AP Materials is an early stage advanced materials company that develops and produces a new class of materials, called nanopowders, in a patent-protected process. The Company produces nano-powders with the potential of superior purity and structure and significantly less oxide than other powders at a lower cost of production. This unique, demonstrated technology is of great potential interest to a wide range of markets. Over the past four years the Company has been developing its technology to demonstrate the feasibility of commercial production of numerous ceramic and metal nano-powders on the basis of the broad capability of their process technology.

Currently APM is in the final development of it first planned commercially available nano-powderTantalum (Ta), which is sold to the manufacturers of capacitors (market size ~$300,000,000). The most recent Tantalum nano-powders produced in APMЧ’s reactors are equal to or exceed the highest quality powders being produced by conventional means. Over the next year, while APM continues to improve the quality of its powders it intends to ship sample quantities to potential customers. The Company expects to ramp up to full production by the end of 2003.