Innovations Technology Forward 2013 KCF Technologies Inc Mission

Innovations Technology. Forward. 2013

KCF Technologies, Inc. Mission • KCF Technologies develops embedded intelligence solutions and accelerates the transition to commercial products through strategic partnerships. Quick Facts • Founded in 2000 • > 60% Y/Y avg. growth • Phase 2, nearly every SBIR • Commercial outcome for every Phase 2 project Market Differentiator • Rapid technology development Facility & Capabilities • 10, 000 sq. ft • 30 staff (mostly engineers) 2 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Our Focus: Improve competitiveness with “embedded intelligence” Impact of Failure Today’s Realities: ↓ Margins ↓ Headcount ↓ Inventories ↑ Competition ↑ Energy Cost Use information technology to your assets perform better … make them smart and give them a voice $ 1983 Today Cost of Information 1983 3 11/5/2012 1993 2003 2013 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Give the Machines a Voice ? Only if you can get useful information KCF Technologies Smart. Diagnostics®: • Wireless Condition Monitoring on Rotating Machinery Reliability of Industrial Equipment • Enable predictive maintenance • Reduce preventive maintenance • Minimize human error • Create automatic alarms (email, text) • Give the Machines a Voice 4 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

1) Condition Monitoring in Unconventional Gas Operations Value: • Increase reliability, reduce downtime with wireless condition monitoring Readiness: • Commercially available • ATEX Class 1 Div 2 pending Source: Weir Minerals - SPM 5 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Monitoring Example: Gladiator Water Pump • Monitor vibration and temperature • Track pump health on site and through the cloud 6 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

2) Low-Cost Air Quality Monitoring for Early Warning of Community Impacts Value: • Deploy low-cost wireless gas sensors to detect changes in air quality in communities Readiness: • Concept, leveraging Smart. Diagnostics® lowcost wireless and Cloud infrastructure • Seeking EPA/DEP/DOE R&D funding • Partners: LMA, Drexel, KWJ Sensors 7 11/5/2012 Source: PA DEP “Laporte Model Air Sampling Protocol” July 19, 2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Existing Capability & Installations Production Machines • Prevent downtime • Integrate with Plant Mgmt System HVAC Systems • Prevent downtime • Increase efficiency • Operate in the Cloud • • • Started 2006 -08 Today 5 Buildings 5 yr Plan for 1000+ machines • Common to universities nation-wide > 2000 machines / plant 68 Plants in SE Wind Turbine Systems (Blade Generator) • Prevent downtime • Reduce maintenance $ • Central monitoring of UK wide fleet via Cloud • > 2000 Wind turbines in UK Industrial Refrigeration • Optimize maintenance • Increase efficiency • Simple to use walkaround system - replace consultant free breeze energy systems uk • 8 Already identifying real problems 11/5/2012 • • ROI ~8 months Better data since more single monthly samples KCF Technologies, Inc. -- © Copyright 2013

Energy Harvesting & Wireless Sensors Vibration Monitoring Software Wireless Vibration Sensor Energy Harvesters Vibration Wireless Receiver Thermal Solar 9 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Technology Transition Strategy Market Entry Strategic Partnerships Technology Development - Capabilities Focused - Technical Diversity - Leverage Gov’t Funding 10 11/5/2012 - Business case - Technical case - Integration & testing - Direct Product Introduction - Partner Product Joint Development - OEM / Royalty share - Limited number of complementary partners Example: KCF Smart. Tether for Video. Ray ROVs KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Making Harvester Powered Wireless Sensors Work Extremely low power, high bandwidth radio protocol Energy Harvesting Power Management Circuit 2004 2005 Industrial Wireless Sensors (DOE) 11 11/5/2012 2006 Harvester Power Prosthetic Limbs (ARMY) 2007 2008 Energy Harvesting Wireless Sensors for Helicopter HUMS (NAVY) 2009 Load Energy Harvesting Embedded Wireless Sensors (NAVY) 2010 Vibration Monitoring System 2011 High Temp Thermal Harvesting Wireless Sensors (DOE) KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012 Magnetic Field Energy Harvesting Wireless Sensors (NAVY)

KCF Technologies Low-power Wireless • Full-spectrum vibration machine diagnostics • Robust Wireless Communications • Easy Installation & Setup • Automatic Alerting • 10 X Battery Life 12 11/5/2012 KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012

Thank You! 13 Jeremy Frank David Shannon President VP of Business Development 336 South Fraser Street State College, PA 16801 Phone: 1 -814 -867 -4097 Mobile: 1 -814 -883 -1499 Email: jfrank@kcftech. com 336 South Fraser Street State College, PA 16801 Phone: 1 -814 -867 -4097 Mobile: 1 -814 -883 -9293 Email: jfrank@kcftech. com 11/5/2012 www. kcfech. com KCF Technologies, Inc. Proprietary & Confidential -- Copyright 2012 www. kcfech. com