Formerly Alchemy Enterprises Ltd.

Industry: Alternative Energy

Corporate Overview

Ecotality, Inc. (OTCBB: ETLY)
is an alternative energy company that is developing a new electric power cell technology, which they anticipate will generate and manage electricity to power a broad range of applications, from automobiles to large commercial vehicles to alternative power supply stations for homes.

Working in partnership with NASA’s Jet Propulsion Laboratories and the California Institute of Technology, the patent-pending electric power cell technology and intellectual property rights recently acquired by Ecotality, have the potential to offer individuals, industries and countries worldwide a far superior alternative than current technologies for clean, environmentally friendly, re-usable sources for electric power and fuel.

Remarkably, this unique technology is being developed to allow the electric power cell to provide power levels comparable to gasoline engines with greater performance reliability and comparable driving range distances. Additionally, the technology may enable the consumer to power their vehicles at much lower costs than existing gasoline prices.

Further, the Power Cell recycling process produces no waste or exhaust release from the vehicle or the recycling service stations. The Power Cell "system" also provides for long term storage of electrical power for on-demand use and has an approximate shelf life of 10 years, far surpassing any other energy storage system known.

Indeed, the Ecotality Electric Power Cell Technology promises to be the breakthrough technology that many industries and major corporations have been waiting for.

Click the latest analyst research on Ecotality, Inc. (icon above)... to view the 28-page report issued by Wasserman Morris & Company on Nov. 20, 2006.

As announced on Oct. 10, 2006 -- Ecotality has now completed a $12 million equity funding through Brookstreet Securities to further develop expanded research efforts while insuring the first public demonstration of their protoype unit in early 2007.

Since many investors seek outside sources to confirm significant developments, perhaps the following quote will further your own desire for credible and timely due diligence.

10/10/06 -- Neil Dabney, M&A Director for Brookstreet Securities Corp., states:

"Our investors are excited about the prospects for Ecotality's technology platform. This placement will continue to fund Ecotality's research and development partnership with NASA's Jet Propulsion Lab and keep the company on track for deploying its first prototype Electric Power Cell unit in a hybrid bus during the first quarter of 2007."

Artist's rendering for Ecotality's highly anticipated working prototype (schedualed for public debut during first quarter of 2007), which has been specifically tailored for use in transit buses.

On June 12, 2006, Ecotality, Inc. entered into a License Agreement with California Institute of Technology (“CalTech”), which operates the Jet Propulsion Laboratory (“JPL”), a federally-funded research and development center for the National Aeronautics and Space Administration (“NASA”), whereby they acquired certain exclusive licensed patent and/or patent applications rights and improvement patent rights related to research performed under the JPL Task Plan entitled “Mechanically-Fed Metal-Air Fuel Cell As A High Energy Power Source” (“Task Plan”), as well as a nonexclusive licensed technology rights developed as a result of the Task Plan.

As consideration for the License Agreement, the company issued 5,869,565 shares of ETLY common stock to CalTech with a fair market value of $1.40 per share, for an aggregate value of $8,217,391. Additionally, Ecotality is obligated to pay an annual maintenance fee of $50,000 to CalTech, beginning in June of 2009. The License Agreement carries a perpetual term, subject to default, infringement, expiration, revocation or unenforceability of the License Agreement and the licenses granted.

These exclusive worldwide rights, and subsequent technologies and other rights, also include, the Fuel Cell Power System with Advanced Hydrogen Storage technology.

It is significant to note, under this agreement CalTech has taken on the responsibility to prepare, file, prosecute and maintain all patent applications and patents within the exclusively Licensed Patent Rights and the Improvement Patent Rights related to the Power Cell Technologies.

The Ecotality Electric Vehicle system is made up of several elements. First is the electric power storage facility that stores the material for re-fueling purposes. Another system element is the Electric Power Cell Technology, which is a fuelable battery that can be refueled again and again... just like fossil fuel cars, trucks and buses receiving gasoline.

Refueling a vehicle using Ecotality's system is accomplished through a single hose assembly. This assembly incorporates intake capability for the removal of spent electric fuel, while at the same time filling the vehicle's electric fuel tank with new fuel. To the consumer this will be as simple as fueling their own vehicle as is the standard today.

The electric power and storage refueling station is supplied with an initial electric fuel load. As this fuel load is distributed, the waste loads are recovered and reprocessed into fuel ready material by electricity supplied from the power grid. The principal fuel supply for the refueling station is electrical power supplied from an electric power grid.

Material losses are made up by occasional re-supply of the refueling station. Normal operation will result in the virtual elimination of materials re-supply. The only continuous and normal supply element is electrical power.

Ecotality will create the operating systems and license those applications to hardware manufacturers. The technology can be scaled to suit a myriad of industries and uses.

The initial application of the technology is being designed for implementation in the public transportation sector. Concurrent with the widespread use in buses and fleet delivery vans, the technology will be licensed for application in cars -- by far the largest single market application for their technology.

The first working prototype being developed with NASA's Jet Propulsion Laboratories, is being specifically tailored for implementation in transit vehicles manufactured by leader(s) in the production of electric drive systems for buses.

The company expects to unveil a working prototype within the first quarter of 2007, and begin early stage implementation shortly thereafter. Again, once the initial bench model and bus system is completed, Ecotality will commence extensive marketing efforts geared toward the public transportation sector.

Critical Testing Results Keep Debut On Schedule

As announced on August 16, 2006 -- Ecotality, Inc. (OTCBB: ETLY) has successfully operated the prototype Electric Power Cell (EPC) integrated with a hydrogen fuel cell for the first time.

During the testing experiment, the EPC was connected to and powered a series of 115-volt apparatus. The tests were significant in that it was the first time that the EPC had been connected to existing hydrogen fuel cell technology and produced ongoing electricity. The tests took place at the Jet Propulsion Laboratories in Pasadena, CA with ongoing data analysis harnessed over a 2-week period.

This test represents a huge step forward and validates "proof of concept" by way of the company's prototype model. Ecotality's Electric Power Cell, using magnesium, produced continuous 115v power. From this recent test, their technology is no longer considered a theory. It is now an established fact. With this and the corresponding test results successfully completed, the company has now begun their full scale design and build of their 100KW system.

Most impressively, this prototype EPC generated well over twice the hydrogen flow required for the tests. The test lasted approximately one hour and produced the required electrical load, as mandated by the test. Subsequent testing will have modified controls more accurately regulating the materials flow thereby regulating hydrogen flows for specific “on demand” characteristics. Water and Magnesium utilization profiles have been improved significantly as well, due to ongoing design improvements.

The EPC uses the safe, non-toxic and readily available magnesium as its “fuel material,” eliminating the need for highly compressed tanks of the volatile hydrogen, and produces hydrogen on demand.

Conclusion

Ecotality’s unique patent pending Electric Power Cell is a self-contained system that produces on-demand electricity. The material that is spent can be recycled to achieve safe, clean, reusable power.

The Electric Power Cell is also capable of powering a vehicle up to 500 miles before re-fueling. The performance of a power cell operated vehicle will beat the performance of the conventional gasoline powered vehicle. The cost of operating a vehicle with Ecotality’s Electric Power Cell should allow for the first all electric power system.

The power cell is not plagued with the performance limitations associated with conventional battery technologies in use today. The cost of producing the material for the power cell is lower than the cost of gasoline fuel, and the over all cost can be amortized to an even lower cost because the material is able to be re-used over and over again.

Once again, the power cell is also ideal for on-demand or emergency situations that require long-term electrical storage since it has a shelf life expectancy of approximately ten (10) years, far exceeding any other energy storage system currently known.

• Ecotality, Inc. (ETLY) has entered into a development and license agreement with Jet Propulsion Laboratories (JPL) to assist in the commercial development of their electric power cell. JPL has been a key innovator in a host of power systems including the Mars Lander.                                 

• The electric power cell is expected to offer significant advantages over traditional fossil fuel technology and is expected to be less expensive to use, non-polluting and safer for the vehicle operator and passengers.

• The electric power cell is expected to be superior to conventional battery power. Continuous electrical power from a typical battery is not possible due to surface degradation. Ecotality's electric power cell is expected to overcome the time-consuming recharging and limited performance associated with battery-powered electric vehicles.
  

• The electric power cell should also be superior to hybrid electric/gasoline engines. The hybrid engine is still dependent on fossil fuel as its primary energy source and is prone to the same disadvantages, including expense of operation and pollution, as are traditional internal combustion engines.
  

• A large and diverse global marketplace is expected to provide many targeted revenue opportunities. Clean Edge Consulting, a research and strategy firm for emerging clean energy markets, estimates that the market for clean and reliable on-site energy, including renewable sources and fuel cells, could grow to more than $100 billion globally by 2014, from an estimated $16 billion in 2004.
  

• ETLY has strong management and an industry-related experienced executive team and board of directors. Further, their executive officers have significant experience in technology development and in the management and growth of development stage companies.
  

• The Company has recently been well-funded with over $10 million to further ongoing research and development with the first prototype demonstration expected by early 2007.

• JPL/CalTech own approximately 8% of ETLY common stock as of June '06.

Jonathan R. Read, President and CEO

Mr. Read is an experienced brand manager, international developer, and international licensor. He began his professional career in 1976 as a Regional Manager of Specialty Restaurant Corporation, CA, operating a theme dinner house throughout California. He then became Managing Director for a group of international Companies based in Malaysia, Indonesia and Singapore ranging from hospitality interest to manufacturing and real estate. From 1984 he was the Chairman and CEO of Shakey’s International a worldwide restaurant chain with operations in the U.S., Southeast Asia, Japan, South America, Mexico, Europe and the Caribbean, which he sold in 1989. From 1986 to 2003, In 1986 Mr. Read founded Park Plaza International (Park Inn International/ Park Plaza Worldwide) and served as Chairman and CEO from 1986 to 2003. He expanded Park Plaza from 4 hotels into a global hotel group. He built, owned, operated, managed, and franchised hotels across the U.S as well as in: England, France, Germany, Switzerland, Holland, Belgium, Hungary, Austria, Ireland, Scotland, Spain, Poland, South Africa, Australia, New Zealand, Malaysia, Indonesia, Hong Kong, Philippines, New Guinea, Vietnam, Japan, Tahiti, Israel, Palestine, Saudi Arabia, Dubai, Lebanon, Jordan, Mexico, Costa Rica, and Brazil. Mr. Read sold the companies to Carlson Hospitality and Golden Wall Investments in 2003.

Howard A. Foote, Chief Technology Officer

In 1994, Mr. Foote enlisted in The United States Marine Corp., and served as a jet mechanic and plane captain for A-6E Intruders. Mr. Foote is qualified as a pilot in 25 different types of aircraft, including Russian military fighter aircraft and RAF military aircraft as well. From 1989 - 1992, Mr. Foote was privately educated by the world leading Aeronautical Engineering Professor, Svenn Ridder of the Swedish Institute of Technology. It was here where Mr. Foote worked on an advanced flying wing design in Swedish wind-tunnel facilities, to successfully design an advanced flying wing configuration vehicle; the vehicle used Microwave Power Transmissions to power the aircraft instead of conventional fuel. Mr. Foote received a patent for this unique aircraft design. The configuration is considered state-of-the-art, even after 12 years since test completion. He has been contracting with Jet Propulsion Laboratories-NASA since 1991. Mr. Foote holds many patents for advanced aircraft design, complex systems architecture, orbital power stations, and electric fuel cell technology. Mr. Foote has become one of the most progressive aeronautical engineers today.

Elliott Winfield, Executive Director - Worldwide Business Development

Mr. Winfield started his professional career in 1970, earning a Bachelor of Science Degree in Industrial Design, and Masters Degree program in multimedia design. Since then, his professional career grew into entrepreneurship in a diversity of industries worldwide. Mr. Winfield has owned and operated companies including fine art gallery, professional placement agency, medical security company, publishing company, Internet development companies, Mortgage Company, and automobile brokerage. Mr. Winfield has lived in Europe , and as a strategic business development expert, has negotiated large international transactions. He has experience in international banking, corporate structuring, mergers and acquisitions, manufacturing, financing, and application of new technologies. Mr. Winfield will use his efforts to bring new energy solutions and advanced technologies to the power and transportation industries, and to facilitate the successful corporate growth, and world positioning of the Earth Energy Industries group of companies.

James Gaspard II, Executive Director - Commercial Transportation Industries

James Gaspard II has a JD and a MBA from the University of Texas in Austin. He also has a Bachelor of Science degree in Political Science from Texas A & M - Commerce. Mr. Gaspard is a licensed Attorney. He has interned for Chief Justice Thomas Phillips and Justice Raul Gonzalez of the Texas Supreme Court, and was Editor-in-Chief of Texas Journal of Business Law. Mr. Gaspard is the founder of Leading Edge Transport Systems, LLC, a company that is currently active in introducing new transportation technologies into the North American transportation marketplace. Other transportation industry experience includes past roles as the Vice President Transportation Sales for Air Serv Corporation where he presented over $200 million of strategic opportunities, Vice President Sales & Marketing for Champion Bus, Inc. and Vice President of Sales for Neoplan USA Corporation, where he built up a backlog of orders exceeding $800 million. Mr. Gaspard currently serves on the Board of Directors of Trailways Transportation System, Inc.. Mr. Gaspard is an expert, public speaker, and published author on the subjects of a new intermodal transportation system with vehicles that combine passengers and freight, creating new paradigms in the transportation and commercial trucking industries. As an inventor, Mr. Gaspard invented the Intermodal Expeditor, a vehicle designed to transport both passengers and standard intermodal freight containers and "Dynamic Scheduling", a business process patent.

Dr. Jerry Y.S. Lin, Board Director & Technology Committee Chairman

Dr. Lin is a professor and Department Chair of Chemical Engineering at the Arizona State University in Tempe, Arizona. Dr. Lin received B.S. from Zhejiang University in China, and M.S. and PhD from Worcester Polytechnic Institute in the U.S., all in chemical engineering. He was a post-doctoral staff member at the University of Twente in the Netherlands. Dr. Lin joined the faculty of the University of Cincinnati in 1991, where he was a professor of chemical engineering and co-director of the NSF Center for Membrane Applied Science and Technology until coming to ASU in January, 2005. He is an expert in inorganic membranes, solid oxide fuel cells, adsorption and catalysis. Dr. Lin has over 150 referred journal publications and holds 3 patents. His papers have received over 2100 SCI citations. Dr. Lin has given 100 invited lectures in academia and industry around the world. Dr. Lin has received numerous international professional and academic awards. He has also headed many research programs funded by such agencies as the U.S Department of Energy and Department of Defense and private sector companies such as Amoco, BP, Exxon, Honda and the Petroleum Research Board. He is on the Board of Directors of the North American Membrane Society and editorial boards of several journals. Dr. Lin is the conference chairman of the 8th International Conference on Inorganic Membranes (ICIM8).

Heritage First Capital & Equity Research Group (HFC), based upon information supplied by sources believed to be reliable, herein prepared all material. The information contained herein is not guaranteed by HFC to be accurate, and should not be considered to be all-inclusive. The company that is discussed in this opinion has not approved the statements made in this opinion. This opinion contains forward-looking statements that involve risks and uncertainties. A company's actual results could differ materially from those described in any forward-looking statements or announcements discussed herein. This material is for informational purposes only and should not be construed as an offer or solicitation of an offer to buy or sell securities. HFC is not a licensed broker, broker dealer, market marker, investment banker, investment advisor, analyst or underwriter. Please consult a broker before purchasing or selling any securities viewed on www.triplecrownstocks.com. HFC has been paid a fee of twenty-five thousand dollars for coverage and/or distribution on TripleCrownStocks.com, the Smallcap Brief newsletter, HFC Research Group's "Market Notice" press releases and Triple Crown Stocks.com emailing programs by Pilot Financial Communications Group on behalf of Ecotality, Inc. HFC's affiliates, managers, directors and employees may have bought or may buy the shares discussed in this opinion and may profit in the event those shares rise in value. HFC will not advise as to when it decides to sell and does not and will not offer any opinion as to when others should sell; each investor must make that decision based on their judgment of the market.