my email from ATI

Dear Darren,

Thank you for your comments and interest in ATI. You are correct in that we have been ‘laying low’ recently, however many positive things are going on, albeit not worthy of a news release as yet. Some of the highlights of recent activities;

• In our existing business we have enjoyed considerable growth despite the impression that your contacts may have. 2010 came in 53% over 2009 with sales at $2.544 million. For the last 6 mos of 2010 we were 113% over the same period in 09. For the last 8 mos we have been going at a $3.5MM annualized sales volume with January 11 at $310K, our largest month ever. This was up 2 and a half times Jan 10.
• Our business is based on energy savings and the concept of demand controlled ventilation has really taken hold after many years of promotion on our part. We expect our growth to continue and the good news is even at current levels we have eliminated our burn rate, and but for very high factoring fees and interest expense we would be enjoying some solid profits.
• As for the new technology, development has continued and two recent developments will greatly assist us in getting to market with products using the new zero drift sensor technology at the earliest possible time. The first is that we have reached agreement with a large international manufacturer with strong engineering capability to partner with us in the testing and further development of the three prototype platforms and when ready, to manufacture the new product platforms for us. We are just finalizing details of a LOI with this company and will do a news release as soon as it is signed off.
• We were also approached by an international marketing group who specialize on selling to large volume OEM accounts, and for the past 17 years have been promoting CO2 sensors from our largest competitor. Their deal with our competitor got terminated this past October, so they are now free to work with us in promoting the new technology. This will save us the expense of hiring OEM sales staff, and give us much faster access to some volume accounts, particularly in Europe and Asia where we do not have the contacts at this time. The agreement with this group is also in the finishing touch stage and will merit a news release upon execution.

The key right now is to develop $2MM financing as the first stage requirement for us to go full speed with both existing business and new technology development, and I have been trying to accomplish this type of input through either green technology grants, debt instruments, or convertible debt instruments, in order to minimize further dilution for our existing shareholders. We realize that more promotion may push our share price up somewhat, however we feel that we can complete one form of financing or another without doing a placement, so the share price won’t impede our progress and will look after itself as pending announcements are made.

Hope this gives you a bit more insight and some confidence in your investment. I cannot predict what will happen to our share price or future sales growth, as it is forward looking commentary which I am not allowed to do, however I am very comfortable that our program is moving in the right direction.

Regards,

George Graham

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