ALTERNATIVE ENERGY TECHNOLOGIES, INC' Americas future beyond petroleum

1
ALTERNATIVE ENERGY TECHNOLOGIES, INC.Americas
future beyond petroleum

• Presentation by
• Ray Tate Jr., President CEO
• June 22, 2006
• Yale Club of New York City

2
U.S. Energy Picture in a Nutshell

• Oil provides 40 of the energy used in the
  worlds industrial countries.
• Oil discovery peaked in 1962.
• World oil production has been declining since
  2000.
• America, with 5 of the worlds population,
  consumes 20M barrels/day. (25 of the
  worlds oil production)
• Oil imports account for more than 60 of domestic
  consumption.
• By 2020, 83 of all known global oil reserves
  will be controlled by Middle East regimes.

3
State of the Union Address (January 31,
2006)

• Keeping America competitive requires
  affordable energy. And here we have a serious
  problem America is addicted to oil, which is
  often imported from unstable parts of the world.
  The best way to break this addiction is through
  technology.

4
Liquefied Natural Gas (LNG)The transportation
fuel of choice

• LNG is natural gas in a liquid state.
• It has similar efficiencies to gasoline and
  diesel.
• It is more economical than gasoline or diesel.
• It is safer than gasoline or diesel.
• Natural gas is an abundant domestic resource.
• LNG is very clean burning.
• It decreases maintenance costs by at least 50.

5
What Has Held LNG Back?

• LNG vehicle conversions first began in 1965.
• The major obstacle has been LNGs lack of
  availability.
• There are very few LNG production facilities in
  America.
• Trucking LNG from a central production facility
  is expensive and inconvenient.
• Thus, LNG is impractical for the small and
  medium-size fleet user.
• THAT IS UNTIL NOW

6
Introducing AETs Liberty
Station 2000

• Makes, stores and dispenses LNG.
• Produces 1,875 gallons of LNG per day.
• Connects to the local natural gas distribution
  line.
• Convenient and inexpensive.

7
Our Competitive Advantages

• The Liberty Station 2000 will provide the small
  and medium size fleet owner with convenient,
  on-site LNG.
• AET controls 4 patents 70 claims.
• 3-5 years ahead of our competition.
• A seasoned Executive Team, with unique
  experience.
• The Liberty Station 2000 is ready for
  manufacturing and assembly NOW.

8
Profitability Example (Gasoline versus LNG)

• 3.40/gal (No. Calif.)
• 0.60/gal (DOE Subsidy)
• 4.00/gal Total
• LESS
• 0.66 (Natural gas price)
• 3.34 Gross Profit/gallon
• 83.5

9
Investment Recapture (MLP)(each Liberty Station
2000?)

• Liquefier Specifics
• 1,366 GGE/day (LNG)
• 40,980 GGE/mo (LNG)
• 3.34 (Gross profit/GGE)

• LNG Sales/Liquefier
• 2,598,000 (liquefier cost)
• 4,562 (gross profit/day)
• 136,860 (gross profit/mo)
• 1,642,320 (gross profit/yr)
• Investment Recapture
• 19 months

10
Management

• Ray E. Tate Jr., President/CEO
• 36 years experience in automotive
  transportation fuels industries.
• Harold M. Lee, Vice President/Engineering
• 33 years experience in data acquisition
  control systems developed the Pong game, as
  well as the D-RAM chip.
• Henry J. Reilly, Vice President/CFO
• 35 years as a CPA former CFO of Advanced
  Logic Systems.
• Barry J. Deutsch, Vice President/Government
  Relations
• 36 years as a management strategy
  consultant extensive startup and
  franchise development experience.
• Pat Karnes, Vice President/Sales
• 35 years in high level corporate sales
  former VP of Marketing/Sales for Atari
  Corporation.

11
Our Mission

• To become the leader in the Alternative Fuels
  Industry by providing fuel technology solutions
  capable of successfully competing with expensive
  conventional fuels and meeting the transportation
  energy needs of drivers throughout the world.

12
ALTERNATIVE ENERGY TECHNOLOGIES, INC.Americas
future beyond petroleum

• Presentation by
• Ray Tate Jr., President CEO
• June 22, 2006
• Yale Club of New York City