Ann: Appendix 3B Placement, page-3

JujuM,

If I typed out everything that was in my head about AEI we would end up with the longest post ever in the history of HC, so I will try to keep what will be a long post as concise as possible.

In the past I have often wondered whether I did the right thing by investing in AEI, but recent management changes and a more proactive management style when it comes to getting the message out there has given me renewed confidence in my investment.

With AEI focused on energy efficiency, healthier air, food safety, water quality and long-term materials protection, the returns from these markets could be huge.

Let's take a closer look at the SmartENERGY technology platform, just one of the key areas AEI are involved in.

AEI claims that SmartENERGY technology delivers dramatic energy savings and improved efficiency across all air-conditioning and refrigeration systems with immediate cash flow savings.

Research from Aeris has found that inefficient energy use is costing Australians $1.75 billion a year. Every year $8.85 billion is spent powering refrigeration and air-conditioning units. However, through a combination of bacteria build-up and dated technology, most units are running inefficiently.

The CEO was recently quoted as saying that 'If all Australian buildings implemented a simple retrofit to their current air-conditioning and refrigeration plants, half of Australia's entire emissions reduction target could be met whilst dramatically increasing efficiency.'

In the past four years electricity prices have risen by 35%. HVAC contributes 70% of the total energy usage, 50-70% of the total energy bill and 63% of greenhouse gases.

The SmartENERGY technology is proven and its implementation results in:
* The reduction of between 19-25% in HVAC costs.
* Indoor airflow increases of up to 100% and beyond.
* Improved air quality with the certified protection of coils.
* Reduced operational and maintenance costs and an efficiency 'as new'.
* Prolonged equipment life leading to major CAPEX savings.
* Independent validated and certified.

The CSIRO estimates that the cost of poor indoor air quality in Australia is as high as $12 billion a year whilst the US EPA and its scientific advisory board have consistently ranked indoor air pollution among the top five environmental risks to public health.

The markets for the SmartENERGY technology alone are massive. According to a recent presentation they are as follows:

Supermarkets/Convenience Stores - 10,000+
Shopping Centres - 1,338+
Retail - 210,000+ locations
Hospitals - 1300+
Nursing Homes - 2080+
Retail Food Outlets - 60,000+
Refrigerated Trucks and Export Containers - 28,900 est
Devices in Residential dwelings - 11.5 million+

These markets range from the tens of millions to the hundreds of millions to even billions of dollars.

AEI claim that there is a multi-million dollar sales pipeline heading into 2015 for the SmartENERGY technology platform and given all of the above it's not hard to see why.