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Message: ZENN MOTOR COMPANY ANNOUNCES TESTING UPDATE

The important information is this -

"Evans has reported that it has developed testing procedures that measure energy in and energy out. It has tested the procedures on known capacitors to verify reliability and accuracy of the tests. Based on these tests, Evans has advised that the EESU layers tested did not show any meaningful levels of energy discharge (energy out). Evans did find in its testing that certain layers exhibited high resistance."

Here is the whole news release.-

Zenn Motor Company Inc. has received initial feedback on the testing conducted by Evans Capacitors Company, the firm jointly selected by Zenn and EEStor Inc. to develop testing protocols and to conduct independent testing of the EESU layers manufactured by EEStor as announced by Zenn and EEStor on Oct. 29, 2013. Evans has provided its initial feedback informally and has not yet provided a formal written report although Evans has advised that it does not expect its preliminary findings to change.

David Evans, chief executive officer of Evans, was given full access to EEStor's facilities, and was able to observe and record the results of testing of a number of different EESU layers on EEStor's testing equipment and using EEStor's developed methodology. He was then given these same layers to take back to his facility in Rhode Island for testing. The intention was to see if he could replicate the test results using methods usual to Evans's procedures and equipment. In addition, Mr. Evans also tested the layers Zenn had previously purchased from EEStor that had not been tested on EEStor's equipment in the presence of Zenn or Evans.

After initial consultation with EEStor, Evans spent several weeks to develop its own testing protocols. Evans's focus was to develop testing protocols that would measure energy that is put into each layer and then the energy that could be taken out of the same layer.

Evans has reported that it has developed testing procedures that measure energy in and energy out. It has tested the procedures on known capacitors to verify reliability and accuracy of the tests. Based on these tests, Evans has advised that the EESU layers tested did not show any meaningful levels of energy discharge (energy out). Evans did find in its testing that certain layers exhibited high resistance.

EEStor has also been provided with the preliminary findings but has not yet had an opportunity to review or comment on the testing protocols used by Evans. EEStor has responded that the layers provided by EEStor to Evans were not commercial-ready layers and were not expected to demonstrate high-energy density, and that the layers were provided to Evans solely to assist Evans in developing testing protocols. EEStor has also advised that it is continuing to work to produce layers that could have commercial potential by demonstrating both high-energy storage capabilities and low-energy leakage in the same layer. There can be no assurance that such layers will be developed.

There is significant complexity in the technology and the testing protocols and it is possible there are problems in the Evans procedures, a concern expressed by EEStor. If the Evans preliminary findings are accurate, it would raise questions about the commercial viability of the current EESUs layers that have been produced by EEStor. If commercially viable layers cannot be supplied and results demonstrated that clearly show progress in terms of energy storage, it would raise doubts as to the viability of EEStor's plan to be a leader in energy storage and similarly impact the business plan of Zenn.

Zenn is working to have Evans and EEStor collaborate to better understand what steps can be taken to develop testing procedures that they both believe can be relied upon so that future developments can be quickly and reliably reported on.

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