PowerSafe Technology Corp. (Holding)

Amplification Technologies Inc. (Subsidiary)

1400 Coney Island Avenue

Brooklyn, New York 11230

(718) 951-8021

www.AmplificationTechnologies.com

Powersafe Technology Corp. (Bulletin Board: PSFT), through its wholly owned subsidiary Amplification Technologies (ATI), acquired in Feb ’09, has developed a new solid-state semiconductor solution for low-level signal detection called Multichannel Discrete Amplification (MDA).

The introduction of semiconductor chips has revolutionized many areas of technology. One of the few technologies which doesn’t primarily use semiconductor chips but rather still uses primarily vacuum tube technology is highly sensitive photodetection. Sensitive photodetectors are essential components of numerous commercial products in markets such as medical imaging, scientific instrumentation, communication and aerospace applications.

ATI’s scientists have invented an extremely sensitive semiconductor photodetector technology that has significant performance and cost advantages over traditional technology. It is positioned as a next generation solid state technology for low level light detection. The technology allows for amplification with very low noise of weak signals. It is also applicable to, and has been patented to, encompass detection of signals other than light. It can be used to create biological, radiological, electrical, and chemical sensors. Over time, the technology has the potential to introduce transformational changes in a multitude of industries, from medical diagnostics and drug development to telecommunications and security.

2009 Market Progress

The Company has been working with a research group at a premier medical school on the West Coast that focuses mainly on the development of novel instrumentation for high resolution PET. The medical school expects the next revision of ATI's devices to be suitable for the next generation of high resolution, high performance PET detectors. In near infrared, ATI's devices afford new capabilities that will allow the development of new uses, and to a lesser extent, ATI will be targeting the replacement of competing devices. ATI expects to complete a new fabrication run of silicon devices before the end of 2009 that will have improved characteristics and will provide larger area devices that are required for medical imaging and many other applications. ATI will test and implement certain new designs in another set of runs anticipated for the second quarter of 2010 that will give ATI silicon devices that are commercial quality and have the potential to be market leaders in their space. ATI currently anticipates commencing a limited fabrication run of its NIR product in the 4th quarter of 2009 that they expect will offer performance improvement and will seek to create small arrays of devices. Creating detector arrays with multiple elements (detectors) in one single chip (die) is a critical goal in expanding ATI's market opportunities. 

Market Opportunity

ATI is initially targeting the existing market for sensitive photo-detectors (photomultiplier tubes (PMT’s) and avalanche photodiodes (APD’s). Within this market, one of ATI’s priorities is to develop a detector chip for PET medical imaging systems. PMTs are a very significant cost component of PET systems, and the PET market is believed to be the single largest market for PMT’s. The world’s leading PET system manufacturers, GE, Philips and Siemens, are actively seeking solid state solutions to replace PMTs in the next generation of scanners. ATI has successfully produced prototypes of such chips and has commenced preliminary testing of these devices with two large manufacturers. ATI anticipates that its earliest sales will be to the scientific instrumentation market. Homeland security is another key market. The Company estimates an overall market in the multi-billion dollar range.

InGaAsTechnology – In August 2008, in connection with the completion of Phase II of a NASA SBIR grant, the company announced that it successfully extended its technology from silicon to an InGaAs/InP material system, and from visible light wavelengths into the near infrared spectrum. In the process, they developed the world’s best performing high gain solid state photomultiplier for near infrared wavelengths of 1000-1700 nm. The Company believes that it will obtain additional funding through NASA in 2009.

Financials

Over $9 million has been invested in ATI to date. In addition, ATI has received over $750,000 in government grants.

PowerSafe’s capitalization as of 2/17/09 is:

• 9.1 MM shares of common stock issued with 14.2 MM fully diluted.

A director and officer of PWSF and a family member, have advanced funds to PWSF which are expected to be converted into convertible preferred stock and warrants of PWSF. Any securities that may be issued in connection with such advances are not included in the capital structure set forth above.

Discrete Amplification Technology

Photomultiplier tubes (PMTs) and other vacuum tube based devices have provided the primary technological solution for highly sensitive light detection in numerous applications for over half a century. Existing semiconductor alternatives such as avalanche photodiodes (APDs) have never been able to achieve performance parameters comparable to those of PMTs and other vacuum devices in most settings.

In a nutshell, Amplification Technologies is taking the industry from dated vaccum tube technology, to a solid state solution that can provide the performance needed to go to the next generation.

Comparison To Classic Silicon Technologies

Amplification’s patented technology allows the creation of a semiconductor-based sensitive photo-detector that has performance parameters similar to or better than those of a PMT but with all of the advantages of a solid state device. It enables the creation of detectors, amplifiers and other microelectronic components with the following characteristics:

• Very high sensitivity and amplification gain
• Low cost
• Exceptionally low internal noise
• All solid state (no vacuum tubes)
• Small size, rugged, portable, able to withstand magnetic fields
• Stable under variations of voltage and temperature
• Low power consumption
• High level of reproducibility
• Easy to manufacture
• Mass production capability
• Ease of integration with other electronic components

In addition to enabling the replacement of current sensitive photo-detector devices and components, these characteristics allow the technology to become a platform for the creation of numerous new detectors, amplifiers, and microelectronic components. The technology affords substantial technological advantages across a broad range of significant markets. This technology allows the simultaneous attainment of very high gain, high speed and ultra-low excess noise in a silicon device.

The Discrete Amplification (DA) involves three basic functions:

• Distributing individual signal electrons into a separate independent amplification channel
• Amplifying each individual signal electron in a separate channel to a readable charge packet
• Reading the amplified charge packets

The Company has already produced prototypes that exhibit superior characteristics. Initially, all of the Company’s manufacturing was done in Russian semiconductor facilities, which have been largely adequate for research purposes. Commercial quality product will be manufactured in the US, or another established manufacturing center. Amplification Technologies has completed a successful initial fabrication run with Sarnoff, a high quality US fabricator.

A photodetector’s ability to discriminate between signal and noise is a critical parameter that differentiates various technologies. The most sensitive photodetectors can detect very low levels of light, even a single photon – the smallest unit of light. Applications that need high sensitivity require devices that do not give false readings and have low noise. Medical scanners, homeland security and communications are some areas where this quality is critical. In that respect, as well as in other measures of performance, the Company’s detector has qualities significantly superior to those of existing solutions. In many applications, this results in a multiplicative increase in detector sensitivity. The increase in sensitivity, coupled with the detector’s low cost and solid state design, will drive adoption of this new technology in products requiring very low light level detection and also allow the Company to create new markets where competitive technologies have proven either too expensive or inadequate.

In January 2009, ATI announced the availability of the world’s top performing high gain solid state photomultiplier product line, NIRDAPD. NIRDAPD takes advantage of the breakthrough Discrete Amplification method used by ATI in amplifying low level electrical signal. The device operates in the near infrared (NIR) wavelengths of 1000 to 1700 nm. ATI believes there is an acute need today for ultra-sensitive, compact, rugged and inexpensive optical sensors in the near infrared wavelength range of spectrum. The Company believes these devices will be of great interest in the fields of spectroscopy, night vision, industrial and scientific instrumentation, astronomy, quantum cryptography and aerospace applications.

Intellectual Property - ATI fully owns its intellectual property. In April 2005, it was issued its cornerstone patent, United States Patent # 6,885,827 titled “High sensitivity, high resolution detection of signals”. Another patent, US # 7,085,502, was granted in August 2006. ATI has filed one more patent application and plans to file additional patent applications to protect advances in its intellectual property. International patent applications have been filed as well. ATI has made numerous presentations at scientific conferences where the technology generated very strong interest. It will be making oral presentations of its new near infrared technology at two industry conferences in April 2009, as well as publishing in peer reviewed technical journals. The Company has also been awarded three U.S. Government SBIR grants:

• NASA Grant - “High Sensitivity Photon Counting Detectors for Deep Space Optical Communications” (January 2004 and October 2005)
• Department of Energy Grant - "UV-Sensitive Solid State Photodetector for Dark Matter Detection Using Liquid Xenon" (June 2005)
• Department of Energy Grant - "Novel Solid State Photodetector to Enable Future Scintillating Fiber Detection Experiments" (June 2005)

Applications of the Technology

Potential applications of the technology include:

• Nuclear Medicine (photodetectors for PET scanners, gamma cameras, etc.)
• Advanced Scientific Instrumentation
• Homeland Security
• Chemical Sensors
• Radiation Detectors
• Multifunction Sensors such as ‘Lab on a Chip’
• Environmental Monitoring (LIDAR)
• Communications

Management

Jack N Mayer, President and Director, a co-founder of ATI, has been a hedge fund analyst and portfolio manager for 20 years. Mr. Mayer is also a co-founder and director of METTech Inc. and a director of Gyrotron Technologies Inc. Mr. Mayer has a Masters in Mathematics from Columbia University.

Avery Kornbluth, COO, has extensive leadership experience in managing technology companies. Prior to ATI he was Chief Technology Officer at MAP International, a Financial Services startup that focused on third world countries. Prior to MAP, Mr. Kornbluth was Chief Technology Officer at IDT Corp managing a staff of over 300 people. He has experience in leading all aspects of technology including: MIS, Engineering and Operations, Platform Development, and Program Management. His other roles during his tenure with IDT included EVP Commercial Operations, SVP Engineering Services, and SVP Technology Services. Before IDT, Mr. Kornbluth worked for more than fourteen years on Wall Street in a variety of technology roles, including CTO at Furman Selz Trust Company, and Vice President of Technology at Lehman Brothers.
 

V.E. Shubin, Chief Scientist, is a co-founder of ATI. He and Dmitry Shushakov are the principal inventors of the Company’s technology and head the scientific team which includes nine PhD’s on its staff. Dr. Shubin is a world-leading expert on photo-detectors and photonics technology with almost forty years of experience in the field. He has conducted pioneering research in photonics and authored over a hundred scientific papers. Together with Dmitry Shushakov, he authored a broad overview of avalanche photodetectors for the Encyclopedia of Optical Engineering. Dr. Shubin’s major scientific achievements include the development of two new areas in the field of solid-state structures and optoelectronics: photo-electric structures with memory (PEMS) and avalanche structures with negative feedback (ANF). Dr. Shubin is actively involved in both theoretical and experimental aspects of the Company’s development activities.

Dmitry Shushakov, Head of Product Development, a co-founder of ATI, is a leading expert in the field of sensor and photo-detector development with over 20 years of research and development experience. Prior to joining Amplification Technologies, Dr. Shushakov conducted research in the field of avalanche silicon structures with negative feedback in Dr. Shubin’s group at the Lebedev Institute of Physics. He has authored numerous scientific papers on photo-detectors and sensor technology, including the development of novel avalanche photodiodes. He also possesses strong experience in computer modeling of semiconductor processes and general design of opto-electronic systems. Dmitry Shushakov is a co-developer of the internal discrete amplification mechanism in semiconductors. He is involved primarily in the modeling and experimental aspects of development.

Nicholas Kolobov, Senior Technology Consultant, has over thirty years of practical experience in semiconductor device fabrication technologies. Dr. Kolobov has numerous publications and is a well known author and expert in this field.

Mikhail Leibov, Director, was born in Moscow where he received his Masters in Applied Math and Computer Science. Leibov founded and was the CEO and Chairman of Corbina Telecom, one the largest telecom carriers in Russia, from its inception until 2007. Mr. Leibov grew Corbina Telecom from a startup into a far –flung enterprise offering a range of services throughout major markets in Russia. During Leibov’s stewardship, Corbina was sold at successively higher prices three times, ultimately for over $300 million. Thereafter, as Chairman and President of IDT Telecom from 2007 – 08, he managed several divisions of IDT and offices in 30+ countries. From 1976 to 1986, he was an Architect of Large Software Systems at IBM , including one of the first distributed Data Base systems that connected the research laboratories of IBM worldwide. After IBM, Mr. Leibov was at Prodigy Corporation where he was part of development team that created the way Internet looks today.

Dr Samuel Zentman, Director has a Ph.D in mathematics as well as broad financial and information systems management experience in technology companies at the executive and consultant levels. Dr. Zentman has served as a director of Acorn Energy (NASDAQ: ACFN) since November 2004. Also, he currently serves as lead director of Hinson-Hale Medical Technologies, a privately held supplier of highly engineered textiles for demanding medical applications. Dr. Zentman served as chairman of a national non-profit organization involved in primary and secondary education and currently is a member of its executive committee. Dr. Zentman is a shareholder of PowerSafe.

Steven Weinreb, Director, is currently a partner in WK Holdings, a New Jersey real estate holding company.From September 1979 to January 2006, Mr. Weinreb was the Chief Executive Officer of Vitarroz Corporation, a Hispanic food distribution company located in Jersey City, New Jersey. From October 1999 to December 2004 he was also the Chief Executive Officer of American Rice, Inc., one of the largest rice milling and marketing companies in the US. Mr. Weinreb is a shareholder of PowerSafe.

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