MARKET General Market Overview Market Segmentation Competitive Edge   MARKET The internal combustion engine has been a source of power for almost a century. During this time it has had a tremendous effect on the economic, social and environmental aspects of the world's population. It truly is an “economic engine”. There are millions of new internal combustion engines manufactured annually. The engines run automobiles, agricultural/construction equipment, marine, power generators, along with the transportation of people and cargo. There are over 200 million registered passenger vehicles, heavy duty trucks and buses in the United States and Canada alone. The majority of these are powered by an internal combustion engine, fuelled by gasoline, diesel, natural gas or LPG (liquid propane). The world demand for these fossil fuels continues to rise with North America still being the largest consumer. As there are increased concerns for the environment and the supplies of fossil fuel supplies continue to dwindle, demand for more efficient technologies that address these issues is increased. The Hydro Power Pak is just such a technology. It will help address the consumption of fossil fuels by increasing fuel economy. At the same time it will reduce harmful emissions as a by-product from the burning of fossil fuels in the combustion cycle, thus diminishing the impact on the environment. HyPower has identified numerous market areas but has focused its technology development on the stationary engine and the heavy duty highway semi truck market. Although at first glance this may appear to be a small market niche, it represents over 50 million engines. Due to new standards for emissions and the desire by industry to cut operating costs, sales of the Hydro Power Pak will produce significant revenues for the company. The market for automobile retrofit products is a function of perceived utilization and cost. The greater the cost benefits to the end-user (e.g. fuel economy) or the greater the perceived benefits (e.g. environmental protection), the greater the market acceptance. Perceived value for the majority of buyers will be in the form of cost savings by way of greater fuel economy. © 2006 HYPOWER FUEL, ALL RIGHTS RESERVED.