The Future of the Delivery Fleet

1
Delivering clean air is a profitable business
for postal and courier companies Amsterdam
RAI, October 11th, 2006
2
Founded in 2001, Oxygen is the world leader in
the development and manufacturing of Light
Electric Vehicles for the delivery business
2002
2003
2004
TODAY
2005

• Oxygen launched first generation (Lead-Acid
  Batteries) of scooter for the consumer market

• Availability of new Saphion Li-Ion technology and
  significantly improved components

• The Postscooter now competes economically with
  conventional vehicles in Postal and Courier
  Service applications

• First to introduce the Nichel-Zinc technology

• First to introduce the fleet-model the
  Cargoscooter
• Switch focus from consumer to corporate clients

3

• Today we are demonstrating that the electric
• scooters are
• Better for the environment
• Better suited technology
• Better suited operationally
• economically
• Better for Corporate Image

Petrol scooter any brand
4

• Checklist
• Better for the environment?
• Better suited technology?
• Better suited operationally
• economically?
• Better for Corporate Image?

Petrol scooter any brand
5
Global warming is a fact and CO2 emissions are
expected to grow together with emerging
countries expansion
Source US Environmental Protection Agency
Source US National Climatic Data Center
6
Polluting agents are very harmful
Carbon monoxide (CO) is a colorless, odorless and
poisonous gas produced by incomplete burning of
carbon in fuels. When CO enters the bloodstream,
it reduces the delivery of oxygen to the body's
organs and tissues. Health threats are most
serious for those who suffer from cardiovascular
disease. Exposure to elevated CO levels can cause
impairment of visual perception, manual
dexterity, learning ability and performance of
complex tasks. The largest emissions
contribution comes from motor vehicles.
CO
Hydrocarbons are a precursor to ground-level
ozone, a serious air pollutant. A key component
of smog, ground-level ozone is formed by
reactions involving hydrocarbons and nitrogen
oxides in the presence of sunlight. Hydrocarbon
emissions result from incomplete fuel combustion
and from fuel evaporation. Ground-level ozone
causes health problems such as difficulty
breathing, lung damage, and reduced
cardiovascular functioning. A number of
hydrocarbons are also considered toxic, meaning
they can cause cancer or other health problems.
HC
Nitrogen oxides (NOx) include various nitrogen
compounds like nitrogen dioxide (NO2) and nitric
oxide (NO). These compounds play an important
role in the atmospheric reactions that create
ozone (O3) and acid rain . Individually, they may
affect ecosystems, both on land and in water.
NOx forms when fuels are burned at high
temperatures. The two major emissions sources are
transportation vehicles and stationary combustion
sources such as electric utility and industrial
boilers.
NOx
Particulate matter (PM) is a mixture of particles
that can adversely effect human health, damage
materials and form atmospheric haze that degrades
visibility. PM exposure can affect breathing,
aggravate existing respiratory and cardiovascular
disease, alter the body's defense systems against
foreign materials, and damage lung tissue,
contributing to cancer and premature death.
Individuals with chronic obstructive pulmonary or
cardiovascular disease, asthmatics, the elderly
and children are most sensitive to the effects of
PM.
PM
7
All scooters pollute even more than cars while
Oxygen scooters do not pollute at all
1 car
10 cars
MOPED EMISSIONS
CO
HC
x6,7
X21,7
X1,2
X7,5
X0,0
x36
X8,2
X9,1
X5,5
X0,0
Traditional 2 stroke
Traditional 4 stroke
Traditional 2 stroke
Traditional 4 stroke
New 2 stroke
New 4 stroke
New 2 stroke
New 4 stroke
NOx
PM
x0,06
X2,0
X6,0
X2,5
X0,0
x30,0
X1,5
X5,0
X1,5
X0,0
Traditional 2 stroke
Traditional 4 stroke
Traditional 2 stroke
Traditional 4 stroke
New 2 stroke
New 4 stroke
New 2 stroke
New 4 stroke
Source Car emissions were measured on Euro 3
cars at The Technical University of Denmark and
two wheels vehicles emissions were measured on
07/24/EC regulated two wheels vehicles in UK.
8
Switching to electric scooters means making a
tangible step towards changing the world
Obsolete Scooter
Obsolete World

Oxygen World
Oxygen Postscooter

9

• Checklist
• Better for the environment
• Better suited technology?
• Better suited operationally
• economically?
• Better for Corporate Image?

Petrol scooter any brand
10
Oxygen Postscooter has three strategic components
11
Oxygen Postscooter engine technical and
functional unique features

• Functional Benefits
• high efficiency
• virtually no-maintenance
• excellent handling, ideal for cargo
• no noise and respect for the environment

• Technical Features
• Brushless motor
• No mechanical transmission the Direct-drive
  motor eliminates energy dispersion in the
  transmission process
• No need for gas/oil, no leaks
• Silent running
• Limited vibration
• Minimized number of spare parts
• Wheel is easily removable for tyre replacement
• Low center of gravity
• Only one component is moving in motion

12
Oxygen Postscooter battery package is the most
innovative and performing on the market
Major technical features

• Patented Phosphate Lithium-ion Technology
  inherently safe, Saphion chemistry with no
  thermal runaway
• Virtually zero maintenance over the life of the
  battery saves from high maintenance cost and
  wasted time
• Lightweight, high energy (2 times energy at
  same size and 3 times energy at same weight as
  lead acid) reduces application weight and size
• Environmentally friendly phosphate based
  chemistry below EPAs Toxicity Characteristic
  Leaching Procedure (TCLP) no recycling needed

13
Oxygen Control Unit interfaces motor and battery
optimizing energy consumption and driving
performance
Not available on petrol scooters
Functional feature highlights
Digital Controller enables troubleshooting and
diagnostics. System performance can be customized
and optimized remotely or by plugging a laptop PC

• Regenerative Braking System energy usually
  dissipated during braking is directed back into
  the battery
• Extending range by 8 to 12
• Working as an ABS braking system, it is ideal
  for driving in traffic and for postal delivery
  activities with frequent stop-and-go

Reverse running The multifunction dashboard
controls a slow-speed reverse function enabling
easy handling of the scooter even with heavy
cargo and on slopes
14
Electric scooters can be configured to support
postmen and couriers hi-tech communication
devices
Potential applications for postmen and couriers
Not available on petrol scooters
15
Light Electric Vehicles are expected to have a
tremendous impact on the light transportation
industry
We expect that our technology featuring Saphion
Li-Ion batteries, DD motor, proprietary software
and battery management system will have the same
impact on light transportation as the
introduction of first generation Lithium-ion
technology had on consumer electronics market in
the 1990s
16

• Checklist
• Better for the environment
• Better suited technology
• Better suited operationally
• economically?
• Better for Corporate Image?

Petrol scooter any brand
17
Oxygen Postscooter improves both bottom line and
top line of your PL account
THE OXYGEN ADVANTAGE
PULL YOUR COSTS DOWN...
...AND PUSH YOUR REVENUES UP

• Improve your customer service
• Increase your employee satisfaction and
  productivity
• Benefit your Corporate Image

• Reduce your energy costs
• Minimize your maintenance expenses
• Optimize your efficiency of use

18
Oil price has been increasing dramatically over
the last 5 years and is expected to remain high
while oil consumption is expected to grow
significantly
19
Savings on energy costs are considerably high as
opposed to traditional petrol scooters
CLIENT EXAMPLE
20
Oxygen Postscooter has been designed to
facilitate maintenance and minimize repair
expenses
40 savings on maintenance expenses

• Optimized maintenance needs
• Only one component moving while scooter is in
  motion
• Almost no vibrations stressing the scooter
• No gasoline, no oil, no leaks
• Limited brakes consumption thanks to
  regenerative braking system
• Sealed components
• Hand and fall protections
• Simplified repair effort
• Limited number of spare parts compared to
  traditional gas scooters
• Components are easily removable
• Minimized intervention time and/or need for high
  technical skills maintenance is primarily
  replacement of macro-components as opposed to
• repair of micro-components

21

• Oxygen Postscooter optimizes vehicle efficiency
• of use and maximize employee satisfaction and
  productivity

• Vehicle Efficiency of Use
• Easy to drive and park
• Excellent weight distribution and low center of
  gravity enabling easy handling
• High cargo capacity kg 70 rear box kg 20 kg
  front pannier
• Optimized utilization for frequent stop-and-go
  activities
• Freedom of moving in traffic restriction zones
  and indoor areas
• Clean in-store parking
• Low risk of theft

• Employee Productivity
• Heavy duty frame and coachwork protection to
  minimize days of scooter and employee inactivity
  for accidents
• Healthier working conditions (no gas emission, no
  vibrations, no noise) optimizing employee level
  of satisfaction and productivity
• No need to refuel at gas station electric
  scooters recharge at night

22

• Checklist
• Better for the environment
• Better suited technology
• Better suited operationally
• economically
• Better for Corporate Image?

Petrol scooter any brand
23

• Oxygen improves postal and courier companies
• Corporate Image and generates media coverage

• Corporate Image Improvement
• Ecology
• zero emissions
• Tecnology
• third millenium technology
• Innovation
• positive recognition by public
• creation of a new life style
• Respect
• respect for community
• Design
• customized
• easy to recognize

24

• Checklist
• Better for the environment
• Better suited technology
• Better suited operationally
• economically
• Better for Corporate Image

Petrol scooter any brand
25

• De Post-La Poste case