Ecotality

A: Hydrogen is the most abundant element in the universe and is the major power source for every star. Its atomic structure is of the simplest composition we know -- a proton and an electron. Here on earth, it is everywhere around us in the form of water (H20). Hydrogen gas is colorless and odorless. Hydrogen is also found in all fossil fuels and hydrocarbons.

A: There are approximately 800 million vehicles in the world and transportation fuels are projected to account for nearly 57 percent of total world oil consumption by 2020. In the United States, two-thirds of oil and gas is imported from foreign countries and the country that has five percent of the world population consumes 40 percent of the world’s gasoline. The Department of Energy (DOE) predicts that America’s consumption of oil will increase 34 percent by 2030.

The bottom line: We will eventually exhaust the planet’s oil resources. We need to find alternative ways to power transportation and by holding more than three times the energy of gasoline (by weight) and producing zero emissions, hydrogen is of the most promising.

A: Hydrogen has a huge energy potential. Pound for pound, Hydrogen has more than three times the energy than gasoline. Because of its energy capacity and output, NASA uses hydrogen to fuel all of its rockets and space shuttles it sends into space.

A: The main way to obtain Hydrogen is:

1. The reforming of natural gas
2. The oxidation of natural gas
3. The gasification of coal
4. The electrolysis of water

Electrolysis, the process of separating elements and compounds with an electric current, is the best way to produce hydrogen. Renewable energies like solar, wind, and hydropower, can produce enough electricity to obtain hydrogen from water. As a result, it is possible to obtain and use hydrogen from renewable energy sources in a process that emits completely zero emissions.

A: Solar hydrogen is an energetic and environmentally neutral cycle that uses solar power to create hydrogen. In the cycle, sunlight provides the electric current for electrolysis to transform water into hydrogen and oxygen; hydrogen is then used in a fuel cell or combustion process to produce energy with its only byproducts being heat and water.

A: When hydrogen combines with atmospheric oxygen, it releases the energy stored inside it. This energy can be channeled through a proton exchange membrane (PEM) fuel cell or can be used directly in a combustion engine.

A: There are many hydrogen powered cars on the road right now (check out the ECObus). Although the day when all vehicles are powered by Hydrogen and fuel cells is a few year away, it is quickly approaching. With the rising cost of fossil fuels, the increasing concern over global warming, and a growing public demand for renewable and sustainable forms of power, we are ever closer to realizing mass commercialization of hydrogen vehicles.

A: The major problem is with the cost of production, transportation, storage, and dispensing of hydrogen as a fuel source. Once these become reasonably cost efficient, the hydrogen economy will have arrived. Hydrality™ may be the answer.

A: The only emissions released from the combustion of hydrogen or the use of a hydrogen PEM fuel cell is heat and pure water.

A: A fuel cell is an advanced, energy-conversion technology that produces electricity from hydrogen fuel. Like a conventional battery, a fuel cell has an anode and a cathode, and produces direct current (DC) electricity. Also, similar to a conventional battery, a fuel cell converts chemical energy. In this case, hydrogen into electrical energy to power motors of a vehicle.

Unlike a conventional battery, a fuel cell uses a continuous flow of hydrogen fuel from storage tanks. Therefore, theoretically, a fuel cell can produce electricity indefinitely, as long as hydrogen is being supplied.

As efficient as it is, some of the chemical energy of the hydrogen fuel is lost as heat. Still, when compared to a conventional internal combustion engine, a fuel cell is about twice as efficient – a huge improvement over existing technology.

A: Hydrality will work in conjunction with existing fuel cell technology or with combustion engines. It is unique because it generates hydrogen on-demand. There is no longer a need for dangerous and large tanks of compressed hydrogen or large energy intensive and expensive tanks of liquefied hydrogen. Hydrality creates hydrogen in a way that is easier and cheaper to store, transport and dispense.

Hydrality uses benign materials - magnesium and water - to produce hydrogen in a safe process that emits no emissions other than water. After the magnesium is initially used in the Hydrality, it can be recycled using renewable energy sources in an electrolysis process that could transform nearly all of it back for reuse. Hydrality can be the missing link in transforming the hydrogen economy from theory to reality.

A: The prototype Hydrality is being tested for use with de-ionized water, but commercial applications could use regular purified water.

A: The fuel efficiency of a vehicle system is not really determined by the Hydrality™. It is determined by the fuel cell, electric motor, and vehicle electronics. Hydrality™ is expected to release nearly all the hydrogen it produces from the magnesium and water.

A: On a bus with one 65 kW fuel cell, ECOtality is designing a commercial version of the Hydrality to have a 300 mile range. This is dependent upon fuel cell and internal combustion engine capabilities, weight and specifications of the materials used for the vehicle, as well as the size of the fuel storage tanks. The more fuel a vehicle can carry, the farther it can theoretically go.

A: Refilling a Hydrality-powered vehicle would be very similar to current conventional methods of pumping gas. The main difference with a Hydrality™ system is the use of a three-pronged pump: one to fill up with the fresh magnesium; another to fill up with fresh water; and a third to extract the used magnesium to be recycled for reuse.

A: As Hydrality provides hydrogen on demand, the only emission produced is pure water.

A: Hydrality fuel –magnesium and water - could be transported in a variety of ways including traditional methods of trucking and pipelines. Since it is a benign material, the magnesium could be easier and more cost efficient to transport as compared to compressed or liquefied hydrogen, or even petroleum.

A: As there is no refueling infrastructure for magnesium in place, Hydrality-powered cars will not be available to the public for a few years. Hydrality will initially be available for fleet vehicles (i.e. municipal buses, police cars, USPS, Fed Ex, etc…) but not public or commercial vehicles. As fleet vehicles come home at night and use a central refueling station, the initial capital costs of creating a refueling infrastructure is more cost efficient.

A: Yes. Hydrality will provide hydrogen on demand for any application. While it will be most effective used in conjunction with a PEM fuel cell, it can also be used in an internal combustion engine.

A: ECOtality was incorporated in 1999 in Nevada as Alchemy Enterprises. Alchemy Enterprises changed its name to ECOtality in December 2006.

A: ECOtality's mission is simple: to develop and commercialize environmentally friendly energy systems and solutions that address today's global energy challenge. We are a technology innovator committed to the development and commercialization of clean energy technologies, striving to identify inventive ways to efficiently power our lives while striking a harmonious balance with our natural environment.

A: The corporate web site (www.ecotality.com) contains information regarding ECOtality.

A: You can receive regular e-mail updates about the company by signing up for the ECOtality Newsletter by clicking here. By signing up, you will receive our monthly newsletter, press releases, company news and relevant alerts to your e-mail.

A: No. However, ECOtality stock may be purchased from just about any brokerage firm, including discount or online brokerage services.

A: ECOtality does not currently pay dividends on ECOtality common stock.

A: ECOtality is currently traded on the Over-The-Counter Bulletin Board Stock Market (OTCBB) under the ticker symbol ETLY. For more information on the OTC Bulletin Board, visit www.otcbb.com.

A: A real-time stock quote, complete financial filings, company news and other information regarding ECOtality stock can be found on the Investors page of ECOtality’s corporate website, and is provided by QuoteMedia.

A: ECOtality, Inc engages in investor conference call updates about twice a year. You can read the full transcript of the most recent investor conference call on July 24, 2007 here, or listen to a replay at www.ecotality.com.

You can also sign up to receive regular e-mail communications from ECOtality by signing up for the ECOtality newsletter. In addition to the monthly newsletter, you will receive also be sent press releases, company news and relevant alerts to your e-mail.

ECOtality has not announced the date of a 2007 shareholder meeting.

A: No

A: You should contact ECOtality's transfer agent, Holiday Stock Transfer, Inc.

Holiday Stock Transfer, Inc.
2939 North 67th Place
Scottsdale, AZ 85251
P: 480-481-3940

A: A transfer agent and registrar for a publicly held company keep records of every outstanding stock certificate and the name of the person to whom it is registered. When stock changes hands, the transfer agent transfers the ownership of the stock from the seller's name to the buyer's name. The registrar reconciles all transfer records and makes sure that the number of shares debited is equal to the number of shares credited. ECOtality's transfer agent is Holiday Stock Transfer, Inc.

The transfer agent does not maintain records of shares bought and sold through brokerage accounts and held in "street name". Those records are maintained by the specific brokerages through which shares are bought and sold.

A: ECOtality’s transfer agent is Holiday Stock Transfer, Inc. They can help with a variety of shareholder-related services:

• Change of address
• Transfer of stock ownership
• Restricted stock issues
• Lost or missing stock certificate(s) request
• Account statement request

Holiday Stock Transfer, Inc.
2939 North 67th Place
Scottsdale, AZ 85251
P: 480-481-3940

A: If you have any questions about:

• Change of address
• Registration of restricted shares
• Lost stock certificates
• Transfer of stock to another person
• Additional administrative services

Please contact:
Holiday Stock Transfer, Inc.
2939 North 67th Place
Scottsdale, AZ 85251
P: 480-481-3940

A: If you hold ECOtality stock in your name, you were notified at the address Holiday Stock Transfer, Inc, our stock transfer agent, has on file. To verify your address you can call them directly at 480-481-3940. If your ECOtality stock was held in a brokerage account, the information was sent directly to your broker. For additional information please contact ECOtality, Inc. directly at 480-861-1235.

A: ECOtality files quarterly reports with the SEC. See SEC Filings for details.

A: ECOtality does not provide a hardcopy of our annual report. ECOtality's reports are available on the Investors section of our website and are also available at the SEC website.

A: To view or download any ECOtality financial information and SEC filings, please visit our Investors page or go to the SEC website.

A: To receive an Investor Information Packet, please contact:

Thomas Walsh
Alliance Advisors for ECOtality
500 Fifth Avenue, Suite 2240
New York, NY 10110
twalsh@allianceadvisors.net
P: (212) 398-3486
F: (212)599-4289

A: In order to better serve our shareholders, please notify ECOtality of any change of address.

ECOtality, Inc.
6821 E. Thomas Road
Scottsdale, AZ 85251
P: 480-219-5005
F: 480-219-5338

Additionally, If you own shares through a brokerage firm, you need to contact the brokerage firm directly to change your account address.

If you're a registered shareholder you need to contact ECOtality's transfer agent, Holiday Stock Transfer Inc.

Please contact:
Holiday Stock Transfer, Inc.
2939 North 67th Place
Scottsdale, AZ 85251
P: 480-481-3940

A: Alliance Advisors provides Investor Relations services for ECOtality, Inc. All financial or stock related questions for ECOtality and ECOtality stock should be directed to:

Thomas Walsh
Alliance Advisors for ECOtality
500 Fifth Avenue, Suite 2240
New York, NY 10110
twalsh@allianceadvisors.net
P: (212) 398-3486
F: (212)599-4289

A: ECOtality has recently undergone a private placement for 41,399,896 shares through Brookstreet Securities. The registration statement for the stock in the placement (SB-2) was filed on February 12th, 2007, and the registration of these shares became effective with the Securities Exchange Commission (SEC) on Monday, August 13, 2007. A copy of the SB-2 Registration Statement can be found on the Investors page of ECOtality’s corporate website or at the SEC website.

A: If your shares were registered as Alchemy Enterprises, they have been automatically transferred over to the new name of ECOtality, Inc. and you do not need to change your certificate.

A: If you participated in the private placement, your shares are stamped with a “restricted” legend. Since these shares are now registered and effective (8/13/07), you can now trade your shares. To trade your shares, you will need to send your certificate with an official notification to sell the specified amount to your broker. Your broker will place your order to sell and will send the stock certificate to the transfer agent to be put in the name of the brokerage firm without the legend in order to be sold. Legends only come off when the stock is actually sold.