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To: GARY P GROBBEL who wrote (19928)	4/19/2004 2:37:16 PM
From: GARY P GROBBEL	Read Replies (1) \| Respond to of 120405

EMFP from 10k: Additional Potential Applications --------------------------------- The Company believes its technology may have application for the following products, although they do not market or sell these products or applications at the present time and do not have any plans or contracts to do so in the near future: - air filtration systems for semiconductor manufacturing and laboratory "clean rooms". - heating, ventilating and air conditioning (HVAC) filters for use in commercial and residential buildings, airplanes, and motor vehicles. The Company has also been participating in a Department of Defense sponsored research program conducted by California State University (San Bernardino) (CSUSB) to determine the potential military and industry applications of the Company's filtering technology. Over the past several months, U.S. Soldier and Biological Chemical Command (SBCCOM), in conjunction with CSUSB, has been examining how to apply the Company's filter technology to a large number of potential applications in the military and private industries. The program has conducted a number of cost and user needs analyses, economic analyses, and technical viability studies on the Company's filter technology. According to the studies, numerous potential applications of the Company's filter technology have been identified. 9 The Company will submit its filter technology to a final testing phase which is to be conducted under U.S. Army auspices. Assuming successful completion of this final testing program, the Company may become eligible for a series of grants from the U.S. Army and related agencies. In addition, the Company will be permitted to market any products that it develops, subject to governmental approval, to the private sector. Product development remains an important part of our business but our primary focus at the present time is on increasing our product sales through a marketing driven sales effort in order to increase revenues that will ultimately cover total expenditures.