KUNG LONG BATTERIES

Our management traveled to Taiwan to meet with management and engineers from Kung Long Batteries Industrial Co., Ltd., a publicly traded expert manufacturer of lead acid batteries, to discuss a possible licensing and royalty agreement. Kung Long owns and operates two manufacturing facilities in Taiwan and one in Viet Nam. It manufactures more than 200 different types of batteries, including high capacity batteries for electric vehicles, wheelchairs, uninterrupted power supply, emergency lighting systems, alternative energy systems, solar energy systems, mobile energy, motorcycle and automotive uses. Kung Long exports its products to Asia, the USA, Europe and other countries.

Kung Long's stock is listed on Taiwan Stock Exchange under the symbol 1537.TW. More information concerning Kung Long Batteries is available on its web site at www.kunglong.com.

To view Kung Long's brochure, "The Power of Long" click here.

In December 2005, we agreed to manufacture current collectors for Kung Long Batteries to test and evaluate. In February of 2006 fifty of the current collectors in this photo were delivered to Kung Long Batteries for testing and evaluation. Kung Long Batteries has been performing preliminary testing and evaluation of individual current collectors which it made into two volt battery cells. Once Kung Long Batteries completes its preliminary initial testing, which we expect will occur in April of 2006, Kung Long will provide us with the test results and then Kung Long intends to use the PWTC current collectors to manufacture a battery for extensive testing and evaluation.