Research Frontiers Enters Into
License Agreement Covering
"Smart" Sunvisors With Major
Automotive Supplier
WOODBURY, N.Y.--(BUSINESS WIRE)--Dec. 15, 1999--Research Frontiers Incorporated
(Nasdaq: REFR - news) announced today that it has granted a non-exclusive worldwide license to a
leading automotive equipment supplier. The license permits the licensee to manufacture and sell
automatically dimming SPD automotive vehicle ``smart' sunvisors which use Research Frontiers'
fast-responding SPD light-control technology. In addition to minimum annual royalties, Research
Frontiers will receive a royalty of 5% of net sales of licensed products. The identity of the licensee
is being temporarily kept confidential at the request of the licensee in order not to interfere with the
consummation of another business transaction by the licensee.
Currently sunvisors used in automobiles and trucks are generally opaque flaps which swing on
hinges and are manually controlled by the vehicle's driver. SPD rear-view sunvisors, with their
virtually instantaneous reaction time, can feature ``real time' switching in which the sunvisor can
quickly and automatically or manually adjust to control glare. In addition to being usable inside the
front windshield, SPD sunvisors may also be used to block glare and sunlight from the side and rear
of a vehicle as well.
``Normal sunvisors block the driver's vision. SPD sunvisors will enable a driver to leave the sunvisor
in the 'down`` position and still see the road ahead. When the Sun or another bright object is in front
of the vehicle, the SPD sunvisor will quickly become dark but not opaque. Even when the SPD
sunvisor is dark, the driver will be able to see through it, leaving his or her view unobstructed.
However, when lighting conditions change, the sunvisor can automatically become highly
transparent,' said Robert L. Saxe, President of Research Frontiers. ``At present, SPD technology
appears to be the best choice for variable light transmission sunvisors, because alternative
technologies such as electrochromic or liquid crystal devices are likely to be either too slow, too
hazy, or too expensive. There is no known competitive automatically changeable sunvisor product
that can match the SPD's speed, range of light transmission, low haze and cost- effectiveness. We
think this is going to be a fantastic product that will promote safety and comfort in the automotive
market,' Saxe explained.
The annual worldwide production of automotive sunvisors is estimated to be about 100 million
sunvisors. In addition, an estimated 800 million conventional sunvisors are installed on cars and
trucks currently on the road, which drivers may wish to replace with SPD sunvisors when they
become available for the aftermarket.
In addition to sunvisors, SPD technology can also be used by the automotive industry for rear-view
mirrors, sunroofs, vehicle windows, and dashboard instrument panels and navigation systems.
Research Frontiers plans to continue to license SPD technology for all such automotive applications.
In addition to the present license, Research Frontiers has licensed various SPD automotive
applications to Hankuk Glass Industries Inc. (which outside of Japan is reportedly Asia's largest flat
glass producer), Material Sciences Corporation (NYSE: MSC - news), which is the world's second
largest producer of specialty window films, Global Mirror GmbH & Co. KG (which is the world's
largest manufacturer of commercial vehicle mirror systems), and Glaverbel, SA of Belgium (which
is majority-owned by Asahi Glass, one of the world's largest automotive glass manufacturing
companies). Licensees of Research Frontiers who incorporate SPD technology into end products
will pay Research Frontiers a royalty of 5-10% of net sales of licensed products under license
agreements currently in effect.
``The supply chain we have built from licensing key industry leaders for various components used to
make SPD products has now made it progressively easier for end-product makers to get involved
with the production of innovative products which use SPD technology to promote safety, comfort,
and performance. In order to more effectively support the activities of our licensees, we like to
have licensed and trained more than one industry leader in each of the chemical and film-coating
industries,' noted Joseph M. Harary, Executive Vice President of Research Frontiers. Research
Frontiers now has at least two licensees (Dainippon Ink and Chemicals and Hitachi Chemical Co.),
and four film-making licensees (General Electric (NYSE: GE - news), Hankuk Glass Industries,
Hitachi Chemical and Material Sciences Corp.). Harary continued: ``We also like to have more than
one industry leader producing each of the many end-products that can use SPD technology. We
now have several companies licensed to make mirrors, sunvisors, and smart windows using SPD
technology.'
Research Frontiers is a technological leader in the development and licensing of suspended particle
devices (SPDs) - electrically operated light control devices using proprietary particle suspensions
and films. SPD technology permits light transmission to be electrically controlled instantly either
automatically by means of a photocell or other sensing or control device, or adjusted manually by
the user. Devices which can use SPD technology include variable light transmission ``smart'
windows, variable light transmission eyewear (including prescription and non-prescription sunglasses
and sports goggles), self-dimmable automotive sunroofs, sunvisors and rear-view mirrors, as well as
enabling brighter easier to read flat panel information displays for use in computers, television,
telephones and other electronic instruments. Research Frontiers currently has agreements in effect
covering smart windows, automotive mirrors and sunvisors, eyewear, displays and other products
with major international corporations and holds or has rights in about 350 patents and patent
applications on SPD technology throughout the world. Additional information about Research
Frontiers can be found on the Internet at refr-spd.com.
Note: From time to time the Company may issue forward looking statements which involve risks
and uncertainties. This press release contains forward looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange
Act of 1934, as amended. Actual results could differ and are not guaranteed. Any forward looking
statements should be considered accordingly.
Contact:
Robert L. Saxe, President
Patricia A. Bryant, Manager of Investor Relations
Research Frontiers Incorporated
(516) 364-1902
info@refr-spd.com
or
Media Relations:
Stacy Calder
Mindstorm Communications
(212) 320-2125
scalder@mindstormcomm.com |
