LONG TERM GOALS

MARE ISLAND INDUSTRIAL COMPLEX

The overall plan is to develop the WINDWALKER system throughout the world and capture 90% of the estimated 10 Trillion dollar market need that at present will not be met by any other entity.  We realize that to reach this manufacturing goal it will require an employee base in excess of 25,000 within a short period of time.  Although one may have the best product, people, and plan in the world, without a proper facility and equipment to execute that plan it cannot be brought to fruition.  We believe the Mare Island Industrial Complex affords WINDWALKER the best opportunity to reach its goal.
 
RANCHO SECO

Rancho Seco is an industrial park recently developed by Sacramento Municipal Utility District (SMUD), which is a public agency that provides electricity to the Sacramento area.  This site contains about 2,480 acres and is located about 25 miles southeast of the city of Sacramento.  It was acquired in the late 1960’s by SMUD for the purpose of developing power generating facilities, including a nuclear power plant, a solar energy plant, and related electric power facilities.  The facility was shut-down in 1989.

Located at the site is a technical center that was developed by SMUD for future research and development and was approximately 90% completed before the shut-down.  It is a first rate high-quality commercial office building

BUSINESS

The Company believes that it will have a significant opportunity to develop plants due to the worldwide demand for new and replacement energy capacity.  It has been estimated that in the United States, up to 245,000 MW of capacity additions will be required by 2010, costing as much as $200 billion.  International capacity additions are expected to be twenty-two times the United States requirements.  By way of comparison, utilities in the United States currently operate approximately 700,000 MW of generating capacity.
The decisions involved in choosing both the fuel source and the technologies that will be utilized to fulfill these new generation requirements will be determined largely by the prevailing views of regulators and the public on such issues as capital cost, fuel price escalation, environmental impacts, fuel diversity and utility rates of return.  Based on the rate at which utilities are currently signing contracts for the purchase of wind powered facilities, and legislative and regulatory encouragement of environmentally safe generating technologies, and the enactment of multinational treaties forcing the industry throughout the world to change to environmentally friendly and sustainable technologies, the Company believes that utilities will select windpower for a portion of this new and replacement generation capacity.  Such selection would create a significant expansion of the windpower market, creating opportunities for rapid and substantial growth of the Company' s business.