SolarAttic, Inc.

PCS1 COMMON QUESTIONS

About the Company
About Business Issues
About the Product
About Technical Issues
About Sales Issues

Copyright 1990-2000
SolarAttic, Inc.
All Rights Reserved

Rev 11/29/2000

PCS1 Common Questions

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About The Company

1. Who is SolarAttic, Inc.?

SolarAttic, Inc. is a Minnesota Corporation engaged in the research, development, and
manufacturing of products that use attics as energy vehicles. The company’s first product heats
swimming pools using attic heat derived from solar radiation. The company’s second product provides
supplementary space heating. The company’s other product lines, which are under development, are an
attic based solar domestic hot water heating system and ventilation system. The company has already
demonstrated a working prototype of both systems and is awaiting additional developmental expansion
capital to complete these products. All three products are covered by the company’s FOUR U.S. Patents.

2. How long has the company been in business?

Pool Heat Company, a proprietorship, existed from 1/1/84 to 8/10/86. On 8/11/86, the company
incorporated itself as Attic Technology, Inc. On 7/15/93, the company changed its name to SolarAttic,
Inc.

3. Does the company have product liability insurance?

The company is self-insured for product liability.

4. Does the company have any business references?

The Company’s banking reference is Gerry Vidmar, Assistant Vice President, Wells Fargo Bank,
Brooklyn Boulevard Office, 8041 Brooklyn Boulevard, Brooklyn Park, Minnesota 55445, phone (763)
493-7807 and Fax (763) 493-4040. The Company is registered with the Securities Division of the State of
Minnesota and also has filings with the Secretary of State. SolarAttic’s corporate charter is MN 5H-1049.

About Business Issues

1. What does the company mean by exclusive dealership?

The company assigns a territory to the dealer.

2. Will the company set up more than one dealer in an exclusive territory?

During the first full year that the dealer has been selling the PCS1, the company will give the dealer
time to establish minimum sales. If, after one year, the dealer is not meeting the minimal sales
requirements, the company may establish another dealer and the territory could then become non
exclusive.

3. Will the company set up more than one dealer in a non-exclusive territory?

Yes, if the market will support more than one dealer or if the dealer is doing poorly in a good
market.

4. My customers do not need heaters!

Not all pools require heaters. Good sunny locations, in hot climates, with pool blankets and
enclosed or sheltered areas help. It also helps if someone likes to swim in cold pools. Some pool
contractors have falsely sold themselves on the need for no heaters. Expensive to operate gas heaters have
created negative attitudes in some pool dealers & contractors. Some now believe that talk of heating the
pool will jeopardize the pool sale. How many buyers have been turned off at the mention of a monthly
heating bill? Why over sell the customer?

PCS1 Common Questions

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If you believe this, you may be missing some business. A few years ago, I had a pool dealer tell
me he didn't need heaters in his sales area of Florida. A few minutes later at the trade show, a more
aggressive servicer, told me he was selling 3-7 heaters per week in the exact same area. Have you sold
yourself something that is false? Now is the time to reexamine the need for pool heaters in your area! Our
new product gives you a reason to reevaluate.

5. Pool blankets are all we need!

Pool blankets only remove the negative selling aspect of a pool heater in the pool transaction. A lot
of pool sellers simply throw in the blanket to eliminate the heating objection in the pool sales presentation.
Blankets do not create heat and mainly keep heat from escaping from the pool's surface. Pool owners will
usually swim through a hot three-inch layer only to reach cold temperatures in the mass of water below
this surface layer.

Blankets are a pain in the neck, but a necessity in light of high-energy bills. People get used to
swimming in colder pools and prefer these colder pools to the alternative of high monthly energy bills.
Blankets often require two people to place on or take off of the pool. A pool that gets by with just a
blanket can get by without the blanket using the PCS1. This is a new selling opportunity for businesses.
Like other manufacturers of pool heaters, we recommend using a blanket with the PCS1 when the pool
will not be used for extended periods. Again, pools that use only a blanket -- may now get by without it --
when using the PCS1.

6. Are new markets opened up by the PCS1?

YES: Pool owners that swim in colder pools with a short season can now heat their pools and
expand their swimming season; those who have not bought pools because of high heating costs can now
do so; and, those who have shut their pools down because of high heating costs can now reopen them.

About The Product

1. Is the PCS1 UL LISTED?

All parts used on the PCS1 are UL Listed except the cabinet’s sheet metal parts. For example, our
heat transfer coil is UL Listed with the following designation:
SR/M-58E

2. What is the life expectancy of the PCS1?

It has a 20 year design life under optimum conditions. The primary life factor is the pool's water
chemistry. Pool water properly maintained should not smell of chlorine, should be crystal clear visually,
and should be potable water [drinkable]. To the extent the pool's water is not like this, it will shorten the
life of all of the pool's support equipment in addition to shortening the life expectancy of the PCS1. The
PCS1 has extended life characteristics when compared to heat pumps or fossil fuel heaters.

3. Is the PCS1 easy to service?

Yes, the front grille and the side panels are removable for ease of service.

4. Is the PCS1 FUSED?

The PCS1 motor is thermally protected against overload with an automatic reset.

5. What kind of electrical power is required?

220VAC outlet is required. Full load amperage is 1.8 amps. A separate, 15-amp circuit for the
PCS1 is recommended. The PCS1 simply “plugs” in. Power is typically derived through the temperature
controller, which automates the pool heating.

PCS1 Common Questions

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6. Is there any condensation in the attic at high humidity levels?

Under extreme test conditions, very little condensate was evidenced. Under normal conditions, the
bottom pan may collect minor amounts of condensate. It will then evaporate. This same technique is
used on modern frost-free refrigerators. The PCS1 provides for this collection and evaporation when
mounted upright. In areas where concern exists, the bottom pan can be tapped and drained off.

7. What is the optimum heating system configuration?

PCS1 which exchanges free solar heat inexpensively from the attic into the swimming pool, a
flowreversal™ valve that ensures the pool is efficient in its heat needs [for deep pools] and a pool blanket
to minimize losses during extended periods of non use [or during non-heating hours in early and late
season].

8. The PCS1 looks like a radiator?

The principles of operation are similar but the radiator was designed for cars. The PCS1 heat
exchanger was custom designed specifically for the needs of swimming pools.

About Technical Issues

1. How does SolarAttic, Inc measure BTU ratings? Sensible only or with latent heat?

All quoted BTU ratings are sensible heat figures only. Delta temperatures can be measured with
temperature sensors & sensible heat calculated. BTU figures are significantly higher if latent heat figures
were included. BTU figures are higher under high humidity conditions as humid air contains more heat.
BTU figures were calculated and measured under conditions of 20-30 % relative humidity.

2. How hot do attics get?

Attics have been measured at 160 degrees Fahrenheit.

3. How do I get the PCS1 into the attic?

A) In a walk-in attic, no problem, just carry it up. B) In an attic with a 2x2-foot access, enlarge the
access to 2x4 feet. C) Cut into the end of the house at the peak to access the attic, then cover hole with a
vent grille [found at lumberyards & building stores]. D) Cut a new access hole into attic from the inside;
the unit fits between standard 24" OC [on center] trusses. E) Disassemble the unit and reassemble it in the
attic [not recommended; but, can be done]. F) Cut a new access hole in the roof and mount the PCS1 on
the roof with a rain cover & condensate drain provision.

Note: the PCS1 mounts in any direction, but any direction other than horizontal requires a
condensate drain provision. Use your imagination and create a list of 10 different ways for each new
installation. Then select the best way, keeping the plumbing considerations in mind. This is called
possibility thinking!

4. How can I hide the plumbing?

You also have to use some imagination here. In new home construction, simply build the PVC
pipes into the walls. In homes with a garage next to the house, access to the main attic can usually be
achieved through the garage roof and pipes can be concealed. Pipes can also be hidden in larger 4" pipes
or with a wood frame around the pipes for the short distance from the garage roof to the main attic area.
Plastic rain gutters can conceal pipes running up the side of a house. Also, the pipes can be ran up to the
attic in an out of the way or non-obtrusive location where it is not necessary to hide them.