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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

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GT Legend Automotive Holdings Inc. 550 Burning Tree Rd. Fullerton, CA 92833

Dec

09

Company Introduction GTLA Pink sheets $0.08 $0.18 Speculative Buy 62.6 Million $1.18 Million 1,400

Source: Yahoo Finance, Analyst Estimates

GT Legend Automotive Holdings Inc.

GT Legend Automotive Holdings Inc. (GTLA) develops and markets innovative products for the automotive aftermarket. In 2009, the Company plans to introduce its patent-pending “Green Energy” conversion kit for cars and trucks. The conversion kit consists of an electric driveshaft, which converts ordinary vehicles into electric hybrids. By retrofitting existing vehicles with GTLA’s electric driveshaft, motorists can dramatically improve gas mileage, reduce emissions and boost horsepower.

GTLA operates in three business segments: 1) body kits for retrofitting Ford Mustang classic cars, 2) high-end, aftermarket wheels, and 3) electric driveshafts, which convert gasoline-powered vehicles into electric hybrids. The Company’s body kits and wheels are designed to enhance the looks of a vehicle while adding value and quality. GTLA’s electric driveshaft, which is likely to become the Company’s principle business segment, will be introduced in 2009. In hundreds of hours of testing, this patent-pending electric driveshaft has demonstrated the ability to increase gas mileage, extend engine life, reduce harmful emissions and boost horsepower.

The Company plans to distribute its electric driveshaft and other aftermarket products through automotive dealerships and specialty shops. GTLA has established relationships with numerous specialty auto shops nationwide and with the country’s largest Ford dealership through management’s involvement with the Ronaele electric Mustang. The Ronaele Mustang was featured on the cover of virtually every automotive magazine, and hailed as the first electric car to offer muscle car performance and elegance.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Since Ford rolled out the new Mustang design in 2005, over 1.0 million Mustangs have been sold. With the new car market slowing and financing becoming more difficult to obtain, more owners of high performance cars will opt to freshen their existing vehicle instead of replacing it. GTLA is carving out a niche market with car owners who wish to lessen their impact on the environment but not compromise on performance and style. We think performance car owners will pay to convert their vehicles to a hybrid using GTLA’s patent pending electric driveshaft instead of spending $90,000 or more for a hybrid or Tesla Electric vehicle.

The Company’s co-founders and senior executives, Ed Monfort and Joe Flores, are seasoned auto industry entrepreneurs with more than 40 years of business experience. Chief Technical Officer Ed Monfort patented a cryogenic thermal cycling technology for tempering metal, and built the Ronaele Mustang, the first high-performance electric car. Flores has built several nationally known automotive businesses, including Elite Wheel, Image Alloys and USA Forged.

In November 2008, GT Legend Automotive Holdings Inc. began trading on the Pink Sheets as “GTLA.”

Investment Highlights Electric vehicle opportunity In response to growing environmental concerns and demand for “green” technologies, the automotive sector is stepping up investments in environmentally friendly vehicles. While current electric vehicles reduce fuel consumption and emissions, most of the existing models are expensive and slow. GTLA has developed an electric driveshaft, which can be retrofitted on existing gasoline-powered vehicles to create an electric hybrid. The electric driveshaft boosts mileage and reduces emissions while also increasing engine horse power and torque.

At present, electric vehicles are still relatively uncommon, but this technology has the potential to become mainstream over time. A limiting factor to-date has been the higher price customers must pay for electric cars, often thousands of dollars higher than gasoline-powered vehicles. In addition, the majority of electric hybrids are clunky-looking and slow, and have a limited travel range between recharges. Retrofitting existing vehicles presents a cost-effective solution for motorists, but most retrofit kits are high priced. GTLA has developed an affordable retrofit solution. At commercial production levels, the Company anticipates pricing its electric driveshaft conversions at less than $10,000.

Business model capitalizing on innovative green energy technology In 2009, the Company plans to introduce its patent-pending “Green Energy” electric driveshaft. This driveshaft can be installed on existing cars and trucks to deliver dramatically increased gas mileage and horse power while reducing harmful engine emissions. The electric driveshaft supercharger replaces an existing driveshaft with an electric motor that looks like a conventional driveshaft but, in management’s words, performs like a “driveshaft on steroids.” The device consists of a sequence of brushless motors, which can deliver an additional 100 horsepower and over 600 pounds of torque at full power. Installed in a V6 Mustang engine with 200 horsepower, the electric superGT Legend Automotive Holdings Inc.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

charger instantly adds 100 more horsepower. The device’s battery pack system weighs only 329 pounds and takes up virtually no trunk space. Vehicles equipped with the electric driveshaft supercharger obtain a 25% mileage increase (45 mpg) on the highway per 250 mile trip, deliver instant power on demand, greatly reduce the vehicle’s greenhouse gas footprint, and qualify for tax credits of as much as $4,000.

Significant benefits for potential customers In mass production, GTLA expects to price its complete electric driveshaft conversion unit at under $10,000. Car enthusiasts are already purchasing aftermarket turbocharger kits at considerably higher prices. In addition to being competitively priced, GTLA’s electric driveshaft delivers added horsepower, better mileage, extended engine life and lower emissions. An added benefit for U.S. motorists is that, despite boosting horsepower to high performance levels, vehicles equipped with the electric driveshaft are classified as hybrids, not high-performance cars.

High performance sports cars are typically more expensive to insure. As electric hybrids, vehicles retrofitted with GTLA’s device would also qualify for tax credits. These benefits are expected to create strong demand for GTLA’s electric driveshaft in 2009 and beyond. Management anticipates unit sales rising to 10,000 in 2010 but notes sales volume could be easily twice that amount, given the new administration’s green energy focus.

Established distributor network in the Ford Mustang aftermarket GTLA has established relationships with numerous specialty shops and car dealerships nationwide, including Galpin Ford, the nation’s largest Ford dealer and a sponsor of the popular “Pimp My Ride” television show. The Company anticipates having 25 installation sites in 2009, but every Ford dealer in America could be a potential installer as a source of income and additional business.

Both Monfort and Flores worked on the Ronaele high-performance electric Mustang; Monfort was also instrumental in introducing the first electric Shelby Cobra. Their aftermarket Mustangs appeared on the cover of Mustang Enthusiast and other magazine, have been written up Edmunds and green auto blogs nationwide, and appear in the upcoming movie “Fast and Furious Four” scheduled for 2009 release.

Eco-friendly Virtual Chrome wheel technology The Company also plans to introduce its stylish aftermarket wheels finished in “Virtual Chrome,” a totally new technology. These wheels look like chrome but are stronger, much more durable, last longer and don’t have the toxic properties of chrome. Virtual chrome wheels can be produced in various colors, including black chrome, which has the reflective quality of chrome but without the flash. GTLA plans to market its Virtual Chrome wheels to owners of high-end BMW, Mercedes and Lexus vehicles.

Virtual Chrome addresses the drawbacks asGT GT Legend Legend Automotive Automotive Holdings Holdings Inc. Inc.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

sociated with traditional chrome plating: • Adds an average of 2-3lb per wheel.

• A known pollutant and carcinogen, hexavalent chrome has been banned in Europe and Japan and will likely soon be banned in the U.S. because it is harmful to both animals and humans.

GT Legends Virtual Chrome represents the most advanced technology in decorative wheel finishes available on the market. Virtual Chrome wheels are created by using state-of- the-art Physical Vapor Deposition (PVD) equipment to deposit an ultra-thin layer of metal onto the wheel surface. The PVD chrome layer is followed with a durable, highly protective clear coat finish to complete the process.

GT Legend Virtual Chrome process has undergone the extensive regimen of environmental testing required by the automotive manufacturers for a painted wheel, rather than a chrome-plated wheel. Testing for painted wheels is much more intense and generally requires a scribe mark to be inserted into the part prior to testing.

The testing incorporates the specifications laid out by the primary OEM manufacturers, General Motors Corporation, Ford Motor Company and Chrysler Aggressive management outlook By leveraging its established automotive aftermarket relationships, GTLA expects to rapidly build sales of its electric driveshaft and Virtual Chrome wheels. Key to the Company’s initial success will be sales made through Galpin Ford, the nation’s largest Ford dealership. GTLA anticipates commencing production of its electric driveshaft at around 50 units per month in 2009. Management anticipates selling in excess of 10,000 units in 2010, which will fuel exponential revenue growth through 2013. In addition, the Company is pursuing retrofit contracts with large fleet owners such as UPS or FedEx. UPS alone owns more than 200,000 vehicles; a single fleet retrofit contract could boost GTLA’s revenues by millions of dollars.

Company Overview GTLA was established to address “green technology” opportunities in the $200+ billion automotive aftermarket.

In 2009, the Company plans to introduce its patent-pending “Green Energy” electric turbo charger driveshaft which may dramatically increase gas mileage for cars and trucks while adding horse power and reducing emissions.

GTLA operates in three businesses segments: 1. Body kits for retrofitting Ford Mustang vehicles; 2. Aftermarket wheels; and 3. Electric driveshafts.

As a car “tuner” or retrofitter, GTLA supplies body kits, specialty wheels and other aftermarket products which enhance the value, appearance and performance of cars and trucks. The Company’s management team has a long history with Ford Mustang aftermarket products and pioneered the development of an electric muscle car, the well-known Ronaele Mustang, which has been publicized in auto magazines, and was featured in TV shows and films such as “Red Line” and “Fast and Furious Four” (scheduled for 2009 release). American Idol winner Kelly Clarkson recently received a new mustang from Galpin Ford equipped with GTLA-designed custom wheels.

The Ronaele Mustang appeared on the October 15 cover of Mustang Enthusiast magazine, the most important GT Legend Automotive Holdings Inc.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

cover prior to the 2008 SEMA show in Las Vegas. SEMA is the world’s largest automotive aftermarket products show.

In addition to its electric driveshaft, GTLA is introducing aftermarket wheels finished in Virtual Chrome. These wheels look like chrome but are 10 times more durable and don’t have the toxic properties of chrome. Virtual Chrome wheels can be used on virtually any car but will likely find their largest audience with owners of higher-end BMW, Mercedes and Lexus vehicles. GTLA co-founder Flores has more than 40 years experience in the custom wheel business and is using his extensive network of industry relationships to create a distribution network for GTLA products.

The Company’s experience with electric hybrids began with its development of the Ronaele Mustang, which was hailed by car enthusiasts for its performance and style, but priced beyond the means of the average consumer with a $100,000+ sticker price. Learning from this experience, Monfort and Flores decided to enter the electric hybrid market with a totally new concept. Instead of developing a fully electric car, GTLA opted to create an aftermarket electric driveshaft, which could be retrofitted on existing vehicles to improve gas mileage and performance, and had a more affordable price tag. Several customers have already expressed interest in purchasing GTLA driveshafts and the Company is actively marketing its concept to auto dealerships and specialty shops nationwide, with commercial production expected to commence later this year at around 50 units per month.

Growth strategy GTLA plans to design and manufacture electric driveshafts, custom wheels, body kits and other innovative products for the automotive aftermarket and broaden its market penetration by also offering automotive consulting and sales of highly sought-after exotic cars. The Company’s established relationships with automotive dealerships and specialty shops should help create a ready market for new GTLA products.

GTLA plans to establish distributorships nationwide via licensed converters (“Tuners”) and specialty shops for its patent-pending electric driveshaft, which has been branded as the Monoceros driveshaft. Initially, sales of the Monoceros driveshaft will be limited to rear wheel drive cars and trucks, but the drive is being modified for use on front-wheel-drive cars and large trucks as well. The Company has already identified target locations nationwide, where customers will be able to purchase the Monoceros electric driveshaft and have it installed on their vehicle and anticipates building a network of at least 25 installation sites in 2009.

Modifying vehicles sold and serviced through car dealerships is an important part of GTLA’s sales strategy. With new vehicles sales down significantly this year, auto dealerships are looking for new ways to generate income.

Vehicles retrofitted with GTLA devices become electric hybrids or “alternative energy” vehicles, providing better gas mileage and performance and potential tax benefits all at a reasonable price. These benefits, and the incremental income dealers can earn from driveshaft installations, are likely to fuel rapid adoption and strong sales of GTLA retrofit kits at participating auto dealerships.

GT Legend Automotive Holdings Inc.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Products Wheels and body kits The Company designs and markets body kits and wheels that enhance the vehicle appearance while adding value and quality. GTLA’s executives have more than 40 years experience developing and marketing aftermarket vehicle wheels and body kits. The Company’s aftermarket cars have been featured in numerous automotive industry publications and appeared in television shows and feature films.

GTLA aftermarket cars

GTLA intends to build 50 limited edition “Fast and Furious Four” Mustangs, which will resemble the cars used in the 2009 movie, which will available for sale through Ford dealerships concurrent with the movie’s June release. Sales of the limited edition vehicles will provide a source of near-term revenues for the Company and also help GTLA publicize its electric driveshaft, custom wheels and body kits. The Company also expects to sell retrofit packages, consisting of the electric driveshaft, high-end wheels and a body conversion kit, through auto dealerships.

GT Legend Wheels will be the first wheels finished in Virtual Chrome. This technology combines powder coating with vacuum plating to create a durable replacement for conventional chrome. Virtual Chrome has been tested under the most stringent market conditions and meets the highest automotive industry standards. The coating is 10 times more durable than chrome and exceeds most traditional paint and powder requirements.

GTLA wheels are available in 20” diameters and staggered sizes to fit today’s high-performance vehicles, including new Ford Mustangs and Dodge Challengers. All GT Legend Wheels are built hub centric, lightweight, and with the proper offset and meet original equipment specifications with cutting-edge style.

GTLA aftermarket wheels

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

GTLA also plans to create a “virtual car lot,” where car enthusiasts can shop for highly sought-after performance cars. The Company has the ability to supply pre-owned cars which it has inspected and guarantees as mechanically sound with no bodywork defects or alterations. GTLA will then retrofit these cars to suit the consumers’ taste, thus creating a one-of-a-kind, high performance vehicle.

GTLA electric driveshaft GTLA’s electric charger driveshaft may revolutionize the alternative fuel market by providing car enthusiasts with an affordable, high-performance electric hybrid. This patented device features an electric motor that replaces the existing driveshaft. It is made of a sequence of brushless motors that can deliver anywhere from 10 to 100 horse power. When more volts are added to the electric driveshaft, the vehicle can generate as much as 700 horsepower and 2,000 pounds of torque.

The system’s battery pack weighs only 329 pounds, can be installed in the car trunk, and takes up almost no trunk space. The battery pack, made up of Lithium Iron Phosphate batteries, can be discharged to zero without harming the battery, and can be discharged very rapidly without risk of over-heating or exploding like the old Lithium Ion Phosphate batteries used in older laptops. The device controller can be set for economy or race mode and has been proven effective through more than 15 years of development and testing.

Vehicles equipped with the GTLA electric driveshaft may deliver: • More than 100 mpg in commuter driving of up 60 miles per day; • 45 mpg on the highway per 250 mile trip; when the battery is done, the gas engine kicks in; • Massive amount of horse power on demand; • Greenhouse gas footprints reduced by as much as 90%; and • Tax credits of up to $4,000, which may increase with proposed revisions to the vehicle tax credit.

Distribution and marketing The Company plans to establish strategic alliances with auto dealerships and specialty shops across the U.S. that can help build its GT Legend Automotive brand. Initially, GTLA will leverage its long-standing relationship with Galpin Ford in Los Angeles (the nation’s largest Ford dealer) to commercially launch its electric driveshaft. The Company anticipates building a network of at least 25 installation sites in 2009. GTLA will support its distributors through a print media campaign and provide each with a limited edition “Fast and Furious Four” Mustang for display on their showroom floor. Dealer licensing will be based on sales volume per location and adherence to quality control standards. Distributors who meet the Company’s sales and quality targets will benefit from increased income and recognition as Green Energy vehicle supporters.

GTLA’s electric driveshaft can be installed on almost any rear wheel drive car and light truck but marketing efforts will initially focus on newer Ford Mustangs (models years 2005 and up) and other high-performance vehicles such as the BMW two-door, Mercedes two-door, Chevy Camaro, Dodge Challenger and newer small SUVs and Jeeps.

In addition to sales through auto dealerships and specialty shops, GTLA plans to market its technology to fleet owners, emphasizing the fuel savings and extended engine live benefits associated with its electric driveshaft.

GTLA has already commenced discussions with several fleet owners focusing on fuel cost reductions achievable by retrofitting their trucks with GTLA devices.

GT Legend Automotive Holdings Inc.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Industry Outlook Automotive industry In 2007, more than 73 million motor vehicles, including cars, vans, trucks and buses, were produced worldwide.

This level of output represents a global value of $2.5 trillion.1 If vehicle manufacturing were a country, it would comprise the world’s sixth largest economy. The automotive industry is also a major innovator, investing almost $110 billion annually in research, development and production.

In 2007, there were about 806 million vehicles operating worldwide. These vehicles burn more than 260 billion gallons of gasoline and diesel fuel annually. In addition, vehicle numbers are increasing rapidly, especially in China and India. By 2020, the number of vehicles operating worldwide is expected to exceed 1 billion.

There are approximately 250 million light vehicles operating in the United States. Automobile manufacturing is the single largest domestic manufacturing enterprise in terms of total value of products, value added by manufacturers, and number of wage-earners employed. In a typical year, automotive manufacturing accounts for 5% of the nation’s GDP, 16% of all durable goods shipments and 6% of all manufacturing employment. Sales of vehicles have exceeded 16 million units annually for the last several years, but are expected to drop well below that amount in 2008.

Annual U.S. Vehicle Sales (Mn. of units)

Source: www.cargroup.org/documents/FinalBreakfastBriefingPresentation.pdf.

In current dollars, the U.S. automotive industry grew from just over $100 billion per year in the late 1970s to nearly $500 billion in 1999, its all-time high. Gross output declined in 2000-2001, rose to $436 billion in 2002, but then fell again to $424 billion in 2004. Industry revenues were approximately $675 billion in 2006.

1. http://oica.net/wp-content/uploads/2007/06/oica-depliant-final.pdf

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Recession’s impact on the auto industry The 2008 financial crisis has caused credit markets to dry up, making it difficult for consumers to obtain car loans and for automotive suppliers to tap lines of credit. Consumers fearful of losing their jobs are also reluctant to make major purchases. Another factor that adversely affected vehicle manufacturers in 2008 was soaring fuel costs in the first six months of the year, which made cars more expensive to drive, and rising commodity costs, which made vehicles more expensive to build. In October 2008, sales of light-duty vehicles in the U.S. dropped 31.9% by volume year-over-year, according to Autodata. Sales of passenger cars dropped 23.6% by volume and sales of light-duty trucks plunged 38.9%.

U.S. New Vehicle Sales versus Average Gas Prices

Source: www.greencarcongress.com/2008/11/us-light-duty-v.html.

The Big Three U.S. car makers (General Motors, Ford and Chrysler) have sought government loans to carry them through the crisis. On October 13, President-elect Obama said that he wanted Congress to double the auto industry bailout package from $25 billion to $50 billion.2 Obama’s bailout package has two goals. The first would be immediate - protecting the big automakers from potential bankruptcy. The second goal is structural – fostering energy independence and establishing America’s leadership of a global green energy automotive industry.

Automotive aftermarket The automotive aftermarket encompasses parts for replacement, collision, appearance and performance. In the United States, aftermarket product sales are estimated at around $257 billion.3 With 250 million vehicles operating in the United States during 2007 and an average annual growth rate of 2%, the automotive aftermarket has huge

2. www.nytimes.com/2008/10/14/us/politics/14campaign.html?_r=2&oref=slogin 3. http://en.wikipedia.org/wiki/Aftermarket_(automotive)

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

sales potential. According to the most recent Annual Survey of Manufacturers, auto parts shipments of $214 billion accounted for 4.3% of total U.S. manufacturing shipments.

Automotive parts consumption is directly linked to new vehicle demand since roughly 70% of U.S. automotive parts production is for Original Equipment Manufacturer (OEM) products. The remaining 30% consists of aftermarket sales – the repair and retrofit market.

The size of the U.S. automotive aftermarket was estimated to be $193 billion in 2007, up from $185.2 billion in the previous year, according to the Automotive Aftermarket Suppliers Association (AASA). A bright spot in their report was the specialty equipment segment, which consists of parts purchased out of choice, not necessity. This segment has experienced 7.4% annual growth in the last 10 years, while the total automotive aftermarket grew 4.5% annually, according to the Specialty Equipment Market Association (SEMA). The specialty equipment segment produced 2006 sales of $12.9 billion.

Fuel optimization technologies Global warming and related concerns regarding carbon emissions have heightened demand for better gas mileage and reduced vehicle emissions worldwide. For example, Japan requires autos to achieve 45 miles per gallon and China requires 35 mpg. The European Union requires 52 mpg by 2012. Other nations have also adopted standards that are increasing mileage requirements.

At present, U.S. autos are only required to deliver 25 mpg. The Big Three automakers have requested funding to help them re-tool their factories to meet new fuel efficiency standards of at least 35 mpg by 2020. Congress may make one of the conditions of the government bailout re-tooling for production of more fuel efficient, less polluting vehicles.

Record high gasoline prices during much of 2008 caused consumers to alter their driving habits and also increased demand for more fuel efficient cars. The impact of volatile oil and gas prices may be manageable on a macroeconomic level, but there is plenty of evidence to suggest that individual consumers are negatively affected. A 2006 survey of American drivers by Consumer Reports magazine indicated that more than one-third of those surveyed wanted to replace their current vehicle with a more fuel-efficient model.

Technologies that improve fuel efficiency include devices or designs that control valve timing, reduce engine friction, improve transmission efficiency or reduce other losses. Currently available fuel saving technologies include fuel cells, battery-powered vehicles, hybrid vehicles, alternative fuels and other emission reduction alternatives such as diesel oxidation catalysts and diesel particulate filters.

The global market for fuel optimization technologies was $35.3 billion in 2005, rose to $38.6 billion in 2006, and is forecast to grow 11% annually to $66.1 billion by 2011. Applications for these technologies in the transportation sector represent the largest user segment. Transportation applications represented a $27.8 billion market in 2005 and a $31 billion market in 2006. This market is expected to grow 13.4% annually to $52 billion by 2011.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Global Market for Fuel Optimization Technologies, $ Billion

Source: www.marketresearch.com/map/prod/1344599.html

Governments worldwide have a strong interest in promoting technologies that reduce dependence on imported petroleum and optimize oil and gas use. Many governments are supporting the development and commercialization of fuel optimization technologies through government-funded R&D, tax incentives and other policy initiatives.

Retail gasoline prices According to the Energy Information Administration, weekly prices of regular-grade gasoline, which peaked at $4.11 per gallon on July 14, averaged $2.22 per gallon in November. Diesel fuel prices fell from $4.76 per gallon on July 14 to $2.94 in November. With a weak economy projected to continue through most of 2009, retail gasoline and diesel prices are projected to average $2.37 and $2.73 per gallon, respectively.

The U.S. Energy Information Administration projects three scenarios for gasoline prices. In the high demand/high price scenario, crude oil prices rise to more than $119 per barrel in 2030 and gas prices increase from $3.06 per gallon in 2016 to $3.52 per gallon in 2030. In the low price case, gasoline prices decline to $1.74 per gallon in 2016, increase slowly through the early 2020s, and level off at about $1.84 per gallon through 2030. 4

4. www.eia.doe.gov/oiaf/aeo/pdf/0383(2008).pdf

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Average U.S. delivered gasoline prices, 1990-2030 (2006 dollars per gallon)

Source: www.eia.doe.gov/oiaf/aeo/pdf/0383(2008).pdf

Financial Analysis GTLA expects to generate revenues from sales of its patent-pending electric driveshaft, high-end wheels and auto body kits. These products will be sold through a network of auto dealerships and specialty shops. The Company expects to generate the majority of future revenues from sales of the electric driveshaft. This product has a patent pending in the U.S. for rear wheel drive and is being modified for front wheel drive as well. GTLA also plans to pursue international patents. The Company is currently engaged in further field testing of its electric driveshaft and plans to commence production in 2009 at around 50 units per month. At commercial production levels, GTLA expect to price the drive shaft below $10,000. Car enthusiasts are already purchasing more expensive aftermarket turbo-charger kits so GTLA believes its offering will be attractively priced.

To fund the commercial rollout of its electric driveshaft and other new products, the Company is in the process of securing additional funding. GTLA anticipates raising at least $1.0 million through a currently filed 504 offering and is working with two investor groups to raise an additional $5.0 million.

In 2009, the Company anticipates selling 150-200 electric driveshafts. Management projects unit sales rising to a 10,000 range in 2010, but believes unit volume could easily rise to twice that amount given the new administration’s goal of cutting emissions and encouraging the use of alternative fuels. In addition, a retrofitting contract with a major fleet operator such as UPS or FedEx could potentially add millions of dollars to GTLA’s revenues.

Valuation The transition to a low-emission, fuel efficient global economy offer significant opportunities to developmentstage technology companies such as GTLA. We based our valuation analysis on companies which offer similar or competing fuel efficiency technologies such as fuel cells, hybrid electric vehicles and onboard hydrogen generation technology. Reflecting the scope of this market opportunity, these technology companies are trading at Price/Sales multiples well above the overall market.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Fuel optimization technology peers Company name 17-Dec-08 Ballard Power Systems Inc. Ener1 Inc. FuelCell Energy Inc. Plug Power Inc. Energy Conversion Devices Inc. Median

Ticker Symbol

Share Price, $

Market Cap., $ Mn

BLDP HEV FCEL PLUG ENER

1.82 6.85 3.53 1.28 24.64

150 768 257 113 1120

Sales estimates, $ Mn

P/S 2008

2009

2008

2009

2.46 552.52 2.04 6.65 2.46 2.46

1.95 14.49 1.32 5.14 1.62 1.95

61 1.39 126 17 455

77 53 195 22 691

%Chg 26% 3713% 55% 29% 52% 52%

Source: Reuters

We think GTLA should trade in-line with its fuel optimization technology peers at around a two times forward Price/Sales multiple. We multiple our $65 million 2010 sales estimate by a two times forward Prices/Sales multiple, then discount the resulting amount by 50% to reflect the fact that our valuation is based on 2010 sales. We expect GTLA to issue additional shares in 2009 in order to raise capital and divide our equity target by 180 million shares outstanding to obtain our $0.18 share price target. We are thus initiating coverage of GTLA with a Speculative Buy rating and a $0.18 price target.

We believe these shares offer attractive upside potential for aggressive investors but encourage readers to consider the risk factors cited below before making an investment. GTLA must overcome many hurdles to achieve meaningful sales and sustainable profitability.

Risk Factors Development-stage business GLTA has had no appreciable revenues and has not signed any agreements to commercialize its products. Despite management’s aggressive outlook, there is no assurance that the Company will be able to successfully commercialize its electric driveshaft and establish a viable business.

Unproven market potential GTLA’s success will depend on its ability to develop and commercialize its offering and sustain its competitive advantages. Despite an optimistic industry outlook and the advantages of the Company’s technology, no assurance can be given that consumers will embrace GTLA’s products.

Additional financing required GTLA must obtain external financing to implement its business plan. If the Company fails to obtain sufficient funding, product launches could be delayed, affecting our valuation case.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Auto industry downturn The global financial crisis has negatively affected every facet of the economy, including car makers. The major automobiles manufacturers have reported significant sales declines and many auto dealerships are struggling.

To a large extent, GTLA will rely on auto dealers to distribute its products. If large enough numbers of dealerships fail, GTLA’s distribution system could be adversely impacted.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

Management Team Joe Flores President and Co-founder

With more than 40 years of operational and management experience, Joe Flores is an entrepreneur who has built several successful automotive businesses, including Elite Wheel, Image Alloys and USA Forged.

He has established relationships with automotive giants like General Motors, Ford and Chrysler and with numerous mom-and-pop automotive products shops.

Flores began selling custom wheels during his college years in the late 1960s and opened his first retail tire and wheel store in 1970, which quickly became the go-to place for wheels in southern California. While still operating his own stores, he began working with the major tire companies to help develop and market performance wheels and tires for the mass market, in the process building relationships with major tire retailers such as Supershops, Les Schwab Tire, Discount Tire and TireRack.

Over the last 30 years, he has worked with automotive wheel giants American Racing, Cragar, Ansen and Boyds, and created many significant new brands, including Elite Wheel, Image Alloys, Blingz Wheels, USA Forged and most recently, GT Legend Wheels. In the early 1980s, Elite Wheel became the first wheel company to market chrome-plated aluminum, one-piece wheels, which were distributed nationally through American Racing.

More recently, Flores has been working with U.S. and overseas manufacturers to develop a new environmentally-friendly process called Physical Vapor Deposition (PVD) for depositing a thin film of material on a substrate to create a chrome finish look. The resulting Virtual Chrome product is 10 times more durable than traditional chrome. GT Legend Wheels represents the culmination of Flores’ 40 years of experience and leverage his long-standing relationships with top wheel manufacturers and retailers.

Ed Monfort Chief Technical Officer and Co-founder

Ed Montfort’s business career began in 1994 when he landed a job in the “Hot Melt” industry. Monfort traveled to industrial plants across the Southeastern United States, helping engineers design, fix and program hot melt machines used for gluing products such as cereal box lids and computer boards. These machines required different types of nozzles, controls and programming and each application was different.

In 1995, Monfort accepted a position with Watlow, the world’s largest heater, sensor and control manufacturer. At Watlow, Monfort learned how to control, design and perfect various types of heating or cooling systems at temperatures ranging from -459F to more than 10,000F. He began working with glass and plastic manufacturers, nuclear facilities, and even NASA vendors and engineers. While employed at Watlow, Monfort worked with NASA vendors on a vacuum-type outer space environmental chamber which would duplicate the extreme temperature conditions satellites encountered in outer space.

In 1998, Monfort designed a Cryogenic Thermal Cycling machine that was easy to control, insulated to NASA specifications and reasonably priced. The machine featured a convection system that worked in subzero and intense heat application. The convection system was critical to this invention, allowing temperatures to rise from -300F to +300F within minutes and controlling temperatures to within 1/10th of a degree.

Using the Cryogenic Thermal Cycling device, engineers were able to temper metals, make them stronger, more durable and capable of maintaining tolerances in extreme conditions. Monfort was awarded a patent on his Cryogenic Thermal Cycling machine in 2001 and sold the technology to NCH Corp. in 2004.

In 2005, Monfort founded Ronaele Mustang. He designed a supercar that appeared on automotive magazine covers nationwide. Car enthusiasts lauded his vehicle, which featured performance and looks comparable to a Ferrari but cost thousands of dollars less. Montfort’s Ronaele Mustangs have appeared in movies and TV shows, and won “ Best in Show” at virtually every Mustang show where the vehicles are exhibited.

Monfort’s Mustangs appear in the upcoming film “Fast and Furious Four” starring Vin Diesel and Paul Walker and scheduled for June 2009 release.

The Ronaele electric Mustang was introduced in 2007 at the EVS23 alternative energy electric car show. The vehicle was an immediate hit with consumers and critics alike and was praised by Edmunds and virtually every green auto blog nationwide.

GT Legend Automotive Holdings Inc.

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Analyst: Victor Sula, Ph.D. Initial Report March 5th, 2009

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Information contained in our report will contain “forward looking statements” as defined under Section 27A of the Securities Act of 1933 and Section 21B of the Securities Exchange Act of 1934. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These forward looking statements are subject to a number of known and unknown risks and uncertainties outside of our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating the forward looking statements included in the report and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurance as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable.

To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to, lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

We encourage you to invest carefully and read investment information available at the websites of the SEC at http://www.sec.gov and FINRA at http://www. finra.org.

All decisions are made solely by the analyst and independent of outside parties or influence.

I, Victor Sula, Ph.D, the author of this report, certify that the material and views presented herein represent my personal opinion regarding the content and securities included in this report. In no way has my opinion been influenced by outside parties, nor has my compensation been either directly or indirectly tied to the performance of any security listed. I certify that I do not currently own, nor will own and shares or securities in any of the companies featured in this report.

Victor Sula, Ph.D. - Senior Analyst Victor Sula, Ph.D. has held the position of Senior Analyst with several independent investment research firms since 2004. Prior to 2004, Mr. Sula held Senior Financial Consultant positions within the World Bank sponsored Agency for Restructuring and Enterprise Assistance and TACIS sponsored Center for Productivity and Competitiveness of Moldova, where he was involved in corporate reorganization and liquidation. He is also employed as Associate Professor at the Academy of Economic Studies of Moldova. Mr. Sula earned his Ph.D. degree in 2001 and bachelor’s degree in Finance in 1997 from the Academy of Economic Studies of Moldova. Mr. Sula is currently a level III candidate in the CFA program.

GT Legend Automotive Holdings Inc.

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