NuForm Materials...EXECUTIVE SUMMARY

Business Summary:
NuForm Materials, LLC uses a patented beneficiation process to obtain high purity, value-added ceramic materials for automotive and aerospace composite material applications that require superior performance, improved fuel efficiency, and low cost. Our customers use our recycled ash derived ceramics to produce improved and lightweight metal matrix and polymer composites that, in turn, enhance the performance of their customers� products in the field. As an added benefit, our products are recycled directly from an energy byproduct making them environmentally friendly, sustainable, and inexpensive.

Customer Problem:
The demand for new energy efficient materials, such as aluminum metal matrix composites (MMCs) requires materials that can provide stiffness, strength, wear resistance, and/or decrease weight. With rising fuel prices, the automotive and aerospace industries are looking for energy and cost effective materials that can improve efficiency and fuel economy of their products. Fillers and other compositing materials currently on the market are limited by high cost, abrasiveness, weight, and availability.

Product/Services (Solution):

• US Patent 6,533,848
• Patent Pending 20070184291
• Development at the University of Kentucky Center for Applied Energy Research supported by $5 million from DoE

Target Market:
Within the composites industry, we have identified powdered metal composites as our initial rollout market. The players comprising this market segment supply feedstock powders to the automotive and aerospace industries. The target customer for this market segment is the head of research and development, who can introduce one or more projects within the company that incorporate the use of our ceramic additive derived from fly ash. The players in this market segment are prime candidates for strategic partnerships and distribution relationships.

With regard to ash collection on the front end of our patented process, coal combustion facilities are potential customers for our ash removal services. Within this market segment, we have identified the VP of Operations of the utility that owns the facility or the Plant Manager of the facility as the target customers. Both have the capability of creating directives within their facilities that allow us to remove the fly ash that is needed.

Competitive Landscape:

There are several competing materials currently available on the market. These materials are limited by cost, weight, abrasiveness, and availability. Ceramic additives derived from fly ash are recycled materials and, as such, are far less expensive than the high quality additives currently used in pressed metal composites. They are lighter than most competitors making them more attractive for fuel-efficient applications. Additionally, the spherical morphology of ceramic fillers makes them more attractive for polymer composite applications than other inexpensive, irregularly shaped mineral fillers.

Sales and Marketing Strategy:
Based on early market research, we have determined that utilizing an enabler model will place us in the best possible position for success. Ceramics derived from fly ash will be used to meet the needs of the customer. We will use a pilot scale facility to produce demonstration amounts of ceramic filler, which will be distributed to potential customers and/or strategic partners for testing. We will either sell to the customer or develop a strategic partnership in which the customer will distribute our product. We will attend major trade shows and events, offer sales support for our customers, and educate the general public through technical documents and information made available on our website.

Financial Projections and Capital Needs:
$3,000,000 Equity-Debt

• Facilities Build-Out $2,500,000
  • From pilot to full-scale
• Client Development Activities $200,000
  • Marketing and partner development
• Operations $300,000
  • Feedstock and processing materials

We will leverage grants and revenues on early pilot projects

• $225k to date from National Science Foundation and Kentucky Science and Technology Corporation

Growth and Exit Strategy:
The first year of growth will be focused on developing applications for ash derived ceramics in metal powder composites. During this period, demonstration amounts of ash derived ceramics produced in a pilot-scale facility will be distributed to target customers. Spark sales within the customer will lead to use of our product in multiple projects. Two meet the needs of growing demand, our facilities will be expanded in year two. We anticipate further expansion of facilities and operations as our products are accepted in multiple markets.

Management Team:

• PRESIDENT: Thomas Robl, PhD
  Over thirty years experience with coal combustion byproducts
• VP FOR RESEARCH: Brock Marrs, PhD
  Experienced in composite materials � main R&D resource
• VP FOR SALES: to be hired

Startup Advisory Team:

• Bob Wilson, Director, Center for Entrepreneurial Growth
• Todd Fisher, Director, Technology Commercialization Center, AB Tech Community College
• Tony Beyer, President, Tek Pak, Inc

Collaborators:

• University of Kentucky Center for Applied Energy Research
• MC-21, Inc