TRANSITION

MPI is in the process of growing from an R&D operation into a global manufacturing company which will make its technology breakthroughs available to the world through Joint Ventures, product manufacturing, acquisitions and licensing. MPI will develop core manufacturing, headquarter facilities, warehousing, expanded R&D, sales, marketing and distribution facilities sufficient to serve a rapidly growing global market.

THE PROBLEMS:

The World’s Huge Appetite for Energy

 

Energy consumption is at the core of human existence. It is crucial to agriculture, indoor climate control, transportation, defense, manufacturing, communication, medicine, computing, high technology, entertainment, and space travel.

Developed nations such as the United States, Japan, and Western Europe consume energy at the highest per-capita rates on the planet. Eying this model, China, India and other developing countries show a similar taste for energy intensive lifestyles. The world’s demand for energy is surging, with no end in sight. Seventy five percent of China’s economy is fuelled by coal with catastrophic effect. This problem is compounded by new coal fired power stations coming online each new week.

The International Energy Outlook 2006, published by the U.S. Department of Energy, forecasts electricity use will grow by an average of 2 percent per year worldwide and 3.7 percent per year in the developing world. Robust economic growth in many developing nations is expected to boost demand for electricity to run newly purchased home appliances for air conditioning, cooking, space and water heating, and refrigeration. Global energy consumption is projected to increase by 71% from 2003 to 2030, growing from 421 quadrillion British thermal units (Btu) in 2003 to 722 quadrillion Btu in 2030.

OUR FOSSIL FUEL WORLD NOW

The world is in crises because of the current global dependence on fossil fuels for energy. Global warming, food shortages, rising fuel costs causing bankruptcies, and possible economic crisis, 75% of China’s energy growth fueled by coal, geopolitical hostilities, energy scarcity - all of this is placing humanity itself at risk. The vast majority of world scientists agree the window is short to prevent disaster. We may have only 8 to 10 years - as top NASA scientist James Hansen warned on June 24th, 2008, in a US Congressional Hearing, “We’re toast” if we don’t make major environment changes quickly.

Alternative energy sources range from Solar, Wind, Tides, Biofuels, Batteries, Geothermal, and Hydrogen Fuel Cells. While these will help, these solutions pose their own inordinate problems. Biofuels won’t be sufficient nor truly offset a carbon footprint. Some alternatives exacerbate food shortages. Existing green alternative energy sources cannot replace transport fuels.

The need has never been greater, the time has never been shorter, to rapidly implement breakthrough energy systems. MPI’s solutions can be implemented beginning with Self-Powered Magnetic Systems.

Environmental Consequences for “Business as Usual”

The burning of fossil fuels is believed by most scientists and world leaders to be a primary cause of global warming – triggering huge storm losses and potential environmental catastrophes.  Hurricanes such as Katrina and Ike may be early examples.

Carbon dioxide emissions from the burning of fossil fuels are projected to rise from 25 billion metric tons in 2003 to 33.7 billion metric tons in 2015. Developing countries account for most of the projected rise because of large increases in those regions’ energy use and continuing reliance on coal, gas and oil.

Dr. Rajendra Pachauri, Chairman of the official Intergovernmental Panel on Climate Change (IPCC), told an international conference attended by 114 governments in Mauritius in January 2005 that he personally believes that the world has "already reached the level of dangerous concentrations of carbon dioxide in the atmosphere" and called for immediate and "very deep" cuts in the pollution if humanity is to "survive." (Independent/UK, January 23, 2005).

 

A study published in the journal Nature in January 2005 concludes that global warming might be twice as catastrophic as previously thought. The study used the computing capacity of 95,000 computers in 150 countries to predict what would happen if carbon dioxide in the atmosphere were double that of the 18^th century (before the Industrial Revolution) – predicted for the end of this century.

The study found that:

“Globally, average temperatures could reach 11C (19.8F) greater than today, double the rise predicted by the Intergovernmental Panel on Climate Change, the international body set up to investigate global warming. Such high temperatures would melt most of the polar icecaps and mountain glaciers, raising sea levels by more than 20ft.” This would flood New York, Miami, London and Tokyo, as well as many other major cities and low lying countries.

David Stainforth of Oxford University, the chief scientist of the study, comments: “It is possible 

that even present levels of greenhouse gases maintained for long periods may lead to 

dangerous climate change . . . When you start to look at these temperatures, I get very worried 

indeed." More recent Reports under the auspices of the United Nations underline the urgency. 

The latest of the three suggests that a very substantial reduction in fossil fuel use must take 

place in the next eight years. 

 

Severe consequences are already being felt. Scientists have long predicted the warming of the Earth's atmosphere by increasing greenhouse gases would spawn extreme storms. Hurricane Ike may be the most recent example.

 

In October 2003, a group of scientists from the World Health Organization (WHO) and the London School of Hygiene and Tropical Medicine published research concluding that about 160,000 people die every year from side-effects of global warming ranging from malaria to malnutrition – and the numbers could almost double by 2020. Another recent study (http://cta.policy.net/dirtypower/docs/dirtyAir.pdf) found toxic pollution, rising rates of asthma, cancers and nearly 24,000 deaths in the United States result from power plant pollution alone each year.

 A Worst Case Scenario?  John Atcheson, a Department of Energy geologist, issued the most ominous alert in an article entitled Ticking Time Bomb – A Growing Threat To Life On Earth (Baltimore Sun, December, 2004). Atcheson postulates that global warming could trigger the release of large amounts of methane trapped in Arctic ices and the permafrost. Methane is a greenhouse gas 20 times stronger than carbon dioxide. Once started, Atcheson suggests that such a release of methane could cause an uncontrollable and irreversible chain reaction leading to a mass extinction of life on earth – an extinction rivaling those that appear to have taken place twice before, 55 million and 251 million years ago. Within the last five years the surface permafrost in an area in Siberia, the size of France and Germany combined, has started to melt for the first time since the last ice age, 11,000 years ago.  One estimate suggests that all mammalian life could be snuffed out in the arctic in as little as 15-25 years.  Worst case, the Oxford study indicates many human lives could be extinguished on earth about 2050.  According to one well informed individual, the correct date may prove to be even earlier.

“In some areas, it took more than 100 million years for ecosystems to reach their former healthy diversity… If we trigger this runaway release of methane, there's no turning back. No do-over. Once it starts, it's likely to play out all the way.”  Myles Allen of Oxford University captures the essence of the situation in one sentence: "The danger zone is not something we're going to reach in the middle of the century; we're in it now."

SOLUTIONS

Magnetic Power Modules™: Fuel free power generation featuring conversion of a never before commercialized, abundant, renewable, source of energy. Both mechanical and solid-state variations will produce inexpensive electricity.

One example was evaluated by Lee Felsenstein, EE, who felt it warranted comparison with the invention of the transistor, which earned a Nobel Prize and created Silicon Valley.

This technology promises to power homes and vehicles. It will eventually replace batteries of every variety. It has the potential to turn cars into power plants when parked. The vehicles will have the capability of selling power to the local utility and thereby paying for themselves. Automotive manufacturers will have huge new markets and the economy an enormous stimulus.

Modules can also be aggregated to provide large amounts of electricity in a manner analogous to solar photovoltaic installations – except that no sunlight, or exposure to the environment, is needed. Magnetic Power Modules will operate nonstop, 24 hours per day, 365 days each year.

Energy Independence

Based upon proprietary discoveries and a series of prototypes constructed in MPI’s labs, motors and generators are being designed that operate continuously, without fuel, extracting electricity by converting an abundant, renewable, extremely dense, energy source that has never before been commercialized.

The process will create no pollution. Variations will provide a permanent power supply that can recharge, and eventually replace, the need for batteries of all sizes.

The cost of electricity from these technologies promises to be less than any competing form of power generation. The firm is also evaluating complementary energy conversion systems. These technologies are expected to give electric cars unlimited range, as well as turn future cars, trucks and buses into power plants. When appropriately parked.

These technologies will be scaled to a wide range of applications. These include the relatively small power needs of consumer devices.  Production can be achieved worldwide.

A Sample Range of Applications

Application	Output
Consumer devices - cell phones, laptop computers, etc.	A few watts
Portable and emergency generators	1kW (Kilowatt)
Homes	4 or more kW
Automotive Vehicle propulsion	50 kW and more
Maritime propulsion	500 kW and more
Aerospace industry and central power plants	1 mW (Megawatt and more)

 

Magnetic prototypes first exceeded breakeven, i.e. produced more output than input, in late 2004. A breakthrough proof-of-concept of one of three families of Magnetic Power Modules™ was evaluated by Lee Felsenstein, EE (see brief bio on the MPI website). He stated it was analogous to the early work on the transistor, which eventually led to a Nobel Prize and the creation of Silicon Valley. Patent applications are pending.

With future cars, trucks and buses, able to become power plants when parked, the commercial potential of these technologies is huge, with applications throughout the enormous worldwide market for energy, as well as a reinvigorated automotive industry. The Company forecasts rapidly growing revenues and profits.

As we establish the commercial viability of these revolutionary energy conversion systems, MPI has established a plan to implement a global partnering, patenting and licensing strategy. This is designed to catalyze worldwide adoption of the technology. The strategy maximizes chances of ongoing success by:

1)    generating early contract revenues and investment through key strategic alliances;

2)    protecting MPI’s proprietary technology with a formidable patent portfolio;

3)    building a foundation to support worldwide market adoption of MPI technology.

 

Scientists have long been aware the earth is immersed in an extremely dense sea of energy that permeates every nook and cranny of the universe.  For many years, only visionaries like Nikola Tesla recognized this huge reservoir could be a source of usable energy. Tesla, the genius who gave birth to alternating current, said in a talk to electrical engineers in 1891:  "Ere many generations pass, our machinery will be driven by a power obtainable at any point in the universe. …Throughout space there is energy.”   A growing number of scientists and engineers consider it possible to tap this universally available energy to generate electricity and mechanical power.

MPI engineers have determined that our experiments lead directly to practical, cost-effective, technology. The question of where this energy comes from may be debated for some years. It may eventually be agreed by scientists to be the quantum vacuum, also known as the Zero Point Field. A recent U.S. Patent, No. 7,379,286, not directly connected to the work of MPI, is entitled: Quantum Vacuum Energy Extraction. It provides a comprehensive discussion of the Zero Point Field. The Abstract states: “A system is disclosed for converting energy from the electromagnetic quantum vacuum available at any point in the universe to usable energy in the form of heat, electricity, mechanical energy or other forms of power. …This process is also consistent with the conservation of energy in that all usable energy does come at the expense of the energy content of the electromagnetic quantum vacuum. …The disclosed devices are scalable in size and energy output for applications ranging from replacements for small batteries to power plant sized generators of electricity.”

MPI’s proprietary technology extracts electricity and torque by means of unique inventions. Nobel physicist Werner Heisenberg once said: “We could utilize magnetism as an energy source”.

A self-powered magnetic device was built by Wesley Gary in 1874 and shown to Harvard and MIT professors.  Hans Coler, a German inventor, demonstrated a working 6 Kilowatt, solid-state, magnetic "space energy receiver” in 1937. At the time, there was no comprehension as to the source of the energy. Coler wrote: “These fundamental researches…have made the first real and large breach in the citadel of present scientific belief.”

MPI has an outstanding team developing pre-commercial magnetic generators. These lead to the development of Magnetic Power Modules, as well as magnetic Demonstration Devices and toys. Magnetic modules can be combined for greater power, in a manner analogous to solar cells.

This work heralds the beginning of a profound transition in the global economy and the quality of life on earth. Great numbers of new jobs will emerge. Energy independence is likely to be realized by all countries, large and small, rich and poor. Reversing the rising prices of gas and oil, as well as reducing air pollution -- and slowing what is becoming extremely dangerous global warming, is inherent in the achievement. MPI management believes these are likely to be near-term events. 

A Brief History of MPI

In recent decades, the search for clean, commercially viable sources of energy has been the goal of many inventors, scientists and visionaries, including MPI founder and Chairman, Mark Goldes. In 1984, a magnetic system that seemed promising came to his attention. MPI began that year. The firm was incorporated in 1987, to acquire and commercialize breakthrough technologies for electricity generation and distribution. MPI engineers and scientists have closely scrutinized many technologies and devices claiming such advances. From the hundreds examined in this rigorous process, only two have so far survived to become key technologies: Magnetic Power Modules, briefly described above, and quasi-one dimensional materials the Company calls Ultraconductors^TM. The latter lead to products being developed by an MPI subsidiary called RTS (Room Temperature Superconductors, Inc.). RTS is slated to be reabsorbed into MPI.

Ultraconductors are the commercial equivalent of a room temperature superconductor. The polymer Ultraconductors have had more than twenty years of published, peer reviewed, scientific research, including fifteen years of development. Scientific American has said the development of such a superconductor would “surely initiate a second industrial revolution.”  Potential markets are estimated in multiple billions of dollars.

 

In 1995, MPI was awarded a Phase I, Small Business Innovation Research (SBIR) contract by the U.S. Air Force to identify early commercial applications of Ultraconductors. Following Ultraconductor tests by the USAF, a highly competitive Phase II SBIR contract was awarded to MPI. The two MPI contracts — and two additional MDA SBIR awards which went to RTS – were completed by the RTS scientific team. The polymer Ultraconductors have been independently reproduced and tested in the U.S. by Fractal Systems Inc., under a USAF contract.

 

Due to the resistance heating of wire, power transmission lines in the U.S. lose 11% of the electricity they carry in the form of heat - at a cost exceeding $80 billion annually. Each 1% reduction of these transmission losses would save above $500 million every year. Load leveling on a national basis might save an additional 5% of energy loss and 2% of new plant construction could be unnecessary - adding up to a savings of perhaps $65 billion in avoided cost for infrastructure. In addition, national load leveling will reduce the plant construction needed for growing peak power demands. Ultraconductors in the form of wire and cable are on the horizon. Ultraconductor cable could dramatically reduce the cost of power transmission. Connecting the nations presently unlinked utility grids, with such cable, could move power where needed after natural disasters or other emergencies.

 

Board of Directors

Mark Goldes, Chairman

Hagen Ruff, Director

MPI Management

Hagen Ruff, CEO

Erik Fulkerson, COO

Sue Engle, Corporate Secretary and Project Manager

Mark Goldes, Chairman. Mr. Goldes, who founded MPI, is also Chairman & CEO of Room Temperature Superconductors, Inc. He was formerly Chairman and CEO of The Aseop Company, a specialized financial consulting firm. Earlier, he served on active duty as an officer in the USAF. His full-time work to uncover practical alternatives to fossil and uranium fuels began in 1973. He founded and served as Chairman and CEO of SunWind Ltd., a renewable energy company. He earned a second MA degree and a Fellowship in the Graduate Program in the History of Ideas at Brandeis University. He has addressed four annual Global Superconductivity Conferences, two National Renewable Energy Laboratory (NREL) Enterprise Forums, and the 2004 Arlington Institute Conference on Breakthrough Technologies for the World’s Biggest Problems. He was nominated for the 2006 World Technology Award in Energy.

Hagen Ruff, Chief Executive Officer. Mr. Ruff possesses over 17 years of management consulting, IT consulting, entrepreneurial, and Executive Leadership, and vast earlier experience in ERP solutions. Clients include Sempra Energy, Polaroid, the German Railway, Philip Morris, the Hong Kong Railway KCRC, CPS of San Antonio and DMC Prints. In 1996, he joined modis as a Vice President from a manager role with Andersen Consulting (a.k.a. Accenture) in Germany and Asia, and has subsequently accepted the CEO position in BIS. Throughout his IT consulting career, Mr. Ruff has overseen strategic delivery solutions for enterprise applications and Business Intelligence. After the acquisition of BIS by Sapient, Mr. Ruff was responsible for the global SAP practice, which nearly tripled in size during his 3 year tenure. Mr. Ruff also served as a Board member and Executive of the Energy Industry focused joint venture Soliance, which was formed between Sempra Energy, Modis, and Cayenta.com. His previous focus on the Energy Services marketplace has created a strong passion and understanding for solutions around the pressing issues of the world’s increasing energy demand and the associated economical, geopolitical, and environmental problems. Mr. Ruff holds a MS in Mechanical Engineering from Fachhochschule Wiesbaden (Germany) and has been residing in the US since 1996.

Erik Fulkerson, Chief Operating Officer. An Executive Management and Entrepreneurial Consultant noted for bringing innovative solutions to complex scenarios - skilled at corporate strategic design and development.  Mr. Fulkerson is President of Soul Expressions, LLC, and also Executive Vice President for Horizon Capital Management Group, LLC, He was formerly a Corporate Vice President in the Aerospace industry. He has held positions as Vice President of Business Development, Director of Contracts, Program/Proposal/Contract Manager, and Supply Chain Manager. He possesses vast experience in both R&D and Manufacturing environments. He is the recipient of numerous commendations, achievement awards, and citations from the Air Force, Army, and other industry Customers and was bestowed with the highest individual excellence award given by Hughes Aircraft Company. Mr. Fulkerson has taught classes at UCLA in Government Contract Management, Negotiation, and Finance. He was a certified instructor for both the Raytheon Learning Institute and the Hughes Institute for Professional Development. He was one of a select group handpicked by Hughes Aircraft Company to lead the corporate wide implementation of SAP R3 and other ERP solutions. He has served on the Board of Directors for three profit and three non-profit entities.

Sue Engle, Corporate Secretary & Project Manager. After a decade of Backstage Management in music, film and television in her native Britain, Europe, and later N.Y. and L.A., Ms. Engle performed Project Management and Product Development with The Children's Group’s several major children's toy catalogs. In 1993, she began overseeing manufacturing and product development in Asia. She also inspected factories for compliance with decent worker and environmental practices and materials sourcing. In 1999, she established her own company, Marble Hill, focusing on product development and manufacturing in Asia, working with individuals and existing domestic companies.

Consultants

Lee Felsenstein, Electrical Engineering. Mr. Felsenstein Earned his BSEE and MS at UC Berkeley. A legendary scientist in the computer world, Lee was the Moderator for the Homebrew Computer Club in Silicon Valley for its’ entire eleven year existance. Twenty three companies were begun by its members. They included Steve Wozniak and Steve Jobs, co-founders of Apple. From 1992 to 2000, he was a Senior Associate with Interval Research, a Palo Alto, California, computer lab funded by billionaire Paul Allen, designed to help create and support future computing technologies. Lee earlier designed two computers that now reside in the Smithsonian Institution. He received the Electronic Frontier Foundation Pioneer Award in 1994 and was inducted into the Computer Museum of America Hall of Fame in 1998. EE Times awarded him the Editor’s Ace award in April, 2007.

Dr. Kevin Shambrook, Dr. Shambrook was previously a Senior Project Manager with Hughes Aircraft Co. and a Vice President at Doric Scientific Inc. He has taught management courses at numerous colleges and universities. His work experience spans 30 years and includes the management of diverse engineering and manufacturing projects, corporate planning, and new product introductions. He earned his MSEE from the University of Pittsburgh and his Ph.D. at UCLA. Dr. Shambrook was a co-founder, President and Chief Scientist of MPI’s subsidiary company, Room Temperature Superconductors Inc.

 

MPI and RTS technologies are synergistic. Together, the firms have raised more than $9 million in capital, primarily provided by Angels. 

For additional information, please contact: 

Hagen Ruff, CEO

Mark Goldes, Chairman,

magneticpower@gmail.com     Phone 707 829-9391 Direct

 

Statements made in this document that are not historical facts or which apply prospectively are forward-looking statements that involve risks and uncertainties. Investors should not rely on forward-looking statements because they are subject to a variety of risks and uncertainties and other factors that could cause actual results to differ materially from the Company’s expectation.  There can be no assurance that the Company can successfully deliver the components and systems.  Additional information concerning risk factors is contained from time to time in the Company’s Disclosure Document.  The Company expressly disclaims any obligation to update the information contained in this document.