RENO, Nev., August 13, 2003 (PRIMEZONE) -- Altair Nanotechnologies Inc. (Nasdaq:ALTI) today announced that it has entered into a memorandum of understanding (MOU) with Titanium Metals Corporation (NYSE:TIE) (TIMET) to collaborate on a new development program for producing low-cost titanium metal. TIMET is one of the world's largest suppliers of titanium and titanium alloys for the aerospace, military and manufacturing industries.
As previously announced, TIMET has been selected by the U.S. Defense Advanced Research Projects Agency (DARPA) to lead a program for developing an innovative new titanium electrolysis technology originated at Cambridge University and now referred to as the FFC Cambridge Process. The process uses titanium dioxide (TiO2) feedstock.
Under the terms of the MOU, Altair will provide low-cost TiO2 to make customized electrodes for the TIMET project. Altair believes its ability to control TiO2 particle size, shape and crystalline structure, using its patented process to make TiO2 pigment and nanoparticles, could have a significant benefit to TIMET's program. Altair's new proprietary technology enables production of optimized porosity and custom shaped electrode precursors from either commercial titanium tetrachloride (TiCl4) or from titanium ore digestion solutions, and is described in Altair's pigment patent, US Patent 6,375,923. Investigations of Altair's TiO2 process and feedstock for applicability to the FFC Process will begin immediately. TIMET and Altair may decide to enter into a license agreement or other commercial relationship if Altair's process and feedstock prove beneficial to the development program.
According to the AMPTIAC Quarterly, a Department of Defense-sponsored publication, current global production of titanium metal is approximately 50,000 tons per year at a market value of $600 million. AMPTIAC estimates that, due to the current state of manufacturing, titanium is produced at only about 1/20th of its current potential world volume. On July 8, 2003, The Financial Times of London reported on the U.S. DOD funding for the FFC Cambridge process indicating that titanium metal's current price is about $12,000 per metric ton and that the FCC Cambridge process has the potential to reduce the price significantly, making titanium more cost competitive with high-grade stainless steel.
"Altair will initially facilitate TIMET's development and implementation of the FFC Cambridge Process technology by providing a range of customized TiO2 feedstock and shaped electrode precursors," said Altair President Dr. Rudi E. Moerck. "Together, Altair and TIMET will explore additional funding opportunities for development work that would benefit both companies."
DARPA awarded TIMET $12.3 million for a four-year development program. TIMET leads a team of researchers from major defense contractors, including General Electric Aircraft Engines, United Defense Limited Partners and Pratt & Whitney, as well as the University of California at Berkeley and the University of Cambridge, in this development program. The FFC Cambridge Process has the potential to significantly reduce the cost of titanium metal and dramatically expand its use in a wider range of applications that include lightweight armored military vehicles, the manufacture of automotive components and components for utility plants, oil and gas drilling, and lightweight and durable consumer goods.
"Altair has been following the FFC Cambridge Process developments for making titanium metal from titanium dioxide with great interest," commented Altair Nanotechnologies Vice President of Sales and Marketing Douglas K. Ellsworth. "We saw a direct link between our patented process and the new titanium metal technology. Our flexible process can produce optimized TiO2 feedstocks from low-cost ilmenite ore or TiCl4 enabling lower cost titanium metal production. We are pleased to be partnering with TIMET in this development project."
Altair has developed a new manufacturing process, the first in over 50 years, for TiO2 powder. Engineering studies have verified the operating costs of Altair's Hydrochloride Pigment Process (AHPP) to be two-thirds to three-quarters that of the standard chloride process, primarily due to the use of low-cost ilmenite feedstocks. Unlike the current chloride and sulfate processes, AHPP is environmentally friendly with no chlorinators, iron sulfate treatment or deep welling required.
TITANIUM METALS CORPORATION
Titanium Metals Corporation, headquartered in Denver, Colorado, is a leading worldwide producer of titanium metal products. TIMET's production facility is in Henderson, Nevada. Information on TIMET is available on the Internet at www.timet.com.
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 nanomaterials and technology 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, fuel cells, solar cells, advanced energy storage devices, thermal spray coatings, catalysts, paints and environmental remediation. For additional information on Altair's 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 and future results to be materially different than suggested by the forward-looking statements in this release, Factors that may cause actual results to differ from projected or possible results to differ from projected or possible results include the following: (a) TIMET may determine that sample TiO2 feedstock provided by Altair is not suitable for use in TIMET's process; (b) even if testing results are positive, TIMET and Altair may be unable to agree upon terms governing a long-term license or other relationship; (c) even if a long-term agreement is reached, it may not involve significant payment to Altair in the short-term or long-term; (d) TIMET may be unable to develop a lower-cost process for manufacturing titanium; (e) even if developed, TIMET's new process may not significantly lower the cost of titanium and/or expand the market for titanium, and (f) if implemented on commercial scale, Altair's process may not prove cost-effective and/or Altair may face unanticipated quality or environmental control issues Additional 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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