Safe Harbor Statements under the Private Securities Litigation Reform Act of 1995: Investors are cautioned that material contained on Beacon Power's Web site includes statements which are not historical facts and are considered "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect Beacon Power's current views about future events and financial performances. These forward-looking statements are identified by their use of terms and phrases such as "believe," "expect," "plan," "anticipate," and similar expressions identifying forward-looking statements. Investors should not rely on forward-looking statements because they are subject to a variety of risks, uncertainties, and other factors that could cause actual results to differ materially from Beacon Power's expectation, and Beacon Power expressly does not undertake any duty to update forward-looking statements. These factors include, but are not limited to, the following: Beacon Power is a development stage company attempting to transition to the manufacturing of new products in a new and developing sector; Beacon Power has incurred losses since inception and anticipates continued losses through at least 2008; Beacon Power has limited experience manufacturing flywheel energy storage systems on a commercial basis, and may be unable to achieve profitability; if Beacon Power is unable to meet its product development and commercialization milestones, it could lose sales; because Beacon Power depends on third party suppliers for the development and supply of key components for its products, and because Beacon Power does not have contracts with these suppliers, it could experience disruption in supply that could delay or decrease its revenues; Beacon Power faces intense competition in the frequency regulation market from established utilities and independent service providers with far greater resources than Beacon Power has and its revenue could decline if it is unable to compete successfully; government regulation may impair Beacon Power's ability to market its services; product liability claims against Beacon Power could result in substantial expenses and negative publicity which could impair successful marketing of Beacon Power's services; safety failures by Beacon Power's products or those of its competitors could reduce market demand or acceptance for flywheels in general; Beacon Power expects to need additional financing that may not be available to it on acceptable terms or at all, which could cause Beacon Power to fail to reach its future goals; the market price of Beacon Power's common stock may decline in the event that it obtains additional financing; Beacon Power may have difficulty managing the expansion of its operations and its business operations could be interrupted; Beacon Power's financial performance could be adversely affected by its need to hire and retain key executive officers and skilled technical personnel; Beacon Power will rely on a limited number of large customers and its business may be adversely affected by the loss of, or reduced purchases by, any one of those customers; if Beacon Power is unable to successfully market and deploy its products internationally it may experience a shortfall in expected revenues and profitability; any failure to protect Beacon Power's intellectual property could seriously impair its competitive position; the share prices of companies in Beacon Power's sector have been highly volatile and Beacon Power's share price could be subject to extreme price fluctuations; for Beacon Power’s business strategy to be effectively implemented, its Smart Energy Matrix must be successful; Beacon Power faces significant technical challenges in completing the development of its Smart Energy Matrix; Beacon Power has not demonstrated any ability to sell into the market for frequency regulation; and other factors detailed from time to time in Beacon Power's filings with the Securities and Exchange Commission.