1. 1 PIEZOELECTRIC VALVE FOR REAL-TIME AND ACCURATE CONTROL STCU-NATO Workshop "From Science to Business" STCU-NATO Workshop "From Science to Business" 11-12 October 11-12 OctoberKiev Dr. Sc., prof. Serhiy Petrenko Telephone: 38-044-241-96-31 E-mail: tyl1@naverex.kiev.ua "Scientific Enterprise LILEYA Ltd Kiev

2. 2 Talk outline 1. What is needed in the market? 2. Brief technology description. 3. Stage of development. 4. Who needs it & how many will they need? 5. What is my unique technology advantage? 6. Competitive matrix. 7. How will I beat the competition? 8. Opportunity for joint work.

3. 3 Proprietary information statement The technology material presented in this talk is available for licensing or joint product development. The technology material presented in this talk is available for licensing or joint product development. None of the slides contain any confidential or proprietary information which would prevent patenting the technology. None of the slides contain any confidential or proprietary information which would prevent patenting the technology.

4. 4 Problem Description Motorized control valve is intended to regulate any kinds of liquids, steam, gas or vacuum streams. It can be used in energy industry, chemical industry,medicine, food industry etc. Motorized control valve is intended to regulate any kinds of liquids, steam, gas or vacuum streams. It can be used in energy industry, chemical industry,medicine, food industry etc. Generally, a control valve comprises three primary components: a valve, (such as a ball valve,) a DC motor with multi-stage reducer and a control circuit (see control valves manufactured by companies such as Siemens, Johnson Controls, Sauter, Danfoss, Belimo, Joventa). Generally, a control valve comprises three primary components: a valve, (such as a ball valve,) a DC motor with multi-stage reducer and a control circuit (see control valves manufactured by companies such as Siemens, Johnson Controls, Sauter, Danfoss, Belimo, Joventa). Current motorized control valves have significant limitation: Current motorized control valves have significant limitation: Large working time (duration of closed-open mode ranges from 30 to 140 seconds ), Large working time (duration of closed-open mode ranges from 30 to 140 seconds ), Low accuracy - resolution (1-5 angular degrees); Low accuracy - resolution (1-5 angular degrees); High response time (1-2 seconds); High response time (1-2 seconds); High cost ( $ 400 – for a valve with resolution 1-5 ang. degrees; $1000 for a valve with 0.2 - 1 ang. degree resolution). High cost ( $ 400 – for a valve with resolution 1-5 ang. degrees; $1000 for a valve with 0.2 - 1 ang. degree resolution).

5. 5 What is needed in the market ? Motorized Control Valves with high control accuracy and with small response times for a new generation of power systems: Engines of internal combustion; Engines of internal combustion; Turbojets; Turbojets; Steam and gas generators; Steam and gas generators; Nuclear reactors; Nuclear reactors; Various hydraulic systems; Various hydraulic systems; Medicine micropumps; Medicine micropumps; Food dosators; Food dosators; Thus, thermo-gas- hydraulic systems must be work in real time, with speed approaching that of electronic systems. Thus, thermo-gas- hydraulic systems must be work in real time, with speed approaching that of electronic systems.

6. 6 Brief technology description piezoelectric valve At the basis of the piezoelectric control valve is a special piezoelectric mechanism without reducer and with high dynamical properties At the basis of the piezoelectric control valve is a special piezoelectric mechanism without reducer and with high dynamical properties Such piezoelectric valve include: hollow case of valve; input tube; output tube; spherical saddle; turn ball; piezoelectric motor. Such piezoelectric valve include: hollow case of valve; input tube; output tube; spherical saddle; turn ball; piezoelectric motor. Piezoelectric motor include: ring piezoelectric generator; wave shell or disk; pushers; rotor; control system. Piezoelectric motor include: ring piezoelectric generator; wave shell or disk; pushers; rotor; control system.

7. 7 Brief technology description Different schemes of piezoelectric valves

8. 8 Advantages Increasing resolution (accuracy) more than 100 times; Increasing resolution (accuracy) more than 100 times; Decreasing response time more than 100 times Decreasing response time more than 100 times Decreasing working time (duration of closed-open mode) more than 10 times; Decreasing working time (duration of closed-open mode) more than 10 times; The possibility to performed simultaneously very fast action (analogous to the cut-off valve), and very precise control (analogous to the controller valve). The possibility to performed simultaneously very fast action (analogous to the cut-off valve), and very precise control (analogous to the controller valve). Reducing the risk of spark and explosion. Reducing the risk of spark and explosion. Low cost Low cost Increasing reliability Increasing reliability Noiseless Noiseless Small-sized Small-sized Energy-efficient Energy-efficient Simple control Simple control

9. 9 Experimental results for piezoelectric ball valve for a ½ (half-inch) pipe: Working time ( duration closed- openmode)………………………… < 1s Working time ( duration closed- openmode)………………………… < 1s Angular resolution - accuracy (min. angular increment)……………..1 arc-sec Angular resolution - accuracy (min. angular increment)……………..1 arc-sec Response time………………………50µs Response time………………………50µs Voltage………………………………12V Voltage………………………………12V Power……………………………..…4-6 W Power……………………………..…4-6 W

10. 10 Stage of development and international patents LILEYAs Piezoelectric Valve is being patented in UA (Application Serial No 200511316) and United States LILEYAs Piezoelectric Valve is being patented in UA (Application Serial No 200511316) and United States LILEYA can produce 500-1000 Piezoelectric Valves in year. LILEYA can produce 500-1000 Piezoelectric Valves in year.

11. 11 Targeted Market Segment Such a valve will find use in all systems in the world, which contain tubes: Such a valve will find use in all systems in the world, which contain tubes: -steam heating; -steam heating; -water pipelines; -water pipelines; -gas pipelines; -gas pipelines; -oil pipelines; -oil pipelines; -power reactors; -power reactors; -chemical reactors; -chemical reactors; -power motors; -power motors; -vacuum systems. -vacuum systems. In addition to the broader industrial uses described above, the piezoelectric valve offers significant commercial potential at an individual household level. As a results: In addition to the broader industrial uses described above, the piezoelectric valve offers significant commercial potential at an individual household level. As a results: -illumination cut-off valve (at the present time control valve and cut-of valve work -illumination cut-off valve (at the present time control valve and cut-of valve work separately complementing each other); separately complementing each other); -precise regulation of household water supply and household heat supply with a -precise regulation of household water supply and household heat supply with a noiseless, energy-efficient; noiseless, energy-efficient; -significant safety improvement on existing systems for regulating household -significant safety improvement on existing systems for regulating household gas supply, by reducing the risk of spark and explosion. gas supply, by reducing the risk of spark and explosion.

12. 12 Competition Lileya can surpass the competition by expanding its production, developing more advanced piezoelectric valves and selling to the existing and growing new generation of power systems and household marketplaces. Lileya can surpass the competition by expanding its production, developing more advanced piezoelectric valves and selling to the existing and growing new generation of power systems and household marketplaces. Lileya has a very skilled engineering team made up of 10 former weapons scientists from the former Soviet Union now working in Kiev, Ukraine. This core engineering team designs, develops and tests advanced piezoelectric valves. Lileya has a very skilled engineering team made up of 10 former weapons scientists from the former Soviet Union now working in Kiev, Ukraine. This core engineering team designs, develops and tests advanced piezoelectric valves. The design, production and testing all can be done at a fraction of the cost of the competition. The design, production and testing all can be done at a fraction of the cost of the competition.

13. 13 Competitive Matrix Important product or technology characteristics My company LILEYA Ltd Model PSF-400 SIEMENS, Germany Model SIPART PS2 JOVENTA, Austria Model DAN1.SN Working time < 1 sec < 1 sec 100 sec 40 sec Angular resolution Angular resolution 5 arc. sec 5 arc. sec 300 arc.sec 300 arc.sec 3000 arc. sec Response time 0.00005 sec 0.05 sec 5.0 sec 5.0 sec Cost Cost$500$1,200$400

14. 14 Opportunities Lileya is seeking a western investor or company alliance. Lileya is seeking a western investor or company alliance. Lileya needs additional members of the management team who are able to lead the company to new markets in the US, Europe, Japan and elsewhere. Lileya needs additional members of the management team who are able to lead the company to new markets in the US, Europe, Japan and elsewhere. We are seeking a CEO, a Marketing VP and a Chairman of our Board of Directors. We are seeking a CEO, a Marketing VP and a Chairman of our Board of Directors. We are seeking investments of $500,000 over 2 years based on a Business Plan that is being prepared. We are seeking investments of $500,000 over 2 years based on a Business Plan that is being prepared. The funds would be used to set up permanent company offices, design and testing facilities, and to develop and implement marketing and distribution strategies. The funds would be used to set up permanent company offices, design and testing facilities, and to develop and implement marketing and distribution strategies. Over the next year manufacturing capabilities would be improved with more advanced production equipment for manufacture of higher quantities. Over the next year manufacturing capabilities would be improved with more advanced production equipment for manufacture of higher quantities.

15. 15 Contact information Speakers Dr. Sc., prof. Serhiy Petrenko Telephone: 38-044-241-96-31 E-mail: tyl1@naverex.kiev.ua LILEYA Ltd Scientific Enterprise Kiev