Altair's Nano Techniques Penetrating Billion Dollar Markets

---

Researched by Industrialinfo.com (Industrial Information Resources Incorporated; Houston, Texas). Expect extremely small to become bigger and bigger over the next decade. Applications of nanotechnology are growing across many fields of the biopharm, renewable energy and chemical industries and in maintenance, engineering and diagnostic applications across the industrial spectrum. Industry market research indicates that the total world market for nanoparticles is projected to rise at a 12.8% average annual growth rate and will exceed $900 million by 2005.

In the biopharm sector Altair Nanotechnologies (NASDAQ:ALTI) (Reno, Nevada) has announced that laboratory testing has shown that its new product RenaZorb, developed for the removal of phosphate ions from patients with end stage renal disease and who are undergoing kidney dialysis, will require a lower dose than existing or proposed pharmaceuticals in this therapeutic class.

RenaZorb is a nanoparticle-sized, lanthanum based ceramic material with a large surface area. The drug was specifically designed with a large surface area to allow rapid reaction with phosphate ions. Research shows that the very rapid reaction of the product with phosphate in stomach fluid and lower total dosage of drug that is required to remove a given amount of phosphate will probably result in much lower serum lanthanum levels than those achieved with referenced compound lanthanum carbonate tetra hydrate.

Altair is scaling up its production process for RenaZorb to provide enough material for sampling and in vitro animal testing purposes. Market projections indicate that the total market for drugs to control phosphate in kidney dialysis patients is projected to be $400 to $600 million per annum and may grow to $1 billion if issues such as drug cost, patient compliance and high dosage requirements are properly addressed.

Recently Altair was awarded its second patent 'Processing aqueous chloride solution to ultrafine titanium dioxide,' which describes the fundamental technology for producing the company's nanomaterials and is the platform for many of the subsequent patent applications that have been filed for the manufacturing of specific nanomaterials including new materials for pharmaceutical applications. The new patent also follows a recently awarded patent covering the environmentally friendly process for TiO2 (titanium dioxide) pigment production which is an $8 billion per year industry.

A follow-up order has been received by Altair from F.W. Gartner Thermal Spraying Company (Houston, Texas), for 1,000 lbs of one of its patented, nano-structured titanium dioxide thermal spray products and further tonnage is expected to be needed during the coming year. The product will be use to provide superior thermal spray coatings for MOGAS Industries (Houston, Texas) metal-seated severe service ball valves. The current thermal spray industry is estimated to be $1.3 annually.

Altair worked for 15 months with Gartner on a nano-structured thermal spray pilot project that has resulted in Gartner filing for a patent for an application, which is unique to its industry. Testing and steps to protect intellectual property have delayed revenue to Altair but sales are expected to mount during the coming year.

The MOGAS ball valves are used in industries with extreme erosive wear. In these industries, longevity between service cycles can save literally millions of production dollars that are lost when a valve must be pulled and sent back for resurfacing.

Thermal spraying is a process in which metal and non-metallic materials are deposited by using a thermal spraying gun that melts these materials by electric arc or combustible gas. During this process, the materials are deposited (splat) by the spraying gun in a molten or semi-molten form onto a variety of substrates, including ball valves. Virtually any industry can benefit from the advantages of thermal spraying such as the valve industry, power generation, refining and petrochemical, oil and gas and the pulp and paper industries.

Altair Nanotechnologies owns a proprietary technology for making nanocrystalline materials in economical and large quantities. The company is currently developing special nanomaterials with potential applications in pharmaceuticals, thermal spray coatings, fuel cells, solar cells, advanced energy storage devices, catalysts, cosmetics and paints and environmental remediation.