Energy crises have become a serious problem around the world. It will continue to worsen as antiquated and inadequate infrastructure fails to meet rapidly growing demand due to population growth and industrialization. The power industry has always been aware of the inferiority of AC technology, but the shift to DC was not possible due to the absence of necessary supporting technologies. This situation has changed, and is continuing to improve. Advanced electronic and computer technologies are now making the shift to DC possible.

We have witnessed the paradigm shift from vacuum tubes to transistors and from analogue to digital technology during our lifetime. Our lives have forever changed because of these remarkable developments. We will soon begin witnessing another paradigm shift - from AC to DC. Æon Corporation has not only the vision, but also the capability and readiness to accelerate the process.

As a business, Æon Corporation constitutes an ideal investment. The Company is debt-free. It alone possesses the technologies and know-how to capitalize on this DC movement. Æon Corporation believes it has no significant competition in this field. The market is unlimited, the demand is great, the products are proven, and the customers are waiting.

U.S. MARKET SIZE AND POTENTIAL

There are approximately five million commercial and government facilities in the United States, and approximately 100 million residences. The market penetration to date for controls and automation is negligible. Conversion to better and more efficient lighting is in the early stages, and use of new heating, refrigeration, air conditioning and motor technologies is almost nonexistent. Fuel cells, while proven in space for decades, have not been available and solar and wind generation have not yet made a major impact.

Table 1 - U.S. COMMERCIAL BUILDING MARKET
Total Buildings 4,806,000 Building Floor Space (Sq. Ft.)
Government 599,000 1,000-5,000 2,681,000
Non-government 4,207,000 10,000-25,000 975,000
25,000-50,000 280,000
Owner-Occupied 3,192,000 50,000-100,000 116,000
Single establishment 2,864,000 100,000-200,000 71,000
Multiple establishment 328,000 Over 200,000 35,000
Principal Building Activity
Education 301,000 Parking Garage 24,000
Food Sales 130,000 Public Assembly 278,000
Food Service 260,000 Public Order/Safety 60,000
Healthcare 63,000 Public Worship 366,000
Lodging 154,000 Warehouse/Storage 761,000
Retail & Services 1,272,000 Other 69,000
Office 749,000 Vacant 319,000

The retail sector is a huge and ready market for energy cost reduction. In the supermarket industry, the savings potential of energy alone can literally double the profit of a store. There are over 22,000 convenience store/service stations operated by the top 34 chains, with new units being built at the rate of 800-900 per year and renovation/retrofits carried out at an even higher pace. In the government sector, the U.S. Postal Service is projected to build 100 new 35,000-sq. ft. buildings per year and retrofit a like amount.

Public schools have always been a strong market for the Company’s first-generation emergency products, and with the added capability to reduce energy and maintenance costs, offers great potential for future business. New York City alone has over 1300 school facilities for which the Company’s products have been specified.

The Company has a fully developed product line and ready-made market as well as active customers waiting for it to resume production and delivery of products today. These products have been successfully tested and used by many satisfied customer

The following are current customers:
Cub Food, Minneapolis, Division of Supervalu
New York City Board of Education
NASA - Stennis Space Center
Schools
Humana Hospitals
California Department of Corrections
Many others		 The following are near-term major potential customers:
Wal-Mart Stores
Burger King
Walgreen Drug
HEB Supermarkets
Tidel Technologies
Supervalu Supermarkets
Public Utilities
U.S. Postal Service
New York City School Construction Authority