Superior MicroPowders in Agreement with Heraeus, Solidifies Precious Metal Supply, Management and Recycle for Fuel Cell Applications

Superior MicroPowders today announced that it has signed a memorandum of understanding with Heraeus for the supply, management and recycle of precious metal-based materials to SMP.

July 9, 2002 -- Albuquerque, NM -- Superior MicroPowders (SMP, www.smp1.com) today announced that it has signed a memorandum of understanding with Heraeus (www. wc-heraeus.com) for the supply, management and recycle of precious metal-based materials to SMP.

This agreement between SMP and Heraeus signifies an important milestone in the development of a supply chain for precious metal-based fuel cell materials. The SMP-Heraeus agreement addresses three strategic issues: (i) Supply of competitively priced precious metal precursors for SMPs use in the production of its materials for fuel cells and other applications (ii) Professional assistance in the fiscal management of precious metal containing materials and (iii) Recycling of precious metal-containing scraps and parts.

Superior MicroPowders has established itself as a leading supplier of materials to the fuel cell industry including electrocatalysts for PEM, DMFC, alkaline and metal-air fuel cell technologies. SMP utilizes a proprietary spray-based powder manufacturing technology to produce precious metal-based electrocatalysts and is working with leading fuel cell stack manufacturers worldwide.

Bob Size, President and CEO of SMP comments, While SMP has established a significant catalyst manufacturing base, offering state-of-the-art catalysts to its expanding customer based, establishing a secure, stable and cost competitive source of precious metal is critical as the fuel cell industry advances toward commercial product. Together with Heraeus, we envision offering to our customers increased performance catalyst systems at economically attractive pricing, assistance in managing fiscal exposures associated with high volume precious metal use and a recycling program which we believe will be of critical importance as more precious metal enters the product stream as fuel cells become commercial on a larger scale."

We are delighted to have established a relationship with SMP," adds Dr. George Malouf, Chemical Products Director, Heraeus, California. Heraeus, California specializes in the manufacturing and marketing of precious metal-containing chemical precursors like those used in the SMP process. We view SMPs catalyst production platform as a winning technology for the fuel cell industry. SMP is uniquely positioned to take advantage of a wide variety of standard and tailored chemical species which Heraeus can strategically supply on a global basis. We view this partnership as an excellent channel for Heraeus to participate in this exciting new market."

About Superior MicroPowders
Superior MicroPowders is an advanced materials technology provider based in Albuquerque, New Mexico. SMP develops and manufactures high performance materials systems for a wide range of challenging applications including:

·   Fuel cells -- PEM, DMFC, alkaline, metal-air and fuel reformer catalysts and electrode systems
·   Displays -- Advanced phosphors and complimentary materials for flat panel technologies
·   Electronics -- Low fire conductors, dielectrics and resistors for digital deposition systems

Building upon an array of unique material production platforms, SMPs competencies in ink formulation and deposition provide customers with the support necessary to transition to significantly improved material sets.

About Heraeus
Heraeus, the precious metals and technology group headquartered in Hanau, Germany, is a global, private company in the business of precious metals, dental health, quartz glass, sensors, and specialty lighting products. The Groups objective is to be among the worlds leaders in every one of these areas. With revenues of € 6.8 billion and more than 9,100 employees worldwide in over 100 subsidiaries and associated companies, Heraeus has stood out over more than 150 years as one of the leading companies involved in precious metals and materials technology.

Contact(s):
Dr. James Caruso (caruso@smp1.com)
Superior MicroPowders, LLC
Phone: (505) 342-1492, Fax: (505) 342-2168, www.smp1.com

Dr. George Malouf (gmalouf@heraeusca.com)
Heraeus Metal Processing, Inc
Phone: (562) 921-7464, Fax: (562) 926-5333