Konarka Technologies, Inc. from Light to Power Enabled by Nanotechnology

Konarka Technologies, Inc. From Light to Power Enabled by Nanotechnology

Innovator of polymer photovoltaic products in a variety of form factors for commercial, industrial and consumer applications

Flexible Lightweight Indoor/Outdoor

Financing

Completed $13.5 Million B round, Fall ‘02 Lead: Draper Fisher Jurvetson ~ $18 million in total financing to date Late 2004 C Round Mid-stage institutional equity investors

Experienced Leadership and Technical Excellence 30 years as executive with extensive marketing and technology leadership; Western Electric, Motorola, Hadco, Sanmina-SCI Dr. Bill Beckenbaugh President and CEO

Randolf Chan Dr. Russell Gaudiana Dr. Erhard Glotzl Howard Berke VP VP Managing Director Kevin McGuire VP (Acting) of Manufacturing and Research and (acting) Controller Business Engineering Development Konarka Austria Development

16 years in high 28 years in R&D CEO volume graphics 20 years in financial leadership in Linz AG and electronics management in high technical coatings Electricity and Gas Avery Dennison, volume electronics 36+ Patents regional utility Raychem, E Ink

Expert Advisors

15 world-class technical advisors, including: Dr. Alan Heeger, Nobel Laureate, all-polymer PV Dr. Michael Graetzel, EPFL, dye-based cells Dr. Alan Bard, University of Texas Dr. Serdar Sariciftci, Linz Inst. for Organic Solar Cells Dr. Jack Hanoka, CTO-Evergreen Solar Dr. Elliot Berman, founder SPC, CTO-Arco Solar Dr. Merrill Cohen, GE (retired) Dr. Jayant Kumar, University of Massachusetts Dr. Joan Vrtis, Rose Street Labs, Intel Dr. Frank Shemansky, Consultant, Orchid BioSciences, Motorola, Bruce Anderson, IGNITE! Startups Paul Wormser, Consultant, PV Products Market

Board of Directors

Raj Atluru Partner, Draper Fisher Jurvetson, Redwood City, CA Director / Comp

Dr. Bill Beckenbaugh President, CEO, Konarka Technologies Director / Audit

Howard Berke 25+ year Executive & Founder of 12 technology Chairman / Audit / Comp companies

Dr. Alan Heeger Nobel Laureate in Chemistry for conducting polymers Director in OLEDs and photovoltaics (2000), Uniax founder, University of California

Bic Stevens Managing Director, Zero Stage Capital, Cambridge, Director / Audit / Comp MA

Operating Structure

Konarka Technologies, Inc. Headquarters Business Development Product Development Pilot Manufacturing Cell Process Optimization Form Factor Development

Konarka AG (Switzerland) Konarka Austria GmbH Business Development Polymer Cell R&D Focus Technology Liaison Third Party R&D Cost Sharing-EU EU R&D Funding / Grants

Global Demand for Energy 100,000 Wh) k ( a

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r 10,000 Global Average (2050 Target) ion pe

pt Minimum Consumption China

um (2050 Target)

ns 1,000 o C y

it India ic r t c e l E 100 1985 1990 1995 2000 2005 2010 2015 2020 2025 Year

Photovoltaics (“PV”)

The conversion of light into electricity Silent, no maintenance, no fuel, no emissions The lowest cost option for remote applications Recognized as part of the solution to the global need for electricity and clean energy Generator of Choice for >2 billion people Option for all of us

PV Production in Megawatts Representing a global market of $7 Billion 520 Rest of World 550 390 500 Europe 450 Japan 288 400 United States 350 201 300 Total 155 250 126 60 69 78 89 200 34 40 47 55 58 150 100 50 0 8 0 2 4 6 8 0 2 8 9 9 9 9 9 0 0 9 9 9 9 9 9 0 0 1 1 1 1 1 1 2 2 35% growth – 2001 to 2002

Konarka’s Story

What: Energy conversion of light Æ electricity Based on nanomaterials and conductive polymers High-speed roll-to-roll manufacturing on plastic & metal foils Unique product benefits for new applications Why: Growing existing market / enable new markets World market solar industry CAGR > 35% Who: Superior team 31 staff, 15 advisors, experienced Board How: Blocking and enhancing IP 20+ patents issued and pending Supporting IP from UMass (exclusive), EPFL (sole US licensee), JKU- Linz (exclusive) Strategic investors & partners - Chevron Texaco and Eastman Chemical

PV Technologies

Crystalline Silicon on Glass 1st generation (developed in the 70s) semiconductor wafer in glass, complex manufacturing process

Thin Film (majority on glass) 2nd generation (developed in the 80s) requires low-pressure, high-temperature film deposition, expensive packaging, complex manufacturing process

Polymers & Nanomaterials 3rd generation (developed in the 90s) uses photoactive dyes, conducting polymers, high- speed manufacturing process at low temperature, low cost materials, scaleable

Photovoltaic Nanotech Companies

Nanosolar – nanoparticles (20 - 40nm) Titania - dye sensitized Hitachi-Maxell Titania – dye sensitized Nanosys – quantum dots (<10nm) CdSe, PbS Evident Technologies – quantum dots (<10nm) CdSe, PbS

KTI’s Vision: Light-weight, Flexible Photovoltaics

Plastic Transparent Conductor Active Layer

0.010 inches

Counter Electrode Plastic or Metal foil

Dye Cell Principle of Operation Transparent Conductor TiO2 Dye Electrolyte Cathode

Injection S* -0.5

Maximum voltage 0.0 hυ vs NHE (V)

E Red Ox 0.5 Mediator

Interception Diffusion

1.0 So/S+

SEM of Nanostructured Titania

Polymer Cell Schematic

Transparent substrate

Light

Fullerenes Carry Electrons

Fullerenes are carbon molecules Electrons can freely move around the molecule and “hop” to adjacent fullerene

Fullerene (60 atoms of carbon)

Fullerene / Polymer Function

Increasing Performance: Matching the Solar Emission

1. Increase absorption • Higher absorption coefficient; Higher charge carrier mobility 2. Shift of the absorption to red • Low Band Gap Polymers

Complementary Materials Platforms

Dye-Sensitized Conducting Titania Hybrid Polymers (Go-To-Market) (R&D)

Dye vs. Polymer Attributes Dye Polymer Efficiency + Absorbs broad spectrum - Low efficiency (today) + Thin (but absorbs more light) - Too thin to absorb all light + High electron mobility + Potential for multi-layer junctions

Lifetime > 10 years Undetermined Cost - Multiple coating steps + Single layer (no catalyst or - Catalyst cost electrolyte) + Single coating step

Features +Thin +Thin + Light weight + Light weight +Flexible + Increased Flexibility + Colors (sacrifice efficiency) + Unique form factors

Choice of Materials & Process

Material Purpose Advantage Disadvantage

TiO2 Absorb light, Semiconductor, Only works with UV convey abundant, low electron cost

Dye Absorb light, Bonds to TiO2, Too thin to absorb inject electron absorbs broad all available light

into TiO2 spectrum of light

Nanoscale TiO2 Increase Commodity (low Requires sintering surface area cost) 100x

Product Attributes

CostCost Flex FormForm Trans-Trans- ColorColor WeightWeight Indoor,Indoor, FactorFactor missiomissionn OutdoOutdooror Eff Use

Konarka 3rd generation

Thin Films 2nd generation Crystalline 1st generation

Signifies significant competitive advantage Signifies moderate competitive advantage Signifies distinct disadvantage

Features Open Opportunities

y nit rtu po op d an ty li id

i r ab ap c ff G g sin ea cr In Distributed AC Grid Industrial O Military Distributed DC Grid Disposable Battery Portable Electronics Charging Off-Grid Residential 2001 TAM 40 MW 10 MW 50 MW 100 MW 300 MW 2010 TIM 200 25 400 700 1200

First Products

Portable Applications

Personal LAN Appliances

Self-charging battery Wireless instrumentation

Military / Civil / Emergency

Wearable Power

Flexible Light-weight Charger PowerCloth™

Conductive Core

Dyed, sintered Titania

Solid State Electrolyte Product Vision-

Transparent Cathode Photovoltaic Fibers*

Transparent Insulator POS NEG POS

*Patents applied for in 2002 NEG POS NEG

Coating Production Process Applicable to all Materials Platforms

“Roll-to-roll” on plastic

Continuous coating

Utilize existing plants (corporate partners)

Conventional methods

No capacity constraints

KTI Commercialization Process

Gate 0 Gate 1

Customers Gate 2

Technologists Polymer Gate 3 Cell Gate 4 ? Gate 5 Concept Feasibility Development Pre-Mfg CommercializationCommercialization Idea Assessment TiO Dye ge 5 2 Sta Sales Cell ge 4 Sta ge 3 Anywhere Sta ge 2 Sta ge 1 Sta

Technology Benchmark and Goals

20% KTI Polycrystalline Polymer PV Si Future 15% KTI DSSC PV Future 10%

Efficiency KTI Thin Film 5% DSSC PV KTI Today Amorphous Si Polymer PV Today

Low High $/Watt

Preliminary Production Ramp Schedule and Module Efficiency Goals for KTI-Lowell Pilot Production

2003 2004 2005 2006 2007

Technology Product and Product Launch: Production: Production: Development Process DSSC Development and Scale-up

5% Module 6% Module 7% Module

1 MW* 3 MW* 4 MW*

* Production Capacity – 3 shifts / 6 days per week.

We have a Commercial Cost Advantage $3.00 nd st 2 Gen. ) 1 Gen. p W

/ $2.50 $ ( t s /W) o $2.00 3rd Gen. ng C i $1.50 ur t Cost ($ c . a $1.00 nuf a M t

c $0.50 e r Direct Mfg i D $0.00

t i Z s S e IS a C a - T C rk C a d a C n o K