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• Next is a press release describing the development of our new attic temperature control <br /> technology. It means filing for a 5th patent. An electronic prototype using a programmable <br /> controller (small computer) was tested two weeks ago. The new control will be usable <br /> across product lines for space heating, ventilation and combination space heating- <br /> ventilation systems. We expect to be able to place this electronic control into production <br /> in the March time frame. It is compatible with all existing attic fans providing up to 10 amps <br /> of current at 120 vac. The new electronic control system will be demonstrated at the annual <br /> stockholders meeting in February using our GB Series product (combo ventilation-heating). <br /> Next is a press release indicating that we have lowered the minimum investment to only 100 <br /> shares or ($500) for public investors. The last page is our current tombstone ad as it <br /> appears on our Internet site. <br /> In addition to the Direct Stock Market, we started advertising our direct IPO on the Wall <br /> Street Journal's On-line Edition on December 21, 1998. A banner ad surfaces in the states <br /> where anyone can invest (RI, CT, NJ, IA) when a subscriber logs on. The are about 16000 <br /> on line readers of the Wall Street Journal in these states. Rhode Island expired 12/31/98. <br /> We also started to "brand" our technology by advertising on the Bloomberg Financial <br /> Radio AM station out of New York City yesterday. Its broadcast coverage overlaps <br /> several New Jersey and Connecticut counties where our offering is still active. The radio <br /> • ads will run throughout January. If yesterday is any indication, the phones will be ringing <br /> steadily all month. Yesterday we fielded over 20 phone calls ranging from simple product <br /> interest, to dealer interest and to investor interest. Our web site hits exploded with 4,139 <br /> hits in a single day. This represented 1304 pages which is a 300% increase in web traffic. If <br /> it continues, our site will exceed 100,000 hits for January. An interesting prospect. <br /> The last IPO strategic move we have implemented is to start working with a marketing firm <br /> out of Buffalo, New York called NetPartners Marketing Corporation. They specialize in the <br /> marketing of direct stock offerings and are now helping us plug some gaps and to expand <br /> our Internet offering. You can find them at http://www.netpartners-marketing.com <br /> While I cannot tell you for sure that everything is "in the bag" -- I can tell you that despite <br /> continued cash flow pressures and difficulties, that SolarAttic continues to move forward. <br /> Sales for 1998 finished at about 178% over 1997. We almost doubled our sales with very <br /> limited promotional resources. Audited financials will begin on January 15th and will be <br /> available at the annual meeting. Final sales numbers will be available at that time. <br /> Sincerely yours, <br /> eoef,v-eva iR641,47 <br /> Edward G. Palmer <br /> President <br /> Stockholder Update January 5, 1999 Page 2 of 2 <br />