1. ISTN small technology for big markets TM Industrial Science & Technology Network ISTN Nanotechnology Development September 22, 2005

2. ISTN Inc. September 2005 ISTN Inc. - An Introduction A small Contract Research company of 15 employees, including 9 Ph. D. research scientists Has superior knowledge and experience in water treatment, foaming insulation, adhesives, optical electronics, and biotechnology fields Located in York, PA with office, laboratories, and many analytical instruments Ongoing Joint-Venture and Projects in China, Taiwan, Korea, and other countries Collaboration with many Universities and Institutes in the United States and overseas

3. ISTN Inc. September 2005 ISTN – Early Mover in Nanotechnology Founded in 1997 by Dr. Arthur J. Yang  Former Insulation Research Director at Armstrong  ATP grant for Nanopore Thermal Insulation – 1992 Develop organic-inorganic nanocomposites  Functionalized silica materials (sol-gel chemistry)  Polymer-metal composites Industrial ProductsOpto-ElectronicsBiotechnology

4. ISTN Inc. September 2005 CSMG – Nanopore Reactive Adsorbent Selective Adsorption – significantly enhances reaction kinetics. High Capacity – nanopores, surface regeneration, selectivity Flexible Platform – surface ligand groups can be designed to accomplish variety of functions, (adsorption, separation, catalysis, etc.) Integration – adsorption, catalysis, and reaction combined in one product Platform Technology with Tremendous Commercial Potential SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH SHSH Hg +2 Na + SHSH SHSH SHSH SHSH SHSH SHSH Iron Silica

5. ISTN Inc. September 2005 Nanopore Enhanced Enzyme Device Key Properties Immobilized enzyme can be reused many times Reaction can occur in continuous flow mode instead of batch mode Product can be separated from reactants during reaction, which promotes reaction rate Reaction and separation done in one continuous flow operation Column can be regenerated by effluent wash after saturation Process is suitable for large-scale operation and can be fully automated Encapsulation of Biological Entity With Silica

6. ISTN Inc. September 2005 Optical Coatings Wet chemistry process, no vacuum needed Sol-gel process to prepare optical transparent coatings Anti-glare/anti-reflective or high reflective coatings Low cost process Ready to apply to large surfaces Application including: lenses, solar panel, display screens, architecture glasses, protection films, etc. R 1 R s T R 2 R 3 R 1 R s T R 2 R 3

7. ISTN Inc. September 2005 Nanotechnology for Drug Delivery  Silica-Chitosan Composite  Funding: Phase I SBIR (2004)  Applying for Phase II Key Properties  Controlled release for ulcer treatment. Maximizes efficacy while minimizing side effects  Silica-Chitosan composite has increased residence time in stomach (highly acidic).  Entangled network of chitosan and silica molecules maintain structural integrity  Low MW Protamine (LMWP)  Funding: Phase I STTR, Phase II SBIR (2002)  Pursuing IND from FDA Key Properties  Drug use for non-toxic heparin neutralization which can also be used for drug and gene delivery  Able to translocate through cell membranes (structural similarities to HIV-TAT protein)  CSMG technology utalized to optimize thermolysin immobilization for continuous production of LMWP Collaboration with University of Michigan’s College of Pharmacy

8. ISTN Inc. September 2005 Flexible Commercialization Strategy ObjectiveAdvantage Customer and end-user relationship to test CSMG for novel applications Sales/marketing partnerships to complement own direct sales force Joint development agreements with large corporations Transactions to utilize CSMG for specific applications Joint venture / spin-off with corporate or institutional investor Significant investor involvement in strategic and management decisions Strategic Alliances Licensing New Company