Ambient Corporation John Joyce, CEO September 1, United Powerline Association Implementation of Smart Grid

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1 United Powerline Association Implementation of Smart Grid Ambient Corporation John Joyce, CEO September 1, 2009

2 Agenda - Implementation of a Smart Grid Introduction to Ambient Case Study Lessons Learned Implementation of a smart grid moving forward Questions & Answers

3 About Ambient Designing and deploying utility communication platforms since 1999 IPO in 1998 (OTCBB:ABTG) 22 Patents Customers include two of the largest investor owned utilities in the U.S. 275% compound annual revenue growth over the last three years Headquartered in Newton, MA Ambient is delivering today the core communications, monitoring and sensing technology vital for the utility to know, locate and manage the power demands on the electrical distribution grid.

4 Ambient s BPL History Ambient enters into material agreement with DS Ambient deploys BPL trial with Consolidated Edison First Avenue Steam Tunnel in Manhattan - Founding member of UPA Princeton House MDU Ambient Announces the FCC Certified X2 - Communication Node Integrated BPL and WiFi 2007 Ambient begins to validate other Communications Tech.

5 Ambient Case Study Large IOU Initial test phase: 8 X-nodes Lab testing & proof of concept Initial Pilot Agreement: 122 X-nodes Small scale field trial & proof of concept Commercial Deployment Agreement: 1,318 X-node Pilot sized trial & proof of concept Commercial Deployment Agreement: 9,000 X-2000 nodes Pilot size trial of new communications node, the X Additional Purchase Order for 2,000 X-3000 nodes. - ARRA funding application for first large scale deployment

6 Overhead Coupler Underground Coupler Overhead Node X-node Architecture Poll-top Node X-3000 Architecture

7 What Happened in 2007? Utilities began to migrate from broadband interest, to smart grid interest: 2007 Energy Independence and Security Act Today s smart grid apps do not require broadband connectivity to the home BPL stagnated politically: Lack of standards Lack of focus on access BPL IEEE process BPL functionally under delivered in the access market: Noisy access environment reduced throughput + speed, increasing costs Changing conditions of access powerlines constantly challenged system performance Challenge of limited reliable asset maps.

8 Lessons Learned Technology will be vetted hurry up and wait Utilities need a technology that will not be obsolete in years Obsolescence is defined by utility needs, which are not yet known No single solution will meet all of the utilities needs Megaurban v. Rural population density -Affects communications technology -Affects end applications Open Standards and Interoperability are key Utilities have different demands, thus different technology needs -Flexible platforms can conform to the utility Elimination of technology/communication silos -Reduces / spreads-out infrastructure costs

9 Smart Grid and Smart Grid Drivers Consumer Empowerment General use reduction Prius effect Peak use reduction price signals Operational Efficiency Remote meter reading /control Outage management Advanced preventative management Energy Efficiencies Reduce the use of peaker plants Defer construction of new generation Reduction of line loss Reliability Reduced frequency / time of outages Better power quality Facilitation of Renewable Integration of renewable energy Distributed generation / microgrids All of the above require two-way, digital communications on the distribution networks between the utility and enabling devices 9

10 How do PLC/BPL support the smart grid? Smart grid must be: Expandable or Modular Interchangeable (end technology) High Bandwidth Sufficient for today and tomorrow Low-latency Reliable Secure PLC/BPL can meet these requirements as part of a hybrid system No silver Bullet Silver Buckshot

11 There is a need to create greater investment in energy efficiency as a "5th Fuel" (in addition to coal, nuclear, gas and renewables) to meet demand, which is expected to increase 40% by 2030 Energy efficiency means twoway, digital communications on the distribution networks, which is the backbone of the utility of the future. - James Rogers, Duke Chairman, President & CEO National Electricity Delivery Forum, February 21, 2007

12 Thank You!

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