Here is an update from Kathy Knight as she accompanied Paul and Gil to Europe:
As promised I have finally transcribed the presentation that Gil Olachea delivered during the meetings that took place in Switzerland and Germany. It is basically intact, although I removed the names of companies that Nanopierce is in talks with so as not to compromise delicate negotiations.
NANOPIERCE TECHNOLOGIES, INC.
AN INTRODUCTION AND BUSINESS DIRECTIVE
OVERVIEW
Nanopierce is an emerging technology based company presently focused on a patented intellectual property (IP) called Particle Interconnect. The proven IP can significantly improve electrical, thermal, and mechanical characteristics of electronic products while reducing cost and extending reliability. Though technically advanced, the IP is easily adapted and implemented using existing, known equipment and processes. The IP will be ideally compatible for shrinking electronics such as Telecom, Computers, Consumer and similar portable applications. These products require faster operating speeds, lower costs, lighter weight, smaller size, cooler operation and reliable performance. The IP addresses these issues of concern by engineers, designers and manufacturers to enable significant product advancements.
Nanopierce will seek out industry leaders in selected markets and license the IP with them. The recognition by these dominant heads will accelerate the acceptance and implementation of the IP on greater scales.
Nanopierce will also research and develop additional IP which will compliment its portfolio, enhance profitability and shareholder value. The intent and design is to expand the product/service base offering for a solution based company with intrinsic value to its customers and markets.
Nanopierce will predominantly participate in growth markets which presently are electronics and information systems based. These areas are Telecom (wireless, cell, pager, PCS), Computer (laptop, palmtop, notebook) and Consumer (digital camera, camcorder, G.P.S.). The growth factors of these markets are exponential and the requirements call for enablements to bring the product advancements to market. Nanopierce's IP is such an enabling technology.
Nanopierce's present posture does not require intense capitalization and building. Therefore, the Company can concentrate on serving its licensees and customers as well as it's long term growth opportunities. To that end, Nanopierce will responsibly contain costs/expenses and invest with diligence. Key management with diverse and extensive capabilities will guide the Company's successful achievement of its evolving goals, objectives and equity.
BUSINESS VISION
Today's electronics products industry is characterized by levels of Interconnect. Better described: the number of connections required between a request (i.e. key stroke) and execution (i.e. display or action). The current and dominant method of interconnection is by way of socketing and connectors. This method impedes breakthroughs in important areas such as cost, speed, size, weight and reliability. Nanopierce's vision is to replace this 45-year-old practice with an enabling technology accomplishing the same objective with a patented, proven technology of conductive diamond micro-particles that address the indices mentioned above.
THE PROBLEM
Connection nodes (known as Interconnects) create challenges and obstacles for product designers and manufacturers. They exist in all electronic applications in the form of sockets, connectors, PCBs, switches and semiconductor packages. Connection nodes behave like traffic signal control lights. They impede quick thru-put, are costly, require maintenance and consume space. Ideally, no Interconnects would exist.
Advances in new and emerging electronic products require a solution to the problem of Interconnects.
The answer. . . NANOPIERCE!
TECHNOLOGY DESCRIPTION
The patented technology invokes the use of ultra-fine diamond particles which are conductively coated and applied to one of two surfaces of an electrical contact. A well understood and established plating process is employed in applying the diamond particles to the metallic surface. The remaining, opposing connector surface is placed upon the deposited diamond material and through light, firm pressure a precise electrical connection is made.
The modified diamond is an excellent electrical medium with highly favorable thermal characteristics. Sourcing is readily available. Future materials will be developed to augment the product family for expanding feature sets.
BENEFITS & FEATURES
Nanopierce's Particle Interconnect offers significant benefits:
* Penetrates oxide ("rust") formation on metal, electrical surfaces
* Easily adaptable to all metal surfaces
* Enhances electrical, high-speed performance for advancing electronics
* Particularly suited for Internet equipment supporting wider bandwidth
* Significant size and weight reduction of bulky connectors for shrinking electronics
* Improved long term favorable cost of ownership to consumer
* Employs existing, well-known plating process techniques and equipment
* Improved thermal dissipation, increases product reliability
MARKET SECTORS
Virtually every electronic related product/market will benefit and find application of Nanopierce's Particle Interconnect.
* Communication - PCS, Wireless, Cellular, Internet, GSM, RF
* Computer - Laptop, HPC, PDA, Notebook, Portable, Digital * Consumer - GPS, HDTV, DVD, Personal Electronics, Entertainment
* Transportation - Avionics, Automotive, Safety, Controls, Environment
* Commercial - Telemetry, Manufacturing Equipment, Environment
BUSINESS THRUST
1. Licensing and royalty opportunities
2. Sales of Diamond Particle Interconnect Material
STRATEGY AND TACTICS
1. Licensing - Partner with industry leaders for quick technology implementation and adoption - Co -"Brand"
2. Nanopierce Material Sales - Provide material support for small-volume limited licensee's - Supports developing infrastructure - Develop 3rd party application/product developers
POTENTIAL CUSTOMERS CAN BE FOUND AMONG THE FOLLOWING INDUSTRIES:
Connectors, Cables, Flexible Circuits/PCB's, Sockets, OEM Electronics, Semiconductor Packaging
ISSUES AND CONCERNS
* Access to professional experts
* Unforseen process refinement limitations
* Expanding and developing infrastructure
* Start-up phases of young business, new applications development
* Overcoming perception of new technology adoption
* Dependence on external subcontractors for manufacturing support
* Metal conductors are replaced by poly (synthetic) materials
COMPETITORS
No known competitor using diamond medium as an interconnect
- Shinetsu - Ferro Corporation - Deguyssa Corporation - Thomas & Betts - Rockwell International - Lucent Technologies - Rhombic Corp. - Ishihara Sangyo Kaisha Nanopowder Ent.
* Most target special, narrow markets or applications * Have been unable or had limited success in mass commercialization - Traditional market flow - Lack of application awareness - Non-existent infrastructure *Threat is minimum to Nanopierce's thrust of market dominance. Most business is concentrated in "test" sockets. A very small business market representing approximately $18 Million in OEM sales.
KEY MANAGEMENT
Gil Olachea, President, CEO and Director
His career in the semiconductor industry spans more than 20 years. Gil invested 9 of those years (1988-1997) in sales and marketing with Amkor Technology, a leader in integrated circuit (IC) assembly. He served from 1993 as Vice President of Worldwide Marketing and Communications greatly contributing to the significant sales growth from $485 million to over $1 billion. From 1979 to 1986, he was with Motorola in various operational capacities. Gil is widely recognized throughout the industry as an author and speaker. His technical and P&L background is supported with BSEE, MSEE, and MBA awards.
Paul Metzinger, Executive Vice President and Director
Brings more than 30 years of experience and contacts resulting from actively practicing securities law in Denver, Colorado. Mr. Metzinger's breadth of experience includes both national & international private and public offerings, corporate re-capitalizations, mergers, acquisitions and other financing facilities. Her represents unique value to the Company's future efforts. During the course of his professional career, Mr. Metzinger has developed numerous contacts with major financial institutions, investment banking firms, registered broker-dealers, world-wide accounting and legal firms providing access to key individuals within these firms.
Mr. Metzinger received his JD from Creighton University, Omaha, NE in 1967 and LLM from Georgetown University in 1969.
Tom VanderStel, CFO and Vice-President of Operations
His management career in the manufacturing and service sectors spans 16 years. Tom spent the last 6 years with TVX, Inc., an international manufacturer of digital video equipment managing and executing IPO's and mergers/acquisitions complements Tom's experience in domestic and foreign operations. Tom acquired his BA in Business Administration, Accounting from Hope College.
SUMMARY
* Patented proven technology
* Significant benefits and features to electronics industry
* Experienced, focused management team
* A "Green" Company
* Enables advancements of electronic products and applications
* Excellent growth opportunity
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