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High Altitude

Wind Energy

for Remote Sites

Contact: Adam Rein, Co-Founder and CFO

Phone: +1 (857) 244 1560

Email: adam.rein@altaerosenergies.com

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Key Market Segments

US Army 6,600 large gensets

Industrial 2,700 oil & gas sites, mining

Villages island, arctic, post-disaster

$18 billion market for off-grid generator fuel (2010)

Diesel Generators Fuel Transport Afghanistan

Diesel for generator costs up to 10x grid power

Off-grid Energy Challenge

25,000 gallons of annual fuel per 100kW

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Current Wind Turbine Limitations

Wind Farms

Wind Resource (80m)

Limited sites with strong

ground winds

Steel towers too expensive

or permanent at remote sites

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Ben Glass, Technology Inventor, Altaeros AWT

MIT Aero / Astro, S.M.

Alain Goubau, Operations Air Liquide Harvard JD

Prof. Sheila Widnall, Wind & Aero MIT Aero / Astro Institute Professor

18th U.S. Secretary of the Air Force

Julian Nott, Aero

Secretary, AIAA Balloon Technical Committee

Airship Expert, 81 World Balloon Records

Mauricio Quintana, Wind Turbine OEM

Former President & CEO, Clipper Windpower

Former Director, Corporate Strategy, UTC

Scott Fisher, Customers & Policy

Director of Policy Coordination, NRG Energy

Peter Steenland, FAA & Permitting Counsel, FAA & Environment, Sidley Austin

Adam Rein, Business Dev. Bain & Co

MIT MBA / Harvard MPA

Leadership Team Board of Advisors

C. Vermillion, PhD Controls Toyota Technical Center

Michigan EE PHD

Team Formed at MIT

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Source: Joby, Archer, Stanford, 2009

350ft - Tower-mounted

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1.6 1.8 2.0

Average power density in kW/m2

2,000 ft - High altitude

Strong High Altitude Winds

350ft 100ft

Wind Power Density

1x

2.2x

5-8x

Source: NOAA

1,000ft+

Wind Power Maps

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Tethered Aerostat Technology

Safe & Reliable Rapid Deployment, FAA regulation applies

Builds on proven aerospace technology

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Altaeros Airborne Wind Turbine (AWT)

Passively aligns into wind

Shell accelerates wind flow through rotor

Automated altitude change to optimize power,

docks in poor weather

Deploy from container

Access strong, high winds

Rapid, low cost deployment

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35-foot Prototype Loring, Maine (2012)

Ascended to 350 feet, produced power at altitude, and landed in automated cycle

Generate over 2x power from top-selling Southwest turbine when lifted to high altitude

Technical Milestones

Test Video: http://www.youtube.com/watch?v=rsHUALU--Wc

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Novel Shell and

Overall Design

2011 Technology Validation

Winner ConocoPhillips Energy Prize

USDA SBIR Phase I grant

DOE ARPA-E Innovation Showcase

California Energy Commission grant

4 Patents Pending

IP protection through shell, trailer & automation innovation

Patent 1 (2009) Patent 2&3 (2011) Future IP Patent 4 (2012)

Automated controls

& docking trailer

System

integration Lightweight turbine,

optimized power

production & controls

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100kW Altaeros Wind

(Tower)

Solar

PV

Cost/Watt $6-7 $6-12 $6-10

Cap. Factor 50-60% 15-30% 15-20%

Install (days)

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Source: EWEA, NREL 2010.

Operations & Maintenance

21%

Support Structure

13%

Logistics & installation

10%

Wind Turbine 28%

Electrical Infrastructure

11%

Dev't 4%

Other 12%

Current Offshore Wind Cost (15-25 / kwh)

AWT Advantage (8-10 / kwh)

Tow to and from site for install/O&M

No foundation, much smaller turbine size

Tighter space, less natural gas backup

Long-term Offshore Market Potential

$14 billion market (EU 2020)

15% CAGR

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Airspace, Safety and Environment

FAA published draft

policy allowing airborne

wind turbines to be sited

under existing regulation

Thousands of aerostats

have been permitted to

date, many up to

15,000 feet altitude

Mandatory safety features

ensure slow descent in

emergency

AWT docks and operates

from trailer during storms

and inclement weather

Lightning-proof tethers &

easy repair of holes.

The towerless design of airborne turbines dramatically

reduces all types of

potential habitat impacts. Normandeau Associates

University of Maine survey-

88% of rural respondents

see Altaeros AWT as

visually same or better as

tower-mounted turbine.

Low noise impact from high

altitude and shrouded design.

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March 2011

Popular Mechanics Cover

GL Garrad Hassan

High Altitude Wind

Market Report

Emerging High Altitude Wind Sector

2009 2012

Stanford Airborne

Wind Energy

Conference

FAA publishes draft

airborne wind regulation

ARPA-E funds Makani,

sector reaches ~$100

million investment

Stanford report: high

altitude wind can

power earth 100x over

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$18 Billion market to displace

off-grid diesel fuel

Harness winds 5-8x stronger

60% avg. lower cost than gensets

Low capital need & customer risk

Grid competitive offshore potential

Summary