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Nanocomp Awarded $18.5 Million DPA Title III Funding to Supply Carbon Nanotube Products

Nanocomp Technologies, Inc., a developer of performance materials and products composed of its unique carbon nanotubes (CNTs), today announced it has been awarded $18.5 million in additional funding under the Defense Production Act Title III program ("DPA Title III") to supply CNT yarn, sheet, tape, and slurry materials for the program needs of the Department of Defense, as well as for commercial industrial markets.

The mission of the DPA Title III Program is to create assured and affordable production of products that have been identified as essential for national defense, but where U.S. industry has not demonstrated an ability to deliver due to market conditions or other fiscal barriers. By means of a Presidential Determination, Nanocomp's CNT materials were identified to satisfy this critical gap. Initial funding of $2.2 M was provided by DPA Title III in 2011, along with substantial Company investments, enabling Nanocomp to construct a 30,000 square foot Pilot Plant, the nation's largest, and relocate its headquarters to Merrimack, NH.

"The infusion of these new funds will be used to expand our volume capacity; building and equipping an additional 30,000 square feet of manufacturing space that will function as the country's first low rate production facility," said Peter Antoinette, president and CEO of Nanocomp Technologies. "This substantial additional investment by the Department of Defense, in a time of government budget reductions, is a resounding endorsement of the anticipated positive impact of Nanocomp's products on the U.S. military." Antoinette added, "It is particularly gratifying that our Company will be positively impacting the local economy as a significant component of these funds will flow directly to local trades and small businesses during the construction and fit-out phases. In addition, over the next two years, Nanocomp will be adding more than 60 new jobs, most of which will be in manufacturing."

Nanocomp's CNT-based products are currently featured within the advanced design programs of several important DoD and NASA applications including: lightweight body and vehicle armor; improved structural components for satellites and aircraft; and lightweight cable and wiring. The Company's CTex™ CNT conductors and EMshield™ tapes replace copper in cables, reducing the weight of aerospace wiring by as much as 70%, resulting in considerable fuel savings and other immediate operational cost savings. Commercial aircraft manufacturers will also benefit from Nanocomp's lightweight CNT-based wires as they will be able to save millions of gallons of fuel while also reducing carbon dioxide emissions by hundreds of millions of pounds per year, per aircraft.

"A key goal of this effort is to expand and mature manufacturing operations production capability to meet current and projected DoD demand," said Mark Buffler, DPA Title III program manager. "As there is a greater national need for CNT products, we have executed DPA authority under the Title III program to further invest in the expansion of cost-competitive, flexible manufacturing capabilities in support of the country's anticipated needs."

Antoinette summed up by stating, "The Company's long term relationship with the United States Government is an example of how a public-private partnership can successfully work to bring our revolutionary technology to market for the benefit of the military, commercial users, and the nation."

The Company has already begun work expanding its current pilot facility with the next phase scheduled to be operational in early 2015.

To learn more about the DPA Title III program, please visit http://www.dpatitle3.com/dpa_db/index.php.

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