['(PRIDCO}', 'PINNACLE', 'RESEARCH', 'INSTITUTE', 'DEVELOPMENT', 'COMPANY,', 'Executive', 'Summary', 'Pinnacle', 'Research', 'Institute,', 'Inc.', '("PRI")', 'is', 'a', 'privately', 'held,', 'California', 'corporation', 'established', 'in', '1982', 'by', 'Or.', 'K.C.', 'Tsai', 'who,', 'as', 'an', 'international', 'ly', 'respected', 'scientist,', 'founded', 'the', 'Company', 'to', 'engage', 'in', 'the', 'business', 'of', 'commercially', 'exploiting', 'electrochemical', 'ly', 'based', 'technologies', 'and', 'products', 'evolving.', 'from', 'research', 'and', 'development', 'supported', 'internally', 'and', 'externalily:', 'on', 'a.', 'contractual', 'basis', 'for', 'Government', 'agencies,', 'universities', 'and', 'industrial', 'clients.', 'Qver', 'the', 'last', 'eight.', 'years,', 'PRI', 'has', 'had', 'remarkable', 'success', 'in', 'winning', 'DARPA', 'andi', 'other', 'Government', 'Agency', 'grants', 'for', 'development', 'off', 'unique', 'energy', 'storage', 'devices.', 'This', 'business', 'plan', 'describes', 'the', 'opportunities.', 'and', 'strategy', 'for', 'capitalizing!', 'on:', 'technological', 'breakthroughs', 'realized', 'by', 'PRI', '(assisted', 'with', '$3MM', 'sponsorship:', 'from', 'the', 'military.', 'complex):', 'in', 'developing:', 'a.', 'range', 'of', 'electronic', 'energy', 'storage', 'components', 'called', 'PRI', 'U1', 'tracapacitors.', 'PRI', 'Ultracapacitors', 'embody', 'greater', 'than', 'order', 'of', 'magnitude', 'improvements', 'in', 'both', 'power', 'densiity', 'and:', 'energy', 'density', 'compared', 'to', 'conventional:', 'capacitor', 'systems,', 'thus', 'permitting', 'important', 'miniaturization', 'possibilities.', 'The', 'proprietary', 'nature', 'of', 'the:', 'PRI', 'technology', 'is', 'such', 'that', 'basic', 'patents', 'and', 'numerous:', 'application', 'and', 'use:', 'patents.', 'will', 'result', 'along', 'with', 'a', 'wealth', 'of', 'trade', 'secrets', 'and', 'process', 'technology.', 'Assembly', 'of', 'the', 'devices:', 'is:', 'now', 'labor', 'intensive,', 'but', 'flexible', 'automated', 'manufacturing', 'technology', 'can', 'be', 'generated', 'and/or', 'adapted', 'which', 'will', 'significantly', 'lower', 'production', 'costs.', '&', 'substantial', 'business', 'can:', 'be', 'created', 'in', 'the', 'military/aerospace,', 'computer', 'and', 'peripherals,', 'telecommunications,', 'industrial', 'and', 'consumer', 'end-user', 'groups.', 'PRI', 'and', 'associates', 'plan', 'to', 'raise', '$3.0MM', 'through', 'either', 'convertible', 'debt', 'and/or', 'a', 'Private', 'Placement', 'of', 'Series', '"A"', 'Convertible', 'Preferred', 'Shares', 'representing', 'an', 'agreed', 'upon', 'interest', '(on', 'a', 'fully', 'diluted', 'basis)', 'in', 'a', 'newly', 'established', 'business', 'called', 'PRIDCO', '(name', 'derived', 'from', 'PRI', 'Development.', 'Company).', 'The', 'monies', 'will', 'be', 'used', 'to:', '"seed!', 'finance', 'the', 'initial', '18', 'months', 'activities', 'and', 'growth:', 'of', 'PRIDCO', 'which', 'will', 'receive', 'the', 'hecessary', 'intellectual', 'property', 'rights', 'from', 'PRI,', 'thus', 'enabling', 'PRIDCO', 'to:', 'become', 'the', 'holding,', 'and', 'parent', 'company', 'for', 'a', 'family', 'of', 'wholly', 'owned', 'daughter', 'subsidiaries', 'which', 'will', 'serve', 'as', 'operating', 'vehicles', 'for', 'exploiting', 'the', 'technology', 'and', 'products', 'on', 'a', 'field', 'of', 'use', 'basis.', 'In', 'addition,', 'PRIDCD', 'will', 'be', 'assigned', 'several', 'product', 'development', 'and', 'limited', 'supply', 'contracts,', 'negotiated', 'by', 'PRI.', 'as', 'preliminary’', 'agreements', 'anticipating', 'the', 'formation', 'of', 'strategic', 'alliances', 'with', 'noteworthy', 'commercial', 'clients.', 'A', 'Fortune', '15', 'client', 'with', 'an', 'Ultracapacitor', 'requirement', 'for', 'use', 'with', 'a', 'consumer', 'product', 'has', 'agreed', 'to', 'underwrite', 'the', 'cost', 'of', 'developing', 'volume', 'manufacturing', 'knowhow', 'and', 'capability.', 'Although', 'contingent', 'upon', 'PRI/PRIDCO', 'meeting', 'certain', 'technical', 'milestones,', 'the', 'needed', '(non-equity)', 'funds', 'could', 'be', 'contributed', 'through', 'a', 'four', 'phased!', 'program', 'which,', 'if', 'successful,', 'would', 'provide', 'the', 'client', 'exclusive', 'worldwide', 'market', 'rights', 'within', 'one', 'well-defined', 'field', 'of', 'use.', 'PRIDCO', 'would', 'retain', 'alll', 'manufacturing', 'rights.', 'Also,', 'several', 'develop-', 'ment', 'contracts', 'exceeding', '$7MM', 'value', 'are', 'in', 'the', 'pipelline', 'from', 'the', 'military', 'complex.', 'Ini', 'addition', 'to', 'manufacturing', 'technology', 'development,', 'these', 'are', 'tio', 'be', 'utilized', 'for', 'exploring.', 'future', 'generation', 'U]tracapaciitor', 'concepts', 'which', 'will', 'help', 'broaden', 'the', 'scope', 'of', 'intellectual', 'property', 'and', 'the', 'eventual’', 'product', 'mix.', 'beRSSTOZO”']