Dear Velkess Customers and Backers,

Thank you so much for your support over the years.

Unfortunately Velkess has not been able to raise the funds required to bring our flywheel energy storage technology to market. We have returned our customer's deposits and stored our flywheel prototypes away to wait on sunnier days for a revolutionary energy storage technology.

A number of factors have led us to this crossroads, but none more powerful than the dramatic fall of oil prices over the past 18 months, which has undermined the economic case for clean energy.

Market conditions aside, we remain absolutely confident in flexible flywheel technology and its ability to deliver safe, dependable, high performance energy storage at a small fraction of the cost of today's best storage solutions. We believe someday flexible flywheel technology can and will become a foundational technology in our clean energy future.

Moving forward, we are refocusing our efforts on developing a smaller product called Symphony which will make using energy storage, building microgrids, and managing electrical energy simple, straight forward, and seamless.

Thank you again.


Sincerely,

Bill Gray
CEO - Velkess