RENO, Nev., September 3, 2003 (PRIMEZONE) -- Altair Nanotechnologies Inc. (Nasdaq:ALTI) is, in its commitment to keep shareholders and members of the financial community current on Altair's activities, providing a project update.
Pharmaceuticals
Altair President, Dr. Rudi E. Moerck will be presenting to members of the financial community at the Wall Street Analyst Forum's pharmaceutical conference in New York on September 16, 2003. He will be discussing RenaZorb(tm), the company's drug candidate for phosphate control in kidney dialysis patients.
Results from animal testing of RenaZorb by two third-party pharmaceutical companies confirm Altair's in vitro test results pertaining to the effectiveness of RenaZorb as a viable drug candidate for phosphate control in kidney dialysis patients with end-stage renal disease (ESRD). As new inquiries and interest regarding RenaZorb continues, Altair has retained RBC Capital Markets to assist the company with a comprehensive evaluation of strategic alternatives pertaining to RenaZorb.
Altair estimates that there are over one million patients worldwide with ESRD that could benefit from phosphate control therapy. The test results in dogs and rats have provided data that enabled Altair to make adjustments in RenaZorb's composition and formulation that should further enhance its phosphate binding efficacy and performance.
Test data indicates that RenaZorb has advantages when compared to existing or proposed drugs for phosphate control. These advantages include lower dosage, no acid burden, higher selectivity for phosphate and ultimately, lower patient cost. RenaZorb is anticipated to generate revenues for the company in 2003.
Management expects to report the results of a new testing program pertaining to the use of RenaZorb in animals with end-stage renal disease.
TIMET
The agreement with Titanium Metals Corporation (TIMET) announced August 13, 2003 represents an opportunity for Altair to join with one of the world's leading titanium metal manufacturers in developing a new, lower cost technology manufacturing titanium metal. The new technology is based on the "FCC Cambridge" process developed by UK-based Cambridge University. This is a "ground floor" position for Altair in a potentially rapidly expanding business sector.
Titanium metals have distinct quality and strength advantages over iron-based products but have been restricted in wide usage due to price. Titanium metals normally are used when superior characteristics of hardness, heat and chemical resistance are required - such as aerospace applications. According to the London Financial Times, the current production of titanium approximates 50,000 tons per year compared to 900 million tons of steel. While no one knows the price-quantity demand curve, AMPTIAC Quarterly, a Department of Defense-sponsored publication, estimates that titanium is produced at only five percent of its current potential world volume.
Altair's participation in this project is a natural extension of our titanium dioxide processing technology. Key intermediates in the Altair process for making pigment and nano-sized TiO2 allow the manufacture of porous electrodes that may be highly suitable for the FCC Cambridge process. Altair's TiO2 intellectual property forms the basis for its project contributions; additions to the company's intellectual property portfolio may also be expected. In the near term Altair is seeking development contracts to offset cost, the first development contract will be announced shortly. Ultimately we expect the value to Altair to be realized through licensing agreements and development contracts in both the private and government sectors.
Altair Hydrochloride Pigment Process (AHPP)
Several reputable third party assessments of Altair's AHPP process have shown cost and environmental advantages over existing processes. However, unlike the opportunity to develop a new titanium metal process, for which there is considerable "pull demand" from both the titanium metals industry and government agencies such as the DOD, the huge established capital and manufacturing base of existing titanium dioxide producers has stifled the entry of new technologies for making titanium dioxide pigment.
Asia Pacific Materials Company
The work under Phase l of the agreement with a materials company in the Asia Pacific region has successfully produced phase pure rutile titanium dioxide entirely from ilmenite concentrates. This is significant to the titanium dioxide industry since AHPP takes inexpensive feedstock and economically produces phase pure titanium dioxide pigment reducing the operating cost by roughly $150 -- $200 per metric ton when compared to the chloride process. These savings are approximate and realized in the bottom line cost of pigment production. Phase l of the agreement was successful and results are being evaluated. Phase II development proposal has been submitted for funding.
Flowco
Altair entered into an agreement with Flowco International to exclusively represent the company in the People's Republic of China (PRC). Under the terms of the agreement Flowco will market AHPP licenses to companies in the PRC. The PRC has large reserves of low-grade titanium ore, low labor costs and an increasing consumer demand for TiO2 pigment. According to Flowco, PRC's government will not allow new pigment production facilities to be constructed using the existing sulfate processing technology due to its well-known environmental issues.
Flowco President Mu Fa Chen recently returned from PRC after successful meetings with several companies. One of these companies has already shipped samples of their ilmenite ore for testing with Altair's AHPP process. Altair management believes its environmentally friendly process, which can produce pure phase titanium dioxide pigment from low-grade ilmenite ore, could allow the PRC to rapidly develop a substantial pigment industry. There is significant potential for granting AHPP licenses to companies in third world markets.
Vietnam
Commencement of work under the second titanium dioxide pigment development agreement announced by Altair based on an ore body located in Vietnam is waiting for funding. Management expected funding in early summer but the funding agency budget has not yet been approved to move forward with the project.
United States Government Research Funds
Following a review of project priorities, management is more aggressively seeking revenues from Department of Energy and the Department of Defense. To assist, Altair has engaged DykemaGossett, PLLC, a Michigan and Washington, D.C., -based law firm. The firm was instrumental in obtaining a grant of approximately $1 million for Altair and WMU. In addition, Altair management recently met with the National Institute of Health representatives regarding use of transition metals such as lanthanum in medical research. Contacts with potential collaborators are being made now. Altair's RenaZorb drug candidate is a lanthanum based pharmaceutical.
Western Michigan University ("WMU")
The teaming/research agreement with WMU is moving forward. The Department of Energy (DOE) issued the awards letter and terms August 15, 2003. Work between Altair and WMU is underway as defined by the terms of the agreement. The groups are currently working on the "lab-on-a-chip" elements which will comprise the technology being developed for detecting chemical and biological weapons, a homeland security program. WMU and Altair will continue to pursue a three-to-five-year Federal grant with Altair worth $1 million each year for continued development for a number of related projects.
Hydrogen Solar
Altair recently signed a teaming agreement with UK-based Hydrogen Solar under which the two companies would form a new, equally owned, Nevada-based company to collaborate in the development and commercialization of a solar hydrogen generator using the Tandem Cell(tm) technology which generates hydrogen via water splitting. A Tandem cell is comprised of two sandwiched cells; the transparent front cell captures the blue/violet range of visible light and allows the green/red range of visible light to pass through to the second cell. The second cell utilizes a surface of dye-sensitized nanocrystalline titanium dioxide.
A program to fund a joint project for hydrogen production research demonstration with the University of Nevada, Reno and UK-based Hydrogen Solar using Hydrogen Solar's proprietary technology and Altair's nanocrystalline titanium dioxide has been developed.
Hydrogen Solar recently formed their US-based company in Nevada. Under the teaming agreement, the next step is the joint formation of a new Nevada company equally owned by both Hydrogen Solar and Altair Nanotechnologies.
Rutgers Energy Storage Research Group (formerly Telcordia(tm) Technologies)
Rutgers has developed battery prototypes utilizing Altair's nano-sized lithium titanate spinel.
According to a recent Rutgers' research paper published in The Journal of Power Sources, the prototype battery characteristics significantly exceeded Department of Energy standards.
The prototype battery, a nonaqueous asymmetric hybrid incorporating the advantages of both Li-ion batters and super capacitors, stored energy of 11wh/kg with delivery of 800 W/kg at 95 percent efficiency. The cycle life ranged between 10,000 and 100,000 cycles. No other battery materials tested by Rutgers met and/or exceeded the DOE standards. Altair is in discussions with Rutgers and has provided the group with additional nanomaterial samples.
Other Projects
Several other projects are active and are being developed on an "as time permits basis". Such prioritization allows Altair to focus efforts on those projects with the highest likelihood for significant near-term revenue realization.
ALTAIR NANOTECHNOLOGIES INC.
Nanotechnology is rapidly emerging as a unique industry sector. Altair Nanotechnologies is positioning itself through product innovation within this emerging industry to become a leading supplier of nanomaterial technology and nanomaterials worldwide. Altair owns a proprietary technology for making nanocrystalline materials of unique quality both economically and in large quantities. The company is currently developing special nanomaterials with potential applications in pharmaceuticals, batteries, fuel cells, solar cells, advanced energy storage devices, thermal spray coatings, catalysts, cosmetics, paints and environmental remediation. For additional information on Altair and its nanoparticle materials, visit www.altairnano.com
Forward-Looking Statements
This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the risks that Altair will be unable to enter into license agreements regarding its pigment process (AHPP), RenaZorb or other developing products, that even if Altair enters into such license agreements, short term revenues from such agreements will not be sufficient to fund Altair's operations in the short run, and that animal testing or future testing on RenaZorb or other products of the company will not be successful and that development will need to be terminated. In general, Altair is, and expects to be in the immediate future, dependent upon funds generated from sales of securities, grants, testing agreements, and licensing agreements to fund its testing, development and ongoing operations. If the company is unable to continue to raise significant funding through such methods, it may be unable to continue as a going concern. In addition, other risks are identified in the company's most recent Annual Report on Form 10-K, as filed with the SEC. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.
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