Armor Electric Inc./Greenhouse Gas Emissions ("GGE")

Introduction:

In brief, the Kyoto Protocol of 1997 (signed by 180+ nations) agreed to targets for the reduction of the world GGE's to be affected by 2008. (GGE's - carbon dioxide emissions from burning fossil fuels e.g. coal, petroleum, diesel etc.) Signatories were allowed several options by which they could achieve their respective targets including International Emissions Trading whereby countries can gain tradable credits for investing in emission reductions outside their borders. (eg: "whether a tonne of GGE;s occurred in Montreal, Moscow or Manila"). Qualified companies are awarded a monetary value from a GGE decrease, in Carbon Green Credits and only awarded to companies who definitively display their successful applications to clean the atmosphere and environment in the respective countries

Currently:

Several signatories to Kyoto have setup Domestic and International Emissions Trading systems (e.g.) Australia Carbon Credits Exchange expects to do 5 billion USD per year. The USA is not a signatory to Kyoto, however, it is a hotbed of related activity - note that Cantor,k, Fitzgerald Enviornmental Brokerage Services, NY and the Chicago Exchange actively broker such carbon credits. These Credits may also be sold to other companies who are charged for damaging the environment or atmosphere as a method to balance these fines or charges until they are able to fall into compliance with the designated restrictions.

Summary:

The applications of Armor Electric Technology replacing existing "dirty" transport systems should qualify for large credits with significant value to the Company and/or its ultimate customers. These "off balance sheet" benefits to the Company may be very substantial if properly exploited. Armor expects to significantly offset manufacturing, marketing and other company costs from the proceeds of these Credits secured from each and every country we market our products in.