Spire Corporation Receives $750,000 NIH Grant to Develop Nanotechnology Coatings for Orthopedic Prostheses.

High-Tech Writers/Health/Medical Writers

BEDFORD, Mass.--(BUSINESS WIRE)--Aug. 8, 2003

Spire's Proprietary Nanotechnology Process Produces Super Hard

Wear Resistant Coatings

Spire Corporation (Nasdaq: SPIR) announced today that it has received a two-year, $750,000 SBIR Phase II grant from the National Institute of Arthritis and Musculoskeletal and Skin Diseases to develop nanotechnolgy coatings. Under the grant, Spire will develop hard, extremely adherent nanocrystalline coatings for orthopedic implants. The coatings contain metallic bonding and have a chemical composition very similar to the substrate. This provides significantly better chemical compatibility, and therefore superior adhesion of the coating to the implant. Feasibility of the technology was demonstrated during a Phase I grant. Phase II will optimize coating properties and demonstrate performance in a joint simulator, ultimately leading to commercial application of the coating.

More than 500,000 total and partial joint replacements are performed each year in the nearly $4 billion orthopedic reconstructive products market. Wear of the components leads to device loosening, which is a major failure mechanism limiting joint lifetime. Mark Little, CEO of Spire Biomedical, Inc., stated, "Coating orthopedic device surfaces as a means of reducing wear and extending device performance has been considered a promising approach for many years. However, the inability to obtain a sufficiently adherent coating by conventional means has severely limited its application. Our coatings have the potential for overcoming the adhesion problem and significantly improving orthopedic device function and lifetime."

"As a leader in surface modification technology for medical devices, we are committed to continually developing new and innovative approaches for our orthopedic device customers. We see this coating as a very promising opportunity that falls directly in line with our existing business. We have applied to patent valuable elements of this nanotechnology. We are pleased that NIH has recognized the importance and strong commercial potential of the technology."

About Spire Corporation

Spire Corporation has three wholly owned subsidiaries, all based upon a common technology platform. Spire Biomedical, Inc. provides processing services to improve the performance of implantable medical devices and markets specialty catheters. Spire Biophotonics Lifesciences develops biomedical instrumentation and includes Bandwidth Semiconductor, LLC, a compound semiconductor foundry. Spire Solar, Inc. provides solar electric module manufacturing equipment and produces and sells solar energy systems. For more information, please visit www.spirecorp.com.

Certain matters described in this news release may be forward-looking statements subject to risks and uncertainties that could cause actual results to differ materially from those indicated in the forward-looking statements. Such risks and uncertainties include, but are not limited to, the risk of dependence on market growth, competition and dependence on government agencies and other third parties for funding contract research and services, as well as other factors described in the Company's Form 10-KSB filed with the Securities and Exchange Commission.