Th e b e t t e r batter y.

The Case For The Adoption of Silver-Zinc Rechargeable Battery Technology For New, Mobile Product Platforms
Inherently safe and earth-friendly silver-zinc batteries from ZPower offer greater run-time than lithium-ion batteries. By Dr. Ross Dueber, President & CEO

Executive Summary
ZPower is taking the leading role in developing the next generation of rechargeable, silver-zinc batteries for todays rapidly expanding mobile electronics industry. As demand for high-performance, inherently safe, rechargeable batteries continues to grow, ZPower is well-positioned to serve the emerging needs of the mobile marketplace, with special emphasis on portable computer and cell phone applications. ZPower silver-zinc batteries offer compelling advantages over traditional lithium-ion batteries:
Smaller in size than traditional lithium-ion batteries Water-based chemistry is not flammable or toxic Key components can be recycled and reused

Introduction
Recent, major product recalls of lithium-ion batteries used in notebook PCs and cell phones due to overheating and fires have brought to light the inherent danger of this specific class of rechargeable batteries. Lithium-ion batteries contain a highly flammable liquid that can cause fire and explosion when any of several faults occur within the battery. Although manufacturers have gone to great lengths to insure safety and minimize risk, the fact is the potential for fire will continue to exist even after the current problems are fixed. The market needs an inherently safe battery. In addition, lithium-ion is rapidly approaching a point where it can no longer keep pace with the need for greater energy required by future generations of electronics. Estimates by industry experts say improvements in the performance of lithium-ion will reach limits within the next two years. The industry needs a next generation of battery technology capable of doubling the energy of lithium-ion, which silver-zinc can do.

Safety
Unlike traditional lithium-ion technology, ZPower batteries are inherently safe, boasting an aqueous based chemistry that will not vent with flame. These non-toxic batteries have successfully passed a wide range of safety tests including: Environmental Performance Tests Heating Temperature Cycling Storage Electrical Performance Tests Short Circuit Abnormal Charge (overcharge) Forced Discharge (reverse charge) Mechanical Performance Tests Impact Crush Drop Nail Penetration

High Performance
ZPower batteries have higher energy density than lithium-ion battery technology. This high energy feature allows mobile application designers to decrease battery size or increase device run time, depending on the requirements of their application.

Earth-Friendly
ZPower batteries are environmentally friendly and do not contain hazardous materials. The primary elements of silver and zinc can be 100% recycled and reused.

No Air Travel Restrictions

Since ZPower batteries contain no lithium, they are free from lithium-ion 96-Wh air travel restrictions.

A New Approach to Silver-Zinc Technology

ZPowers innovative technology is based on a new battery design which applies recent discoveries in advanced polymers, nanotechnology, power electronics and processing methodologies. This technology allows ZPower to design batteries for a broad range of applications such as notebook computer and cell phone applications. Other targeted markets include the military, government, retail, and broadcast (mobile TV). The company currently holds 16 key patents on rechargeable silver-zinc batteries.

CONFIDENTIAL
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Technology Overview

How it works...
1. Both advanced materials and construction of the Silver Cathode enable a 3X reduction in charge time compared to traditional silver-zinc batteries while achieving high energy density. 2. Polymer electrode inhibits shape change and dendrite growth in the Zinc Anode, thereby significantly improving cycle life. 3. Multiple, proprietary layers in the Separator Stack deliver maximum cycle life with low internal impedance. ZPowers innovative technology is based on a new battery design which applies recent discoveries in advanced polymers, nanotechnology, power electronics and processing methodologies. This technology allows ZPower to design batteries for a broad range of applications such as notebook computer and cell phone applications. Other targeted markets include the military, government, retail, and broadcast (mobile TV). The company currently holds 16 key patents on rechargeable silver-zinc batteries.

A Comparison of Siver-Zinc Versus Lithium-Ion Battery Technology

ZMP (Gen. 1) Safety Energy Density (Wh/I) Weight (Wh/kg) Cycle Life Recharge Time Non-flammable 460 200 100-200 5-7 hours Li-ion (prismatic) Highly Flammable 400 180 250-500 3-6 hours Advantage ZMP ZMP (15% smaller) ZMP (10% lighter) Li-ion Li-ion

CONFIDENTIAL
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Silver-zinc technology from ZPower has compelling key advantages over traditional lithium-ion now and into the future. The Companys product technology road map indicates its silver-zinc technology has tremendous potential for improvement over the next several years.

Strategic Alliances
ZPower has several venture investment partners including Intel Corporation, OnPoint Technologies (a venture capital fund of the US Army) and PowerVentures (a large private equity group). Tyco Electronics is our manufacturing partner for cells and battery packs.

Summary
As a result of development work by ZPower, silver-zinc battery technology is setting a new standard in rechargeable battery power for mobile applications. This technology has reached new heights in overall performance and safety, making it one of the most exciting battery technologies to be launched in years. ZPowers silver-zinc, rechargeable battery technology will be available for test and evaluation in early 2007. For more information, please visit www.zpowerbattery.com or call 805-445-7789.

ZPower is a registered trademark of ZPower, Inc. Trademarks and trade names are the property of their respective companies. ZPower, Inc. 4765 Calle Quetzal, Camarillo, CA 93012 www.zpowerbattery.com | Tel: 805 445 7789
Copyright 2007 ZPower, Inc.
#100 (07/2007)