News and Press Releases

January, 2003

Cerritos, California, USA.  Innovative Magnetic Technologies, Inc. dba Calnetix announced today the formation of a subsidiary company, VYCON Inc., to produce energy storage flywheel systems in production quantities for commercial applications. VYCON was created to take the high speed flywheel system developed at Calnetix and produce it in high volumes under tight quality controls while achieving cost targets from comparable technologies in the market today.

"No one has yet offered a power quality solution that is competitive in upfront price with battery systems, offering both UPS and 100% power conditioning ability, and has clear technical and practical advantages over battery based systems. We believe that a significant market opportunity exists for a reliable and maintenance free flywheel system that meets these requirements" said Mr. Vatche Artinian, President of Calnetix, at the announcement.

Plans for rapid transition into production are in place, having tested the product thoroughly over the past year at Calnetix. Key personnel have given their commitment to join the company in January to support the schedule.

ABOUT CALNETIX
Calnetix, a privately held high tech company based in California, USA, is the industry leader in high speed motors, generators, magnetic bearings, and integrated magnetic drive systems. The company's products are utilized in distributed power generation, power conditioning, gas processing, semiconductor manufacturing, medical equipment and other industries worldwide.