faraday Technologyf Inc.
                                       375 Huls Drive, Clayton, OH 45315
                                (937) 836-7749 http-J/www.faradaytechnotogy.com
        DESCRIPTION OF THE TECHNOLOGY

With support from the Environmental Protection Agency's
(EPA) Small Business Innovation Research (SBIR) Pro-
gram, Faraday Technology, Inc., has developed a cost-com-
petitive functional trivalent chromium (Cr+3) plating pro-
cess to replace hexavalent chromium (Cr+6). The
pilot-scale technology is validating Faraday's electrically
mediated Cr+3 plating process (the Faradaic™ Process) as
a "drop-in" replacement for the use of Cr+6 plating. This
manufacturing process validation is being executed with
Moyno Industrial Products, a large manufacturer of in-
dustrial pumps,  and the Naval Air Depot (NADEP) at
Cherry Point, NC.

The process uses modulated reverse-current electrolysis
in conjunction with a Cr+3 plating chemistry and results in
a performance-based, functional Cr+3 plating process to
replace conventional Cr+6 chromium plating. The process
incorporates Faraday's E-CHANGE™ In-Process Recycling
System  (also developed under EPA SBIR Program fund-
ing) for effluent waste management. A controlled Alpha
test of the Faradaic™ Process was completed in a pilot-scale
manufacturing cell designed and built by Faraday. This test
was conducted using strut rods provided by a Tier 1 automo-
tive supplier.

Faraday's functional Cr+3 plating process demonstrates
equivalent or superior plating rate, hardness, and current
efficiency; replaces the conventional Cr+6 plating process;
and results in a more environmentally friendly and worker-
safe plating process. The Faradaic™ Process demonstrates
a thickness of 10 mils (250 m) and a plating rate of 1.44-
2.25 |jm/min; whereas, conventional Cr+6 plating processes
demonstrate a thickness of 6-10 mils  (150-250 m) and a
plating rate of 0.76-1.27 |jm/min.

       SIGNIFICANCE OF THE TECHNOLOGY

EPA has identified Cr+6 as 1 of 17 "high-priority" toxic
chemicals. These chemicals were selected based on their
known health and environmental effects, production vol-
ume, and potential for exposure. Hexavalent plating baths
operate at elevated temperatures and produce a mist of
chromic acid. The Clean Air Act, as well as local constraints,
regulate the  emission of chromium to the air and water.
Because Cr+6 plating produces hazardous air emissions,
all of the Cr+6 platers must control and monitor the  bath
surface tension and report the results  to EPA. In contrast,
Cr+3 platers are not required to monitor bath surface ten-
sion. Use of Cr+3 in industrial and commercial processes is
preferred over Cr+6 on the basis of the comparison of the
toxicities.  EPA has classified Cr+6 as a group A, known
human carcinogen, and considers Cr+3 as being much less
toxic and an essential element in the  human diet. Cr+3 is
classified by EPA as a Group D carcinogen, not classifiable
as to carcinogenicity in humans.
4-  Faraday Technology, Inc., developed a cost-competitive Cr3 plating process to replace Cr6 plating.
4-  The process uses a modulated reverse-current electrolysis in conjunction with a reduced-cost Cr3
    plating chemistry.
4-  Faraday's functional Cr3 plating process demonstrates equivalent or superior plating rate, hardness,
    and current efficiency.
4-  To date, $219,723  in commercial revenue has been secured to support Faraday's  pilot-scale activity.

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 A pilot-scale plating Cr+3 line (left) is being operated at the Faraday facility in Clayton, OH.
 This plating  line  is a small-scale version of a  shop-floor full-scale line.  This line is being
 used to validate the Faradaic™ Process on shock rods and pump rotors (right).
 The Faradaic™ Process is being widely implemented for:

 +  Faradaic™ Industrial  Coatings,  such as functional
    chromium from a trivalent chromium bath.

 +  Faradaic™ Edge and Surface finishing of advanced
    engineering alloys, such as stainless steel, aluminum,
    nickel, titanium, and  the like without  toxic, exotic
    electrolytes.

 +  Faradaic™ Leveling—metalization without  leveler-
    brightener additives for advanced electronics appli-
    cations.

 +  Faradaic™ Environmental Countermeasures—elec-
    trically mediated systems for in-process recycling of
    rinse waters and plating bath chemistry.
 The functional Cr+3 plating process supports the Fara-
 daic™ Process technologies listed above, by providing
 environmentally conscientious reclamation and reuse of
 process solutions.

          COMMERCIALIZATION SUCCESS

 To date, Faraday has secured $219,723 in commercial rev-
 enue to support this pilot-scale activity. Additionally, Fara-
 day is preparing samples for external evaluation by Con-
 current Technologies Corporation and NADEP Cherry
 Point. Faraday has a successful track record of technology

commercialization, with six strategic technology alliances
currently under contract and 60 percent of its annual sales
coming from commercial sources. Faraday has filed patent
application #08/871,599 titled, "Electroplating of Metals
Using Pulse Reverse Current for Control of Hydrogen Evo-
lution" based on this SBIR-funded project.

        AWARDS AND COMPANY HISTORY

         Faraday Technology, Inc., is an electrochemi-
         cal process technology development company
         focused on enhancing and commercializing the
    ^    Faradaic™ Process, its platform electrochemi-
         cal manufacturing technology. Founded in
  ••   1991,  Faraday has established itself as a
noteworthy applied research and development company
with approximately 80 publications and more than  30
patents/patents pending. The company has been recog-
nized with a number of awards, including: the U.S. Small
Business Administration-sponsored Small Business/En-
terprise  Spirit Awards, the State of Ohio Governor's Tho-
mas Edison Emerging Technology Award, the Affiliate's
Society Council of Dayton Outstanding Technology Lead-
ership Award, the Abner Brenner Silver Medal Award
for a paper published in Plating & Surface Finishing,
and the  Ernst & Young Entrepreneur of the Year Award
(High Technology Finalist for 2001).
EPA's Small Business Innovation Research (SBIR)  Program was created to assist small businesses in
transforming innovative ideas into commercial products. The SBIR Program has two phases—Phase I is
the feasibility study to determine the validity of the proposed concept and Phase II is the development of
the technology or product proven feasible in Phase  I. EPA also offers Phase II Options to accelerate the
commercialization of SBIR technologies and to complete EPA's Environmental  Technology Verification
(ETV) Program. For more information about EPA's SBIR Program and the National Center for Environmental
Research, visit http://www.epa.gov/ncer/sbir.

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