INTERNATIONAL Sales Overview - Independence LED LED... · • USA: Boyertown, PA – Contract Manufacturing Facility • 4 lines x 3 shifts x 7 days = $162 M in annual sales • Expansion

www.IndependenceLED.com 1

Sales Overview INTERNATIONAL

Q2 2013


• LED Tube Impact

• Unique Positioning

• How We Do It

• U.S. Traction to Date

• Manufacturing Scalability

• International Traction to Date

• International Opportunity

• Energy Perspective

• International Goals

• Export Support

• Summary

Appendix

Table of Contents

We have Market Traction from the Fortune 100 to the U.S. Military with Superior Technology that Saves Money, Creates Jobs, and builds Energy Independence. Now, we are seeing demand from overseas distributors and buyers. Charlie Szoradi, Chairman and CEO

“

” A


Foundation Facts:

• 20% of Global Electricity Consumption is for Lighting

• Fluorescent tubes have dominated Commercial Lighting

since the mid 1950s.

• Fluorescent tubes account for at least 10% of Global

Electricity Consumption.

LED Tubes typically SAVE 50% of electricity

over fluorescent tubes, making LEDs the most

cost-effective solution in a world hungry for

energy savings and cost reductions. (LED Lighting can save more electricity

than solar power will produce.)

LED Tube Impact

Source: U.S. Department of Energy and the Economist's Innovation Summit

Rising

Population

+

Energy

Costs

=

Global LED

Demand


Independence LED manufactures LED tubes, that are

65% more efficient and last 300% longer than fluorescent tubes. We sell through Distributors to

commercial, industrial, and government clients.

Unique Positioning

Typ. 35 Watt Fluorescent Tube

with Ballast

12 Watt Independence

LED Tube

Unlike the competition, the superior

engineering of our U.S. made LED

tubes increases light consistency,

efficiency, and longevity. We are

20% more efficient and last 20%

longer than competing LED tubes. (Our Intellectual Property: Patent

files are now in over 40 countries)


How We Do It

Independence LED is on a “race to the top” of performance

vs. a race to the bottom of price. (Performance is key for U.S. Military & long run time operations like Hospitals)

Top Components and Engineering: • Aircraft Grade Aluminum Heat Sinks

(Deep fins to dissipate heat)

• Aluminum Printed Circuit Boards

• External “Independent” Drivers

• The Highest Quality Light Emitting Diodes

Thermal Management allows Independence LED to keep the Diodes

cooler than the competition, increase efficiency, and increase the life from

30,000 to 60,000 hours (20 years in typical offices or schools).

Typ. Ours

Traps Heat Dissipates Heat


U.S. Traction to Date: Key Points

• Independence LED Tubes are now the Most Efficient on the market (Over 112 Lumens / Watt vs. under 100 for competitors)

• Independence LED tubes have the Strongest Industry Warranty (10 year limited lifetime vs. 5 years for competitors)

• US sales traction across the Fortune 100 & US Government (Installations: Morgan Stanley, MetLife, U.S. Navy, Veterans Affairs Hospital, etc.)

• The products are now included on the GSA Schedule

• The website is well optimized and has attracted U.S. Resellers. (Authorized Reseller Network: Over 60 signed companies)

• Independence LED is regarded as an industry leader (e.g. The U.S. International Trade Commission asked Independence LED to provide a

report to Congress on LED Tariffs.)


U.S. Traction to Date: Sample Private Sector

65% kWh Savings over

Fluorescents Tubes

http://www.google.com/url?sa=i&rct=j&q=metlife+logo&source=images&cd=&cad=rja&docid=25vjWYd9loIoPM&tbnid=OsrUp4yp-pGZVM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.streetinsider.com%2FCorporate%2BNews%2FMetLife%2B(MET)%2BElects%2BNot%2Bto%2BParticipate%2Bin%2BTreasurys%2BCapital%2BPurchase%2BProgram%2F4557022.html&ei=7qBgUYHtB4vk4APTqoA4&bvm=bv.44770516,d.dmg&psig=AFQjCNGSocmmRGFjKSn4O65wohR5KwmrUw&ust=1365373542378786


U.S. Traction to Date: Sample Public Sector

Military Sealift

Command

+

Veterans Affairs

Hospital


• USA: Boyertown, PA – Contract Manufacturing Facility

• 4 lines x 3 shifts x 7 days = $162 M in annual sales

• Expansion to Lower Level if necessary or to Second and Third

facilities that Independence has already identified.

Representatives from Canada, Brazil, and Slovakia have already expressed interest to partner or

form joint ventures for sister manufacturing facilities.

Manufacturing Scalability


International Traction to Date • Independence LED’s website now includes international language

pages and attracts Resellers (Multiple international requests each week to

IndependenceLED.com and over 5 Companies signed in Q1 2013)

• Demand for LED Boot Camp Training: Over Q1 2013, Distributors from

the United Kingdom, Germany, and Brazil have flown to Philadelphia to

join the workshop training sessions and take the factory tour. (This level of

commitment will also require reciprocal overseas travel to build relationships)

• Feedback: Representatives from the UK to Switzerland and Australia to

Guam (They have been highly impressed with the shipped Independence LED tubes)

• Certifications and Patents: ISO 9001:2008, CE + Patents filed in over

40 Countries

• Independence LED has been awarded a major LED Tube retrofit by the

Slovak Republic (30,000 over 7 Hospitals for approx. $2.4M)


International Opportunity: 1 of 4

• Overseas recessions focus attention and urgency on energy savings.

• High cost of electricity increases ROI for overseas end users. • (e.g. Europe, Australia, Brazil, and the Caribbean are twice the U.S. cost / kWh)

• A weak US dollar gives overseas buyers a currency advantage.

• The European Union has set rigorous energy efficiency standards for

pubic buildings by 2018 & commercial buildings by 2020.

• The Obama Administration seeks to Double U.S. Exports in 5 years,

and has major available support resources.

• The Export Import Bank now has $120 Billion in guarantees for

overseas buyers of US made products, and Independence offers a

popular product given distrust over Chinese quality control in lighting.



11x $4B $44B (CAGR 46%) Compounded

Annual Growth Rate

2010 2016

The Global LED Market is Large and Growing

The European Union population of over 500 Million represents 7.3% of global population but

a significantly higher portion of global LED demand. Given that the electricity costs are more

than double the US averages, the market size of the EU is more than double the US market.

Source: McKinsey Global Lighting Market Model; McKinsey Global Lighting Professionals Consumer Survey



Source: McKinsey Global Lighting Market Model; McKinsey Global Lighting Professionals Consumer Survey

% o

f To

tal M

arke

t

Independence LED has ramped up to hit the Tipping Point at full throttle.

Incandescent = Filament Lights

LFL = Linear Fluorescent Tubes

CFL = Compact Fluorescent Lights

LED = Light Emitting Diodes

LEDs Take Over General Lighting Segment

Tipping

Point:

2015

Lead up to 2018 European target of

energy neutral public buildings



All of Europe, the Caribbean, and a majority of Central and South

America have higher costs of electricity than the US.

Legend: Color Coding by kWh Costs

GREEN = High kWh Blue = Extremely High

Independence LED targets these high electricity cost countries


Energy Perspective: 1 of 2

Purchase Cost

$3

Annual Cost to Operate (kWh)

Europe + High

kWh Countries

United States

of America

ROI on LED Tubes: 34.5% 69%

Payback time in Years: 2.9 1.4

$36.80 $73.60 (Fluorescent Tubes in Europe: Annual kWh = 21 X the Purchase cost)

High Energy Costs create an URGENCY in Europe for LEDs that does not yet exist in the U.S.

$70 $12.60 $25.20 (LED Tubes in Europe: Annual kWh = 1/3 of the Purchase cost)

24

ho

urs

/ d

ay /

7d

ays / w

ee

k

(24/7 Stairs,

Hospitals

Warehouses, etc.)

Calculations: 35W T8 with Ballast

$.12 / kWh US

$.24 / kWh EU

In Europe, if you buy a $3 Fluorescent Tube, you pay over $70 / year in electricity. Or,

buy a $70 LED tube and SAVE about $50 / year: $350 of savings over the 24/7 life of the LED.


1,0000


We have paid the electricity bills on fluorescent tubes for over 50 years, and we

have lost a frame of reference on the massive annual operating cost that is 20 times

over the purchase price each year. By comparison, gas would cost $1,000 / Gallon.

Purchase Cost:

$30,000 Annual

Cost of Gas:

$2,000

Annual

Cost of Gas: (Adjusted to reflect fluorescent tube costs)

$600,000 / Year

Calculations: Average 20 MPG

12,000 miles per year

$3.50 / Gallon

600 Gallons / year

We see outrage

over rising Gas

Costs, but Lighting

Costs are not

“Posted” or

separated out of

utility bills.

http://www.google.com/url?sa=i&rct=j&q=gas+price+&source=images&cd=&cad=rja&docid=TJEey2S3FMAjLM&tbnid=9-ak0C1GkOPvkM:&ved=0CAUQjRw&url=http%3A%2F%2Fwww.sandiego.bbb.org%2Farticle%2Fgas-scams-increase-as-prices-rise-37309&ei=qpBhUY3vHcuz0QHjsoDIBA&bvm=bv.44770516,d.dmQ&psig=AFQjCNFPqPqY_SKAz4WKWE8taDBgSdAcww&ust=1365434869903293

http://www.google.com/url?sa=i&rct=j&q=ford+explorer+cost&source=images&cd=&cad=rja&docid=qahxTY1iCOZcYM&tbnid=L2GRi_a1mHPRLM:&ved=0CAUQjRw&url=http%3A%2F%2Fautos.yahoo.com%2Fford%2Fexplorer%2F2013%2Fxlt-4wd%2F&ei=3Y1hUaJvlMTQAdv6gdgN&bvm=bv.44770516,d.dmg&psig=AFQjCNGDw_ddv1kwysoRmDVKifMoL7cVlg&ust=1365434197939209

http://www.google.com/url?sa=i&rct=j&q=gas+price+&source=images&cd=&cad=rja&docid=Gpp0S9hxCyy8jM&tbnid=bOzNa4P-W-l4kM:&ved=0CAUQjRw&url=http%3A%2F%2Fcnynews.com%2Fgas-prices-increase-with-higher-crude-oil-costs-find-cheapest-near-you%2F&ei=1ZBhUYabLea50gHmmYBQ&bvm=bv.44770516,d.dmQ&psig=AFQjCNFPqPqY_SKAz4WKWE8taDBgSdAcww&ust=1365434869903293






“Now, that I see how much I

am paying for lighting, I am

interested in your LEDs.” – 100s of Property Owners and Operators

THE SOLUTION: The Independence LEDs auditing and ROI

Calculator software illustrates the current cost of lighting for

property owners and managers to give them PERSPECTIVE

on why ACTING NOW to retrofit with LEDs is appropriate,

even if they have just bought new fluorescent tubes.


A) Leverage the Company’s U.S. traction to date and the

export support from the U.S. Government to accelerate

international growth.

B) Build an international Distribution Network of qualified Authorized Resellers and/or Manufacturer’s

Representatives.

C) Reinforce the relationships with marketing and other

Support Services to help the international sales

network thrive.

International Goals


Export Support

Manufacturing Distribution $120B in Financing

U.S. Government

Congress has approved support for exports across multiple agencies:

• Export Import Bank of the United States (The financing is for the overseas buyers, with only a 15% down payment on low interest

5 year terms. This makes the Independence LED products even more appealing.)

• Small Business Administration Export Solutions Group

• U.S. Trade Development Agency (USTDA)

• World Trade Center

• U.S. Department of Commerce


Summary

#1: Proven Track Record #2: Multiple Industry FIRST #3: The Made in America Advantage #4: The Right Technology #5: The Right Quality Assurance and Warranty #6: The Right Management and Support Team #7: The Right Auditing and Proposal Software #8: Rebate Ready Products #9: Industry Leadership #10: $0 Down Financing for Cashflow Positive Results

Independence LED is the poised to make a global impact on energy reduction across both public and private sectors.


APPENDIX A

Index:

• Sample Savings Report

• Technology Differentiation

• Additional Files


APPENDIX A

Sample Savings Report


SAMPLE Savings Report - Part 1:2 (1 Hospital) At $.20 / kWh European Union levels

Sample EU Hospital Square Footage: 300,000 3/11/2013

4,000 LEDs vs T8 Fluorescent Annual Current Cost Per Sqft: $2.04 W/Sqft:

Annual LED Cost Per SqFt: $0.70 ASHRAE: 1.2

Price per kWh: $0.200 Current: 1.17

Annual kWh Saved: 2,014,690 LED: 0.4

68%

Annual Lifetime

Current Lighting Electricity Cost $613,166 $4,586,928Projected Lighting Electricity Cost (LED) $210,228 $1,572,661

Reduction in Electricity Costs with LEDs $402,938 $3,014,267

Additional Operating Savings: Annual Lifetime Bulb Replacement Savings $8,760 $60,000 Maintenance Labor Savings $15,000 $102,745 Reduced Heating/Air Conditioning Load $12,088 $90,428

Total Additional Operating Savings $35,848 $253,173

Annual Lifetime

$438,786 $3,267,440*Bulb Replacement Savings based on standard cost of existing lamps

*Maintenance Labor Savings based on $0.01/sq. ft. for Parking Garages, and $0.05/sq. ft. for all other facil ities

*Reduced Heating/Air Conditioning Load based on an average of $0.03 for every dollar saved on lighting

*Lifetime calculations based on rated lifespan of each product. Weighted average rated life of LEDs = 6.8 years.

ANNUAL LIGHTING SAVINGS:

SAVINGS REPORT

Total Savings with LEDs


Payback (Months) ROI

Cost of LED Bulbs $750,000 ------------> 21 59%Installation Estimate (15%) $112,500Total Estimated Cost* $862,500 ------------> 24 51%

Less Possible Rebate/Subsidies

Total Net Cost to Customer* $862,500 ------------> 24 51%

*Note: Pricing valid for 45 days from issue; does not include sales tax and shipping

Payment Net Cash Flow36 Months @ 8% ($27,028) $9,53860 Months @ 8% ($17,488) $19,077

FINANCIAL METRICS NPV: $755,687 50%

Sample US Tax Deduction $180,000 ($0.60/sqft)

Deduction Cash Value $63,000 (Based on 35% tax bracket) Payback 22

Property Value Increase $4,387,856 (Based on 10% cap rate)

EcoAdvantage: CO2 Emissions Reduction 19,592,735 lbs. or 1,633

SUVs off the road

*EPAct Federal Tax Deduction is an estimate based on standard IRS and DOE guidelines. Actual numbers may vary.

*Only areas that have bi-level switching qualify for EPAct incentives (80% of space or more typically qualifies).

*Property Value Increase calculated with 10% cap rate applied to reduction in operating costs.

*EcoAdvantage: based on 1.3 lbs. of CO2 for every kWh of electricity saved (lifetime estimates).

ACT NOW! GO GREEN AND SAVE!

Daily Cost of Waiting $1,202 $36,565

IRR:

$36,565

Monthly Cost of Waiting

BONUS INCENTIVES

FINANCIAL ANALYSIS

FINANCING OPTIONS: Monthly Cash FlowsLED Savings$36,565

SAMPLE Savings Report - Part 2:2 (1 Hospital) At $.20 / kWh European Union levels


APPENDIX A

Technology Differentiation


1.

We use External

‘Independent’ Drivers.

Size Comparison of Ballast (Old)

to LED Driver (New)

Installers already have to open the fixture to

override the ballast, so you might as well just use

the same time with two wire nuts or speed clips to

change it out. New Driver = .996 Power Factor

This is the real Thermal Fix,

by pulling the Drivers out of the

Tube all together.

LED Driver vs Fluorescent Ballast

26


2.

We use a Smart

Clip System.

The Smart Clip System includes safety features

and a lock guard for ease of installation and

circuit longevity.

Smart Clip System

Connect the Independent Driver

directly to the Tube rather than

through the Tombstones.

Smart clip reduces

the risk of arcing at

Tombstones or

repairing faulty

connections.

27


3.

We use Deep Fin

Heat Sinks.

The Eagle LED Tube’s Deep Fin Heat Sink (Right)

vs. some other Tube’s Shallow Fin Heat Sink.

Plus, this illustrates the channel connection of

the Eagle’s Aluminum Circuit Board (ACB) to the

thermal mass vs. the floating fiberglass PCB that

traps the damaging heat inside the tube cavity.

Heat is Trapped in an enclosed

Tube Cavity vs Dissipated with a

Heat Sink.

Avoid No Fin or a Thin Fin

System to shed the heat.

28


4.

We use Surface

Mounted Diodes.

Through Hole Diodes fall short for

several reasons: • The pins lift the diode away from the Circuit Board and

reduce heat transfer.

• The backside protrusions reduce the ability to

effectively slide the Circuit Board into a Heat Sink.

• The quality assurance is more difficult given tighter

automation tolerances applying SMDs. Through Hole Diodes are typically

Epoxy covered and less stable than

SMDs with Silicone.

Use (SMD) vs. Through Hole

Diodes to Transfer Heat directly to

an Aluminum Circuit Board.

29


5.

We use Aluminum

Circuit Boards.

Heat moves through conductive materials, so it

is only logical to remove heat via an Aluminum

Circuit Board (ACB) rather than a Fiberglass

Printed Circuit Board (PCB) that holds the heat

like a sponge.

Each set of ACBs are Engineered for a specific

numbers of Diodes to match the desired Lumen

output levels.

Aluminum Circuit Boards with and

without SMDs at different densities

Use (ACB - Conductors) vs.

Fiberglass Printed Circuit Boards

(PCB - Insulators) to transfer Heat

to the Heat Sink.

30


6.

We use a Modular

Circuit Board System.

1' 2' 3' 4' 5' 6' 7' 8'

LengthModularity creates efficiencies in Manufacturing

which translate into more cost effective

products, which in turn, increase Returns on

Investment (ROI) for Property Owners and

Managers. Plus, in the event of any failure, the

modular ‘Light Engines’ (Diodes on 12” Boards)

can be easily replaced, like changing one tire on

a car vs. discarding the whole car. Modular Aluminum PCBs for

Manufacturing at 1’ to 8’ lengths.

Gain Scalability at 12”

increments for 1’ to 8’ Tube

lengths.

31


7.

We use a Smart

Bridge System.

Each Tube includes a ‘Master’ Aluminum Circuit

Board (ACB) at the end of the Tube with the

power terminal. This Master ACB links to the

adjacent ACBs subject to the length of the Tube.

By contrast, Fiberglass PCBs typically run 24”

and reduce the Modular advantages.

Eagle Bridge System, linking Circuit

Boards along desired Tube length.

Secure the Aluminum Circuit

Boards along the length of

the Tube.

32


8.

We use a

FlexDensity™

Diode System.

The EAGLE LED TUBE has the FlexDensity™

Diode System that facilitates light matching.

Certain Tubes can include high power chips, such

as the one on the left above, to reach custom

Color Rendering Index (CRI) levels. Plus, the

FlexDensity™ Diode System (on the right above)

has a higher density for reducing the number of

traditional Fluorescent Tubes by 4 to 3, 3 to 2 or,

in some cases even 2 to 1.

3 Wattage & Custom Options

The Flex Density™ Diode System

provides the right level of light for

the end user

Low > Medium > High Output

33


9.

We only use

Chips from the

Black Body Curve.

The EAGLE LED TUBE series offers three

different standard color temperatures to

meet the aesthetic needs of property

owners and managers. We select the

Chips on the Black Body Curve to ensure

the highest levels of consistency.

3 Colors & Custom Options

Using Chips from broader ‘Bins’

reduces color consistency.

Warm > Neutral > Cool White

34


10.

We Engineer

Custom Optics

upon Request

Standard Clear Lens

Sample Custom

Engineered Lens for focused Beam Angle

The EAGLE LED TUBE offers a standard clear

and frosted Lens Cover. An enclosed Poly-

carbon ‘Tube’ traps the heat that degrades the

Diodes vs. a Lens Cover that allows the heat

sink to remove the heat. Custom Lenses with

peaks and valleys are available to focus light

and meet certain objectives. Enclosed Tube vs. EAGLE Lens

Cover to accelerate heat removal

For Lens Configurations to meet

Photometric Specifications

35


#1: Efficiency: 100 lumens / watt or higher.

Independence LED: 112 l/w at CRI 70 and 100 l/w at CRI 85

#2: Longevity: 50,000 hour rated life or higher with third party LM80 testing.

Independence LED: 50,000 hour life (L70) with LM80 testing.

#3: UL Certification: Underwriters Laboratories (UL) Classified, not just recognized LED Driver.

Independence LED: UL Classified.

#4: CE Certification: Conformity European.

Independence LED conforms to the following directives:

Artificial Optical Radiation Directive 2006/25/EC

Low Voltage Directive (LVD) 2006/95/EC

Electromagnetic Compatibility (EMC) Directive 2004/108/EC

Restriction of Hazardous Substances Directive (RoHS) 2002/95/EC

#5: ISO-9001:2008 Certification: The International Organization for Standardization to foster

consistency in LED Tube product delivery and quality assurance.

Independence LED: Certified: ISO-9001:2008and control features.

2013 International Class A-10 LED Tube Standards.

Independence LED has reached Class A-10 status.


#6: Thermal Management: Heat Sinks with over 7” (17.78cm) of circumferential “perimeter”

conductive surface. Independence LED: 9.13” ( 23.19cm) of circumferential conductive surface via its

deep fin aluminum heat sinks.

#7: Power Supply: External Driver with multi-tube Driver Options for fixtures.

Independence LED: Single, Double, Triple, Quad, and Six Tube External Driver configurations.

#8: Warranty: 5 years or longer on both the Tube and Power Supply.

Independence LED: 5 year Warranty on the combined Tube and Power Supply System, plus extended

warranty options on the tube for facilities with occupancy sensor systems. (10 Year Limited Lifetime

Warranty on 60,000 hours for the Tube, starting May 1, 2013.)

#9: Rebate Ready Products: Performance Criteria across multiple regions and countries.

Independence LED: The company’ tubes were some of the very first to qualify and set the rebate

standards in 2011 through the industry leading Con Edison Commercial and Industrial Incentive program,

administered by Lockheed Martin. An additional U.S. example: The DesignLight Consortium (DLC)

Qualified Products List, ranging from Troffer fixtures to Industrial High Bay fixtures, sets minimum lumen

output levels per fixture. The Independence LED multi-tube fixtures meet or exceed key levels. For

example, the 2’x 4’ (4) Tube Troffer fixture emits 4,000 lumens and the 4’ (6) Tube High Bay fixture emits

19,000 lumens.

#10: LED Tube Light Quality and Control: Color Rendering Index (CRI) options for 80 or higher +

Dimming down to 20% or lower + Beam angle adjustment within existing tombstone end brackets.

Independence LED: Offers all three of these light quality and control features.

2013 International Class A-10 LED Tube Standards (Continued)


SAMPLE: The Success of the Independence External Driver Tubes

Discolorations at The Burn Zone from Internal Drivers

Our EXTERNAL Driver Tubes Perform…and have advanced Thermal Management Heat Sinks.

Avoid the cheap route!


SAMPLE: The Failure of Competing Internal Driver LED Tubes

Competing Tubes use Internal Driver Technology that does not meet the standards for Rebates by engineering leaders like Lockheed Martin for Con Edison. Competitors also DO NOT have Deep Fin Thermal Management Technology to protect the LEDs over the life of the tubes.

Burn Zone Burn Zone

INTERNAL Drivers Burn Out LED Tubes.


Double Tube Fixtures

Triple Tube Fixtures

4, 5, or 6 Tube Fixtures

3 Tube

Sales Expansion: Metal Halide to LED TUBE Fixtures (Low or High Bay)

The Multi-Tube Solution is more cost effective than other LED Fixture offerings

Metal Halide Retrofits Applications:

Warehouses

Distribution Centers

Factories

Typical

Wattage

Levels:

175 Watts

400 Watts

1000 Watts

Independence

LED reduces

the wattage

by 65%

or more


APPENDIX A

Additional Files


1. Research and Development

2. Engineering: Product & Packaging

3. Manufacturing: Components

4. Manufacturing: Assembly

5. Manufacturing: Packaging

6. Fulfillment

7. Transportation

8. Energy Auditing

9. Installation

10. Customer Services

11. Marketing Services

12. Accounting Services

13. Financial Services

14. Legal Services

15. Training Services…More

JOBS

LED Manufacturing

Ripple Effect

OVERVIEW 5: The Right Job Creation Opportunities

U.S. and International Jobs:


ISO 9001:2008 #: GS07F073AA/ils

Independence LED: Sample Credentials


Company Overview: Independence LED – www.IndependenceLED.com

Independence LED is a leading U.S. Manufacturer of high-efficiency LED tubes and fixtures that replace the less efficient fluorescent tubes and metal Halide fixtures that dominate commercial lighting. We moved the manufacturing of our LED tubes from China to Boyertown, PA in Q2 2010. We have seen a tremendous lift in demand resulting in revenues tripling over each of the past two years. Clients range from industrial Distribution Centers to Fortune 100 Companies and from independent businesses to National Chains. Over the course of 2011, Lockheed Martin’s engineering team conducted the reviews and approved the Independence LED tube system over others for the coveted Con Edison Rebates in the NYC Metro Market. The Independence LED “External Driver” system has set a new standard, and it also earned the Underwriters Laboratories (UL) and the Compliance European (CE) Listings on the complete driver and tube retrofit kit system. Our Deep Fin thermal management and Flex Density™ system provide cost-effective U.S. manufacturing with scale and reliability.

http://www.independenceled.com/


Company Overview: Independence LED (Continued) For property owners and managers, the LED tubes cut the cost of electricity by 50% or more over fluorescent tubes. Installations range from Morgan Stanley to MetLife and from Distribution Centers like Davis and Warshow to national auto service chains like Monro Muffler. The recent retrofit of 50 different Monro Muffler locations across CT and NJ includes over 6 miles of tubes, and the Distribution Center may stand as the largest facility installation of LED Tubes in the U.S. Market to date. The Cushman and Wakefield management team for MetLife has specified the Independence “Eagle” LED tubes for its properties, resulting in multiple new orders across the U.S. As a reflection of its industry leadership, in 2011, the Company won the Green Business of the Year Award from the Main Line Chamber of Commerce, and this summer the U.S. International Trade Commission asked Independence LED to provide a Report to Congress on upcoming energy related legislation. To review the Technology Differentiation, Spec Sheets, and Retrofit Photo files, plus Videos, please see this page on our website: www.IndependenceLED.com/BootCamp

http://www.independenceled.com/BootCamp


CHALLENGE: The Global Demand for ENERGY is increasing, but the cost of

creating renewable power is high and relies on subsidies.

SOLUTION: Energy REDUCTION is more cost effective than Energy PRODUCTION.

Lighting is the “low hanging fruit,” since about a third of commercial electricity is dedicated to illumination.

RESULTS: Independence LED Lighting delivers a 2 x Return on Investment with

25% to 50% annual returns over the 7 year life of LED tubes that run around the clock.

The World is “Going Green,” and Independence LED Saves Money and the

Environment along with creating Jobs.

Strategic Overview

Documents

INTERNATIONAL Sales Overview - Independence LED LED... · • USA: Boyertown, PA – Contract Manufacturing Facility • 4 lines x 3 shifts x 7 days = $162 M in annual sales • Expansion