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BIRO TECHNOLOGIES INC.
A NOVEL CERAMIC COATING TECHNOLOGY   1
This document describes an ambiant-cure ceramic coating, exhibiting excellent
high thermal corrosion resistance, substrate adhesion, flexibility, weatherability
and superior chemical, corrosion and impact resistance after curing.

Possible substrates include: internal / external pipes, tanks, containers, off-
shore oil drilling platforms, metallic framework, bridges, industrial furnaces,
automotive engines and exhausts, gas turbine engines, heat exchangers,
interior / exterior of ships and aerospace equipment.

Ceramic polymers could be converted to silica on electronic substrates without
damaging the substrates and whether these coatings would have useful effects in
the electronics industry.

Ceramic polymer improved low cost method of making photovoltaic
semiconductor junction devices in which a selected dielectric material serves
both as a mask to permit selective grid plating on the cell and also as an anti-
reflection coating.


    BT Ceramic Coating is, to the best of our knowledge, some years in
      advance of known and competing anti-corrosion technologies.


                                                                                  2
                  Executive Summary

The cost of corrosion in the U.S. piping industry is more than $8 billion
annually. To eliminate this problem, approximately 10% of all new U.S.
steel pipes are treated to resist corrosion. For the same reason, expensive
corrosion-resistant stainless steel pipes and pipe lining are also being used.

Oil and gas well pipes, normally consist of relatively low cost, low carbon
steel susceptible to hydrogen embrittlement, hydrogen sulfide induced
corrosion, and chloride stress corrosion and cracking. While efforts have
been made in the past to overcome such problems, they have not met with
wide acceptance. For example; while the entire pipe, or pipe liners may be
formed from stainless steel, this is a far too costly solution. Stainless steel
liners have been proposed but it has been found that hydrogen diffusing into
the clearances between the liner and pipe bore causes problems such as
hydrogen embrittlement, and deformation of the liner when the hydrogen
expands.

Biro Technologies Inc provides a more cost-efficient, more effective solution
for internal pipe coating, a new generation of ceramic coatings that are in
every way superior to the old coating products.


           The result is Ceramic Stainless Steel Coating,
       a definitive solution to internal / external pipe coating.

                                                                              3
                      Executive Summary

Contamination of exposed structural surfaces with chemical or biological
material can occur in both civilian and military contexts. Contamination can
occur accidentally, such as during the conveyance of hazardous materials from
one site to another, or can occur on purpose, such as in chemical or biological
warfare. Such materials can remain for a significant period of time on exposed
surfaces such as equipment, vehicles, aircraft, buildings, etc.

BT photocatalytic coating composition containing ceramic polymer that hold the
photocatalyst in place without degrading the desired performance of the coating.

The coating may be applied by conventional coating methods to organic or
inorganic structured surfaces where photocatalytic activity is desired.

The coating quickly dries to leave an adherent, flexible, durable, and long-lasting
photocatalytic coating having a large surface area and exhibiting high surface
activity against pathogens and pollutants such as bacteria, viruses, mold, fungi,
and volatile organic compounds.

       BT Photocatalytic coating the solution for self cleaning, self-
             decontaminating and anti-bacterial application.

                                                                                 4
                       Executive Summary

Ice build up is a serious problem and major economic impact in the aircraft
industry.

BT ice-phobic coatings could benefit the Aircraft Industry, NAVAIR and Air Force
for de-icing composite and aluminum wings and fuselages. With respect to
NAVAIR, aircraft de-icing is an important function at the many Navy facilities that
support aircraft operations. Because of the high cost of purchasing deicing fluid,
and the potential negative impact of glycol discharges on the environment it is
optimal to minimize the volume of propylene glycol or ethylene glycol used in its
aircraft de-icing operations.

BT Ice-phobic coating significantly outperforms other ice-phobic coatings,
providing measureable economic and environmental benefits.

BT Ceramic ice-phobic coating significantly reduces ice adhesion when applied
on aluminum surfaces compared to other commercially marketed ice-phobic
coatings and other materials known to have non-stick properties.

  The ceramic ice-phobic coating could be applied as a very thin film to
      aircraft surfaces without significantly increasing the weight.



                                                                                  5
                        Executive Summary

Corrosion is a serious problem in the world. According to a study by the Battelle
Institute and the National Institute of Standards and Technology titled “Corrosion
Costs and Preventive Strategies in the United States” the total annual direct and
indirect cost of metallic corrosion in the US economy is over $550 billion (6% of
the US Gross Domestic Product – See U.S cost studies appendix C). The direct
cost is $276 billion alone.

It is estimated that 40% of US steel production goes to replacing corroded parts,
and the oil industry spends more than US $2 million a day because of corrosion
in its structures.

The report estimates that $100 billion in damage is avoidable and could be
saved by broader application of corrosion-resistant materials and applications of
best-corrosive practice.




                                                                                     6
                     Executive Summary


The coatings market in the NAFTA region is estimated at $30 billion, which
includes both domestic and export sales, and has a projected annual growth rate
of 2%. The US accounts for 90% of the production. The major paint and coatings
market segments include:

 –   Architectural Paints                               40%
 –   Original Equipment Manufacturers (OEM’s)           35%
 –   Special Purpose Coatings                           20%
 –   Other Paint Products                                5%

     BT Ceramic Coating will initially launch into the $6-billion special-
     purpose coatings market.

          For more on the anti-corrosion market, see Appendix C.




                                                                              7
        Competition in a Cutting-edge Technology

Even a casual survey of the advertised claims of companies now active in the
application of various siloxane and silazane based coating to corrosion reveals an
industry in its early stages, with little publicly-available evidence to support claims.

Some companies offer siloxane and silazane polymer based coatings, but to our
knowledge, there is as yet no compelling evidence that any ambient-temperature-
cured ceramic polymer based product now advertised has convincingly addressed
the universal problem of thermal corrosion that is the specific target of BT Ceramic
Coating and its related formulations.

There is every reason to regard this extremely complex field as wide open and in
which BT’s long development and broad range of ceramic coating products is well
placed to compete for a huge market.




                                                                                           8
                          The Technology

BT Ceramic Coating is a100% solid that is specially designed for use in
ambient-curable applications, capable of withstanding operating temperatures
of 900 ºC (1650oF).
After application it will be dry-to-touch within 30 minutes, and will be ready-for-
use after 1-2 hours.
BT Ceramic Coating can be applied by dipping, spraying, or brushing onto a
variety of substrates such as; metal, glass, ceramic, polymeric.
BT Ceramic Coating gradually converts to ceramic material when heated to at
least 450°C in either an inert atmosphere or air. The polymer of the coating
crosslinks and condenses when exposed to higher and higher temperatures
and gradually takes on the characteristics of a ceramic.
As the cured Ceramic Coating is heated to 450oC, it slowly condenses, first with
the evolution of ammonia, then with the evolution of methane, and finally with
the evolution of small amounts of hydrogen gas to generate the final ceramic.

Within different temperature regimes in this condensation process, BT Ceramic
Coating will have different degrees of "polymeric" versus "ceramic"
characteristics. At lower temperatures, the coating will behave more like a
polymer based coating; at higher temperatures, the coating will behave more
like a ceramic. The exact performance characteristics of the material can thus
be tailored to a specific use by carefully choosing the ceiling temperature to
which the Ceramic Coating is heated.


                                                                                      9
Appendix A: The Range of Ceramic Coating Products


1.  Ceramic Stainless Steel Coating for metal
2.  Ceramic Zinc Coating for metal
3.  Ceramic Color Pigmented Coating for metal
4.  Ceramic Ice-Phobic Coating for Aircraft
5.  Ceramic Clear Coating for various substrate
6.  Ceramic Marine antifouling coating
7.  Ceramic Photocatalytic Coatings
8.  Ceramic coating for fuel in high temperature pebble bed reactors
9.  Ceramic High Voltage Insulator Coatings
10. Point Guard
11. Hardener for epoxy systems
12. Various hybrid polymer coatings




                                                                       10
Appendix B: Ceramic Coating Product Specifications


 Volume solids:                  100%

 VOC (EPA method 24):            0 gram/liter
 Components:                     1
 Curing mechanism:               moisture-induced crosslinking
 Application methods:            Spray, roller and brush
 Thinning:                       Not required
 Dry film thickness per coat:    50 microns
 Theoretical coverage (50 µm):   18 m2 /liter
 Drying times (20°C)             To touch-1/2 hour / through-    2 hours
 Recoat/topcoat time (20°C)      2 hours
 Flash points:                   40oC
 Shelf Life:                     2 years for unopened containers


                                                                           11
Appendix B: Ceramic Coating Product Specifications

 Improvements achieved with the Ceramic Coating are:

  –   100% solids, zero VOC
  –   low temperature curing
  –   improved substrate wetting
  –   reduced effects on health, safety and environment
  –   significant improved weathering
  –   outstanding corrosion resistance
  –   excellent resistance to nuclear radiation
  –   excellent chemical resistance
  –   excellent defense against graffiti
  –   excellent heat resistance




                                                          12
Appendix B: Ceramic Coating Product Specifications

     Factors contributing to cost savings using Ceramic Coating are:

 •   Application cost saving factors:
      – less number of coats
      – reduced man-hours
      – increased productivity – faster turn around times
      – minimized scaffolding
      – less disruption to other trades
      – reduced coating weight
      – reduced waste disposal cost

 •   Performance factors:
     – coating system life extended

 •   Health, Safety and Environmental aspects:
     – reduced risk of industrial accidents
     – reduction of waste
     – reduced VOC emissions
     – contains no isocyanates or lead chromates

                                                                       13
     Appendix C. Detailed Market Information

Market Analysis Summary


An analysis of BT’s potential markets reveals that the BT Ceramic Coatings has
opportunities in over eighty (80) different industries from the oil and gas industries
to offshore platforms, rigs, pipelines, building construction, iron and steel works,
roofing, aerospace industries, military, navy, ship building, all maintenances
operations, rolling stock, railway systems, land and sea transport, containers, cars,
trailers, tools, firearms, fishing equipment, stocking tools and others.

The planned marketing of the new Ice-phobic and photocatalytic coatings for
aircraft and ships will open further opportunities in all material areas that need
protection against the elements.

Every metal application represents an opportunity for anti-corrosion applications.
BT Ceramic Coating technology has the potential to lead the world in this regard.




                                                                                     14
        Appendix C. Detailed Market Information


Market Analysis Summary


Initially, BT Ceramic Coating will be entering the “industrial coatings”
segment of the “Special Purpose Coatings” industry, a $6 billion market
within NAFTA. The major market segments within the “Special Purpose
Coatings” market are:

   1.    Auto / Machinery Refinishing                 50%
   2.    Industrial Coatings                          30%
   3.    Marine Coatings                              9%
   4.    Other Special Coatings                       4%




                                                                           15
  Appendix C. Detailed Market Information


Market Analysis Summary

The NAFTA “industrial coatings” market segment represents an estimated
$1.8 billion annually in coating sales. The major market segments within the
industrial-coatings market (with corresponding percentages of the total
industrial-coatings market) are:

    1.   Metal Industrial Facilities                  50%
    2.   Metal Components                             25%
    3.   Metal Structures                             15%
    4.   Metal Industrial Equipment                   10%




                                                                          16
     Appendix C. Detailed Market Information


Metal Market Segments


  BT management will focus efforts on the metal corrosion protection market.
  Based on the most recent 2002 US Census Bureau data, the US metals
  market is divided into the following five market segments, with the
  corresponding total respective industry output shown:

               Market                                  Output (US$)
     1.   Metal Structures                             $117 Billion
     2.   Metal Components                             $178 Billion
     3.   Metal Industrial Equipment                   $ 70 Billion
     4.   Metal Industrial Facilities                  $354 Billion
     5.   Metal Vehicles and Aeronautical              $226 Billion
          Total US Market for Metals:                 $945 Billion




                                                                               17
  Appendix C. Detailed Market Information
Applications
 – Enabling substitution of mild steel for stainless steel
 – Industrial primer and coating
 – Marine primer and coating
 – Metal corrosion protection for salt and acid environment
 – Corrosion thermally stable coatings
 – High temperature coating
 – Industrial furnace coating
 – Internal combustion engine coatings
 – Car and truck underbody corrosion protection
 – Car and truck exhaust coatings
 – Gas turbine engine coating
 – Aircraft applications
 – Ice-phobic coatings for aircraft
 – Heat exchanger internal and external coating
 – Internal and external pipe line coating
 – anti-fouling applications
 – Self-cleaning self-decontaminating and anti-bacterial coating
 – High Voltage Insulator Coating (HVIC)



                                                                   18
 Appendix         D. Detailed Product Information
Ceramic Stainless Steel coating

Ambiant-cure ceramic-stainless steel based coating composition exhibiting excellent
high thermal corrosion resistance, substrate adhesion, flexibility, weatherability and
superior chemical, corrosion and impact resistance after curing.

BT Ceramic Stainless Steel coating provides a corrosion resistant coating for engine
components and turbine components that are subjected to high temperatures and
corrosive environments

BT Ceramic Stainless Steel coating for Aviation Fuel and Mixed Product Pipelines.

The key benefits obtained by internally coating a pipeline are:
 – Product purity – sealed surface
 – Corrosion protection in storage
 – Enhanced flow
 – Easier product switch
 – Faster commissioning
 – Reduced commissioning and operational costs
 – Will not leach out contaminants – effecting performance of the fuel.


                                                                                 19
      Appendix D. Detailed Product Information

Ceramic Zinc Coating

For many years the conventional anti-corrosive paint systems for long lifetimes
has been to utilize zinc primers. The type of primer normally specified has been
zinc ethyl silicate.

The reason for using this type of technology giving zinc-zinc metal contact and,
consequently, excellent cathodic protection properties akin to those obtained
from galvanizing.

The new novel ceramic zinc primer has many improvements comparing to the
zinc ethyl silicate primer such as:
- Zero VOC
- Excellent adhesion
- Surface tolerant (surface preparation may be less than ideal)
- Much higher flexibility
- Long shelf life (2 years)
- Simple processing (no hydrolysis)

Typical uses of ceramic zinc primer are to protect ferrous surfaces in aggressive
atmospheres against corrosion, such as: industrial and marine atmospheres
(ship building, oil drilling platforms, harbor installations) Chemical attack (internal
coating of tankers, containers, pipelines), bridges, structural steel etc.
                                                                                     20
    Appendix D. Detailed Product Information
Ceramic Ice-phobic coating

Ice at surfaces often cause serious safety risks and damage in technical
applications such as airplanes, ship decks, cables etc.

BT Ceramic ice-phobic coating with a low surface energy 18-21 dynes/cm2
inhibits ice formation and lowers the adhesion between ice and the substrate
surface.

BT Ceramic ice-phobic coating is characterized as a smooth anti adhesive
surface with local, regularly distributed ice nucleation points, which are
separated from each other. Small local ice nucleation sites with higher surface
energy are surrounded by anti adhesive ice repellent segments with lower
surface energy.

The adhesion of the generated ice crystals is reduced dramatically both in
strength and contact area. The removal of the generated ice crystals is
possible just with the flow of the brine along the surface.

The most desirable solution to the de-icing problem, would be to apply a
material that prevents ice from building up in the first place rather than taking it
off after the fact.

                                                                                  21
     Appendix D. Detailed Product Information
    Ceramic Antifouling Coatings

    The long-used “tributyl tin” anti-fouling compounds are now banned. BT
    Ceramic Antifouling technology shows good long-term performance by
    effectively shedding marine organisms regularly over a long service life.

    BT has two types of anti-fouling applications:

•   Nanostructured. Incorporating nanoparticles in the ceramic antifouling
    coating which remain permanently as part of the coating. Due to their small
    size, nanoparticles will remain in the lattice of the coating and cannot leach
    out but continuously release ions that provide long-term anti-fouling
    performance.

•   Low friction. Ceramic antifouling coating is cleaned by sufficient movement
    through water. The low friction antifouling technology minimizes the
    attachment of marine organisms to a ships hull due to the low friction
    characteristics of the coating, which uses ceramic polymer.

    This low-friction type antifouling coating is very eco-friendly, as it
    doesn’t contain any biocides or potentially hazardous materials.

                                                                                     22
    Appendix D. Detailed Product Information
Ceramic Photocatalytic Coatings

BT Ceramic Photocatalytic coating a novel and new application field, with self-
cleaning self-decontaminating and anti-bacterial properties.

The unique ceramic polymer with strong adhesion and transparency is the best
delivery system to hold the nano-sized photocatalysts in place without degrading
the delivery system.

The special composite structure of the coating can help separation and
transportation of the photo carrier, therefore having a high level of photocatalytic
activity and a long lifespan. When waste water or polluted air passes its surface,
organic pollutants are degraded by photocatalysis so that it is self-cleaning. This
method is effective on all types of organic substances and will degrade them into
carbon dioxide and water. It is efficient, energy-saving and has no secondary
pollution.

BT Ceramic Photocatalytic coating also decomposes organic matter by
oxidation, specifically bacteria, viruses and germs. The inorganic anti-bacterial
nano particles kill bacteria and inhibit propagation of pathogens, molds and
epiphytes to prevent disease spread. It has a long term effect on killing bacteria,
no harm to human beings and no pollution on environments.
                                                                                 23
     Appendix D. Detailed Product Information
Ceramic HVIC

Ceramic High Voltage Insulator Coatings (HVIC) is a one-part ceramic
copolymer based coating designed to improve the performance of high-voltage
insulators, instrument transformers and other high-voltage devices where
surface contamination causes insulation problems.

For long-term, cost effective maintenance, only Ceramic HVIC provides a
virtually maintenance-free system to prevent excessive leakage current,
tracking, and flashover. Ceramic HVIC is not affected by ultraviolet light,
temperature, chemicals or corrosion.

Ceramic HVIC product presents a smooth finish with superior tracking
resistance and very high thermal (900oC) resistance. The coating is highly
water-repellent and has the self cleaning properties; contaminants cannot film
out over the surface.

Ceramic HVIC provide the best combination of wet electrical performance,
tracking resistance and durability that will assure long term reliability such as;
water repellency/non wetting properties, resistance to atmospheric and chemical
degradation and resistance to arcing and corona



                                                                                 24
     Appendix D. Detailed Product Information

Point Guard - Protecting Electrical & Electronic Products

None Conductive, None Static, Self Cleaning, Chemical & Corrosion Resistance
Insulation Protection Film

Point Guard Guarantees Reliability, Safety, Uninterrupted power supply,
Increased Service Life, Cost Reduction in Parts & Maintenance.

Point Guard is designed to protect electrical components, exposed wiring and
parts against corrosion when enclosed in non-ventilated housings, control boxes
or other enclosures.

Point Guard is an excellent quality assurance tool for everything from major
manufacturers of electronics to do-it-yourself home-built kits. Corrosion can be
stopped at any step from manufacturing to final installation. Integrate all your
electronic/electrical protection needs from a single source supplier.

Protecting your electrical connectors and exposed wiring and eliminate
downtime from electrical failure and saves money.

Perfect for the boating industry to ensure no electrical power failure while out at
sea from corroded terminals.

                                                                                   25
     Appendix D. Detailed Product Information

Surface spread of flame

The effects of uncontrolled fires in buildings, ships, aircraft, and the like can be
horrific. In many cases, the victims are not killed by the heat itself but are
suffocated by the smoke. Frequently this smoke contains toxic substances. A
further cause of fatalities in fires is power failures, people get lost in the
darkness or in dense, opaque smoke, trying to find exits, or are trapped in lifts,
and the like.
BT Ceramic coating with its electrically insulating properties, can resist the effect
of fires and high temperatures to protect any component which it is covering.
The coating is able to retain its thermal and electrically insulating properties and
operate on a continuous basis. Further this coating does not produce toxic
vapours and any smoke produced is largely translucent, so that personnel in the
environment may be able to see their escape routes

  Ceramic Coating system has highest rating for surface spread of flame
                    and fire propagation resistance.



                                                                                  26
    Appendix D. Detailed Product Information

Defense against graffiti

Ceramic coatings are relatively new and offer an extremely long-lived surface
from which graffiti, fly-posters and other soiling can be removed easily and
repeatedly, using safe and mild agents, without the loss of properties,
performance or appearance of the coating itself. This type of coating has release
properties similar to those of non-stick domestic kitchenware. Any soiling can
easily be removed using aqueous surfactant/detergent mixtures, or at worst,
benign chemical mixtures which have no effect on the coating itself, resulting in
a truly permanent anti-graffiti coating.

  BT Ceramic Coating offers an excellent defense against graffiti and is
        easily cleaned without leaving a shadow after cleaning.




                                                                               27
     Appendix D. Detailed Product Information


Nuclear radiation

High energy neutron radiation is present in nuclear reactors, which can lead to
degradation processes in the materials of critical components.

Under the effect of neutron bombardment,the substances in BT Ceramic coating
are not converted into radionuclides and has no substances in the matrix which
would have an adverse effect on the reactor.

BT Ceramic Coating is essentially unaffected by nuclear radiation and has an
excellent rating for decontamination. The coating performed without any defects
on irradiation to a cumulative dose of 5500 megarad as tested.

Organic coating systems show considerably lower decontamination factors with
typical values of 500 to 1000.




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Executive Summary




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HAVE A GREAT DAY!




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Description: I am the developer and owner of new novel ceramic polymer and ceramic coatings technology, to the offshore, marine, aircraft, pipeline (internal-external) and industrial maintenance markets. The products have been developed for the highest EPA regulation (zero VOC) and acceptable price. The product has been in development for the last decade and is now ready or commercial production. The business recently relocated to North America from Australia and now based in New Jersey. The roll-out of the business I’m looking for a Joint Venture Partnership with a potential industry participant.
Francisc Biro Francisc Biro Director www.birotechnologies.com
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