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       Catch the Wind
Making Wind Energy Profitable



                     November, 2009
                     Š2009 Catch the Wind, Inc.
Forward-Looking Statements
                                                                                           2


 Certain statements in this presentation may constitute “forward-looking” statements
 which involve known and unknown risks, uncertainties and other factors which may
 cause our actual results, performance or achievements, or industry results, to be
 materially different from any future results, performance or achievements expressed
 or implied by such forward-looking statements. When used in this presentation, such
 statements use such words as “may”, “will”, “expect”, “continue”, “believe”, “plan”,
 “intend”, “would”, “could”, “should”, “anticipate” and other similar terminology. These
 statements reflect current assumptions and expectations regarding future events and
 operating performance and speak only as of the date of this presentation. Forward-
 looking statements involve significant risks and uncertainties, should not be read as
 guarantees of future performance or results, and will not necessarily be accurate
 indications of whether or not such results will be achieved. A number of factors could
 cause actual results to vary significantly from the results discussed in the forward-
 looking statements, including, but not limited to, the factors discussed under “Risk
 Factors”. Although the forward-looking statements contained in this presentation are
 based upon what we believe are reasonable assumptions, neither we, nor the
 Underwriters, can assure investors our actual results will be consistent with these
 forward-looking statements. We assume no obligation to update or revise these
 forward-looking statements to reflect new events or circumstances.
About Catch the Wind (TSX-V: CTW.S)
                                               3




Forward wind            Focused on
measurement             making renewable
technology              energy more
                        profitable
                        -Wind farm operators
                        -Turbine OEMs


      We Make Wind Turbines Smarter
Genesis of Catch the Wind
                                                                 4
                                                                 4




Optical Air Data Systems            Catch the Wind, Inc.
         (OADS)
   Established in 1990                 Spin-off of OADS
   Industry leader in fiber-optic      $15M Qualifying
   pulsed LIDAR technology             Transaction – Sept. ‘08
   SBIR Program Success Story          Experienced
   Roland Tibbetts Awardee -           management team
   Top Small Business Defense
   Contractor                          Technology license for
                                       all commercial (non-
   Manassas, VA Small Business         aviation) applications
   of the Year 2007
Technology Applications
                                                                      5




                          Military & avionics applications
                                        Licensed to



   Lidar                  All other commercial applications
Technology                              Licensed* to



                          * Irrevocable, perpetual and transferable
Nacelle-Mounted Smart Turbine Control
VindicatorÂŽ Laser Wind Sensor (LWS)
                                                                                                                   6


                           Aerospace Technology
                       Initially Developed for Safety of Flight Critical Applications




         Lightweight                                                                    $70M+
                                                                                        invested in R&D




    Compact                                                                                      19 years
                                                                                                  in development




              Rugged                                                                      27
                                                                                        patents
Substantial Wind Energy Profit is Lost
                                           7




     100%
   Available
wind energy




      50%
      Actual
  efficiency




          0
Why? Current Turbine Controls are Reactive
                                                                                8




       Here is
   where wind
  is measured    … but, here is where the wind is always shifting and gusting
      today…




Reactive             Result: No lead time to adjust
9
See the Wind That’s Coming…
                                                             10




       Here is
   where wind
  is measured    Here is where we measure the wind
      today…




                 300 meters (20 seconds at 35 mph)



Reactive                                             Proactive
Wind Power’s Holy Grail
                                                               11



                          Forecast Benefits
                          (National Renewable Energy

Accurately                Laboratory Studies)

                          1. Increased Power Output
predicting wind              Yaw Improvement approximately 10%
                             Pitch Improvement approximately 5%
speed and
                          2. Decreased Operating
direction                    Costs
                             Cost decrease approximately 10%
                             (from 30% less stress on blades
                             and 10% less overall damage)
We Make Wind Energy More Profitable
                                                                     12
                                                                     12




Higher                            Reduced
revenues                          maintenance costs
- Increased production            “Recent development of LIDAR
- Sale of Renewable Energy        systems promises large
  Certificates (RECs)             improvements in cost,
                                  compactness, and reliability so that
- Production Tax Credits (PTCs)   it becomes viable to consider the
- Higher capacity payments        deployment of such systems on
- Preferable external financing   large wind turbines. Potential
  terms; lower weighted average   advantages of this approach include
  cost of capital (WACC)          increased turbine energy output and
                                  reduced turbine fatigue damage.”
                                          NREL
How We See the Wind…
Laser Doppler Velocimetry (LDV)
                                                                         13




       1   Three laser beams

                                           2   Lasers reflect off dust
       3   We sense the color                  particles in wind and
           change and calculate                change color
           wind speed and direction

       4   VindicatorÂŽ LWS commands
           optimal turbine alignment and
           blade pitch


           300 meters (20 seconds at 35 mph)
No Forward-Looking Competition
                                                                               14
                                                                               14




Conventional Anemometer       ZephIR LIDAR            VindicatorÂŽ Laser Wind Sensor


  Larger/heavier          Larger/heavier                 Compact/lightweight
  Moving parts            Moving parts                   No Moving Parts/Rugged
  Inexpensive             Approx. $200,000 per unit      Economical

  Not forward looking     Measures up                    Forward-looking
                          not forward                    to 300 meters
Improving Economic Value
                                                                                         15



                                                      Sample Financial Model*
         100 MW
                                                      Incremental NPV
          FARM                                        +1% Availability           $1.9M
    67 1.5-MW Turbines                                -10k/WTG O&M               $5.9M


                                                      Cost to Purchase           $9.4M
                                                      A/T Cost                   $5.6M



*Per AES Houston Wind Power 2009 | Based on $125K per unit + $15K retrofit kit
Assumes 40% corporate tax rate
Industry Validation – WEICan Phase 2
                                                                                                                                16

                                                                              Pow er Production Com parison


                                                            50           Vindicato r Co ntro l

                                                                         Nacelle Wind Vane Co ntro l




                                       Average Power (kW)
                                                            40

                                                            30                           REGION 2

                                                            20                                                     REGION 3

                                                            10

                                                             0
                     VindicatorÂŽ LWS
                                                                 5.5            6.5              7.5         8.5         9.5

Based on Data collected Apr – June                                                       Wind Speed (m /s)


2009
                                                                       Percentage Increase in Power Production
VindicatorÂŽ and Wind Vane alternate
                                                            20
control every 9 hrs
                                                            15
                                           % Increase

VindicatorÂŽ uses wind vane control
                                                            10
algorithm - not optimized                                                                   REGION 2               REGION 3
                                                            5
Vindicator shows increased power
                                                            0
production                                                      5.5             6.5             7.5         8.5               9.5
                                                                                           Wind Speed (m/s)
Industry Validation – Nebraska Power
                                                                                        17


                                                                         T22
                                                                         T23
                                                                         T21

                                                              Average Active Power


                                                       1500




                                          Power (KW)
Installed on Vestas V-82 #T22 in June                  1000
  Integrated by CTW and DNV-GEC
Vindicator started controlling the wind
turbine on July 8, 2009                                500
Control optimization in progress
Data collected during August
                                                         0
Data shows significant increase in                            0     500     1000     1500
power                                                              Time (Min)
Nebraska Power - Reduced Stress Loading
                                                                                        18


  SWANTech stress wave analysis data taken
  before and after VindicatorÂŽ installation
  The Random Friction Index (RFI) for T-22
  went from worst to best in the group
  Random and periodic friction decreased
  significantly on main shaft bearing on T-22
  All snapshot data show excellent trends




 STRESS DATA CORRELATES DIRECTLY TO A PERIOD OF INCREASED WIND POWER OUTPUT FROM T-22
Large Addressable Market
                                                                          19




*Large turbines, 1.0MW and above
                                                                 Potential
                                                  Number of
                                                              VindicatorÂŽ
                                                   Turbines
                                                              LWS sales*
Global installed based (2008)                        80,500   $10.1 billion
Projected installs (2009 – 2011)      30,000                   $3.7 billion
       Total market opportunity through 2011                  $13.8 billion

    *Based on $125,000 introductory sales price

                                   Global Projected Demand:
500,000 turbines with 1.0 MW+ capacity by 2020
Market Sales Forecast
                                                                       20
                                                                      20




4000
                         Number of Units
3500

3000          WRA - Maritime
              WRA - Terrestrial
2500
              Retrofit
2000
              OEM
1500
1000

 500

  0
       2009       2010         2011     2012        2013       2014

       Unit sales forecast excludes additional product applications
Value-Driving Milestones
                                                                         21

                Q2 2008   WEICan Phase I Testing

                Q3 2008   WEICan Phase II Testing

                Q1 2009   Prototype Production
                          First Commercial Sale to AXYS Technologies
                          Maritime Application Licensing Agreement

                Q2 2009   Control Systems Integration Project
                          Nebraska Public Power District Trial Program

                Q3 2009   Helimax Trial Program
                          NREL – US Department of Energy Testing
                          Gamesa Agreement - Trial Program
                          BreconRidge – Contract Mfg Agreement

                Q4 2009   Canadian Hydro Developers - Multiple Unit
Development               Testing
 Complete                 Gamesa Trial Program
                Q1 2010   VindicatorÂŽ LWS Contract Manufacturing
Major Trial Programs
                                                           22



               • Multi-unit testing
               • Direct side-by-side comparison with non-
                 VindicatorÂŽ mounted turbines
               • First trial program with OEM
               • Gamesa G8X 2.0 MW
               • Integrates Vindicator® LWS with turbine
                 control
               • Cooperative Research and Development
                 Agreement
               • Primary research lab of U.S. DOE
               • 3-year program to develop new
                 advanced smart turbine control systems
VindicatorÂŽ LWS for Grid Control
                                                              23




Positioning to be required equipment to connect to the grid
Management Team
                                                                                                           24




Phil Rogers                  21 years experience as successful small business defense contractor;
- President & CEO/Director   Former director of Special Projects, Lockheed Skunk Works


David Samuels                Extensive public company CFO and capital raising experience;
- CFO/Director               Significant experience with emerging growth technology companies


Claudia Jaques               5 years Associate General Counsel - Corporate Securities, Freddie Mac;
- VP General Counsel         8 years experience with large law firm – corporate & securities


William Fetzer               3 years Business Development Director
- VP Business Development    10 years as President of Strategic Business Management Company


Daniel Lacroix               Designed state of the art, world class Fiber Optical Manufacturing Facility
- VP Manufacturing           20 years high technology manufacturing experience
Board of Directors
                                                                                            25




David Garman                                      Alisa Rogers
• Former U.S. Under Secretary of Energy           • Co-founder and President of OADS, LLC
• Assistant Secretary for Energy Efficiency
  and Renewable Energy.




Phil Rogers                                       David Samuels
• President and CEO of Catch the Wind, Inc.       • Extensive public company CFO and
• 20 years experience as successful small           capital markets experience
  business defense contractor                     • Significant experience with emerging
• Former director of Special Projects, Lockheed     growth technology companies
  Skunk Works


 Richard McGraw                                   Addition of Two Wind Industry
• Co-founder Bayview Public Ventures              Executives
• Extensive GreenTech experience
• Private Equity Investor
Financing History
                                          26




  Sept. 2008          May 2009

$15 Million CDN     $21.8 Million CDN
Qualifying          Private Placement
Transaction         16.7 million shares
11.5 million        issued ($1.30)
shares issued       Significant Price
($1.30)             Premium
Working Capital Usage
                                                                          27

                 Average ‘Burn Rate’ per Month
                                            $1.3M
              $1.2 M
                                             CAPEX
               CAPEX
                                              G&A
                G&A

                                            Materials
              Materials



            Manufacturing                 Manufacturing
             Resources                     Resources




              Q1 09                         Q2 09
   Cash position at June 30 was $19M
   Ramp-up period – new hires, business development
   Beta units currently manufactured by hand
   Burn expected to decline by year-end due to low fixed cost structure
Market Sales Forecast
                                                                       28
                                                                      28




4000
                         Number of Units
3500

3000          WRA - Maritime
              WRA - Terrestrial
2500
              Retrofit
2000
              OEM
1500
1000

 500

  0
       2009       2010         2011     2012        2013       2014

       Unit sales forecast excludes additional product applications
Equity Market Information
                                                29




  Ticker Symbol:            CTW.S – V
  52-Week Range:            $0.50 - $2.00
  Shares Outstanding:       54.9 Million
  Fully Diluted:            60.1 Million
  Market Capitalization:    ~$100 Million
  Holders:                  Insiders      46%
                            Institutional 46%
                            Retail         8%
Liquidity Initiatives
                                                      30



  Analyst Coverage
     NBF Rupert Merer; RCC Matt Gowing
     Expansion of sell-side analyst coverage


  Focus on retail investors
     Investor meetings
     Add-on to equity raise


  Broaden US Investor Base
     First round “.S” restriction expired
     Second round “.S” restriction expires May 2010
     Potential for future US SEC registration
Investment Summary
                                                                31



 Additive technology focused on making wind energy more
 profitable
 VindicatorÂŽ LWS is based on proven technology
   No competition
   Significant existing market with enormous upside potential
   Multiple sales channels
 Essential for “Grid Control”
 Extensive patent portfolio; high barriers to entry
 Non-capital intensive business
 Experienced management team delivering on milestones
32




Investor Contacts:
David Samuels, CFO
Catch the Wind
dsamuels@catchthewindinc.com
(703) 393-0754 ext.107

Joe Racanelli
Equicom Group
jracanelli@equicomgroup.com
(416) 815-0700 ext. 243

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Catch The Wind Investor Presentation November 2009

  • 1. 1 Catch the Wind Making Wind Energy Profitable November, 2009 Š2009 Catch the Wind, Inc.
  • 2. Forward-Looking Statements 2 Certain statements in this presentation may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this presentation, such statements use such words as “may”, “will”, “expect”, “continue”, “believe”, “plan”, “intend”, “would”, “could”, “should”, “anticipate” and other similar terminology. These statements reflect current assumptions and expectations regarding future events and operating performance and speak only as of the date of this presentation. Forward- looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to vary significantly from the results discussed in the forward- looking statements, including, but not limited to, the factors discussed under “Risk Factors”. Although the forward-looking statements contained in this presentation are based upon what we believe are reasonable assumptions, neither we, nor the Underwriters, can assure investors our actual results will be consistent with these forward-looking statements. We assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.
  • 3. About Catch the Wind (TSX-V: CTW.S) 3 Forward wind Focused on measurement making renewable technology energy more profitable -Wind farm operators -Turbine OEMs We Make Wind Turbines Smarter
  • 4. Genesis of Catch the Wind 4 4 Optical Air Data Systems Catch the Wind, Inc. (OADS) Established in 1990 Spin-off of OADS Industry leader in fiber-optic $15M Qualifying pulsed LIDAR technology Transaction – Sept. ‘08 SBIR Program Success Story Experienced Roland Tibbetts Awardee - management team Top Small Business Defense Contractor Technology license for all commercial (non- Manassas, VA Small Business aviation) applications of the Year 2007
  • 5. Technology Applications 5 Military & avionics applications Licensed to Lidar All other commercial applications Technology Licensed* to * Irrevocable, perpetual and transferable
  • 6. Nacelle-Mounted Smart Turbine Control VindicatorÂŽ Laser Wind Sensor (LWS) 6 Aerospace Technology Initially Developed for Safety of Flight Critical Applications Lightweight $70M+ invested in R&D Compact 19 years in development Rugged 27 patents
  • 7. Substantial Wind Energy Profit is Lost 7 100% Available wind energy 50% Actual efficiency 0
  • 8. Why? Current Turbine Controls are Reactive 8 Here is where wind is measured … but, here is where the wind is always shifting and gusting today… Reactive Result: No lead time to adjust
  • 9. 9
  • 10. See the Wind That’s Coming… 10 Here is where wind is measured Here is where we measure the wind today… 300 meters (20 seconds at 35 mph) Reactive Proactive
  • 11. Wind Power’s Holy Grail 11 Forecast Benefits (National Renewable Energy Accurately Laboratory Studies) 1. Increased Power Output predicting wind Yaw Improvement approximately 10% Pitch Improvement approximately 5% speed and 2. Decreased Operating direction Costs Cost decrease approximately 10% (from 30% less stress on blades and 10% less overall damage)
  • 12. We Make Wind Energy More Profitable 12 12 Higher Reduced revenues maintenance costs - Increased production “Recent development of LIDAR - Sale of Renewable Energy systems promises large Certificates (RECs) improvements in cost, compactness, and reliability so that - Production Tax Credits (PTCs) it becomes viable to consider the - Higher capacity payments deployment of such systems on - Preferable external financing large wind turbines. Potential terms; lower weighted average advantages of this approach include cost of capital (WACC) increased turbine energy output and reduced turbine fatigue damage.” NREL
  • 13. How We See the Wind… Laser Doppler Velocimetry (LDV) 13 1 Three laser beams 2 Lasers reflect off dust 3 We sense the color particles in wind and change and calculate change color wind speed and direction 4 VindicatorÂŽ LWS commands optimal turbine alignment and blade pitch 300 meters (20 seconds at 35 mph)
  • 14. No Forward-Looking Competition 14 14 Conventional Anemometer ZephIR LIDAR VindicatorÂŽ Laser Wind Sensor Larger/heavier Larger/heavier Compact/lightweight Moving parts Moving parts No Moving Parts/Rugged Inexpensive Approx. $200,000 per unit Economical Not forward looking Measures up Forward-looking not forward to 300 meters
  • 15. Improving Economic Value 15 Sample Financial Model* 100 MW Incremental NPV FARM +1% Availability $1.9M 67 1.5-MW Turbines -10k/WTG O&M $5.9M Cost to Purchase $9.4M A/T Cost $5.6M *Per AES Houston Wind Power 2009 | Based on $125K per unit + $15K retrofit kit Assumes 40% corporate tax rate
  • 16. Industry Validation – WEICan Phase 2 16 Pow er Production Com parison 50 Vindicato r Co ntro l Nacelle Wind Vane Co ntro l Average Power (kW) 40 30 REGION 2 20 REGION 3 10 0 VindicatorÂŽ LWS 5.5 6.5 7.5 8.5 9.5 Based on Data collected Apr – June Wind Speed (m /s) 2009 Percentage Increase in Power Production VindicatorÂŽ and Wind Vane alternate 20 control every 9 hrs 15 % Increase VindicatorÂŽ uses wind vane control 10 algorithm - not optimized REGION 2 REGION 3 5 Vindicator shows increased power 0 production 5.5 6.5 7.5 8.5 9.5 Wind Speed (m/s)
  • 17. Industry Validation – Nebraska Power 17 T22 T23 T21 Average Active Power 1500 Power (KW) Installed on Vestas V-82 #T22 in June 1000 Integrated by CTW and DNV-GEC Vindicator started controlling the wind turbine on July 8, 2009 500 Control optimization in progress Data collected during August 0 Data shows significant increase in 0 500 1000 1500 power Time (Min)
  • 18. Nebraska Power - Reduced Stress Loading 18 SWANTech stress wave analysis data taken before and after VindicatorÂŽ installation The Random Friction Index (RFI) for T-22 went from worst to best in the group Random and periodic friction decreased significantly on main shaft bearing on T-22 All snapshot data show excellent trends STRESS DATA CORRELATES DIRECTLY TO A PERIOD OF INCREASED WIND POWER OUTPUT FROM T-22
  • 19. Large Addressable Market 19 *Large turbines, 1.0MW and above Potential Number of VindicatorÂŽ Turbines LWS sales* Global installed based (2008) 80,500 $10.1 billion Projected installs (2009 – 2011) 30,000 $3.7 billion Total market opportunity through 2011 $13.8 billion *Based on $125,000 introductory sales price Global Projected Demand: 500,000 turbines with 1.0 MW+ capacity by 2020
  • 20. Market Sales Forecast 20 20 4000 Number of Units 3500 3000 WRA - Maritime WRA - Terrestrial 2500 Retrofit 2000 OEM 1500 1000 500 0 2009 2010 2011 2012 2013 2014 Unit sales forecast excludes additional product applications
  • 21. Value-Driving Milestones 21 Q2 2008 WEICan Phase I Testing Q3 2008 WEICan Phase II Testing Q1 2009 Prototype Production First Commercial Sale to AXYS Technologies Maritime Application Licensing Agreement Q2 2009 Control Systems Integration Project Nebraska Public Power District Trial Program Q3 2009 Helimax Trial Program NREL – US Department of Energy Testing Gamesa Agreement - Trial Program BreconRidge – Contract Mfg Agreement Q4 2009 Canadian Hydro Developers - Multiple Unit Development Testing Complete Gamesa Trial Program Q1 2010 VindicatorÂŽ LWS Contract Manufacturing
  • 22. Major Trial Programs 22 • Multi-unit testing • Direct side-by-side comparison with non- VindicatorÂŽ mounted turbines • First trial program with OEM • Gamesa G8X 2.0 MW • Integrates VindicatorÂŽ LWS with turbine control • Cooperative Research and Development Agreement • Primary research lab of U.S. DOE • 3-year program to develop new advanced smart turbine control systems
  • 23. VindicatorÂŽ LWS for Grid Control 23 Positioning to be required equipment to connect to the grid
  • 24. Management Team 24 Phil Rogers 21 years experience as successful small business defense contractor; - President & CEO/Director Former director of Special Projects, Lockheed Skunk Works David Samuels Extensive public company CFO and capital raising experience; - CFO/Director Significant experience with emerging growth technology companies Claudia Jaques 5 years Associate General Counsel - Corporate Securities, Freddie Mac; - VP General Counsel 8 years experience with large law firm – corporate & securities William Fetzer 3 years Business Development Director - VP Business Development 10 years as President of Strategic Business Management Company Daniel Lacroix Designed state of the art, world class Fiber Optical Manufacturing Facility - VP Manufacturing 20 years high technology manufacturing experience
  • 25. Board of Directors 25 David Garman Alisa Rogers • Former U.S. Under Secretary of Energy • Co-founder and President of OADS, LLC • Assistant Secretary for Energy Efficiency and Renewable Energy. Phil Rogers David Samuels • President and CEO of Catch the Wind, Inc. • Extensive public company CFO and • 20 years experience as successful small capital markets experience business defense contractor • Significant experience with emerging • Former director of Special Projects, Lockheed growth technology companies Skunk Works Richard McGraw Addition of Two Wind Industry • Co-founder Bayview Public Ventures Executives • Extensive GreenTech experience • Private Equity Investor
  • 26. Financing History 26 Sept. 2008 May 2009 $15 Million CDN $21.8 Million CDN Qualifying Private Placement Transaction 16.7 million shares 11.5 million issued ($1.30) shares issued Significant Price ($1.30) Premium
  • 27. Working Capital Usage 27 Average ‘Burn Rate’ per Month $1.3M $1.2 M CAPEX CAPEX G&A G&A Materials Materials Manufacturing Manufacturing Resources Resources Q1 09 Q2 09 Cash position at June 30 was $19M Ramp-up period – new hires, business development Beta units currently manufactured by hand Burn expected to decline by year-end due to low fixed cost structure
  • 28. Market Sales Forecast 28 28 4000 Number of Units 3500 3000 WRA - Maritime WRA - Terrestrial 2500 Retrofit 2000 OEM 1500 1000 500 0 2009 2010 2011 2012 2013 2014 Unit sales forecast excludes additional product applications
  • 29. Equity Market Information 29 Ticker Symbol: CTW.S – V 52-Week Range: $0.50 - $2.00 Shares Outstanding: 54.9 Million Fully Diluted: 60.1 Million Market Capitalization: ~$100 Million Holders: Insiders 46% Institutional 46% Retail 8%
  • 30. Liquidity Initiatives 30 Analyst Coverage NBF Rupert Merer; RCC Matt Gowing Expansion of sell-side analyst coverage Focus on retail investors Investor meetings Add-on to equity raise Broaden US Investor Base First round “.S” restriction expired Second round “.S” restriction expires May 2010 Potential for future US SEC registration
  • 31. Investment Summary 31 Additive technology focused on making wind energy more profitable VindicatorÂŽ LWS is based on proven technology No competition Significant existing market with enormous upside potential Multiple sales channels Essential for “Grid Control” Extensive patent portfolio; high barriers to entry Non-capital intensive business Experienced management team delivering on milestones
  • 32. 32 Investor Contacts: David Samuels, CFO Catch the Wind dsamuels@catchthewindinc.com (703) 393-0754 ext.107 Joe Racanelli Equicom Group jracanelli@equicomgroup.com (416) 815-0700 ext. 243