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Kronos and U.S. Navy Continue Collaboration

Maritime Activity Reports, Inc.

November 13, 2002

Kronos Air Technologies, Inc., a wholly owned subsidiary of Kronos Advanced Technologies, Inc., and the United States Navy executed a Small Business Innovation Research Phase II contract to develop and demonstrate an advanced distributive air management system based on the patented Kronos(TM) technology. The 24-month contract is worth $585,000 with an option for an additional $144,000 in funding. This Phase II contract is an extension of the Phase I and Phase I Option work that began last year and represents further validation of the Kronos(TM) technology by the U.S. Department of Defense. The work and funding on Phase II will begin immediately. During Phase II, Kronos shall develop and demonstrate a set of fully controlled devices that represent a "cell" of an advanced distributive air management system with medium capacity airflow in a U.S. Navy unique environment. The "cell" will be designed to be easily adjustable to a variety of applications such as duct size, airflow requirements, and air quality. The goal of this development work is to significantly reduce or replace altogether the current HVAC air handling systems on naval ships. As part of its air management system, Kronos will develop and test an air filtration mechanism capable of performing to HEPA quality standards. Kronos(TM) devices will replace all current HEPA filters with a permanent, easily cleaned, low-cost solution. The U.S. Navy unique environment includes shock exposure, vibration, Electromagnetic Interference/Compatibility (EMI/EMC), and salt spray. Kronos(TM) devices will be tested and built to meet specific Navy standards. Testing shall include assessments for system performance, including control techniques, noise levels, acquisition, and lifecycle costs. During the option portion of the contract, Kronos(TM) technology's ability to kill bacteria and other pathogens will be confirmed and expanded to a wide range of pathogens for space disinfection and bio-terrorist attacks. A unique ability of the Kronos(TM) technology is to kill all or almost all airborne pathogens regardless of their nature, genetic structure, robustness or method of delivery. "The Navy contract provides Kronos with immediate funding necessary to develop and demonstrate an advanced air handling system," commented Daniel R. Dwight, President and CEO Kronos Air Technologies. "We believe the Kronos technology is not only changing the way the Navy thinks about ship ventilation but will also change the way commercial builders think about building ventilation and aircraft and auto manufacturers think about cabin ventilation." Other Developments The Navy advanced distributive air management system is the first in a series of products that Kronos is seeking to embed inside of ventilation and filtration systems to improve efficiency and indoor air quality. The Kronos embedded platform is being developed in parallel with the Kronos standalone platform. Products developed under the standalone platform will allow the user to simply plug a Kronos(TM) device into an outlet to improve indoor air quality for the home, office, hotel or any other personal application.

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