RENO, Nev., April 29, 2003 (PRIMEZONE) -- Altair Nanotechnologies Inc. (Nasdaq:ALTI) announced today that it has received the patent number for its third in a series of patents pertaining to Altair's Hydrochloride Pigment Process (AHPP). The U.S. patent number is 6,548,039 and it is titled "Processing Aqueous Titanium Solutions to Titanium Dioxide Pigment". This patent covers the art and science of manufacturing a wide range of pigment grade titanium dioxide (Ti02) from purified titanium-rich chloride solutions.
"In keeping with our commitment to maintain our lines of communications," said Altair Nanotechnologies President Dr. Rudi E. Moerck, "I am pleased to provide an update to our shareholders and the financial community of recent developments within the company."
Pharmaceuticals
RenaZorb(tm) is Altair's drug candidate for phosphate control in kidney dialysis patients. Results from animal testing of RenaZorb by a third-party pharmaceutical company 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). The company estimates that there are over one million patients worldwide with ESRD that could benefit from phosphate control therapy. The results have provided data that enables Altair to make adjustments in RenaZorb's composition and formulation that should further enhance its phosphate binding efficacy and performance.
Rats treated with RenaZorb "B" showed excellent reductions of phosphorus in urinary excretions. RenaZorb reduced phosphate progressively according to the dose administered. RenaZorb "B" administered at a concentration of 0.3% of ingested feed reduced urinary phosphate by 400%. There was no reduction in food intake by the animals tested and no negative observations regarding the animals during the duration of the testing program.
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. Shire Pharmaceutical's Fosrenol(tm) has received an approvable letter from the FDA and is the first lanthanum-based pharmaceutical for phosphate control in dialysis patients. RenaZorb is also based upon lanthanum chemistry.
"I expected that Altair could announce a licensing agreement for RenaZorb in the second quarter of 2003," said Dr. Moerck. "Although testing was clearly successful and demonstrated that RenaZorb binds phosphate in vivo, the company conducting rat testing declined to proceed with a licensing agreement. This decision does not appear to be technical in nature and may be related to internal corporate reasons."
There are several companies in various stages of analyzing an effective business strategy for licensing RenaZorb. Some of these companies are still evaluating technical data while others are encouraged by the results and are in the process of verifying Altair's two provisional RenaZorb patent applications. Copies of Altair's patent applications have been provided to these companies under confidentiality agreements. Discussions concerning the licensing of RenaZorb are taking place during the next four weeks. Two pharmaceutical companies have requested term sheets for RenaZorb licensing and one company continues to show interest in RenaZorb for companion animal applications.
As new inquiries regarding RenaZorb continue, Altair has retained RBC Capital Markets to assist the company with a comprehensive evaluation of strategic alternatives pertaining to RenaZorb.
RenaZorb, a nanoparticle based drug, is expected to generate revenues for the company in 2003. The drug is based on a technology platform, which allows the customization of surface area and reactivity of the drug to target the proper speed and amount of phosphate binding in the human gastrointestinal tract. Altair will work with the RenaZorb licensee company to determine the exact pharmaceutical performance requirements needed to make RenaZorb successful in humans.
Altair Hydrochloride Pigment Process
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. Within the pigment industry this is significant as Altair's Hydrochloride Pigment Process (AHPP) takes readily available, inexpensive feedstock and economically produces phase pure titanium dioxide pigment without the need of expensive intermediate upgrade technologies that include slagging or synthetic rutile. The AHPP reduces the operating cost by roughly $150 - $200 per metric ton as compared to the chloride process. These savings are approximate and realized in the bottom line cost of pigment production. The Phase l report has been issued and a Phase II development proposal has been submitted for continued funding.
Altair has 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 severe environmental impact. Altair management believes its environmentally friendly process, which can produce pure phase titanium dioxide pigment from low-grade ilmenite ore, coupled with favorable labor costs, large ore reserves, and very large consumer demands, could allow the PRC to rapidly develop a substantial pigment industry.
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 has been advised that the funding will be approved and the project should begin in late May or early June 2003.
United States Government Research Funds
The company announced in January that it had entered into a teaming/research agreement with Western Michigan University ("WMU"). Under the terms of the agreement, two research programs were defined using Altair's nanomaterial science and production capabilities and WMU's research expertise to develop nanosensors for detecting chemical and biological weapons and an agent for the concentration of radioactive waste. In March 2003 WMU and Altair were awarded a grant totaling approximately $1 million to begin the projects. WMU 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 projects.
In conjunction with the grant, Nevada's Senator Harry Reid visited Altair for a project update and a tour of the existing 90,000 square foot production and laboratory facilities. Senator Reid, a strong supporter of science and technology development used in the enhancement of homeland security, is the senior Democrat member of the Senate Subcommittee on Energy and Water.
Following a review of project priorities, management has determined to actively solicit funding for additional projects that may benefit from the company's new, unique nanomaterials. A request to fund a joint project for hydrogen production research with University of Nevada Reno and a company with proprietary technology involving Altair's nanomaterials has been submitted. In addition, representatives of Altair recently met with the National Institute of Health representatives regarding use of metals in medical research. Contacts with potential collaborators are being made now. Management is currently considering and intends to solicit various funds from the Department of Energy and the Department of Defense.
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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