Markets

We consider the current market trends, product timing and size and breadth of our overall markets to be one of the strongest advantages for our Company.

In addition, we also sense that there are multiple outside forces which will cause an even greater increase in the demand for our products in the future, such as the ever-spiraling cost of energy as well as the Federal government’s objectives of drastically reducing energy consumption over the next ten years. All of these factors, combined with estimates that 95% of commercial buildings don't have an EMCS (Energy Management and Control System) in place, give an enormous opening and market opportunity for our Company.

The primary target markets for our technologies, products, systems and solutions are those organizations that closely resemble the following criteria:

1. Office organizations / developers / operators with annual electricity bills which exceed $100,000 per year.
2. Retail organizations / operators with annual electricity bills which exceed $75,000 per year.
   
3. Restaurant organizations / operators with annual electricity bills which exceed $60,000 per year.

OFFICE BUILDINGS

Of all commercial building types and structures, office buildings have the highest total expenditures for energy, which is equal to $15.8 billion per year. Of this, approximately 88% or $14 billion consists of electricity expenditures.

There are over 705,000 office buildings in the United States enclosing 10.5 billion square feet, which is equal to 18% of all commercial floor space.

The average office building is 14,900 square feet and the median age of office buildings is 30.5 years. It is estimated that 83% of all non-government owned office buildings are occupied by the owner of the building.

Approximately 50% of all office buildings do not have any type of conservation technology integrated into the building.

Based on the above criteria, office buildings are a primary and viable market for our products, systems and solutions over the next five years and beyond.

RESTAURANTS

On average, $3.56 per square foot is spent on energy in food service buildings, almost three times the national average for energy usage in commercial buildings.

Approximately $4.8 billion is spent per year for energy in food service buildings and most of this is spent on electricity.

There are over 285,000 food service buildings in the U.S. containing over 1.3 billion square feet of floor space. The median age of food service buildings is 22.5 years.

Food service buildings use over 49 billion kilowatt hours of electricity annually with lighting using 30%, refrigeration using 26% and heating, venting and air conditioning using 20%.

Less than 40% of all food service buildings have any type of conservation technology integrated into the building.

Based on the above information, the management team forecasts that restaurants will be one of the top three markets for our products, systems and solutions.

RETAIL STORES

Retail buildings use approximately 149 billion kilowatt hours of electricity, which is estimated to cost approximately $11.65 billion on an annual basis.

Of this amount, heating, venting and air conditioning accounts for 25% or $2.9 billion of these expenditures and lighting accounts for over 59% or $6.9 billion in electricity costs.

There are over 1,289,000 retail and service buildings in the United States, which contain over 12.7 billion square feet.

Retail buildings average 13,000 square feet and are 34.5 years old on average. All retail malls, on average, are 20.5 years old.

It has been recorded that less than 35% of all retail buildings have any type of conservation technology integrated into the building.

Based on the above statistical data, we consider retail stores one of the top three markets for our products, systems and solutions over the next five years.