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PRIVATE AND CONFIDENTIAL

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MagneGas Fuel Target Markets<br />

MagneGas Initially Targeting Fuel Sales in Two Sizeable Markets<br />

Metal-Working Market – Immediate<br />

• Estimated $5.0 billion global market size ($1.5 billion U.S. market) 1,<br />

• The existing fuels emit highly toxic emissions<br />

• Limited regulatory barriers to entry, sales underway ($7 unit cost 2 , $24<br />

sale price)<br />

• Significantly cheaper than acetylene; 1 cylinder of acetylene is selling<br />

for $35 to $50 compared to $20 - $35 per cylinder for MagneGas<br />

Industrial Vehicle & Hydrogen Market– Medium<br />

Term<br />

• Hydrogen can be separated from MagneGas<br />

• Company believes MagneGas exceeds all EPA standards<br />

and actually emits substantial oxygen<br />

• Vehicles already in service at Company HQ<br />

<strong>PRIVATE</strong> <strong>AND</strong> <strong>CONFIDENTIAL</strong><br />

1 Source: IbisWorld, Company Estimates<br />

2 Assumes production at full capacity<br />

3 Source: U.S. Natural Gas Vehicle Market, Clean Energy<br />

12

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