Executive Summary and Financial Information for Petry Power Systems

1. Executive Summary

Petry Power Systems, Inc., is located at of 7337 Westview Dr, Kent, OH 44240 and was formed for the purpose of doing research and development of auto and truck fuel savings systems. The systems under development will have a substantial impact on lowering fuel consumption, help decrease reliance on fossil fuels and contribute to a greener environment.

Petry Power Systems will initially develop three systems for use. The first system will be for electric cars of all makes and models, which will allow them to run indefinitely without having to be plugged-in for charging. The second system will allow internal combustion engines presently on the road to reduce their fuel consumption by 50%. A third system will be for freight trains, which will allow trains to haul additional freight at less cost.

Petry Power Systems expects to partner with major corporations which have the ability to fine-tune product development and to market, promote, and manufacture these systems throughout the world which will result in multiple partnership and licensing agreements.

Petry Power Systems will continue the R&D efforts for itself and partner companies to develop 2nd and 3rd generation systems.

1.1. Objectives

· Secure adequate seed capital to proceed with research, development, engineering and testing of prototypes.
· Develop and test demostration models of two fuel-saving systems for cars and trucks that have been tested for a minimum of 100,000 road miles; develop and test a third system for use on freight trains.
· Develop domestic and foreign markets through licensing and partnership agreements.

1.2. Legal

· We have done a patent search and no systems like ours have surfaced.
· We are presently filing patent pending applications for the initial two systems, as well as the third system for trains; we will expand patent pending as we progress in order to keep the technology secret. It is our plan not to file for a patent for the first four (4) years, during which time the patent pending applications will be in effect.
· We have also created non-disclosure agreements, which are to be signed by anyone in contact with the technology. All employees, partners and investors are subject to nondisclosure agreement.
· Any session dealing with the signing of releases and secret technology will be videotaped.

1.3. Mission

Develop cost effective, cutting edge systems to increase fuel efficiency of automobiles, trucks and trains by applying existing technology in a new manner. Petry Power Systems achieves this by maintaining a small think tank style technical team to develop the systems, rely on proven entrepreneurial business professionals to be market makers and use established high-end business partners to achieve full growth potential.

1.4. Keys to Success

The demand and growth potential of these systems is so overwhelming that success is virtually assured provided a few key aspects are kept in mind:
· There is no problem securing key personnel in the areas of engineering and design.
· Avoid time consuming activities related to the development of new technology by applying existing technology for new applications.
· Move quickly to complete research and development activities for cutting edge systems in order to secure patents. The market need for the systems is potentially so large that more competitors can be expected.

2. Company Summary

2.1. Company Ownership

Petry Power Systems, Inc., will be a Nevada Corp. Robert Petry and Family will retain control of the company.

We realize there will be a need to raise capital for Petry Power Systems. The initial capital will be used for prototypes, legal, physical structures, research and development, office space, marketing, and promotion of the technology to potential partners around the world.

2.2. System Development Structure

Each system will have team of two mechanical and two electrical engineers as well as its own graphic designer. All team members will report to management on a weekly basis in order to insure compliance with schedules, identify key project variables that would need immediate action, and keep legal personnel informed of critical system changes necessary to keep the patent-pending application current.

3. Product

Three systems are under development; one for electric cars, one for trucks with internal combustion engines and one for freight trains.
System 1. This system is for electric cars of all makes and models by using a design we have created that allows these cars to run without having to be plugged in for charging. It allows them to run indefinitely without charging.
System 2. This system allows internal combustion engines that are presently on the road to reduce fuel consumption by 50%. This hybrid system was created primarily for large trucks worldwide, but can be adapted for cars and smaller trucks.
System 3. This system allows freight trains that are currently in use to be substantially more efficient by providing them with additional power so they can carry additional weight and pull more freight cars.
h2>4. Competitive Edge

Petry Power Systems retains “first mover” advantage based on the use of existing technology and the application of that technology. The application of the technology provides the ability to move quickly to develop these systems in a cost effective manner. These systems would be sold as OEM equipment as well as aftermarket products for large trucks, cars and trains that are currently in use, developing them into a hybrid with substantial fuel savings.

Each system is unique on an individual basis but compliment each other in numerous areas that decrease costs and give Petry Power Systems a definite competitive edge in automobile, truck and train markets. Because the basic technology is known and proven to be reliable, the industry will have a ready acceptance of these new products for OEM and aftermarket applications.

4.1. Industry Analysis

· Fossil fuels are being depleted at alarming rates.
· Governments are working with all industry segments to cut back on fossil fuel consumption; they are seeking a drastic reduction.
· Governments in the U.S. and around the world are funding initiatives to develop alternative fuels such as geothermal, wind, nuclear, solar and bio fuels.
· Governments are increasingly concerned over damage to our worldwide climate brought about by greenhouse emissions, further creating an acceptance for both fuel-saving systems.

5. Marketing & Sales

The systems will be marketed to major companies in North and South America, Asia and Europe. The technology would be licensed to major companies such as General Electric. They in turn would sublicense the technology to companies such as Ford and General Motors.

5.1. Target Markets

· The market for both Petry Systems is huge. It is worldwide. And it is in the billions of dollars.
· The primary market is established companies with name brand recognition and a reputation for innovation in the areas of automotive technology, fuel efficiency and product innovation, including automotive companies and OEM suppliers.
· The high prices for fossil fuels have created a market for this technology. Greenhouse warming has also created a ready-made market for both of our fuel-saving systems.

5.2. Marketing Strategy

· Identify target market opportunities for initial product review.
· Implement a proactive approach to creating market opportunities from more demanding segments of the fuel efficiency marketplace.
· Establish system recognition in major markets based on the application of existing technology.
· Network with major companies around the world by providing the basic technology through licensing agreements.
· Create a portfolio of licensing options to allow customers to further refine the systems for sublicensing.
· Develop partnering relationships with Market Integrators to further expand the scope and scale of product acceptance.

5.3. Sales Strategy

The general sales strategy is to concentrate efforts on those sectors of the more- demanding fuel efficiency market that have the highest volume needs and largest customer base. We will achieve this by promoting the Petry Power Systems licensing and sub-licensing provisions contained in the partnership agreements.

5.4. Promotional Activities

Petry Power Systems does not have plans to form a sales staff and will rely on the business professionals involved with the company to make the initial contacts in order to keep costs as low as possible. Petry Power Systems promotion strategy will stress “partnering” as its main means of getting the word out concerning its products. The importance of partnering with major industry players cannot be stressed enough. The partner companies under consideration generally fall into two categories:

· Partnering with Technology Manufacturers
Technology Manufacturers are those companies that have a large sales force and are an industry leader in the area of fuel efficiency.
· Partnering with Market Integrators
Market Integrators are heavy users of the fuel efficiency systems such as the automotive, truck and train manufacturers. These companies may have direct manufacturing capability and a proactive research and development effort focused on providing fuel-efficient vehicles worldwide.

5.5. Educate Distribution Channel

Petry Power Systems will provide test results as well as demonstration models for primary vehicles to all confirmed Partners.
Additional promotional activities and education will develop as the need arises and the company grows.

5.6. Sales Forecast & Assumptions

Sales forecasts will be developed after the initial systems are developed and tested.

5.7. Milestones

· Secure initial seed capital
· Develop and test technology on working prototype
· Execute Partnership and or licensing agreements

6. Contingency Plan

The development of three systems provides us with a viable contingency plan for the dollars spent. The first two systems are intended for the same general industry but are designed for two separate markets.

7. Management Summary

To complete this project in a successful manner, we need a cross mix of engineers, designers, business people, writers and marketers, patent attorneys and consultants. Besides development of the two systems, we have to make sure we are legally protected throughout the world; our licensees will help us in this area, but we must do all that we can as a company to provide absolute ownership protection and control of both systems.

7.1. Management Team

The initial management team will be headed up by Robert Petry CEO. The remainder of the team would consist of Michael Swansiger Jr., Engineering Development; Michael Barnes, Michael Swansiger Sr., Gary Kline and Stephen Mitchum, Marketing & Promotion; John Morrison, Doug Brown and Robert Petry II, Designers; Ned Oldham, Patent Attorney, Michael Drew, Attorney.

7.2. Business Partners

We need two distinct levels of business partners. The first would be made up of individual investors and companies that would provide seed capital for the initial round of funding. The second would be those involved in the next level of funding. We realize as the systems are developed to working prototype stages, our funding partners become business partners in this endeavor.

8. Financial Information

Petry Power Systems was incorporated in Nevada with shares having a face value of $1.00 per share. The initial proceeds will be used for prototypes, patents, engineering, facility rental, equipment, testing, and compensation of the PPS team.

Petry Power Systems expects to have some very attractive financial offers on this technology -- substantially more than the price per share as indicated above for this plan. There has been a push for Petry Power Systems to become a Public Company here in the United States and overseas after a tested prototype is completed. We will do the right business move for all our shareholders.