Nanogate and Dow Corning announce global strategic alliance

• Technology and sales partnership with ESK Ceramics also announced
• Partnerships with significant sales and earnings potential
• Contracts signed confirm Nanogate’s leading position

Saarbrücken, 21 September 2006. Nanogate has entered into two new strategic partnerships that considerably improve its product and sales potential.

It has signed a long-term cooperation agreement with Dow Corning, Midland, USA, to develop and produce special hybrid materials for various applications and sectors. Initial pilot products have already been tested successfully in different markets. Official marketing is to be launched in 2007. Nanogate is also expanding its product range in the field of tribological systems and ceramic surfaces by way of a partnership with ESK Ceramics, a subsidiary of US corporation Ceradyne, Inc. This second new strategic partnership represents a milestone for the nanotechnology company in opening up the market for the reduction of friction and wear (tribology) – a market that is worth billions.

“In Nanogate we have found the optimal technology leader,” said Dow Corning’s Executive Director Douglas Wernicke. “This cooperation agreement enables us to offer our customers further innovative products and materials.” The jointly developed material platforms are targeted at markets for enduring surface processing, for example in the fields of architecture and textiles. The first products are scheduled for launch on global markets in 2007.

Strategic partnerships are a key component of corporate strategy at both Nanogate and Dow Corning. In both companies, the main focus is on efficient development of technology potentials and corresponding transformation into market innovations. Consequently, the long-term cooperation agreement is not aimed at exclusive development but at production and joint global marketing of hybrid materials.

“Dow Corning has more than 25,000 customers worldwide, which makes it an ideal partner for us in the field of special chemistry,” said Nanogate AG’s CEO Ralf Zastrau. He said it was increasingly important for Nanogate to cooperate with partners that operate worldwide so as to open up high-volume markets effectively. In doing so, the main focus is on working with licence models within the framework of long-term partnerships. “Dow Corning is global market leader in the field of silicon-based technologies, so it has not only very innovative starting materials at its disposal, but also powerful international sales channels,” Zastrau added.

Nanogate will process the starting materials provided by Dow Corning using chemical nanotechnology processes to produce new performance characteristics. For instance, Nanogate uses chemical nanotechnology to build hybrid materials in a targeted way using sol-gel processes, which involve producing or generating nanostructured materials by means of controlled reactions of diverse starting materials. This will enable it to achieve properties using Dow Corning materials that would not be achievable without nanotechnological processing.


ESK Ceramics: focus on tribology

Nanogate and ESK Ceramics, a subsidiary of Ceradyne, Inc., the world’s leading provider of ceramic-based products, have agreed to cooperate in developing and selling tribological surface systems, focusing mainly on mechanical engineering and the automotive industry. Nanotechnologically processed products make it possible to reduce friction and wear in components and by doing so to achieve significantly higher productivity and efficiency. The first products are due to be marketed in the next financial year. One of Nanogate’s main focuses in the field of tribology is on vehicle engine components, which after processing have markedly improved gliding properties, lower breakdown rates and a longer economic life. The new systems can be used for any type of engine and component geometry, regardless of manufacturer, and offer great growth

potential with around 65 million engines manufactured annually worldwide in the automotive field alone.

“These two partnerships mark a milestone in the achievement potential of our technology. At the same time, we are further improving our leading position as a nanotechnology enabler, extending our product range and strengthening our sales power. The high-margin Industrial Systems field of business will profit from this,” Nanogate AG’s CEO Ralf Zastrau said. The Saarbrücken-based company expects these partnerships to make an attractive contribution towards a further increase in sales and earnings in the years ahead.

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