Frost & Sullivan Recognizes Sanderson Engine Development
Rapid Market Growth Backed by Pioneering S-RAM Technology

Palo Alto, Calif. — August 18, 2008 — Based on its recent analysis of the power supplies market,
Frost & Sullivan recognizes Sanderson Engine Development, LLC (SED) with the 2008 North
American Frost & Sullivan Award for Emerging Company of the Year. By designing the
revolutionary Sanderson Rocker-Arm Mechanism (S-RAM), SED has successfully created a
paradigm shift in the industry, and introduced a technology with disruptive market potential.
The S-RAM is an emerging core technology for an entirely new generation of engine-driven
pumps, compressors, generators, and any other device for which current power systems deploy
multiple components (as in a crankshaft engine and a swash plate hydraulic pump) to transfer
power.

“SED's S-RAM technology can successfully replace the crankshaft or swash plate in engines,
pumps, motors, and compressors with a mechanism that converts linear to rotary, rotary to linear
or linear to linear (replacing a combination of a crankshaft engine and swash plate pump),”
explains Frost & Sullivan Energy & Power Principal Consultant Sara Bradford. “In addition, the
S-RAM's variable displacement hydraulic pumps technology scales to sizes not currently available
by large crankshaft pumps, enabling new wind, wave and hydro-power applications.”
The S-RAM almost completely eliminates friction, offering higher efficiency over a broad speed
range (an energy savings result), as compared to existing technologies. It allows the piston stroke
to be varied from maximum to zero, and this can easily be controlled on the run. As a result, the
compression ratio can be varied as needed by a combustion engine or the flow to be varied in a
pump or motor. Another unique feature is that the mechanism provides for a near-perfect
balance, enabling very low vibration and noise, which is essential for many applications that are
used indoors or in close proximity to consumers.

A truly disruptive advantage is that the pistons can be double-ended, allowing one side to function
as a combustion cylinder, while the other cylinder in line can be a hydraulic pump. The result is a
very high transfer of power efficiency. The opposing cylinder can also be configured as a
supercharger for the engine, providing higher power to weight and efficiency.
“The fact that S-RAM technology can provide linear to linear power conversion will uniquely
enable a highly compact combination engine with an integral hydraulic pump that provides a
lucrative market potential,” notes Bradford.

Thus, SED’s S-RAM can be utilized in a wide range of applications to improve fuel efficiency and
provide numerous additional benefits. Within the energy industry, this technology can provide
substantial benefits in hydraulic transmission of power, hydraulic hybrid power train with
regenerative braking, and hybrid hydraulic engines.

For instance, SED’s S-RAM technology can be used to improve efficiency and create less costly
wind turbines by relocating the generator from the top of the turbine to its base, either at
ground/sea level or below. It can also replace the existing complex multi-stage gearboxes with a
simple low reduction gearbox to provide reliability, low cost and high power density aspects to
wind energy operations. This concept is already being reviewed by several renewable energy
developers, institutional researchers and laboratories, and equipment manufacturers.
SED’s technology can be utilized in hydraulic hybrid power train designs to eliminate the need for
expensive electric generators/motors for electric hybrid vehicles. S-RAM technology used with
hydraulic hybrid power train designs can dramatically increase the fuel efficiency of many types of
material handling, farm, lawn/garden, and other equipment.

In short, with an integral supercharger and hydraulic pump, S-RAM engines can more than double
the horsepower in the same space as compared to the combination of a crankshaft engine,
supercharger and hydraulic pump.

Currently, SED is proposing this configuration to the U.S. Environmental Protection Agency (EPA)
for use in a United Parcel Service (UPS) delivery truck, with project industrial partners including
Eaton and International Navistar. The S-RAM engine is expected to be one quarter the size, one
half the weight, and 20 percent more efficient than the conventional Navistar diesel engine and
Eaton hydraulic pump combination. SED is seeking government and private funding to develop its
engine with integral hydraulic pump for the EPA's delivery truck hydraulic hybrid system.
By utilizing innovative strategies to develop its S-RAM technology, SED has successfully achieved
$1.1 million in license options and prototype/test orders and approximately $7 million from
manufacturers in project co-funding. At this time, the company has eight prototypes designed,
built and tested in many applications including those highlighted. SED has a strong intellectual
property portfolio consisting of 17 U.S. patents and over 500 claims, 18 foreign patents, and
additional patents in process. As it forges ahead to be a significant participant within its industry,
the company proves to be a worthy recipient of the 2008 Frost & Sullivan Emerging Company of
the Year award.

Each year, Frost & Sullivan presents this award to the company that has emerged as a significant
participant within its industry. The award recognizes outstanding management, superior market
growth, exceptional customer service and the ability to combine technology and successful
strategic initiatives. It lauds the recipient company’s exceptional know-how to take advantage of
market changes through the execution of innovative strategies within the existing competitive
landscape.

Frost & Sullivan Best Practices Awards recognize companies in a variety of regional and global
markets for demonstrating outstanding achievement and superior performance in areas such as
leadership, technological innovation, customer service, and strategic product development.
Industry analysts compare market participants and measure performance through in-depth
interviews, analysis, and extensive secondary research in order to identify best practices in the
industry.

About Sanderson Engine Development, LLC
The Sanderson Engine Development Company, LLC, was formed in August, 1998 to
develop and commercialize the Sanderson Rocker-Arm Mechanism (S-RAM) along with
associated developments that resulted from the original rocker arm engine concept. The
company was founded by Robert and Albert Sanderson and is based in the rural central
Massachusetts community of Upton. The seminal invention, the rocker arm mechanism,
was discovered in a breakthrough insight in 1997. Robert Sanderson conceived of a
mechanism that would enable internal combustion and other mechanisms to achieve
unprecedented levels of performance and efficiency. Subsequently the mechanism has
undergone extensive testing and evaluation, and is presently in the commercialization
stage.

About Frost & Sullivan
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