Breeze Technology, Inc. BUDGET (Years 2 and 3 by Quarter)   Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year 2   Qtr 1 Qtr 2 Qtr 3 Qtr 4 Year 3 Sales                       Breeze technology 625,000 625,000 625,000 625,000 2,500,000   625,000 625,000 625,000 3,500,000 5,375,000 Roll out products         0   150,000 200,000 400,000 600,000 1,350,000 Total Sales 625,000 625,000 625,000 625,000 2,500,000   775,000 825,000 1,025,000 4,100,000 6,725,000                         Cost of Goods Sold                       Contract manufacturing         0   90,000 120,000 240,000 360,000 810,000 % of Total Sales 0% 0% 0% 0% 0%   0% 15% 29% 35% 20% Total Cost of Goods Sold 0 0 0 0 0   90,000 120,000 240,000 360,000 810,000                         Gross Profit 625,000 625,000 625,000 625,000 2,500,000   685,000 705,000 785,000 3,740,000 5,915,000 Gross Margin 100% 100% 100% 100% 100%   88% 85% 77% 91% 88%                         Operating Expenses                       Sales, Marketing & Production                       Advertising & Promotion 10,000 10,000 10,000 10,000 40,000   10,000 10,000 10,000 10,000 40,000 Contract distribution         0           0 Salaries         0   30,000 30,000 30,000 30,000 120,000 Trade Shows & Travel 30,000 30,000 30,000 30,000 120,000   30,000 30,000 30,000 30,000 120,000 Total Sales & Marketing Costs 40,000 40,000 40,000 40,000 160,000   70,000 70,000 70,000 70,000 280,000 % of Total Sales 6% 6% 6% 6% 6%   9% 8% 7% 2% 4%                         Research & Development                       Salaries & Consulting fees 68,750 68,750 68,750 68,750 275,000   90,000 90,000 90,000 90,000 360,000 Equipment hire & Testing 20,000 20,000 20,000 20,000 80,000   25,000 25,000 25,000 25,000 100,000 R & D Materials 20,000 20,000 20,000 20,000 80,000   40,000 40,000 40,000 40,000 160,000 Total R&D Costs 108,750 108,750 108,750 108,750 435,000   155,000 155,000 155,000 155,000 620,000 % of Total Sales 17% 17% 17% 17% 17%   20% 19% 15% 4% 9%                         General & Administrative                       Admin Salaries & Superannuation 97,500 97,500 97,500 97,500 390,000   136,250 136,250 136,250 136,250 545,000 Equipment Lease 9,000 9,000 9,000 9,000 l"> 36,000   18,000 18,000 18,000 18,000 72,000 Insurance 450 450 450 450 1,800   900 900 900 900 3,600 Legal & Accounting Fees 15,000 15,000 15,000 15,000 60,000   20,000 20,000 20,000 20,000 80,000 License & Permits 300 300 300 300 1,200   600 600 600 600 2,400 Office Expenses 3,000 3,000 3,000 3,000 12,000   6,000 6,000 6,000 6,000 24,000 Office Rental or Lease 7,500 7,500 7,500 7,500 30,000   15,000 15,000 15,000 15,000 60,000 Telephone & Utilities 7,500 7,500 7,500 7,500 30,000   15,000 15,000 15,000 15,000 60,000 Total G&A Costs 140,250 140,250 140,250 140,250 561,000   211,750 211,750 211,750 211,750 847,000 % of Total Sales 22% 22% 22% 22% 22%   27% 26% 21% 5% 13%                         Total Operating Expenses 289,000 289,000 289,000 289,000 1,156,000   436,750 436,750 436,750 436,750 1,747,000 % of Total Sales 46% 46% 46% 46% 46%   56% 53% 43% 11% 26% Income from Operations 336,000 336,000 336,000 336,000 1,344,000   248,250 268,250 348,250 3,303,250 4,168,000 % of Total Sales 54% 54% 54% 54% 54%   32% 33% 34% 81% 62%                         Interest Income 4,199 6,537 8,904 11,301 30,941   8,108 4,711 6,834 9,983 29,636 Interest/Financing Expense 3,150 3,150 3,150 3,150 12,600   3,150 3,150 3,150 3,150 12,600 Income before Taxes 337,049 339,387 341,754 344,151 1,362,341   253,208 269,811 351,934 3,310,083 4,185,036 Taxes on Income (calculated yearly) 0 0 0 449,572 449,572   0 0 0 1,381,062 1,381,062                         Net Income After Taxes 337,049 339,387 341,754 (105,421) 912,769   253,208 269,811 351,934 1,929,021 2,803,974 % of Total Sales 54% 54% 55% 0% 37%   33% 33% 34% 47% 42%

CASH FLOW STATEMENT (Year 2 and 3 by Quarter)