| Mercury Cable Files Request for Reexamination of Composite Technology's 7,179,522 Patent
 
 DANA POINT, Calif., Dec 22, 2010 (BUSINESS WIRE) -- Mercury Cable and Energy
 ("Mercury Cable") announces that it has filed a Request for Ex Parte
 Reexamination of the Composite Technology Corporation (CPTC) U.S. Patent No.
 7,179,522 for ACCC bare overhead transmission conductor pursuant to 37 C.F.R.
 1.510 with the United States Patent and Trademark Office.
 
 On 12/22/2010 a compliant Request for Ex Parte Reexamination was filed
 challenging the patentability of each of the 20 claims contained in U.S. Patent
 No. 7,179,522 (hereinafter referred to as the '522 Patent) citing 4 new items of
 prior art which present new, non-cumulative technological teaching that was not
 previously considered or discussed on the record during the prosecution of the
 application that resulted in the '522 patent and specifically not discussed with
 regard to the subject matter of each of claims 1-20.
 
 "The cited art discloses at least as early as April 1987, a full 15 years prior
 to CTC's earliest priority date, that it was well known that multiple fiber
 types, embedded in a resin matrix, could be used in a composite core for an
 electrical conductor," said Todd Harris, President of Mercury.
 
 The first reference provided discloses the use of multiple different fibers for a
 core was specifically identified, as is corrosion resistance, pultrusion methods
 and the use of different resins and matrix materials.
 
 In particular, it specifically identifies E glass fibers, S-2 glass fibers,
 carbon fibers, and Kevlar (aramid) fibers as candidate materials which are
 suitable for replacing steel as the core support member in an overhead power
 transmission conductor. The reference further discloses that the fibers can be
 embedded in thermosetting polyester, epoxy and other polymers and contemplates
 the use of hybrid or multiple fiber type composites, including E glass and
 another fiber which would include carbon fiber. Lastly, the reference states that
 pultrusion of continuous fibers is the preferred production technique for such a
 reinforcing construction.
 
 Thus, as stated by the cited art, at least 15 years prior to the filing of CTC's
 provisional patent application, it was well known in the industry that composite
 rods or "cores" comprised of a variety of combinations of different strength
 fibers embedded in resin matrices could replace steel cores in electrical
 conductors.
 
 Mercury Cable & Energy is a privately-held developer of High Voltage Composite
 Reinforced Conductors (HVCRC), Smart Conductors for the Smart Grid. The patented
 HVCRC Smart Conductor is superior to existing conductors in a number of key
 performance areas including:
 
 Up to double the current carrying capacity of ACSR Substantially reduces
 high-temperature sag Requires fewer structures for new line construction
 Increases capacity of existing rights-of-way and structures through retrofitting
 Eliminates bi-metallic corrosion Significantly reduces line losses compared to
 same-diameter conventional and composite conductors at equal operating
 temperatures
 
 SOURCE: Mercury Cable & Energy
 
 Mercury Cable & Energy
 Todd Harris, President
 949-276-5375
 tharris@mercurycable.com
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