Quantum

Technologies
March 2013

Key Investment Considerations

Focused on Natural Gas vehicle market

Leader in light-weight CNG storage
Leveraging two decades of NGV commercialization

Expanding natural gas product sales and order flow

230% increase in orders over first nine months of 2012

Well positioned with strong intellectual property

portfolio
25 issued U.S. and foreign patents
35 pending U.S. and foreign patents
Proprietary Processes/Know How

Targeting near-term operating break-even

Since new management in mid-2012, substantial changes in
strategic direction and OpEx to right-size the business

Experienced management team

Specific to natural gas industry

Natural Gas Market

The natural gas boom has led to cleaner power and greater energy independence
President Obama, State of the Union Address, February 12, 2013

The U.S. sits on one of the largest shale gas formations

in the world
93,500 trillion cubic feet
Projected production of 33
TCF of natural gas per
year by 2035
9260 billion gallons of
diesel
Source: Energy Information Administration

CNG vs. Oil Prices

Natural gas is the least expensive transportation fuel available today
up to $2 per gallon savings on an energy equivalent basis

Oil Prices

Natural Gas

Projected Increase in NGVs U.S.

Aftermarket

Units (000s)

120
100
Medium Duty

Class 7/8 OEM

80

60

60

40

40

40

20

20

20

2012

2015

2012

2015

2012

NGV Market Projections

# of Heavy and Medium Duty Vehicles per Year
(000s)
Sources: Frost & Sullivan, Pike Research, Industry Estimates

2015

Expanding Markets

Private vehicles

High

Large centrally fueled fleets

Oil Price/Volatility

Class 2-6 trucks, vans, taxis

2010Heavy Duty fleets

Class 7- 8 trucks

2009-

Passenger cars

Class 1 trucks

2013Smaller, distributed fleets

Class 2-3 trucks, vans, taxis

2010-

Natural Gas Availability Expanded Refueling Infrastructure

High

Technology Leadership in CNG Storage

Innovative Type IV natural gas tank design
Proprietary ultra-lightweight technology (30 to 80% lighter)

Carbon Composite
Shell (structural)
Polar Boss
(interface seal)

High Molecular Weight

Polymer Liner
(gas barrier)

Foam Dome
(impact protection)

Protection Layer
(damage resistant)

Q-Lite
Quantums Q-Lite tanks One of the Lightest in the Industry

3 x Aluminum (Type III) Tanks

1 x Q-Lite (Type IV) tank

Q-Lite (Type IV) vs. Aluminum (Type III)

Q-Lite is up to 30% lighter

Q-Lite provides up to 30% more storage capacity
Q-Lite is less expensive (polymer liner eliminates expensive aluminum tubes)

Technology Advances Driving Commercialization

Commercialization

Quantums R&D is focused on

lower cost and lighter weight
solutions

Technology Advances

Revenues

CNG Tank Sales

Production Capacity
Manufacturing Expansion Underway
30,000 sq ft (4,000 tanks)
Capacity Targets:
2013 10,000 tanks
2014 20,000 tanks

90,000 sq ft

Delivering Advanced Fuel Systems

Fuel Systems
Natural Gas Vehicles (NGV) 20,000 + OEM Systems produced
Expanding development programs
Strong customer base

Impressive Natural Gas Vehicle History

Fast to Market Solutions

OEM CNG
Vehicles

Med-Duty
Platforms

CNG Class7/8
Trucks
Bi-Fuel CNG &
Dedicated CNG T-800

Bi-Fuel CNG J-Car

And G-Van
Bi-Fuel CNG T-400

1997

2012
Over 20,000 Alternative Fuel & Storage Systems Produced

12

Integrated Fuel Systems Approach

Value to Customer

Driving Value through a

Systems Approach

Tanks

Modules Fuel Systems Solutions Engine Systems

Level of Systems Approach

Vehicle Integration

Strategic Relationships
CNG System & Engine
Development

Alternative Fuel Vehicle

Commercialization

INNOVATION

INNOVATION

INNOVATION

INNOVATION

Compressed Storage
Development

Material Science
Application
Refueling

Industry Experienced
Management
Experienced
ManagementTeam
Team
Brian Olson, President & Chief Executive Officer

CEO since 2012

CFO and Treasurer since 2002
18 years of experience in the alternative fuels industry
Prior experience Senior executive of $200 Million alternative energy equipment company

Mark Arold, V.P. Advanced Propulsion Systems

Engineering and Executive positions with Quantum since 1994
20 years of experience in the alternative fuels industry

Dr. Neel Sirosh, Chief Technology Officer

CTO since 2005; Director of Advanced Technology since 1997
20 years of experience in the alternative fuels industry
7 patents, Co-author of 2 books on clean energy

Brad Timon, Chief Financial Officer

CFO since 2012
Controller and Chief Accounting Officer since 2004
Over 8 years of experience in the alternative fuels industry

David Mazaika, Executive Director of Strategic Development

Over 14 years of experience in hybrid vehicle development
Co-founder of the ISE Corporation and recipient of CALSTARTs Blue Sky Award (1997)
Joined Quantum in December 2008

Intellectual Property

Key Patents in Core Competencies

Natural gas and hydrogen storage/metering

Refueling and drivetrain technologies

Intellectual Capital

World-leading experts in ultra-lightweight carbon composite

natural gas storage systems; material/design/process

Established team of professionals with industry-specific

knowledge and strong Tier-1 experience

Proprietary manufacturing methodologies

Ongoing R&D Keeps Company at the Industry Forefront

Core IP resides with the company; customers pay for and

receive rights for application-specific products and software

INTELLECTUAL PROPERTY
U.S. & Foreign Patents
25 Issued
35 Pending

Financial Review

Financial Financial
Position Strengthened
Information
Natural Gas Tank Revenues are Growing
133% increase in first nine-months 2012
Three-fold increase in natural gas system orders

Implementing $4.0 million in Annual Savings for Operating Costs

Implementing $2.0 million in executive attrition and salary reductions
Implemented $0.6 million in reduced board fees, professional service fees,
namely, change in audit firms
Targeting $1.4 million in elimination of underutilized facilities

Secured Traditional Credit Facilities in 2012

Obtained a $10 million revolving credit line for working capital needs.
Obtained $3.25 million capital lease finance arrangement for tank
manufacturing expansion.

Statement of Operations
($inThousands)

NineMonths
Ended
Sept30,2011

NineMonths
Ended
Sept30,2012

Revenue:
ProductRevenues:
CNGsystems
PHEV&other
ContractRevenue
TotalRevenue

$4,074
7,110
12,909
24,093

$ 8,920
3,004
5,169
17,093

Costs&Expenses
CostofProduct
Research&Development
Selling,General&Admin.
Impairmentoflonglivedassets
TotalOperatingExpenses

7,754
12,338
11,904
900
32,896

8,746
10,611
10,369
495
30,221

LossfromOperations

(8,803)

(13,128)

Balance Sheet Information

($inThousands)
BalanceSheetInformation
Cash
WorkingCapital(Deficit)
Assetsofoperationsheldforsale
TotalAssets

December31,
2011
$3,723
(3,715)
5,847
46,437

September30,
2012
$2,299
(5,608)
33,865
65,643

Debt(excludingoperationsheldforsale)
Principal(faceamount&interest)

11,599

10,572

Derivatives
Current
NonCurrent

953
543

826
273

Liabilitiesofoperationsheldforsale

2,333

27,193

25,573

19,792

TotalEquity

Capitalization

($inMillions)

(#inMillions)
Account

Cash
Capitalization:
Debt(excludingopsheldforsale)
PreferredStock
SeriesBCommonStock
CommonStock
AdditionalPaidinCapital
AccumulatedDeficit
TotalCapitalization

Asof
Sept30,2012
$2.3
$10.6

1.0
465.4
(445.8)
$31.2

DilutiveSharesCalculation*
CommonStockOutstandingatSept30,2012
CommonStockOptions(strikeprices<$1.00)
CommonStockWarrants(strikeprices<$1.00)
FullyDilutedShares

47.8
0.4
12.1
60.3

*assumesastockpriceof$1.00pershareforpurposesofthecalculation.

Powering a Sustainable Future with a

Spirit to Innovate
Discipline to Execute
Will to Succeed

Q&A