CARMANAH TECHNOLOGIES CORPORATION

Growth Plan 2009-2011

Solar LED Lights$27.4 million

Solar Power Systems$27.3 million

Non-Solar LED Signs$4.2 million

2007 Revenues

Carmanah’s focus is on the commercial and industrial sectors

STRATEGIES FOR GROWTH

1. Restructure of distribution channels

2. Reduce costs through product development

Save costs in sales/administration while expanding customer base

GROWTH STRATEGY PART 1RESTRUCTURE DISTRIBUTION CHANNELS

Customer 1

Customer 3

Customer 2

Customer 1

Customer 3

Customer 2

Seller 1

Customer 4

Customer 6

Customer 5

Seller 2

PARTNER WITH POWER UTILITIES

• 80% of sales based in North America• Current high solar incentives and tax

breaks in US• Opportunity for grid-tie to leverage

sales in other business units• Increase grid-tie sales from $4 million

to $18 in 4 years

17% REDUCTION IN OPERATING EXPENSES

2007 2009 2011

Gross Profit $15.5 million $15.3 million

$27.0 million

- Sales and marketing

- $9.0 million -$7.4 million -$9.3 million

- General and admin

- $10.1 million -$5.5 million -$7.4 million

Total -$3.6 million $2.4 million $10.3 million

GROWTH STRATEGY PART 2REDUCE COSTS THROUGH PRODUCT

DEVELOPMENT

Thin-film PV panels

$1.09/watt

Mono-crystalline silicon PV Panels

$1.39/watt

USE THIN-FILM IN SOLAR POWER SYSTEMS

• New technology is cheaper and as efficient

• Creates new solar application potentials

• Higher margin through decreased COGS

Cost Reduction (21.5%)

Average Commercial Installation Size

Cost Savings per Commercial installation

$0.30 / watt 15,000 watts / project $4,500 / project

TACTICAL PLANS

• Short-term (2009)– Establish US utility partnerships– R&D for thin-film

• Mid-term (2010-2011)– Develop US and Canadian utility

partnerships– Apply thin-film in solar systems

• Long-term (post-2011)– Establish key international partnerships

KEY FIGURES AND INCENTIVES

• $6,500 per watt of installed capacity• 15 kW average grid-tie project size

• Renewable Portfolio Standard• Net Metering• Feed-In Tariffs• 30 % Federal Tax Incentive

IMPLEMENTATION 2009• Establish partnerships with 3 utilities

– 2 in California and 1 in New Jersey

• Access additional customers through utilities– 1.6 million commercial/industrial/municipal customers– 83 new projects $8.3 million

• Invest in R&D for thin-film solutions

Net loss = $2.7 million

IMPLEMENTATION 2010• Establish partnerships with 2 utilities

– 1 in Pennsylvania and 1 in Colorado– 275,000 commercial/industrial/municipal

customers– 15 new projects $1.5 million

• Continue in California and New Jersey– 113 new projects $11.3 million

• Introduce new thin-film solutions to market

Net profit = $3.7 million

IMPLEMENTATION 2011• Establish partnerships with Canadian

utilities in Ontario, Quebec, and B.C.– Leverage success in U.S.– 41 new projects $4.1 million

• Continue in 4 previously mentioned states– 185 new projects $18.5 million

Net profit = $6.9 million

IMPLEMENTATION SUMMARY

396 new projects from American utilities

$39.6 million + 41 new projects from Canadian utilities

4.1 million Total new projects

$43.7 million

SUMMARY

In 3 years:• Revenues increased by $33.7 million

(57%)• Gross margin increased by 3%• Operating expenses decreased by

17%• Cumulative net income $7.8 million