Thermi-Comm Auburn University Thermionics Business Plan Russian Participants: Gleb Loukine Alexander Semenov Dmitry Stepennov Dmitry Polyakov Anatoly Yastrebkov U.S. Participants: David Albritton Brad Hinton Moussa Traore

Mission Analyze potential markets for thermionics (TI) –Space and terrestrial Investigate feasibility of thermionics in markets Financial viability of commercializing TI technology

Thermionic Technology Analysis of Satellite Market Terrestrial Applications Financial Analysis Conclusions and Recommendations Business Plan Outline

Solar TI System

Basic TI Principles HEAT OUT

TI on Boeing SOTV TI is the power technology of choice for the Boeing SOTV program –Produces power at low mass SOTV generates power & propulsion –Reflectors used to heat TI converters for electrical power

GeoStationary Satellites

Findings Identified 2 potential applications for TI power (1) Power for Geosynchronous communications satellites Lighter and less expensive than solar Doubles revenue-producing payload-mass savings in power and propellant (2) Emergency power for homes Gas fired appliances heat TI Currently too expensive to be viable

World Satellite Market

LEO and GEO markets totaled $21 billion in 1998 Projections call for this market to expand to $66 billion by 2004 Average annualized market growth rate of 26% $65 billion of backlog

World Satellite Market Digital TV and VSAT/Internet markets offer rapid growth Demand for Satellite Bandwidth is increasing by 26% a year

World Satellite Market Over 75% of satellites are manufactured in the United States by Loral & Hughes

World Satellite Market

Thermi-Comm Solar Panels (PV) is the current power system of choiceSolar Panels (PV) is the current power system of choice Thermionic (TI) power system under developmentThermionic (TI) power system under development TI is 55% lighter than PVTI is 55% lighter than PV Operates in all environments and can propel satellites into GEO by electric propulsionOperates in all environments and can propel satellites into GEO by electric propulsion

Solar Thermionics Payload TI is lighter and smaller than solar Payload doubles with TI 25 kW PV50 kW TI

Financial Impact of TI Double number of transponders in each payload Options: (1) Double the payload with the same number of launches (2) Reduce the number of launches by 50% Cost Reduction: ($500M to $1B) X 30 = up to $30B/year Multi-billion $ revenue opportunity

Financial Impact of TI

Strengths Existing Technology Plant/Equipment Availability Low Labor Costs Experience of Scientists Proximity to Moscow Weaknesses Processing Costs Availability of Capital Manufacturing Cycle Opportunities Growth in Demand for Satellites Inefficiency of Existing Systems $65 Billion Launch Backlog Emergence of New Applications Terrestrial Market Threats Political Risk Currency Risk Strength + Opportunity = Capability Weaknesses + Opportunity = Limitation SWOT Analysis

Projected Market Share 0 5% 10% 15% 20% 25%

Financial Projections

Capital Requirements Machinery $1,720,000 Labor $1,176,000 Materials $250,000 Administration $400,000 Total Capital Required (Year 1 to 3) $3,546,000

Conclusions TI offers potential for major market penetration Doubles payloads or halves number of launches TI provides higher power at lower weight TI provides doubling of revenue Thermi-Comm will become self-sustaining in 2003 Phase I: Thermi-Comm will employ 40 people in high tech, commercial careers Phase II: Thermi-Comm will employ over 80 technicians and scientists