Web Gens Intelligent Use of Energy IUE System

Web. Gen: Intelligent Use of Energy Web. Gen’s IUE is the first intelligent, predictive energy conservation system that remotely monitors, forecasts, continuously optimizes, and automatically controls energy use.

IUE: An Overview • Low-cost, low-risk, energy conservation service • Helps companies understand & reduce energy costs • Conserves scarce energy resources & creates new revenue streams • Accounts for savings & revenues

Representative Customers • • • Hobbs Brook Trizec Properties Bank of America NYSERDA, State of New York State of California, DGS University of Miami, Florida

Web. Gen Installations • Total Installed Space • 25 million square feet • 185 buildings • Locations • California, New York, Florida, New England

Our Value: 12% Savings Cut net aggregated energy spend by 12% with no impact on tenant comfort • Always-Active Permanent Load Reduction • Full-Time Peak Load Management • Virtual Meter Aggregation • Curtailment & Sale Back to ISO (Avoidance & Reduction)

IUE: Complete Enterprise Energy Management Energy Information Systems IUE Demand Response Systems Building Management Systems

IUE: What it Does • Monitors existing energy consuming devices and meters • Aggregates data in buildings, portfolios, power pools • Forecasts usage and executes smart conservation strategies with real-time analysis of space temperature, air quality, occupancy, weather, and energy price • Intelligently controls devices and lighting, learns consumption patterns and reactions to change • Optimizes and accounts for results

IUE: Enhances Building Management Systems IUE BMS Proactive Reactive Acts based on Forecasts Acts after Events Intelligent Learning Pre-Programmed Multiple-Goal-based One-dimensional Feedback Loop Portfolio-Focused Building-Focused Continually Optimizes Savings Follows Rules Until Changed Auto-Curtails Across Portfolio Each Building Follows Plan Creates New Earnings Stream No New Earnings Stream

Connecting to IUE • Web. Gen connects existing building management systems (BMS) to the Internet • If no BMS exists, equipment is connected directly via Web. Gen’s wireless connectivity solution • Building equipment & meters are mapped to Web. Gen’s IUE servers • Exchange begins, real-time monitoring & control signals are sent via secure Internet connection

IUE: Architecture Standard three-layered architecture: • Browser-based user interface layer • Intelligent business logic layer • Standard data collection layer Distinct communications layer accommodates new connection protocols.

IUE: Lighting Agent Electric Energy • IUE Lighting Agent controls the Flux Regulator • External factors (weather, grid load, energy price) drive agent decisions • Flux Regulator responds to agent commands • Regulated voltage saves money Flux Regulator Internet Connection IUE Office Lighting

IUE: Immediate Results • Provides detailed analysis of consumption • Shows and aggregates energy consumed at each device/meter • Shows actions taken & results in real-time • Depicts actual and forecasted consumption based on IUE usage • Translates actions taken into dollars saved • Complete comparison of baseline and actual energy data to bills • Accounts for capacity & energy revenues • Provides real time analysis of commitments, payments and fees

Logging In Access system through any standard Web browser with password-protected, encrypted log-in.

Baseline Data Preparation

Consumption Analysis Detailed Analysis of Consumption k. Wh consumption over time Cyclical kw demand Selectable From and To Dates

Actions Taken

Savings Detailed Savings

IUE System Savings & Revenues (US $ Per Square foot) Annual Energy Savings on $1. 00 energy spend* • 10. 0% Permanent Load Reduction • 5. 0% Lighting Load Reduction ** • 7. 5% Peak Load Avoidance & Diversification $0. 10 $0. 05 $0. 08 Annual Capacity & Energy Revenues*** • Capacity (. 75 W/sq. ft. @ $0. 05/W) • Energy (. 75 W/sq. ft. @ $0. 10/k. Wh) Total Annual Savings & Revenues $0. 23 $0. 11 $0. 04 $0. 07 $0. 34 *Assumes constant baseline data. Any changes in weather patterns, building occupancy, plug load, lighting load, capital projects will impact savings up or down. *Web. Gen does not participate in savings resulting from reduced maintenance, lower staff costs, energy-efficient capital projects, etc. . **Where applicable

IUE System Benefits (US $ Per Square foot) Total Annual Savings & Incremental Revenues $0. 340 Web. Gen Maintenance Fee @ $. 09/sq. ft. Web. Gen Share of Energy Savings @ 25% of $. 23 Web. Gen Share of Incremental Revenues @ 50% of $. 11 Total Web. Gen Share $0. 090 $0. 075 $0. 055 $0. 220 Annual Net Savings $0. 012 Total Customer Energy Cost Reduction =12. 0% Customer Payback on Invested Capital* <8 months *Assumes no NE ISO energy-efficiency funds available to mitigate installation costs.

Summary Report

Summary Report Detail

Bank of America Energy Curtailment For The California Energy Commission June 27, 2002 ©

California Energy Commission Pilot Test • On June 27, 2002, Web. Gen Systems Intelligent Use of Energy product curtailed 2 Megawatts of power, in 78 Bank of America properties, within the state of California. • The total load of the 78 properties was approximately 9 Megawatts • The time duration was four hours. The test commenced at 2: 00 PM, and completed at 6: 00 PM, PDST • The following slides display the demand trends for Northern & Southern California, and the aggregate for the pilot test.

IUE: System Benefits • Increased Asset Value • Lowers costs of delivering higher capitalized value • Tenant/Employee Satisfaction & Security • Increases perceived value • Provides Consistent Comfort (space temp, air quality) • Heightens Safety (chemical and substance “sniffer” options) • Stakeholder/Management Bottom Line • Reduces energy costs • Eliminates uncertainty of energy price & capacity • Environmentally conscientious & technically superior energy management solution

Financials and Payback: Cost Summary • Net Reduction in Customer Energy Spend • 12% after payment of all fees, shared savings & revenues • One-Time Installation Cost • $. 08 per gross square foot (An additional $. 05 Lighting) • Annual Maintenance Fee • $. 09 per gross square foot • Web. Gen Share of Energy Savings • 25% of reduced energy spend • Web. Gen Share of Capacity & Energy Sold • 50% of all new revenues generated

Financials & Payback: Transaction Structure Alternatives • Maintenance Fee + Share of Savings and Revenues • As described • Three –Year System Lease/Purchase • Purchase Installation • Lease fully-operational system at fixed rate • Negotiated Performance Conditions • Prepaid System Purchase • Purchase Installation and full operation at NPV price • Negotiated Performance Conditions

Web. Gen History • Founded, May 2000 • Headquartered in Cambridge, MA • Experienced Senior Management: energy suppliers & policy-makers, commercial, institutional & industrial property owners, facilities management, online business services • Leading Institutional Investors

Alternative Financials @ $1. 30 © 2001 Web. Gen, Inc. All rights reserved www.

Financials and Payback: Market Cap Impact Assume: Energy Spend/Sq. Ft. $1. 30 Savings & Revenue/Sq. Ft. $0. 18 7. 5 million Sq. Ft. X $0. 18 $1. 4 million After-Tax Impact @40% tax rate $0. 8 million Increase in Earnings ($34 to $34. 8) 2. 3 % Price-Earnings Ratio Market Cap Impact 13. 5 $10. 8 million

Financials and Payback: Savings & Revenues (US $ Per Square foot) Annual Energy Savings on $1. 30 energy spend* • 10. 0% Permanent Load Reduction • 7. 5% Peak Load Avoidance & Diversification • 5. 0% Permanent Lighting Reduction $0. 13 $0. 10 $0. 07 Annual Capacity & Energy Revenues** • Capacity (. 75 W/sq. ft. @ $0. 08/W) • Energy (. 75 W/sq. ft. @ $0. 15/k. Wh) Total Annual Savings & Revenues $0. 29 $0. 11 $0. 03 $0. 08 $0. 40 *Assumes constant baseline data. Any changes in weather patterns, building occupancy, plug load, lighting load, capital projects will impact savings. *Web. Gen does not participate in savings resulting from reduced maintenance, lower staff costs, energy-efficient capital projects, etc. . **Where applicable, assumes sale of Capacity @ $80, 000/MWY and Energy @ $500/MWH (300 hours)

Financials and Payback: Savings & Revenues (US $ Per Square foot) Total Annual Savings & Incremental Revenues $0. 400 Web. Gen Maintenance Fee @ $. 09/sq. ft. $0. 090 Web. Gen Share of Energy Savings @ 25% of $. 29 $0. 073 Web. Gen Share of Incremental Revenues @ 50% of $. 11 $0. 055 Total Web. Gen Standard Share $0. 285 Fixed Portion (Customer responsibility) =$. 090 Variable Portion (Web. Gen’s risk) =$. 128 Annual Net Savings (50 % Share) $0. 200 Total Customer Energy Cost Reduction =15. 0% Customer Payback on Invested Capital* <8 months Minimum Energy Savings for Customer Break Even =4. 7% *Assumes no ISO energy-efficiency funds available to mitigate installation costs.