This is a capabilities overview for SMH Market & Liquidity Services. We provide Strategic Shareholder Communication, Trading Support and Equity Spotlight Reports. Visit our website at www.smhmls.com for more information.

1. OVERVIEW

2. Executive Summary
• Facing the liquidity “black hole,” most small cap
companies today do not have the kind of attention
from Wall Street that has historically financed
emerging, high-growth companies.
• By taking on only high-quality, high-growth companies
under our MLS service, we intend to become the “go-
to” name for information and investment ideas for the
small-cap and micro-cap market.
• The right combination of issuer-paid research, trading
support and analysis and strategic investor
communication is tailored for each specific situation to
maximize the value of your public entity.
Visibility. Transparency. Opportunity.
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3. Illiquidity can trump strong fundamentals
• Despite having strong fundamentals, illiquidity
can act as a gatekeeper to capital even for the
most promising small companies.
• Public markets are driven by trading liquidity.
Companies with little or no trading activity cannot
attract institutional-investor interest.
• The lack of informational liquidity is the other part
of the problem.
About 53% of all public companies have market
capitalization of less than $125 million and 83% of those
lack any research coverage. During the last five years,
more than 700 companies have lost research coverage as
Wall Street has slowly abandoned small cap companies.
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4. SMH Market & Liquidity Services – Client Performance Since Engagement
Cubic Energy Inc. (AMEX: QBC) ZBB Energy Corp (AMEX: ZBB)
Stock Price & Volume Stock Price & Volume
419,800
1,142,500 1,870,500
1,089,600 260,200 1,027,000 803,300
1,771,300 1,170,000
1,021,800
200
$5.00 1,000
$5.00
Volume (in thousands)
SMH Initiation Report Biggest Gainer on the AMEX
Volume (in thousands)
$4.00 800 $4.00 150
SMH Initiation Report
Price
Price
$3.00 600 $3.00
100
Retained by SMH
$2.00 400 $2.00
SMH Initiation Report
Retained by SMH 50
$1.00
$1.00 200
$- 0
$0.00 0
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Cubic Energy Inc. retained SMH Market & Liquidity Services on 1/22/08 ZBB Energy Corp. retained SMH Market & Liquidity Services on 2/26/08
Stock Price $1.67 Stock Price $2.20
Volume 14,400 shares Volume 28,700 shares
As of 7/31/08 As of 7/31/08
Stock Price $4.68 Stock Price $3.50
Volume 374,900 shares Volume 26,400 shares
Stock Price Increase 180% since 1/22/08 Stock Price Increase 60% since 2/26/08
Volume Increase 253% 3 month Average Trading Volume Volume Increase 80% 3 month Average Trading Volume
4

5. Our Services Designed for Increased Exposure and Visibility
Strategic Investor Communication
Trading Support & Analysis Equity Spotlight Reports
12 month investor relations plan
Assisting in matching buyers and sellers Initiating coverage report consisting of in-
depth launch piece
Shareholder monitoring
Constant monitoring of industry news
Quarterly updates on coverage earnings
Peer investor analysis reports
Analysis of selling/buying pressure on stock
Investor road show services
Monthly technical and liquidity analyses
Online monitoring of stock bulletin board
discussion
Direct and constant conversations with
Market notes and response to industry
institutional buy-side news
Constant information to retail broker SMH Associates with direct dialogue with
network the company
Partner with existing IR firms
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6. Leverage SMH Capital’s Broad Distribution Capabilities
SMH Capital has powerful equity distribution capabilities. With extensive institutional relationships and retail
brokerage offices across the nation, SMH has the ability to effectively place equity offerings in the right hands.
Institutional Investors SMH Retail
Experienced institutional sales group Retail focuses on providing unique investment
covers the traditional institutional opportunities to a core group of affluent
investment community by leveraging individual investors.
seasoned relationships.
Distribution
Network
Middle Markets Don Sanders Funds
Dedicated middle market group covers Don Sanders manages $1.0 billion in assets.
the burgeoning hedge fund community, For over 30 years, Don Sanders has
tapping into the large liquid pools of successfully been one of the leading retail
capital with flexible investment strategies. investment managers.
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7. SMH Advantage – Retail Distribution
“We see the ability to leverage MLS’s platform on behalf of our clients. It provides us with unique access to
management, in-depth information, which gives us good, smart investment ideas. It’s a win-win situation.”
- Stephen Goodman, Middle Market Sales & Trading
New York, NY Office
Humbert Powell – Head of NY Office
Cleveland, OH 8 brokers
Paul Blackman – Head of Cleveland Office
Las Vegas, NV 15 brokers
Wayne Bieniasz – Head of Las Vegas Office
6 brokers
Tulsa, OK
Bill Mildren – Head of Tulsa Office
Los Angeles, CA 8 brokers
Dean Oakey – Head of LA Office
5 brokers Dallas, TX
Jim Moeller – Head of Dallas Office
5 brokers
Houston, TX Boca Raton, FL
Stephen Cordill – Head of Retail John Egan – Head of Boca Office
10 brokers 15 brokers
72 brokers + 42 SMH Partners (located in PA, NC, VA, GA, MD, IL, NM, CO)
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8. Launching Internet Platform
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9. Plan for First 3 Months
1st Month 2nd Month 3rd Month
• IR plan strategy with management • Decide on schedule of non-deal roadshow • Schedule non deal roadshows and retail visits
• Perform financial and legal due diligence at Company • Schedule meetings for non-deal roadshow •Continue to monitor trading for selling pressures
headquarters
• Distribute Progress Report •Distribution of any news releases
• Draft and post company overview to MLS website
• Distribute Trading and Shareholder Activity Report •Equity Spotlight quarterly update reports
• Review management presentation and provide
feedback • Continue to monitor shareholder activity •Monitor message boards for news on stock
• Conference Call with SMH Associate for Equity Spotlight • Distribute analysis of trading and shareholder activity •Incorporate feedback from institutional and retail on
initiation report how to improve story (if needed)
• Schedule conference calls with existing and potential
• Conference Call with SMH Traders to introduce story investors •Conference call updates with Management for SMH Sales
to begin the trading monitoring process and investors
• Discuss option of Google and Yahoo internet campaign
• Review of timing of initiating coverage report
• Discuss potential conferences company could present
• Conference call with SMH Sales Team
• Release Equity Spotlight Report
• Conference call with specialists and sales force
to review feedback/answer questions • Record video interview for MLS website
• Discuss timing of earnings releases and conference call
9

10. Proactive Client-Specific Agenda
MONTHS UNDER RETAINER
1st Month 2nd Month 3rd Month 4th Month 5th Month 6th Month Ongoing
Due Diligence
Site Visit
Request List - Documentation
Background Checks
Legal Write-Up
Ongoing monitoring
Research
Initial analyst meeting
Draft/write initial report
Distribute
Quarterly updates
Major news notes
Strategic Investor Management
Prepare plan 12 months
Prepare quot;tearsheetquot; for internal distribution
Non deal roadsshows (2x per year)
Investor conferences (continuous monitoring)
Shareholder Analysis
Investor discussions
Continuous Monitoring
Share pirce fluctuations
Selling pressure
Message board monitoring
Discussions with management
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11. Equity Spotlight Reports
OVERVIEW
• Publish Equity Spotlight reports designed to provide investors with
insightful, qualitative and quantitative data on both the client
company’s business model and growth prospects, but on the industry
parameters as a whole as well.
SPECIFIC DELIVERABLES
• In-depth initiating coverage report, consisting of 20 – 30 pages. See
ZBB Energy’s report as example (attached).
• Quarterly updates to correspond to earnings releases, with initiating
coverage report included for completeness
• Market notes or other updates to respond to major news events as
they unfold
DISTRIBUTION
• Provided to client to verify facts before distributed
• Press release by client
• Pushed through SMH sales force and affiliated retail relationships
• Published on SMH website and other electronic outlets
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12. Equity Spotlight Team
Located in Houston, our MLS Equity Spotlight Team is comprised currently of three individuals that work in tandem with
SMH Capital’s Institutional Research Group, which cover over 50 companies in 9 sectors.
Karen D.B. Kane – Assistant Director of Research
Karen Kane serves as the department’s assistant director of research and is a research principal. Karen joined Lovett
Underwood Neuhaus & Webb in 1984 as a research coordinator and retail sales liasion. She later became part of Lovett
Underwood’s Energy Team and provided analytical support before joining Williams MacKay Jordan & Co., which was
acquired by SMH in 1996, as an assistant analyst. Karen earned an Economics degree from Cornell University.
John Keeton - Associate
John Keeton joins SMH Capital from Koch Supply and Trade, where he was a senior natural gas trading
accountant. Prior to Koch, John was an accountant at Burlington Resources/Conoco Phillips and a gas accountant at
Superior Natural Gas. John holds an undergraduate degree in Business Administration from Texas State University,
where he graduated Summa Cum Laude. John is currently in his final year of the Masters of Finance program at the
University of Houston. At U of H, John is a Senior Portfolio Manager/Security Analyst for the University’s Cougar Fund,
which manages over $9 million of privately invested money.
John currently covers Cubic Energy (AMEX: QBC) and ZBB Energy (AMEX: ZBB).
Anthony Valdivia – Associate
Anthony Valdivia joins SMH Capital from Wells Fargo, where he was a financial analyst for that bank’s Regional
Commercial Banking division. Prior to Wells Fargo, and while attaining his B.B.A degree in finance from the Bauer
College of Business at the University of Houston, Tony gained experience as a financial analyst intern at Spring Street
Capital Management and as a finance and accounting intern at Superior Natural Gas. Tony is a CFA Level II Candidate.
Anthony currently covers Atrinsic (Nasdaq: NWMO) and Frontera Resources Corp. (OTCQX: FRTE).
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13. Trading Support & Analysis
OVERVIEW
• Provide insight into the relative bid/ask pressures on
the stock, the sector changes and broad economic
influences while tracking the trading on a daily basis
SPECIFIC DELIVERABLES
• Monitor daily movements in stock, paying close
attention to broad sector pressures, specific company
news, etc.
• Email weekly qualitative and quantitative update to
management
• Prepare monthly comprehensive trading and
ownership analysis that will have key metrics such as
shareholder ownership changes, top institutional
ownership in the peer group, technical analysis,
valuation versus peer group, volume metrics, short
interest changes, etc. See exhibit for example report.
PROCESS
• Perform block trades as needed
• Monitor selling pressure; provide liquidity and trades
when needed
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14. Strategic Investor Communication
OVERVIEW
• Providing key strategic investor communication to ultimately increase shareholder base
with quality institutions and retail accounts.
SPECIFIC DELIVERABLES
• Preparation of a 12-month IR plan within first 30 days of engagement to specify non-
deal roadshows, conference attendance, earnings release conference calls, etc.
• Scheduling non-deal roadshows - minimum of 2x per year (more if major news
release).
• Shareholder tracking and monitoring
• Assistance with improving management presentation
• Negotiating and scheduling conferences
• Work with media outlets to correspond with news releases or other events as deemed
possible (Equities Magazine, Small Cap Advisor, etc.)
• Initiate directed calling effort to accounts to provide research and other information
• Specific reports back to client on calling effort and feedback received (see Sample
Progress Report]
PROCESS
• SMH Capital Markets will communicate with buy-side to schedule non-deal
roadshows,etc.
• Utilize partner IR firm.
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15. OTC QX Listing Option
• SMH Capital Is an OTC QX approved DAD/PAL
• The OTC QX is the place for reputable issuers to designate themselves from the rest of
the over-the-counter market.
• Modeled after the highly successful NOMAD/AIM model, the selection of a DAD should
be carefully considered as they can become your partner in establishing credibility and
providing professional guidance. SMH is that partner.
• In conjunction with our MLS platform, listing on the QX will serve to enhance your
company’s liquidity and exposure to a large U.S. investor base.
The company you
keep on the QX
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16. Media Attention
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17. Current Clients
ZBB Energy Corporation (AMEX: ZBB)
Renewable Energy – Energy Storage Solutions
$20 million market cap
Frontera Resources Corporation
Independent Oil & Gas – Exploration & Production
$78 million market cap
Cubic Energy Inc. (AMEX: QBC)
Independent Oil & Gas – Exploration & Production
$125 million market cap
Atrinisic (Nasdaq: NWMO)
Digital Media – Mobile Content
$50 million market cap
17

18. MLS Team
Core Team Joanne Verkuilen
Head of Market & Liquidity Services
Kathleen Unger
Director
Equity Reports Karen Kane
Assistant Director
John Keeton
Associate
Anthony Valdivia
Associate
Randy Billhardt
Trading Trader
18

19. Contact
www.smhmls.com
Joanne Verkuilen
Head of Market & Liquidity Services
(212) 893-1122
Joanne.Verkuilen@smhmls.com
Kathleen Unger
Director
(212) 893-1119
Kathleen.Unger@smhmls.com
527 Madison Avenue
New York, NY 10022
(212) 317-2700