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1 1 ATMS, © all rights reserved, 2016

2

Information on ATMS

ATMS has been developing new technologies which provide better mileage, less harmful tailpipe emissions, and longer engine life.

Digital Rotary Control Valve: ATMS has developed a Digital Rotary Control Valve (DRCV) along with a corresponding digital control strategy which replaces the last 100 years usage of analog thermostat technology. Our patented Digital Rotary Control Valve (DRCV) and Digital Engine Thermal Management (DETM) System not only improve mileage and emissions, but increase engine life and oil life, by maintaining the optimal engine operating temperature.

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Information on ATMS

Limited Thermal Management Competition: ATMS patents cover both elements of the digital engine thermal management system:

•  The important digital system control strategy, finalized during a joint three year development program with JAGUAR

•  The DRCV design, that incorporates a unique "fluid bearing" concept

Patents and Testing: The Company holds 20 patents in the U.S.; and DRCV patents in: China, South Korea, Japan, Europe, India, and Canada. The DRCV digital control system strategy was completed during the successful three year JAGUAR development program. The next step is to complete the production development testing on the production prototype DRCV’s, utilizing the new 5810 Sonceboz “smart motor.”

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Information on ATMS

Developing Production, Strategic Relationships and Go To Market:

We are now in the process of establishing worldwide strategic business partners, such as our relationship with DuPont, where we utilize their special HTN 51G35 series high temperature materials. The production prototype samples were provided by the following companies: production molds from The Minco Group, molded components from the DuPont development lab, special seals from Parker Hannifin, and recently Sonceboz has agreed to provide their new 5810 BLDC “smart motor,” to digitally function our DRCV.

We have had initial discussions, which include some NDA's, with the following companies regarding licensing and sales: VW, Bosch, Borg Warner, Mahle/Behr, Denso, MPC, Porsche, Aston Martin, PSA Peugeot Citroen, IAV, Aisin, Jaguar Landrover, Chrysler, Audi, Toyota, and Ford.

Western Thomson (India) Ltd & ATMS have recently completed an exclusive license agreement for India, including a non-exclusive license agreement covering their present non-India customer base.

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DETM and DRCV

ATMS, © all rights reserved, 2016

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Introduction to DETM Rationale

•  The first section reviews the DETM (Digital Engine Thermal Management) system joint technology development program. This included Jaguar, Dura Automotive, and now ATMS. The program provided important empirical development background information and centered on "Waste Heat Recovery" from the existing radiator system.

•  "Every BTU that exits through the radiator, provides ZERO heat energy value!”

ATMS, © all rights reserved, 2016

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Powertrain Function Graph

Ambient Air Temperature

Modified Analog Electronic Thermostat - Limited Temperature Range - Slow Response - High Hysteresis

}

New Digital Thermal

Management Range

Digital Variable High Temperature Shutdown - Spark Retard -  Full Fan Operation -  No Transmission ..Downshift, etc.

OEM Analog Thermostat In use for 100 years

Digital DETM

Control

- Maximum Temperature

…Range

-  Instant Response

-  Low Hysteresis

Low Limit

High Limit

DETM Oil Temperature Control Curve

DETM Control Temperatures – Engine Oil/Engine by-pass coolant

OEM System Requirements: •  Simple •  Cost Effective •  Durable

ATMS, © all rights reserved, 2016

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Typical MIRA Temperature Sweep

Top Hose Oil Gallery

Bottom Hose

Ambient

DETM technology controls optimum Engine oil temperature (Jaguar selected 110 C. Oil Gallery)

ATMS, © all rights reserved, 2016

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Thermostat/DETM Comparison

Top Hose

Oil Gallery

Speed

Ambient

Bottom Hose

DETM Control…Up to 8% better fuel economy Analog Thermostat

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Top Hose

Oil Gallery

Ambient

Speed

Bottom Hose

Typical Road Test with DETM

7 Hour Test Day in DETM System Mode 10 ATMS, © all rights reserved, 2016

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MIRA Combustion Chamber/Powertrain Temperature Mapping

120

110

100

90

80

+30 +20 +10 0 -10 -20

3650

2730

1830

1430

3650

2730

1830

1430

3650

2730

1830

1430

3650

2730

1830

1430

3650

2730

1830

1430

By-

Pas

s (

C)

o

Ambient Temperature ( C) o

RPM

146 147 144 149 148 143

161 161 157 160 161 158

150 150 148 149 150 135

143 143 137 135 141 140

150 151 148 151 148

139 141 139 140 140

135 139 135 138 136

132 134 x 133 127

148 144 140 142 142 138

133 133 130 132 133 131

130 132 126 132 131 127

x 127 120 123 124 120

140 137 132 132 132 131

128 126 120 124 123 121

125 127 117 122 122 123

118 118 113 114 115 115

131 122 126

120 123 115

118 120 115

113 x 109

Exhaust Valve _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

134 132 126 122 118 112

124 120 115 110 105 88

120 122 115 108 102 102

122 115 110 105 100 95

125 123 119 113 105

117 112 108 101 92

110 106 105 197 88

120 111 x 102 97

123 118 113 110 105 97

109 105 100 100 105 84

105 100 96 97 97 81

x 107 102 100 101 90

119 113 107 97 98 88

101 105 97 91 87 85

107 99 93 88 90 74

101 98 90 85 85 77

110 95 93

101 85 83

94 81 80

94 x 87

/Oil Gallery

Oil Gallery Exhaust Valve ? Re-Test

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Timmons, Ontario

•  The successful Jaguar DETM development program produced: §  8 % fuel economy savings during winter driving in

Timmins, Ontario, Canada

§  Extended oil life to 20k miles, saving money and resulting in fewer oil filters in land fills – environmentally friendly

ATMS, © all rights reserved, 2016

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New Digital Valve for DETM Program

•  ATMS has developed a new digital rotary control valve (DRCV) as an "analog" thermostat replacement. This same DRCV design allows a fluid flow rate capacity up to 600 gpm.

ATMS, © all rights reserved, 2016

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The new DRCV Design provides:

•  Small size •  Minimal pressure drop •  Positive seal •  Good pressure balance •  All surfaces “always wet” to provide “fluid

bearing” to prevent sticking

ATMS, © all rights reserved, 2016

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Assembly Layout View – All DRCV Components

ATMS, © all rights reserved, 2016

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Flow Grooves for Fluid Bearing Feature

ATMS, © all rights reserved, 2016

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Illustrates Empirical Flow Rate Design Capabilities

DRCV with Sonceboz 5810 Actuator

ATMS, © all rights reserved, 2016

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DRCV Concept with both Powertrain & Transmission TM Capabilities

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Universal System Capabilities

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o

Engine In

Engine Out

Single DRCV & W/P For PT & Trans. TM

Oil/Coolant

H.E.

Temp. Sensor

ATMS, © all rights reserved, 2016

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Summary: DETM/DRCV System Benefits

•  Proven technology •  Computer regulated system maintains engine at set optimal

operating temperature, through all ambient temperatures and engine load conditions, resulting in:

§  Improved fuel economy §  Reduced engine emissions §  Reduced engine wear §  Reduced oil change frequency

•  Adaptable to all water-cooled internal combustion engines •  Especially ideal for hybrid engines, including the heating and

cooling of the battery system

ATMS, © all rights reserved, 2016

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Opportunity:

•  ATMS has been granted the interlocking US patents for the complete digital engine thermal management strategy, and holds the patents for the technology which operates the device. This includes the electronic communication between any temperature control system and the engine.

•  ATMS is open to discussions on license agreements covering both the Digital Rotary Control Valve (DRCV) and the Digital Engine Thermal Management (DETM) system control strategy.

ATMS, © all rights reserved, 2016

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Conclusion

•  ATMS has the right product to deliver a high quality automotive technology, which will contribute significantly to the reduction of emissions, increase fuel economy, and prolong engine life.

•  OEM’s and Tier One suppliers have recognized the important value of advanced thermal management control as one of the last remaining areas for substantial improvement.

•  There has been a great deal of research in the last three years in this area. This has convinced the OEM’s and Tier One suppliers that this is the future, and more importantly, what the technology provides will be mandated on new vehicles.

•  Based on our experience in the last 4 years with OEM’s and Tier One suppliers, we believe that there is an opportunity for ATMS to capitalize on our patented technology in 2016.

ATMS, © all rights reserved, 2016