Emergency Filtration Products Issues Progress Report
Funded by a Prototype Development/Testing/Evaluation Grant by the Center for Commercialization of Advanced Technology (CCAT) awarded in September 2004, EFP conducted a study of its nano-enhanced filter media. The study, which included comprehensive testing, was completed in May 2005. The company subsequently reported test results which proved the efficacy of its filter media -- enhanced by licensed technology which employed nanoparticles -- to eradicate five different pathogens or contaminants: (1) Staphylococcus aureous, a bacteria most common in infections in hospitals and community infection; (2) K. Pneumonia, a bacteria most commonly recognized as an infection in the lungs; (3) Bacillus subtilis, a bacteria found in dirt, such as anthrax; (4) Aspergilus Niger spores, fungi commonly recognized as black spore mold; and (5) Trichophyton mentagrophyte, a fungi that acts as a parasite. One of the nanoparticles employed in the filter media eliminated all of the contaminants within 30 seconds.
As a result of these successful results, the U.S. military, in conjunction with CCAT, has been introducing the company's technology to companies that manufacture filters for various military applications with the aim of having them incorporate EFP's technology in their filter applications. Concurrently, CCAT and the U.S. military have been prioritizing the filter applications in which it wants to incorporate EFP's filter technology. To date, the company has been working closely with a large aerospace company in order to determine how best to incorporate the filter technology into various aircraft.
Itochu Techno Chemical
The company continues to work closely with Itochu Chemical Frontier Corp., a wholly owned subsidiary of Itochu Corp. (see below), with whom it has a long-term distribution agreement, to market its Vapor Isolation Valve, Series One Breathing Circuit Filter and RespAide products into the Japanese market. EFP provided Itochu Chemical and its distribution partner, Senko Medical Instrument Mfg. Co. Ltd., with samples that incorporated certain modifications that they had requested in order to conform EFP's products to Japanese standards.
The interaction between EFP and its Japanese partners to make these modifications took more time than initially expected. Accordingly, commercial shipments of EFP products to Japan did not commence in the second quarter 2005, as originally projected. The company is now awaiting final validation and confirmation of the last round of modifications to the products, following which EFP expects to commence commercial shipments to Japan.
EFP has been working closely with a number of distributors, including 2H Distributors (http://2hdistributors.com/), to expand its marketing and sales efforts for NanoMask(R). Its distributors have made significant inroads with a large national healthcare company and EFP has been working with a Fortune 500 company that is interested in using the NanoMask for internal risk management purposes. EFP recently purchased a Telsonic filter cutting and sealing machine that will enable it to rapidly produce filters and incorporate nanoparticles in its filters at its own facilities. This recent equipment acquisition will not only enable EFP to produce filters for its own products, such as the NanoMask, more efficiently, but will also allow it to accept orders from other manufacturers of highly specialized air filters.
ELVIS (Emergency Life-Support Ventilation and Intubation System)
EFP has continued working on ELVIS, a best-of-breed emergency resuscitation system with essential integrated features, including a patented medication/suction port, a self-contained nebulizer and a 2H Technology(TM) air filtration system that reduces exposure to infectious agents. The company has recently retained the services of two consultants to oversee final mold design, manufacturing and assembly for ELVIS and to initiate 510K FDA approval (fast-track). Based on current indications of interest for this product, the company is planning for an initial production run of 10,000 units. The preliminary suggested retail selling price for the product is $24.95.
About Itochu Corp.
Itochu Corp. (http://www.itochu.co.jp/main/index_e.html) is one of the world's largest trading companies. Itochu is a globally integrated corporation with offices in more than 80 countries and operations that cover a broad spectrum of industries.
About Emergency Filtration Products Inc.
EFP is an air filtration products manufacturer whose patented 2H Technology(TM) filter system has produced filtration efficiencies of "greater than 99.99%" at a particulate size of 0.027 microns. EFP's initial products were developed for the medical market: the Vapor Isolation Valve(TM) and RespAide(R) CPR Isolation Mask used for resuscitation of respiratory/cardiac arrest cases; and 2H Breathing Circuit Filter for ventilators, respirators and anesthesia circuitry. Each has received FDA approval. The company also markets an Automated External Defibrillator Prep Kit featuring RespAide; and the NanoMask(R), a nanotechnology-enhanced environmental mask. In addition to filtration products, the company supplies Superstat(R), a modified hemostatic collagen, to the U.S. military for surgery and extreme wound care.
Safe Harbor Statement
This release may contain statements that are forward looking. Such statements are made based upon current expectations that are subject to risk and uncertainty. EFP does not undertake to update forward-looking statements in this news release to reflect actual results of and changes in assumptions or changes in other factors affecting such forward-looking information. The actual future results of the company could differ significantly from such forward-looking statements. Specifically, although EFP's management believes progress has been achieved in each of the areas outlined above, no agreements have been executed at this date that might result in significant sales and/or significant revenues. No definitive agreements have been reached with any company as a result of the military testing referenced above. No timetable has been reached for substantial shipments to Itochu. No agreements have been reached regarding sales of NanoMasks or filters. No agreements have been reached for the sale of ELVIS products. Therefore, sales in relation to any of the above will be dependent on the execution of definitive agreements, production and delivery of products, the success of future marketing campaigns, and the perceived need for EFP's products and the competitive performance of such products in the marketplace.