1. 2011 SUMMER PRODUCT ANNOUNCEMENT JUNE 2011

2. WHAT’S NEW STIX CHANGES TO EXISTING FIRES Many EcoSmart Fire products have undergone a redesign while others have been discontinued to make way for new innovative lines NEW ADDITIONS! An amazing selection of new, innovative products including new Burners, Renovator Ranges and Freestanding Fireplaces NEW PRICING New pricing and new pricing models will increase the competitive advantage EcoSmart Fire retail partners are looking for. NEW IN-STOCK PROGRAM We will stock what you need! As we make way for new models, check out our in-stock program NEW SALES TOOLS Starting with a new website launching shortly!

3. CHANGES TO EXISTING FIRES

5. BURNER KITS: NEW NAMES EcoSmart Fire Bio-Ethanol Burners are now available in Four (4) Distinct Series and some existing models have been renamed. BK SERIES BK5 Formerly Burner One BK2UL Formerly Burner TwoUL AB SERIES AB3 New Burner – Information to Follow AB8 Formerly Around Burner XL SERIES XL500 New Burner – Information to Follow XL700 No Change XL900 No Change XS SERIES XS340 New Burner – Information to Follow

9. RENEWED PRICING & PRICING STRUCTURE

10. RENEWED PRICING STIX After lengthy research & development into improvements that will assist in bringing EcoSmart Fire to market at a more competitive price point, we are pleased to announce an entirely new pricing structure and price points across the entire EcoSmart Fire range. Thanks in part to innovative advances in manufacturing techniques, improvements to existing designs and a commitment to large volume production, a large percentage of EcoSmart Fires will now be available at vastly improved price points. Additionally, as EcoSmart Fire USA strives to further capitalize on our existing market share, we will be introducing changes to our published pricing structure including the addition of Minimum Advertised Price (MAP) levels, as well as volume discounts and tiered pricing into our wholesale price books. We will look to work with you on the implementation of these changes so as to best position yourselves to take full advantage of the upcoming improvements to EcoSmart Fire. SEE WHAT’S CHANGED

11. RENEWED PRICING STIX EXAMPLE PRICE CHANGES

12. RENEWED PRICING STIX EXAMPLE PRICE CHANGES

13. RENEWED PRICING STIX EXAMPLE PRICE CHANGES

14. RENEWED PRICING STIX MAP PRICING MAP or Minimum Advertised Price is the minimum sale price you may publish any EcoSmart Fire product for. Previously EcoSmart Fire had enforced a Unilateral Price Policy which maintained a strict retail price with zero room for a retail partner to go on sale or offer any flexibility to their customers. MAP, a policy utilized widely in the high end exclusive product market, offers a nationally recognized standard minimum price, but does so with some flexibility. EcoSmart Fire’s MAP pricing is set below that of MSRP giving you the flexibility to discount to the MAP Price. Our new MAP price, which is separate from the MSRP now appears on EcoSmart Fire’s wholesale price list. EcoSmart Fire maintains the published MSRP ONLINE RETAILING In the near future EcoSmart Inc will be publishing a national online marketing policy that will be rigorously enforced. While this policy is being finalized, we note that regardless of the MAP price, any and all online marketing is to be done so at the new, exceedingly competitive MSRP and not below. Once a user has reached the “cart” stage of their purchase, the store may exercise the MAP price should it wish to. We believe this offers a fair and equitable platform across all forms of retailing.

16. NEW ECOSMART FIRES!

20. NEW GRATES STIX SCOPE 500 Following the success of Scope 700, we are pleased to introduce Scope 500 Scope 500 includes the XL500 Burner Kit RETAIL: $2,995.00 Dimensions: 5.9” (H) x 25.4” (W) x 15” (D)

21. NEW GRATES STIX SCOPE 340 Compact. Simple. Functional. Scope 340 will get any existing fireplace up and running, in less than 2 minutes, for under $1,000.00! Scope 340 is the first Grate designed around the new XS340 Burner Kit. Not to be confused with it’s larger cousin, Scope 500, the Scope 340 is compact and operationally very different – shorter flame, less fuel capacity and a far smaller overall footprint at just 14.6” wide compared to 25.5” wide. RETAIL: $995.00 Dimensions: 3.9” (H) x 14.6” (W) x 11.0” (D)

22. NEW FIREBOXES STIX FIREBOX 420 SS/DB Dimensions: 420SS - 38.6” (H) x 20.3” (W) x 14.0” (D) 420DB - 38.7” (H) x 20.5” (W) x 20.2” (D) RETAIL PRICE: $2,795.00 420SS $3,095.00 420DB Sleek and compact, the Firebox 420 Series offers versatility and functionality for a variety of spaces. 420SS features a stainless steel back, with 420DB sporting the ever-popular tempered glass back panel for see-through effect. Ships with BK5.

24. WHAT’S NEW GHOST

27. HOW ARE CITI & CUBE JR DIFFERENT STIX Cabinetry construction on Citi & Cube Jr is assembled from pre-fabricated, gloss polyurethane cabinets, not painted MDF as seen in some existing Designer Range fireplaces. They are significantly different in construction and level of finish.

28. NEW OUTDOOR RANGE OUTDOOR: BULB Stylish and unique, the EcoSmart Fire Bulb combines the raw element of fire with organic-inspired design, brought to life within a contemporary steel wire frame. The EcoSmart Fire Bulb is fully portable and illuminates and inspires any indoor or outdoor space. Its curvaceous design complements modern landscaped garden environments with grace and ease. Features the ultra efficient AB3 Dimensions: 19.8” (H) x 16.4” (D) RETAIL PRICE: $995.00

29. WHAT’S NEW BULB

31. WHAT’S NEW DISH

33. WHAT’S NEW STIX

34. WHAT’S NEW STIX

35. WHAT’S NEW STIX Stix is a masterpiece indoors as well as out

36. NEW ACCESSORIES STIX FRAME FIRE SCREEN The EcoSmart Fire Frame Screen is a simple solution for turning any surface into a safe, sleek, designer fireplace. The square-shaped tempered glass surrounds the AB8 Burner Kit, and together they’re easily integrated into a flat surface. Accessory for AB8 Burner Kit. Dimensions: 21.4” (H) x 17.3” (W) x 17.3” (D) RETAIL PRICE: $1,095.00

37. WHAT’S NEW

38. NEW ACCESSORIES STIX LOFT FIRE SCREEN Loft Fire Screen, not unlike Frame, is a simple solution for turning any surface into a safe, sleek, designer fireplace. Loft features a cylindrical tempered glass screen raised by permanent stainless steel feet. Designed to encompass the AB3 Burner Kit, together they’re easily integrated into a flat surface. Accessory for AB3 Burner Kit. Dimensions: 13.6” (H) x 13.8” (D) RETAIL PRICE: $995.00

39. NEW IN-STOCK PROGRAM

40. IN-STOCK PROGRAM STIX The following EcoSmart Fires will be available in accordance with the noted lead times. HIGH LEVELS MID LEVELS NOT STOCKED BK5 BK2UL AB3 XL900 & XL700 XS340 ALL SS FIREBOXES IGLOO GHOST Inventory levels fluctuate throughout the year. Accordingly, if models listed as Mid Levels increase in popularity, so will their inventory levels. Always check the online stock list before quoting a lead time for your customers. AB8 XL500 ALL GRATES ALL FIREBOXES – DB LANTERN RUST FRAME LOFT ALL FIRESCREENS Q RETRO OXYGEN ZETA ASPECT CUBE VISION FUSION CITI CUBE JR. LANTERN BRASS LOW LEVELS TOWER (BLK) CYL MINI-T DISH (RUST) STIX BULB

41. SALES TOOLS

43. NEW PRODUCTS SPECIAL Choose any 3 of the above new and exciting EcoSmart Fires for your showroom and receive a one time, additional discount of 15%! Choose any three; three of the same, choose one of each. Mix and match – you decide! Orders must be received no later than close of business, June 24 th , 2011

44. THANK YOU PETE BASSO [email_address] (323) 638.1200