Katz & Company initiates coverage on Car Charging Group (OTCBB: CCGI)
with a Strong Buy recommendation. According to Katz & Company analyst
Aryeh Katz, forget about the cars, the real business behind the auto
industry's emerging, plug-in vehicle phenomenon looks to be the
recharging station market.

According to an exhaustive study done by New York based tech research
firm ABI Research, the electric 'gas station' market stands to
generate revenues of $12 billion in the United States alone over the
next five years. And of those companies now vying for that lucrative
market, Car Charging Group (OTCBB: CCGI) appears positioned to grab
the lion's share.

The challenge for companies competing in the auto recharging market is
to ramp up from the 20,000 existing U.S. based charging stations to
the forecasted 3 million that will be needed to serve the electric
vehicle market in the next half decade. Electric Vehicles (EVs) and
Plug-in Hybrid Electric Vehicles (PHEVs) must have access to the
existing electricity grid in order to operate. Today, however, most EV
chargers are home-based units that limit the EV owner from travelling
too far from the charging unit. The majority of EVs are range bound to
a maximum of between 100 and 150 miles before requiring a full
overnight recharge.

The Opportunity:

Public charging units do not currently exist in the United States on a
scale that will successfully service the more than 40 separate EV
models that are expected in showrooms by the end of 2010. A broad
network of public recharging stations is key to the electric vehicle
phenomenon being a success.

Success in the car recharging business is predicated on massive
investment and a corporate entity capable of tying together the four
key partners in the EV recharging station business.

They include: 1. Real Estate Owners, 2. Utilities, 3. Governments, and
4. Strategic Business Partners.

1. Real Estate Partners Car Charging is currently growing its real
estate partnership base with municipalities, shopping centers, hotel
chains, sporting venues and parking garages at a fast clip. Its unique
revenue sharing agreement with property owners provides a key
incentive for interested parties to sign on. But unit hosts will not
only share in recharging revenues, they also obtain a captive customer
for two to six hours, the amount of time currently required to
recharge an EV using the industry standard 220 volt technology.

Moreover, hosts will not be required to install, maintain, operate or
monitor Car Charging's recharging units. Nor do they have to worry
about customer interface issues, or the technology becoming obsolete
and having to be replaced at some point in the future. Car Charging
assumes all risks and liabilities associated with the units.

2. Utility Partners Car Charging recently established a subsidiary to
become an authorized electricity reseller and is currently in the
process of applying for all pertinent federal and state licenses. Once
those approvals are obtained the company will be positioned to provide
the most competitive pricing to EV users and will achieve greater
flexibility in the way it powers its recharging units. Installation of
the company's units is currently done in full partnership with local
municipal authorities and utility operators, thereby cutting down on
the time required to obtain permits for installation.

3. Government Partners At present, significant tax credits are
available from federal and some state governments that cover half the
installation costs of recharging units. These credits are available
until the end of 2010 but there's a strong likelihood that they will
be extended through 2011. Car Charging garners enormous savings from
these credits.

4. Strategic Business Partners Car Charging's key business partner,
Coulomb Technologies, is the manufacturer of the ChargePoint
recharging system that Car Charging has selected for its 'filling
stations.' The advantage of the ChargePoint technology resides in its
simplicity. Essentially, the unit consists of a plug and a cell phone.
The plugs provide the charge while the phone offers customers with
smart phone technology a great many options, including:

After 'fill-up,' the ChargePoint technology automatically determines
whether the unit belongs to Car Charging and remits funds to the
company periodically on a predetermined basis. At that point, Car
Charging pays its real estate partners according to contract.

Units currently allow drivers to pay by subscription or by dialing a
toll-free 1-800 number. Shortly, debit and credit cards will also be
accepted.

5. Car Charging's Current Growth Trajectory Car Charging has already
begun the process of installing units throughout southern Florida (its
current base of operation) and in New York City. But its focus is
clearly on the 'land grab' -- contracting with as many real estate
partners countrywide as possible to install the ChargePoint recharging
units -- and doing it before anyone else launches a similar
competitive initiative. To this end, the company has contracted 44,000
sales professionals from Salesconx to secure possible sites and is in
regular contact with Government agencies and municipalities to help
streamline the permit process.

The company forecasts 500 operating locations by year-end 2010 and
more than 1000 in place by the summer of 2011. By the end of 2011, Car
Charging expects a full 4000 operating locations across the U.S. --
giving them the potential to install six million charging stations in
total. Full profitability on an operating basis is expected by
year-end, 2011.

This marks a significant change in the company's status, moving from a
purely developmental phase operation to one that actually produces
revenues.

In our opinion, the stock price has not yet reflected this change.

6. Who's the Competition? There are now several businesses in
operation that provide private owners and businesses with solar
powered (and other) small scale solutions for their EVs and PHEVs.
This suffices for local use, but for those considering venturing out
for more than a day, or further than a few hundred miles, a broader
electricity net will be necessary.

Companies like Ecotality and Solar City have currently established
themselves in the recharging market, but appear geared more toward
servicing the first phase of EV owners, those whom the industry terms
'low range' urban users. This cohort will likely charge their vehicles
at home, overnight, and won't initially rely on the network of charge
stations being developed by Car Charging Group Inc. Better Place and
EVIN, on the other hand, have plans to employ a battery switching
strategy that would have batteries available at their own line of
vehicle recharging stations.

While ingenious, the strategy is reliant on EV manufacturers
developing a simply switched battery of standard size and capacity
across the industry, as well as recharging stations outfitted with
personnel capable of performing the switch for those unable or
unwilling to do it themselves. In our opinion, this becomes altogether
too unwieldy and expensive a model to deploy effectively on a large
scale. While Better Place is currently well capitalized, they are too
heavily reliant on technology. Car Charging is not married to any
technology model and has the ability to buy units, batteries and
infrastructure from any entity in the market. We're of the opinion
that securing general equity financing would prove difficult for
Better Place due to these limitations in its business model.

Car Charging's payment-for-location model is unique. There is no
battery development, selling or switching scheme that makes the
business run. Nor, however, does it preclude partnering with any of
the aforementioned companies as the EV and recharge station businesses
mature.

7. Threats, Large and Small Two of the other corporate bodies involved
in developing a public recharging infrastructure are exclusively
European affairs. Vinci Energies and Elektromotive are building
similar networks in various locations throughout the U.K. and
Continental Europe and don't currently pose a threat to Car Charging
-- even though a European expansion is in the works. With respect to
Europe, Car Charging will look to compete with any group whose
business model is similar and partner with any whose is different,
e.g. Better Place.

Perhaps the biggest competitive threat to Car Charging Group Inc. will
come from the EV manufacturing sector, whom most parties agree will
enter the recharging station market shortly after this year's rollout
of their first EV models. At that point, Car Charging becomes a
potential takeover target or partner for all the major EV
manufacturers. Other threats to the company's standing include
overwhelming demand for installation of the ChargePoint recharging
unit. CarCharging's management is hoping Coulomb has the capacity to
expand its production capabilities should the demand for EVs -- and
recharging stations -- exceed expectations.

8. Conclusions

Based on projections of 1000 recharging locations with a potential 2.5
million charge spots, each valued conservatively at $120 per spot, Car
Charging's market capitalization should reach $300 million in the next
12 to 18 months. On a fully diluted basis, the company's 78 million
shares should fetch $3.00.

Katz & Company Equity Research rates the shares of Car Charging Group
Inc. a STRONG BUY and forecasts a price target of $3.00 within twelve
to eighteen months.

The information used and statements of fact made have been obtained
from sources considered reliable but we neither guarantee nor
represent the completeness or accuracy. Katz & Company Equity Research
did not make an independent investigation or inquiry as to the
accuracy of any information provided by the Company, or other firms.
Katz & Company Equity Research relied solely upon information provided
by the Company through its filings, press releases, presentations, and
through its own internal due diligence for accuracy and completeness.
Such information and the opinions expressed are subject to change
without notice. A Katz & Company Equity Research report or note is not
intended as an offering, recommendation, or a solicitation of an offer
to buy or sell the securities mentioned or discussed.

This report does not take into account the investment objectives,
financial situation, or particular needs of any particular person.
This report does not provide all information material to an investor's
decision about whether or not to make any investment. Any discussion
of risks in this presentation is not a disclosure of all risks or a
complete discussion of the risks mentioned. Neither Katz & Company
Equity Research, nor its parent, is registered as a securities
broker-dealer or an investment adviser with the U.S. Securities and
Exchange Commission or with any state securities regulatory authority.

ALL INFORMATION IN THIS REPORT IS PROVIDED "AS IS" WITHOUT WARRANTIES,
EXPRESSED OR IMPLIED, OR REPRESENTATIONS OF ANY KIND. TO THE FULLEST
EXTENT PERMISSIBLE UNDER APPLICABLE LAW, Katz & Company Equity
Research, LLC WILL NOT BE LIABLE FOR THE QUALITY, ACCURACY,
COMPLETENESS, RELIABILITY OR TIMELINESS OF THIS INFORMATION, OR FOR
ANY DIRECT, INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL OR PUNITIVE
DAMAGES THAT MAY ARISE OUT OF THE USE OF THIS INFORMATION BY YOU OR
ANYONE ELSE (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). TO THE FULLEST
EXTENT PERMITTED BY LAW, Katz & Company Equity Research WILL NOT BE
LIABLE TO YOU OR ANYONE ELSE UNDER ANY TORT, CONTRACT, NEGLIGENCE,
STRICT LIABILITY, PRODUCTS LIABILITY, OR OTHER THEORY WITH RESPECT TO
THIS PRESENTATION OF INFORMATION.