CyTerra Corporation Launches Nanophase Materials Development Initiative; Company Opens Laboratory and Acquires Patents; Initiative Expands Company's Technology Offerings.

Business/Technology Editors

WALTHAM, Mass.--(BUSINESS WIRE)--Aug. 13, 2001

CyTerra Corporation, a high-technology company that specializes in developing innovative products for the health and safety industries, announced that it has launched an initiative for the development of nanophase materials. The company recently opened a nanophase materials development laboratory at its Waltham, Massachusetts headquarters. In addition, it has acquired two important patents, based on an innovative spark-erosion process. The key personnel who developed the spark-erosion technology have joined CyTerra to pursue new applications of their work.

CyTerra will focus on the manufacture of tailor-made nano-sized particles from virtually any metal, alloy, crystalline material or semiconductor for use across a wide range of industries. To support its nanotechnology initiative, the company has formed a core business unit that includes individuals with expertise in analytical modeling, marketing, sales and business development, and system and process scale-up design. The company expects to start producing and selling these specialized materials commercially by the end of 2001.

"Nanophase materials have the potential to revolutionize a number of areas of societal importance. The spark erosion process gives CyTerra the ability to produce an extremely wide range of nanomaterials to meet the needs of research, testing and commercial applications. Our focus will be to convert the nanomaterial promise into viable commercial products," states David H. Fine, President and CEO of CyTerra Corporation.

Nanotechnology is viewed as the next wave in cutting edge research and development for science and technology, and is expected to significantly impact many industries. Projected uses of CyTerra's nanophase technology are the development of particles for optical network switching materials and photonic materials for flat panel displays, production of materials for highly targeted delivery of medication, advanced magnetic materials for power and communication applications, mixed metal catalysts for the fuel cell and automotive industries, and high energy alloy particles for energetics. CyTerra welcomes inquiries to foster the establishment of partnerships to further develop specific applications for spark-eroded materials.

CyTerra's patented spark-erosion process offers unmatched flexibility in the selection of materials that can be produced as nanophase particles, nanocrystalline and amorphous, including semiconductors, crystals, metals, intermetallics and alloys, nitrides, and carbides. CyTerra is also developing an in-line fluid dynamics-based nanoparticle separation technology. The combination of unsurpassed particle generation technology with a size separation technology will give CyTerra a powerful technology platform to produce size-specific products.

The introduction of CyTerra's patented capability in nanophase materials technology adds a new dimension to its portfolio of communications, materials and detection technologies that are being developed with a focus on the health and safety marketplace. CyTerra was recently awarded a $12.3 million contract from the U.S. Army to finalize development of a handheld landmine detector. The company also recently unveiled RadioTrac, a GPS-based system that provides on-demand personnel and vehicle location and emergency tracking information through an organization's existing mobile or hand-held two-way radio system. Formerly the Thermo Electron R & D Center Inc., the company was formed in July 2000 and has delivered a pretax operating profit in excess of 15% of sales for every quarter since its founding.

CyTerra Corporation is a privately held high-tech company based in Waltham, Massachusetts. CyTerra, which currently has 13 U.S. patents and another three in the application process, projects 2001 revenues of between $8 - 9 million, approximately double those of 2000. Approximately 80% of its revenues are derived from government sponsored R&D activities. For more information about CyTerra, visit www.cyterracorp.com.