Technology Roadmap

Carter Group, Inc.’s (“CGI”) current technology roadmap includes:

• Linear Power Module (“LPM”)- Electronic Climate Controller for car and truck Heating, Ventilating and Air-Conditioning (“HVAC”) Systems
• Analog or Digital Solution (2001 – Present)
      Low volume – Analog – Discrete
      High volume – Digital - ASIC
• Temperature Power Modules - Manual Climate Controller for car and truck Heating, Ventilating and Air-Conditioning (HVAC) Systems – Enhanced Locked Rotor
• Resistor Card (service parts)

CGI has designed and developed these electronic modules as a replacement parts for manual temperature controls used in cars and trucks. General Motors (“GM”) Dealers sell old technology solutions for between US $28.00 and US $48.00 each (resistor cards). LPM’s are sold for US $96.00 to US $110.00. CGI’s first production LPM was January 2002. It filed its first patent a month prior.

CGI’s believes that the market is moving rapidly towards LPMs, and penetration rates are currently less than 25% of 15 Million annual sales of vehicles in North America. The combination of design, quality, IP, price point and MBE certification positions CGI as a viable contender in the North American for automotive aftermarket electronics.