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Confidential Presentation on:

Hydromatic TechnologiesOctober 30, 2009

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Executive Summary

Loop Capital is pleased to continue our productive dialogue withHydromatic Technologies regarding strategic and financingalternatives for the Company

Hydromatics unique hydronic technology provides multiple

avenues to create value for the Companys stakeholders Multiple potential end-user applications

Patent and trademark protection provides barriers to competition

Attractive secular trends - amidst the clamor for higher efficiency,lower energy consuming appliances favors wide scale adaptationof Hydromatics technology, both in the U.S and globally

Loop Capital is prepared to assist Hydromatic in maximizing valuefor its stakeholders by:

Evaluating a broad spectrum of strategic and financing alternativesfor the Company

Identifying and approaching potential investors on the Companysbehalf

Valuing, structuring and negotiating any potential investments inthe Company

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Executive Summary (continued)

Loop Capital has carried out a preliminary analysis of thecompetitive landscape for household appliance manufacturers, witha particular focus on makers of clothes dryers

Sector dominated by large, well capitalized OEMs

Recent economic downturn

especially the decline in house prices

has adversely impacted the sector

Increasing focus on energy efficiency as a key growth driver, as

manufacturers seek to appeal to both consumers and legislators

demand for greener products

This backdrop provides multiple ways for Hydromatic to maximizevalue for its stakeholders, including:

Continuing to develop hydronic technology on a stand-alone basisand pursuing licensing opportunities with OEMs (status quo)

Partnering with a major OEM to develop technology in exchangefor preferential or exclusive rights

Exploring an outright sale to an OEM, at the right

value

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Executive Summary (continued)

There are multiple pools of potential investors that could providenear-term funding to enable Hydromatic to continue the pursuit ofgrowth opportunities

Green-tech focused venture funds

Corporations with strategic interests in potential end-applications

Traditional venture capital and private equity funds

Angel investors

Hydromatic would benefit from Loop Capitals deep financialadvisory experience

The team has collectively executed over 50 transactions for clients,including large public corporations as well as early-stage companies

Loops team members have also raised and invested venture and

private equity capital

Loop Capital is prepared to immediately commence a strategic andfinancial advisory review for Hydromatic

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Hydromatic Investment Highlights

Proprietary DryerMiser technology offerssignificant savings in energy consumptionwhile also improving safety

UniqueTechnology

Multiple potential applications includingresidential (clothes dryers), commercial andindustrial

Addresses critical requirement for improved

energy efficiency (and consequent reductionin emissions)

US and international patent (applications)provide significant barriers to competition

Ability to drive value through licensing,strategic partnerships or eventual sale tomultiple potential strategic suitors

Hydromatic has many attributes that investors would find compelling

Broad End UserApplications

Green

MultipleAvenues to

Maximize Value

SignificantBarriers to

Competition

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Key Macro Trends/Business Drivers

Government and consumers focused on more energy efficient appliances and

energy cost savings

Increased home foreclosure filings amid the subprime mortgage crisis anddeclining home prices has made it tougher for homeowners to refinanceloans or borrow money to buy goods like new household appliances

However, it seems that the housing crisis has bottomed, with a modestrebound anticipated in the near term

Projected 2% volume CAGR over the next 5 years

Highly competitive sector with competitors having a strong global presenceand robust brand equity

Cost savings and scale likely to fuel consolidation

E.g., Whirlpools acquisition of Maytag

Global competitors like LG (South Korea) and Haier (China) are able tomanufacture their products at lower costs

Global partnerships are likely to grow to take advantage of lower costs andpenetration opportunities

Ex.-

Joint venture between Whirlpool and Chinese company, HisenseKelon, for refrigerators and washing machines for Chinese and exportmarkets

EnergyEfficiency

Housing Market

Sector

Consolidation/Scale

Low Cost

CountryManufacturing

Macro trends driving product demand and shaping the competitivelandscape for Hydromatic include:

Issue Commentary

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How Investors Would Evaluate Hydromatic

Product/Service

Exit Strategy

Investment Considerations

Management

Differentiation of product from

alternatives

Protectable rights (IP)

Addressable market size

Growth potential

Buying power of potentialcustomers

Exit Valuation

Potential strategic acquirors

IPO Potential

Acquisition Targets

Strength/depth of managementteam

Coverage of key job functions

Relevant sector or start-upexperience

Ability to control the company

Investment amount/ownership

Expected returns

Current financing/sources anduses of funds

Company projections

Preemptive rights in later roundinvestments

Special voting rights

Potential investors would consider the following key factorsprior to investing in Hydromatic

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Financing alternatives

VentureCapital

StrategicInvestors

Angel

Investors

Overview Potential Merits and Considerations

Targeted approachfocused on firmswith specific

interest in green

tech

Large pool of investors focused around greensecular trend

Ability to provide current and future financingas well as other resources (e.g., introductions)

Would likely seek significant economic orcontrolling interest

Large corporationswith products inHydromatics valuechain, e.g. trackrecord of supplyingmajor dryer OEMs

Adds credibility and could provide engineeringresources to perfect product(s)

More open to passive/minority interest

Could limit scope of opportunities, e.g. withcompetitors

Individuals andfamily offices withsignificant funds toinvest

Ability to provide current and future financing

Structure and terms could be more favorable

Potentially less value-added if no specificproduct angle or ties to sector

Loop Capital would consider the following types of potential investors

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Perspectives on Valuation

($ in millions)

Based on illustrative projections, potential investors could expect anownership stake in a range between 13%-22% and 34%-56% for a $2million or $5 million investment in Hydromatic respectively

2010 2011 High LowNet Revenue $2.5 $11.8 $25.0 $20.0

Margins 44% 40% 40% 40%

EBITDA $1.1 $4.7 $10.0 $8.0

Valuation Multiple 6.0x - 8.0x 6.0x - 8.0x

Enterprise Value $60 - $80 $48 - $64

Required Ownership to Achieve 40% IRR$2mm Investment 13%-18% 17%-22%

Implied Pre-Money Valuation $9 - $13 $7 - $10

$5mm Investment 34%-45% 42%-56%

Implied Pre-Money Valuation $6 - $10 $4 - $7

December 2014

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Illustrative Process Timeline

Preparation

Marketing

Investor Due

Diligence

Final Negotiations/Closing

Loop Capital due diligence

Build financial model

Prepare offering docs

Draft term sheet

Screen potential investors

Send teaserSend preliminary term sheet

Management presentations

Collect indicators of interest

Investor due diligence

Negotiate final terms

Close

November December January February

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Engaging Loop Capital Markets

Critical input on organizational structure and strategy

Industry and competitive analysis, i.e. identify sectortrends, outlook and potential opportunities/

implications for Hydromatic Evaluation/review of alternatives to provide

Hydromatics management and board with guidanceon key issues

Loop Capital is prepared to provide a full roster of investment bankingservices to Hydromatic

Strategic Advice

Financial Advice

Developing detailed financial models and valuationanalysis

Preparation of marketing materials, e.g. prospectus

and management presentation, and overseeing ofmarketing efforts

Screening and approaching potential investors

Structuring, negotiating and closing financing andother transactions

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