Hydrogen Power Systems, Inc.

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1 Hydrogen Power Systems, Inc. Reducing Fuel Expense and Pollution for Internal Combustion Engines Escondido, California Page 1 of 23

2 Introducing the HPS Series of fully assembled On-Demand Hydrogen Enhanced Combustion Systems for: Trucks, Cars & Vans Motor Homes Tractors & Combines Boats & Yachts Power Generators Construction & Highway Equipment Internal Combustion Engines of ANY size! Page 2 of 23

3 What s The Bottom Line? How Will This Benefit My Business? Five Ways: 1. Better Mileage, Less Fuel, 2. Lower Maintenance Costs, 3. Lower Emissions & Pollution, 4. Can Be Easily Moved Between Equipment, 5. Possible Tax Credits and Rebates from State and Federal programs. Page 3 of 23

So How Does it Work? 1. Our System contains water, metal plates and a chemical to make the water conductive. 2. The vehicle s alternator sends a current through the System. 3.

4 So How Does it Work? 1. Our System contains water, metal plates and a chemical to make the water conductive. 2. The vehicle s alternator sends a current through the System. 3. Electrolysis breaks water down from 2 H 2 O into 2 H 2 + O 2 4. The System pipes the Hydrogen and Oxygen gases through a pipe to the air cleaner. 5. The gases combine with the air rushing through the air cleaner. 6. The new air/gas mix causes the same amount of fuel to burn more completely, extracting more energy from the same fuel. 7. Just add 2 quarts of water every 1,500 miles. (Hps processes and components are Patent Pending) Oxygen Gas Page 4 of 23

What Is Hydroxy Gas? Hydroxy gas (vapor) is a mixture of hydrogen (H 2 ) and oxygen (O 2 ) gases, typically in a 2:1 molar ratio, the same proportion as water. It is generated through Electrolysis.

5 What Is Hydroxy Gas? Hydroxy gas (vapor) is a mixture of hydrogen (H 2 ) and oxygen (O 2 ) gases, typically in a 2:1 molar ratio, the same proportion as water. It is generated through Electrolysis. Hydrogen bubbles (2 H 2 ) Oxygen bubbles (O 2 ) I Know About Oxygen Gas, But What Exactly Is Hydrogen Gas? Simplest, most common element in the universe. 15 times lighter than air. Clear, odorless, non-toxic. It s the Hydro in Hydrocarbon, the part of gasoline and diesel we burn that powers our trucks and cars. Electrolysis converts water (2 H 2 O) into 2 H 2 + O 2 Page 5 of 23

Is Hydroxy safe? Yes. It is safe because: As a vapor it dissipates very quickly. It is not a liquid so it cannot puddle on the ground like gasoline or diesel.

6 Is Hydroxy safe? Yes. It is safe because: As a vapor it dissipates very quickly. It is not a liquid so it cannot puddle on the ground like gasoline or diesel. It does not give off toxic or carcinogenic fumes. It turns back into pure water. Hydroxy Gas is generated on demand just before it is used. It is not stored on the vehicle. Because only a few ounces are present at any given time there is no chance of explosion. Image Source: DOT Guidelines for Use of Hydrogen Fuel in Commercial Vehicles - Final Report November 2007 Hydroxy Gas (Vapor) Gas rises and dissipates Narrow and Vertical area of flammability Gasoline or Diesel Fuel Liquid Puddle which can spread Vapors low to ground Evaporates slowly Page 6 of 23

7 So, Is Hydroxy Gas (Vapor) A Fuel? Not exactly. Because it takes just a tiny amount to make gasoline or diesel burn more completely, Hydroxy is considered a Reactant. In Chemistry, a Reactant is a substance that participates in a chemical reaction, causing something else to happen faster. Even though the small amount of Hydroxy fuel created is consumed in this process along with the gasoline or diesel, its real purpose is to make the gasoline or diesel burn more completely. This improved combustion is how we reduce emissions and improve fuel economy. Fuel (Gasoline or Diesel) Better Mileage Lower Emissions More Torque & Power Page 7 of 23

Installation Manual, Corrosion proof components, Comprehensive User Manual, Simple, safe, robust,

8 What s The Technology In The Hydrogen Power Systems Device? Simple controls, Easy to maintain, Built-in safety systems, Industrial strength parts, Clear Installation Manual, Corrosion proof components, Comprehensive User Manual, Simple, safe, robust, rugged design, Housed in weather-proof cabinets of various sizes that easily bolt outside or inside the vehicle. The Series 200 for Medium Sized Trucks Page 8 of 23

9 What s the difference between a Fuel Cell vehicle, a Hydrogen Powered vehicle and a vehicle using Hydrogen Enhanced Combustion (HEC)? Hydrogen Fuel Cell Converts Hydrogen into electricity that powers an electric motor HIGH COST Needs a complex tank on the car to hold compressed Hydrogen. Needs an electric motor instead of a gas or diesel engine. Fuel Cell combines Hydrogen and Oxygen to create electricity. Electricity powers the car's motor. Requires a network of Hydrogen "Gas Stations to be built across the nation to be feasible. This technology is 20 to 30 years down the road. Hydrogen Powered Vehicle Heavily Modified Internal Combustion Engine HIGH COST Needs a complex tank on the car to hold compressed Hydrogen. Heavily modified gas or diesel engine to run just on Hydrogen, not gas or diesel. The exhaust is plain water. Requires a network of Hydrogen "Gas Stations to be built across the nation to be feasible. This technology is 20 to 30 years down the road. Hydrogen Enhanced Combustion (HEC) Unmodified Internal Combustion Engine LOW COST Needs a ½ to 2 gallon tank to hold water and a small amount of Electrolyte. No engine modifications needed, works on existing cars and trucks. Needs a HPS generator and 5 to 70 amps from vehicle s battery to operate. Generates Hydrogen and Oxygen that combines with the normal air / fuel mix. This new mix burns more completely, reducing emissions and fuel expense. Just add 2 quarts of water every 1,500 miles. THIS TECHNOLOGY IS HERE TODAY. Page 9 of 23

10 Are There Independent Tests That Indicate Hydroxy Vapor Improves Fuel Economy and Reduces Pollution? YES. Here are a few of the more relevant studies: 10% mileage increase, 39% Pollution. Reduction (Professional Service Industries, Portland) Average 15% diesel fuel reduction with Hydrogen boost technology. (Purdue University ) Reductions of PM:60%, CO:30%, Nox:19% (University of Calgary, Alberta, Canada) Adding small amounts of hydrogen produced efficient lean operation by increasing the apparent flame speed and reducing ignition lag. ( NASA Lewis Research Center ) Have we Tested HPS Products? YES! % fuel improvement on a 2004 Ford F650 with a 7.2 liter Caterpillar C7 Turbo Diesel % fuel improvement on a liter Chevy Duramax Turbo Diesel % fuel improvement on a liter Mitsubishi Eclipse % fuel improvement on a 1982 Chevy 6.2 liter Diesel Pickup truck % reduction of particulate matter on the same 1982 Chevy 6.2 liter truck % fuel improvement on a 1998 Dodge Ram 5.2 liter Van. Page 10 of 23

11 If Hydroxy Gas is so great why haven t I heard about it before? When fuel cost less that $2.00 a gallon there was little economic incentive. But with fuel bouncing between $4 and $5 a gallon a typical 18 Wheel Truck Will Spend $86, on Diesel this year* Trucking consumes 19% of all U.S. petroleum. Industry spent $141 billion in 2008, up $27 billion from Diesel fuel is now the largest operating expense, surpassing labor. Annual fuel cost increases $1,000 for each 5 cent price increase. (Source: American Transportation Research Institute) *(assumes 100,000 miles per year, $4.75 per gallon at 5.5 mpg.) Page 11 of 23

Will this system protect my engine and vehicle warranty? YES! The HPS series of Hydrogen generators is specifically designed to protect your engine.

12 Will this system protect my engine and vehicle warranty? YES! The HPS series of Hydrogen generators is specifically designed to protect your engine. Our device is defined as an after-market product in full compliance with the Magnuson-Moss Warranty Act. Our generators will neither harm your engine nor void your warranty. Page 12 of 23

CO is reduced 15 to 80%. CO2 is reduced 10 to 80%.

13 What About Emissions? Independent tests and reports from actual users indicate that, depending on the age and condition of a particular truck, Particulates are reduced 5 to 50%. CO is reduced 15 to 80%. CO2 is reduced 10 to 80%. NOx is reduced 5 to 30%. Hydrocarbons are reduced 20 to 90%. (Data & test results on file) Page 13 of 23

) Small cars and trucks can benefit from our Series 100 Hydrogen Generators.

14 Series 100 For vehicles with less than 3.5 liters of Engine Displacement ( Installed in or near the engine compartment. Documented fuel economy improvements between 10% and 24%.) Small cars and trucks can benefit from our Series 100 Hydrogen Generators. Series 100 components typically weigh less than 30 pounds. HPS Systems are matched to each vehicle's specifications, and come with a money back guarantee to improve fuel economy and reduce harmful engine pollution. Page 14 of 23

The Series 100 has 4 components that fit in the wheel well,

compartment: 2 Quart Water Tank 3 by 2 by 2 Computer 6 by 8 by 3

to a Qualified Alternative Fuel Vehicle.

when you convert your car or truck Buy your system with money you

15 The Series 100 has 4 components that fit in the wheel well, beneath the headlights or other small spaces in or near the engine compartment: 2 Quart Water Tank 3 by 2 by 2 Computer 6 by 8 by 3 Electrolyzer 1 Quart Bubbler Tank Our system converts your vehicle to a Qualified Alternative Fuel Vehicle. IRS Form 8910 gives you for a dollar-for-dollar Federal Tax Credit when you convert your car or truck to a Qualified Alternative Fuel Vehicle. Buy your system with money you would otherwise pay as Federal Income Tax. Page 15 of 23

16 Series For engines between 4 to 7 liters. ( Installed in or near the engine compartment. Documented fuel economy improvements between 13% and 24%. ) Large pickups, delivery vans, school buses, motor homes and yachts. The Series 200 is calibrated to match the requirements of the larger truck, bus or power boat. Page 16 of 23

Mounted inside a storage area in RVs, 3.

17 Series For engines between 4 to 7 liters. The Series 200 comes completely assembled, and can be quickly installed in several locations: 1. Bolted to the side of the vehicle, 2. Mounted inside a storage area in RVs, 3. Bolted into the bed of a Pick Up truck, 4. Behind the seat of a delivery van. Page 17 of 23

Series 300 Sized for 8 to 15 liters: For large trucks, big RV

) At 90 lbs and just 24 by 18 by 16, the uniquely designed

18 Series 300 Sized for 8 to 15 liters: For large trucks, big RV s, construction equipment and farm machinery. Also fits generators and fishing boats. ( Documented fuel economy improvements between 10% and 40%. ) At 90 lbs and just 24 by 18 by 16, the uniquely designed Series 300 is easy to install and service. It can be attached like a typical utility box. Page 18 of 23

Series 600 - For Diesel Powered Refrigeration Units (TRUs) The Series 600 is designed for diesel powered trailers that transport perishable goods.

19 Series For Diesel Powered Refrigeration Units (TRUs) The Series 600 is designed for diesel powered trailers that transport perishable goods. It normally bolts to the front of the trailer, just below the TRU. Installation takes less than 4 hours. No modifications to the engine or the engine's settings are required. Easily moved from trailer to trailer. Page 19 of 23

20 What Are The Technical Details? Dash Mounted Controls with RED, WHITE and BLUE lights and RED ROCKER SWITCH This schematic is a view of the electrical system. Page 20 of 23

21 What Are The Technical Details? This schematic is a view of the electrical system. Controls Page 21 of 23

22 What Are The Technical Details? This schematic is a view of a Series 300 connected to a typical diesel tractor. Page 22 of 23

23 To use Federal Tax Credits to pay for your HPS System click HERE To watch a 10 minute video that describes our HPS System click HERE Click on these links for more information... -Test Reports Page -Frequently Asked Questions Hydrogen Power Systems, Inc. Reducing Fuel Expense and Pollution for Internal Combustion Engines Escondido, California Page 23 of 23

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