127 Eastgate Industrial Park, Los Alamos, NM 87544
641 Fifth Avenue 36E, New York, NY 10022
Marvin Maslow, CEO and President
(505) 662-4807 (212) 752-0505
Institutional Investor Relations: Frank N. Hawkins, Jr.,(305) 852-2383
Media Contact: Alex Stanton (212) 780-1900 x515
Fall 1999
MHTX Acquires Option to License Water Filter Technology. Follows Acquisition of Global Rights to German Fuel Cell Technology and Major Stake in Internet Imaging Company
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COMPANY DESCRIPTION
Manhattan Scientifics, Inc. is a technology incubator that nurtures financially promising technologies that have potential global commercial applications. The company's goal is to successfully commercialize these technologies through a cooperative effort of highly skilled scientific expertise, experienced management and aggressive capitalization. With corporate offices in New York and research facilities in Los Alamos, NM, the company benefits from management's close association with the US Government Laboratories.
The company is currently nurturing four technologies and owns 27% of an Internet-based image-asset management company, New Mexico Software (OTC BB:NMXS), which has the potential to become a major participant in providing e-commerce innovation.
HoloStor-Developing a new recording medium for holographic data storage. $25 million has been invested in this project through the MCC Research Consortium that included Eastman Kodak, Digital Equipment Corp., Projectavision, DARPA and NIST. The technology addresses data storage problems by providing the capability to store vast amounts of information in relatively small space using holographic 3-dimentional light patterns. MHTX holds an extensive patent portfolio covering a wide range of concepts from optical design to media chemistry.
Micro Fuel Cell-MHTX is providing backing for former Los Alamos National Laboratory scientist Robert Hockaday who is developing a flat printed fuel cell designed to provide an always on energy source to power micro electronics such as cellular telephones and pagers. MHTX owns the world rights to the patented micro fuel cell. MHTX's non-stacked fuel cell configuration is ideal for low current, high voltage uses that require outputs below one watt of power. Discussions are underway with several potential international partners.
Mid Range Fuel Cell-MHTX owns the global rights to the mid-power fuel cell technology of NovArs Gessellschaft fuer neue Technologien, a German company developing fuel cells that provide high current, low voltage applications such as powering laptop computers, cordless power tools, motor bicycles and home energy power systems producing 3 to 3,000 watts from hydrogen fuel. Four patents have been filed so far. An initial prototype was demonstrated by NovArs at the Small Fuel Cell Conference held in Lucerne, Switzerland in June 1999.
Nanoporous Polymer Water/Gas Filter-MHTX has an exclusive option to license the consumer field of use for this technology developed by the Los Alamos National Laboratory. The technology, which is capable of removing carcinogens from drinking water, is 100,000 times more effective than today's best carbon filters by reducing organic compounds in water to parts per trillion. The technology was originally developed for the semiconductor industry. The company believes that increasing public concern over growing shortages of safe, clean drinking water suggests large business opportunities.
Internet Activity
The company acquired 5.4 million shares of New Mexico Software Inc. (NMXS) or approximately 27%. This adds another dimension to Manhattan Scientifics' portfolio. MHTX believes NMXS has the potential to become a major Internet-enabling technology provider for business-to-business as well as business-to-consumer e-commerce activities.
The Outlook
MHTX is pursuing its program to develop and commercialize its four technologies. A fully functioning prototype of a miniature fuel cell is expected in early 2000. NovArs is expected to release its next generation prototype in spring 2000. MHTX intends to participate with a major industrial corporation in a cooperative research agreement at the Los Alamos National Laboratory to complete the commercialization of the water filter technology. MHTX also is working to develop a recording film with appropriate sensitivity and dynamic range for a holographic storage device.
The business concept for each of these activities is to join with a large, well-established corporate partner to design products based on the technologies and successfully commercialize them. Management is involved in active dialogue with a number of large corporations who are potentially able and interested in commercializing the company's technologies.
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MHTX - OTC:BB
Recent Price $1.10
52 Week Range $0.18-2.25
Market Capitalization $110 mil.
Fiscal Year End Dec.31
Dividend N/A 1998 Revenue N/A
1998 EPS N/A
Insider Ownership 62%
Shares Outstanding 100,000,000
Est. Public Float 16 mil sh.
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Key Company Developments
10/20/99 MHTX patented Micro Fuel Cell™ device runs cellular phone for 24 hours by converting methanol to electricity.
09/15/99 MHTX acquires option to license worldwide consumer rights to ultra-efficient water filter technology capable of removing carcinogens from drinking water. Company expects to partner with a major industrial corporation in a cooperative research and development agreement with the Los Alamos National Laboratory to complete commericialization of the technology.
08/10/99 MHTX acquires global rights to mid-power range fuel technology of NovArs Gessellschaft fuer neue Technologien, GmbH, a private company based in Passau, Germany.
08/04/99 MHTX acquires 5.4 million shares or 27.7% of NMxS.com, (OTC:BB NMXS). NMXS provides proprietary Internet software products for efficient management and distribution of graphic images, medical and dental images and video clips.
01/21/98 Manhattan Scientifics commits $1 million funding to Los Alamos physicist Robert Hockaday for development and commercialization of micro fuel cell.
01/12/98 Manhattan Scientifics goes public. Acquires 100% ownership of Tamarack Storage Devices and raises $1 million through sale of common stock.
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Risk Factors
Ability to move rapidly from development stage to commercial production and marketing.
Intense competition in the portable electronic energy source industry.
HoloStor's ability to develop and successfully market its mass data storage media.
The availability of capital.
No revenue on earnings yet.
Timely changover to "reporting company" status.
Early stage high risk technology
Management
President and CEO Marvin Maslow. Well established history as technology investor and manager.
COO Jack B. Harrod, 32 years with Texas Instruments/ Led TI's corporate venture projects.
Director Scott L. Bach, General Counsel and Corporate Secretary
Director David A. Teich, CPA
Scientific Advisory Board Member Martin Cooper, 28 years chief technical officer with Motorola. "Father" of the cellular telephone
Scientific Advisory Board Member George A. Cowen, founder Sante Fe Institute. Worked on atom bomb project
Scientific Advisory Board Member Donald J. Sandstrom, 38 years with Los Alamos National Laboratory. Materials Science Technology Division Leader, LANL
SEC Counsel: Lawrence B. Fisher, Orrick, Herrington & Sutcliffe, New York
Auditors: Ralph J. Anderson, Jr., Richard A. Eisner & Co. LP
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WEBSITE INFORMATION
Copies of KTIE press releases, SEC filings, current price quotes, and other valuable information for investors may be found on the websites http:/www.hawkassociates.com and mhtx.com.
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The information contained herein is believed to be accurate and is based upon sources which are considered reliable but is not guaranteed by Hawk Associates or the company mentioned. This information is subject to change without notice. Neither Hawk Associates nor the conipany mentioned assumes any responsibility for the information contained herein, The company featured in this repon is a client of Hawk Associates Inc.
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