The term "Nanotechnology" refers to the understanding and control of matter at dimensions of roughly 1 to 100 nanometers, where unique phenomena enable novel applications. At the nano-scale, the optical properties of materials differ in fundamental and valuable ways from the properties of individual atoms and molecules or bulk matter.

KiloLambda's mission is to create improved materials, structures, devices, and systems that exploit these new optical properties.KiloLambda has two core proprietary technologies, on which its product development is based.

The characteristics of these technologies are:

* Threshold based light blocking
* Threshold based light limiting

With a diverse and powerful team of optics professionals with a wide variety of expertise, the company focuses on the common goal of providing timely, high-quality innovative products to the market.

KiloLambda is concentrating efforts on those markets where applying its technology is expected to yield the highest profitability. Today, the company provides solutions to the telecommunication market as it migrates to all optical fiber, wavelengths switched network and the market for laser protection filters which consist mainly of defense, industrial and medical applications. KiloLambda plans to further extend its technology so it will meet the needs of additional and bigger markets: the semiconductor market towards its imminent migration to silicon photonics and the cameras, windows, mirrors and eyeglasses markets with their unsatisfied needs for better sunlight screening and filtering.

KiloLambda's relative advantage is in developing and providing innovative and unique solutions to optical power control needs. Each of the company's products is usually one component or subsystem, integrated with others. Accordingly, KiloLambda is striving to form strategic alliances , that is, arrangements covering joint product development, production and marketing , with producers of the integrated product.

The partnership KiloLambda formed in 2003 with world leader Molex ("MOLX") represents the type of alliances KiloLambda aspires to form in the future in other markets. Molex and KiloLambda were successful in winning external governmental research and development funding for a joint product development project, in which KiloLambda's novel technology will be incorporated in Molex connector products. The resulting family of products, jointly owned by the two companies, will function as safety devices in Fiber to the Home (FTTH) and Metro infrastructure applications. Molex capabilities in mass production will drive the manufacturing costs to a minimum resulting in affordable end user prices for the products. Initial sales through the worldwide marketing and sales organization of Molex, are expected by the end of 2007.

KiloLambda considers its optical power control technology to be the main source of its future business success. While pursuing its goals regarding the core power control technology, KiloLambda is engaging in immediate revenue generating activities, based on the company's peripheral technological achievements.

Today these activities include development of Optical Proximity Sensors and High Energy Lasers for defense applications. Revenues from these activities will support KiloLambda's main effort regarding its core technology in face of diverse possible conditions of capital and product markets.