Presentation to Investment Review Board May 26, 2010

Invented the g-plug

by the Brighton public school district for a product to conserve energy

in 2009 in response to a request

Sterling Technologies Inc., a multi-million dollar

contract manufacturer located in Commerce Township Michigan

A mature, efficient and effective management team in place which will assist in minimizing start-up costs and assure a quality and timely production of product

Warren Consolidated Schools

recently implemented a

Beta site choosing an Elementary school and installed 40 units

Energy conservation device (G-Plug) that turns off all computer peripherals (printers, monitors, speakers, etc.) after lights are turned off or sun goes down.

Reduces electricity consumption saving natural resources Reduces electricity cost by over 64% for the controlled devices Extends product life as being OFF two-thirds of the time should correlate to tripling product life. (ie a monitor with a 10,000 hour life will last 3 times as long if turned of 2/3s of the time) Reduces maintenance, Labor and repair cost. Reduces capital expenditures

EXAMPLE 1
Laser printer =100 LCD Monitor = 50 Amplified Speakers = 35 1 station usage Total = 185 watts watts watts watts =

savings of $194.47 or

payback in 7 months

(1.85kw x $105.12=$194.47. $69/$194.47=.36 x 12 months /.64 =

7 month ROI)

EXAMPLE 2 1 LCD Monitor -standby = 15 watts 1 Inkjet Printers = 15 watts 1 Amplified Speakers = 35 watts 1 station usage Total = 65 watts
(.65 x $105.12=$68.63. $69/$68.63 = .69 x 12 months /.64= 13 month ROI)

Based upon $69.00 selling price, paybacks above are either 7or 13 months. Typical green products are 3 to 7 year paybacks .

EXAMPLE 3

Lease g-plug for 2 years at $4/month

Example 1 saves $10.00/month : ROI = 1.5 weeks Example 2 saves $ 4.00/month : ROI = 4 weeks Savings offset lease payment, first and every month thereafter

Eliminate up-front capital investment

 Patent Pending - Patent application number 12165310 Trademark & Logo - Registration number 3,760,700,
registered March 16, 2010

Primary Targets: Large volume public, corporate and institutional users such as schools, counties/municipalities, state/federal governments (D.O.E.) and large corporations.

Initial Target: 100,000 school districts and municipalities which are all attempting to go green and reduce energy consumption.

Note:
Federal stimulus monies currently allocated by the Obama administration are assisting public entities in this quest.

Market Size:

$350,000,000 $115,000,000

(approx) - Public Schools Nationwide 100,306 x 50 units x $69

(approx) - Private Schools Nationwide

$500,000,000 - potential market for Schools alone

$1,000,000,000

- We believe the true market, taking into account federal, county, and local public sector buildings, and private sector sales, is at least double this amount.

5% penetration would lead to revenues of $50,000,000

Cost containment, Energy and Environmental Conservation

are the current wave in both the public and private sectors

Budget Pressure to cut energy costs

Political Pressure to go green

Every school district we have talked to has said they are tasked with finding ways to reduce energy costs
This is not a fleeting trend which is recession induced . It is a behavioral change which is appropriate, permanent and necessary for both environmental and economic reasons.

Brighton Public Schools

Warren Consolidated Schools

Rave Computer Bethesda Christian Church

Mini Power Minder & Smart Switch

Less expensive Requires the computer be turned off, which is the most substantial problem. People dont turn off the computer meaning the peripherals will never be turned off No photovoltaic sensing (darkness) Not automatic, Requires human action No surge protection (transient spike protection) No circuit breaker The Mini Power Minder has only 1 controlled plug

The only products we consider direct competitors are less expensive, yet do NOT have fully automatic capabilities meaning they yield significantly lower savings

The pricing is based upon competitive products and current product costing = approximately $70 Current product pricing yields approximately a 13% profit margin Once custom tooling is implemented we expect the profit margin to exceed 26%

Joel M. Rosenberg. President of EMD, LLC. President/CEO of Sterling Technologies, Inc.

33 years experience managing large multinational manufacturing and service corporations. Expertise includes the successful development of financial/operational turnaround strategies. Guided the successful turnaround of three companies.
Acquired STI in 1996 with sales at $1.5m and falling. The company has grown to over $7.0 m with substantial profits and high customer satisfaction and retention. In addition to the Sterling turnaround, Mr. Rosenberg has guided two other companies into successful turnarounds.

Mr. Rosenbergs previous experience includes: The Enterprise Group (VicePresident, Finance and Administration), Maidstone Automotive Group (Vice President, Administration), Van Dresser Corporation (Vice President , Administration), General Dynamics Corporation (Program Management and Procurement).

Brad C Salter. General Manager, Sterling Technologies, Inc

27 years of manufacturing management experience including OEM automotive.

Mr. Salters expertise includes all facets of operations management & cost accounting.
Played an integral role in turning around STI.

Carl J Godell. Sales, Marketing, PM, Sterling Technologies, Inc

30 years of start-up manufacturing management experience including OEM, Tier 1 and 2 operations Mr. Godells expertise includes all facets of program management & customer relations. Masters Walsh College, Marketing Mr. Godells background includes Visteon, Ford, Chrysler, & Volkswagen of America

 Product Development Stage 1 completed Future Product in design 3rd qtr 2010 Contract firm -PR/communication and advertising 3rd qtr 2010 Sell into Great Lakes Region School Districts and municipalities through direct approaches ongoing

Year 1 Capital In Revenues Sales Leasing Total Revenues Allocation for Bad Debt Revenues Gross Margin Cost of Goods Expenses Personnel Commissions Lease Administration & Cost of Capital Engineering Tooling Advertising/Trade Shows/Marketing/Internet Facility Sterling Technology In Shop Support Labor Operating Income Cumulative Cash Position from Operations Total Cash Position Accrued Interest/Dividend Net Income before Depreciation $425,000 2 3 4 5

$860,603 $17,033 $877,636 $13,165 $864,471 38% $517,865

$2,346,000 $144,798 $2,490,798 $37,362 $2,453,436 45% $1,120,859

$4,105,500 $253,397 $4,358,897 $65,383 $4,293,513 50% $2,179,448

$8,211,000 $506,793 $8,717,793 $130,767 $8,587,026 50% $4,358,897

$10,263,750 $633,491 $10,897,241 $163,459 $10,733,783 50% $5,448,621

$251,250 $63,715 $3,993 $60,000 $50,000 $65,000 $20,000 $87,113 -$254,465 -$254,465 $170,535 $15,750 -$270,215

$431,250 $184,817 $16,875 $75,000 $75,000 $100,000 $37,500 $237,188 $174,947 -$79,518 $91,017 $31,500 $159,197

$592,969 $323,430 $29,531 $50,000 $50,000 $137,500 $51,563 $326,133 $552,939 $473,421 $564,438 $0 $552,939

$889,454 $646,860 $59,063 $100,000 $100,000 $206,250 $77,344 $489,199 $1,659,960 $2,133,381 $2,697,819 $0 $1,659,960

$1,000,636 $808,575 $73,828 $75,000 $75,000 $232,031 $87,012 $550,349 $2,382,731 $4,516,112 $7,213,930 $0 $2,382,731

Obtained $50,000, AnnArbor, SPARK, (Regional Business Accelerator) Projecting revenue in the range of $20 million within three years, with positive net margin up to 25%. Pursuing $200k in matching funds, (20% equity) for Michigan PreSeed Capital Fund.

Pre-Money Valuation of: $800,000

Exit Strategy: Sale to strategic acquirer in electrical energy conservation area. 3-4 year time horizon.

 Marketing and Sales staff, promotional materials, trade shows Product Development to enhance and improve the family of g-plug products
(ie daisy chain, wireless control/bluetooth, master controlled units (ADD function)

UL Certification

Design and Fabrication of custom tooling for case, membrane labels

New tooling will dramatically reduce product cost and assembly labor time

Inventory to procure BOM components to allow rapid delivery upon sale

Facility requirements to potentially move the assembly operation to the

incubator or another independent facility.