August 27, 2009

In the second quarter of 2009 the Company experienced an increase in

sales of 53% over the same period in 2008. The Company continued to

operate at a loss with its working capital deficiency increasing from June

30, 2008 by $230,741 to $1,183,146 as of June 30, 2009.

The increase in working capital deficiency resulted from the following

principal factors;

-increase in accounts payable $ 281,256

-increase in loans outstanding 185,776

-increase in accounts receivable -129,188

-decrease in due to related parties -61,917

-increase in inventory -33,527

During the second quarter the Company completed a non-brokered

private placement to raise $259,000 less fees and commissions.

The business outlook for 2009 looks reasonably positive due to the trend

towards energy saving in all areas of the Company’s market. With

sufficient financing to meet current cash flow requirements as well as

providing cash for anticipated growth, the Company is well positioned to

continue to expand sales in 2009.