PM #1 Before 1 0.01% 14.80% 0 #1 After 0 0.01% 14.80% 0 Change -100% 0 0 0 #2 Before 1 0 14.90% 0 #2 After 1 0.03% 14.80% 0 Change 0 0.03% -6.71% 0 Average -50% 0.02% -3.56% 0% #3 Before 2.11% #3 After 1% Change -52.60% #4 Before 1.78% #4 After 0.26% Change -85.39% Average -69% Of the 6 vehicles submitted by Andover Twp, only 4 of them were accompanied with emissions data; 2 gasoline and 2 diesel vehicles. Both of the gasoline vehicles showed extremely clean emissions before installation of the SER. The diesel vehicles showed a dramatic reduction in opacity during snap-throttle testing. Overall opacity (PM) reduction was a handsome 69%. California Air Resource Board (CARB) NMOG CO NO X HCHO Honda 0.022 0.399 0.012 0 Standard 0.04 1.7 0.05 0.008 Difference -0.018-1.301-0.038-0.008 Corvette 0.036 1.326 0.045 0 Standard 0.075 3.4 0.05 0.015 Difference -0.039-2.074-0.005-0.015 Ram 0.156 0.229 0.245 0 Standard 0.23 7.3 0.4 0.02 Difference -0.074-7.071-0.155-0.02 Average -0.044-3.482-0.066-0.014 CARB performed testing on 3 vehicles; a Honda 1.8 liter, a Corvette 6.0 liter, and a Dodge Ram 3500 with the 5.9 liter turbo diesel. No baseline numbers were recorded, so comparisons are to numbers posted by the manufacturer as typical for the age and mileage of the tested vehicles. In all cases, the test data registered lower than the standards. The CO readings for the Dodge Diesel came in at an astounding drop below standards. CanTEST The CanTest test is unique in that it is not using a mobile emissions analyzer, nor is it utilizing a laboratory gpm test apparatus. Testing was on a diesel engine, and emissions were measured with gas chromatography mass spectroscopy (GC/MS). Ten different compounds were looked at in both the before and after conditions. In the After column, 7 out of the 10 compounds were listed as ND (Not Detected). Of the 3 that did register, the values were reduced by a minimum of 77%. 12

Nova Analytical CO CO 2 HC NO X #1 Before 0.03 0.85 5.5 42.7 #1 After 0 0.62 2.83 26.33 Change -100% -27.50% -48.50% -39.90% #2 Before 0.01 1.02 5.50 169.00 #2 After 0.01 0.93 4.50 140.00 Change -42.9% -4.9% -18.2% -15.9% Avg -71.45% -16.2% -33.35% -27.9% Nova tested 2 diesel engines for Southern Rail both before and after installing the Smart Emissions Reducer. Each test consisted of 2 stock runs and 2 modified runs. The average difference is listed in the chart. Engine #2 CO readings are the same before and after in the chart, but following the decimal out further will explain the -42.9% decrease (see Appendix). Considering for every percent decrease in CO 2, there is typically a corresponding increase in fuel economy. Nova s data was used in the Fuel Economy Section, and was extrapolated from the CO 2 readings. As can be seen in the chart, all regulated gasses were reduced by a substantial amount. Roush Industries THC CO CO 2 NO X #1 Before 0.101 1.47 925.6 0.257 #1 After 0.087 1.10 908.3 0.244 Change -13.86% -25.17% -1.87% -5.06% #2 Before 0.157 2.28 854.6 0.249 #2 After 0.161 1.18 836.4 0.218 Change -2.55% -48.25% -2.13% -12.45% #3 Before 0.088 0.70 575.3 0.075 #3 After 0.083 0.53 564.0 0.101 Change -5.68% -24.26% -1.96% 34.67% Average -7.36% -32.56% -1.99% 5.72% Three different domestic light duty trucks were tested in an A B, pause, B A fashion, where 3.8k to 5.4k miles were accumulated between the first and second B tests (during the pause). The chart shows a significant reduction in THC and CO, with a slight decrease in CO 2. During various parts of the testing, THC reduction peaked at -65.42%, CO reduction peaked at -80.62%, CO 2 peaked at -6.44%, and NO X peaked at -26.54%. Note, this test was performed by Roush Industries. They are certified to perform US EPA, CARB, and EU certification testing. These numbers carry a considerable amount of weight in this Report. 13

Emissions Summary THC CO CO 2 NO X PM Win G -90.51% -39.15% -0.58% -94.55% Win D -42.77% And G -50% 0.02% -3.56% 0% And D -69% CARB -1.40% -3.48% -6.60% Can -77% Nova -33.35% -71.45% -16.20% -27.90% Roush -7.36% -32.56% -1.99% 5.72% Averaging field studies with lab results provides us this chart. Overall reduction in HC/THC came out to be 43.27%. Average reduction in carbon monoxide (CO) was 29.33%. Average reduction in the greenhouse gas carbon dioxide (CO 2 ) amounted to 5.58%. Oxides of nitrogen (NO X ) reductions averaged to be 24.67%. On the diesel engines, opacity (PM) was Avg -43.27% -29.33% -5.58% -24.67% -55.89% reduced by an average of 55.89%. Considering the number of vehicles used in developing this chart, these numbers are indicative of real world expectations from the Smart Emissions Reducer. 14

Addendums The following documents are added to validate data utilized on the body of the report: Andover Township, New Jersey 11/24 pages UTZ Quality Snack Foods, Pennsylvania 1 page Winnebago County, Illinois pages 1-7 and 29 of 35 American Passenger, California 1 page Boone County Schools, West Virginia 2 pages Ajax Turner, Tennessee 1 page Nova Analytical, New York 3 pages CanTest, British Columbia 2 pages California Air Resources Board (CARB), California 5 pages Roush Industries, Michigan 4 pages 15