1. 1Medium-Duty Hydraulic Hybrids - A Best Use ScenarioCALSTART WebinarJune 20, 2013

2. History2 Established in October 2008 with hydraulic hybrid concept Began development of a hydraulic hybrid system fortrucks and buses in April of 2009 Currently on our 4th generation product, and enteringnationwide production this quarter Systems are sold through OEMs and bus and truck dealers Currently producing systems for Ford, GM, andFreightliner, class 3-7 Working under a joint development agreement with GMsince July 2011. 3. Point 1Hydraulic Hybrids3The BRAKINGEnergy pumpshydraulic fluid fromthe low pressuretank to the highpressure tankThis energy isSTORED in theform of hydraulicpressure in thehigh pressure tankHydraulic pressuredrives the hydraulicmotors to provideACCELERATION 4. System Diagram4 5. 5Skid-based installation 6. Installation6 7. Skid-based installation7 8. Driver Interface Screen8 9. We Arent Done Yet!9 Recently developed and tested aPlug-In version that combines the bestof electrics (energy for gas-free driving) and hydraulics (bestbrake regeneration solution) andshows strong promise for unique drive-cycle fleets Designing the next generations of systems, including aSolid-State system that will replace the vehicle transmission.Each generation is designed to reduce the price by 40% 10. 101. Better fuel economy2. Ability to retrofit to existing vehicles3. Support for Propane, CNG, gas, and diesel4. Cleaner fleets and Green MarketingLHs Hydraulic Hybrids provide: 11. Clear Benefits11 Dramatically better acceleration and fade-free braking ENERGY SAVINGS: 20-40% fuel mileage increasein stop-and-go driving ENVIRONMENTAL IMPACT: 30% emissions decrease COST: 1 to 4 Year ROIBased on fuel and brake savings alone Additional ROI potential Engine downsizing Government rebates Green Marketing OEM installation in 15 minutes Retrofit installed in 8 hours 12. How LH is different12Shortest Financial PaybackUp to 40% improvement in fuel economygives fleets immediate operational savingsand a 1 to 4 year payback(depending on drive cycle and fuel prices)More PowerLightning Torque Management provides low-end torque (up to 700 ft/lbs) while advancedcontrols provide a smooth drive with nodriver training requiredBetter SafetyDramatically improves braking, providingfade-free and faster stops with less pedalpressure, while extending brake life 8 timesNo DowntimeSystem runs parallel to the engine andtransmission so if the system is down thevehicle drives and brakes like normal.Diverse Fuel HybridizationWorks with gasoline, natural gas, propaneand diesel enginesDiverse Chassis SelectionAvailable today for- Ford, Freightliner, GM- 10,000 to 33,000 pound GVWR- Delivery vans, buses, shuttle buses, utilityvehicles, cutaways, box trucks, etc. 13. 13Medium Duty Fleet Work Trucks:Perfect drive cycle for hydraulic hybrids1. High miles driven = high fuel cost2. Heavy Stop & Go drive cycle = frequent brake changes3. Run by the numbers = every penny counts 14. CARB Testing14 Currently undergoing testing for CARB certification completing paperwork and final baseline tests HVIP approval before the start of 2014 funding cycle 15. Real World Fleets and Feedback15Vehicles Currently on-road: City of Loveland Two 2012 Ford E-450 shuttle buses (StarTrans busbodies, Ford 6.8L V10 engine) Colorado State University Two 2013 GM 4500 Box Vans (Supremebodies, (1) 4.8L V8, (1) 6.0L V8) National Fleet Hybrids (Boston) One Ford E-350 paratransitbus/demonstration vehicle 6.8L V10 engine Two LH test mules One 2010 GM4500 cutaway (6.0L V8), and oneFord E-450 cutaway with 6.8L Currently building customer systemsfor GM 4500 diesel platform, and 2Freightliner chassis at a rate of 2/month 16. Real World Fleets and Feedback16Fleet Feedback: Drivers initially comment on the brake pedal feelbut acclimate in about 1hour Drivers appreciate the LH driver interface, have asked for a variety offeature enhancements including competitive statistics with other drivers Drivers are able to run an entire routebraking only with the LH system--nofoundation brakes required. Drivers notice and comment on theadded acceleration LH System on/off switch means the vehiclealways runs, even when the LH system is down. LH System reliability has dramatically improved with each new customer vehiclebut is not yet up to OEM standards. 17. System Modeling17LH has a complete MatLab/Simulink model that consistentlymodels to within 2% of actual results for efficiencyInputs:- Drive Cycle- Weight- Engine efficiency map- System parameters 18. Results: Modeling & Real-World Testing18Drive Cycle is the most significant variable to efficiency improvementsrange is 5-40% from brake regeneration (another 5% is possible fromstart-stop technology, and another 30% from engine-downsizing)LH system today is~70% round tripefficient(electrics are ~20% onsame size vehicle)Bottom lineif thecycle doesnt fit,quit all hybrids 19. Getting to ROI19 HVIP in California (and soon New York) Federal diesel (DERA) and transit (FTA) grants Clean Air grants from individual states(Colorado, Texas, others) Lease financing $480/mo with $2,000 down Most fleets will save$500 to $800/mo infuel and brake savings 20. 20Tim Reeser970-310-0135Tim@LightningHybrids.comwww.LightningHybrids.com