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Breeze Technology, Inc.
5. Research & Development

The first phase is already under way. Breeze has begun the necessary research and development that will be required to maximize the efficiency of thc technology in walking and casual shoes. While running requires a softer heel cushion to absorb 2-3 times the runner's weight, walking and casual shoes are more comfortable if the heel cushioning is softer. Thus, R&D efforts are concentrating on reducing the positive bias of the heel (its ability to resist deformation and recover original form after deformation) and increasing the restriction in the exhaust system to provide the necessary deceleration on heel impact.

A logical progression of this line of development is the introduction of a user-adjusted variable restriction on the exhaust port to enable user "interaction" with the product. This development will allow the user to adjust the deceleration characteristics of thc footwear heel to suit the user's weight as well as differing activities, for example, rapid deceleration for walking and delayed deceleration for running. A concurrent development will be the inclusion of a facility to reverse the ventilation system in cold weather to take advantage of the warming effect of reverse airflow and/or the superior insulation of the nonporous upper materials that are permitted by this technology.

Breeze technology will also bc adapted to work in a rigid sole boot. This entails an entirely different set of challenges. Breeze is currently investigating the common parameters and characteristics of rigid sole boots that will need to be considered in adapting our technology to this class of footwear. It may require some form of inertial motion mechanism to operate the pumping chamber. This mechanism will be incorporated in the sole of the footwear and operate independently of any external movement or flexing of the footwear. With the successful testing of this adaptation we expect entry into the military, industrial, and hiking/outdoors segments of the market. Directly stemming from the developments of the rigid sole adaptation we expect to introduce our technology to the booted sports equipment segments such as skates, rollerblades and cleated boots.

Funded by the income from the licensing of the footwear technology, Breeze will proceed to develop new technology that will apply to new and diverse products in the sports, leisure and recreation markets. Reliance on one technology, one market, and perhaps one licensee poses certain risks to the company's longer term viability. In view of this, Breeze plans to broaden its technology base beyond that applicable to footwear. Other technologies applicable to the sports, leisure, and recreation industries have been identified and these will, after due process that ensures their viability, be commercialized. This strategy will create a portfolio of investments and offset Breeze's exposure to the footwear market in the medium-to-long term.


Breeze Technology, Inc.
Table of ContentsAppendices
0. Executive Summary
1. The Company
2. Market Analysis
3. Strategic Options
4. Marketing Strategy
5. Research & Development
6. Organizational Structure
7. Risk Reduction Strategies
8. Exit & Harvest Strategies
9. Financials
10. Summary
I. Focus Group Analysis
II. Competitor Content Analysis
III. Product Test Results
IV. Inventor's Test Results
V. Resumes of Directors
VI. US Market Data
VII. Technical Drawings


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