News and Press Releases

October, 2003

California, USA.   Calnetix, the global leader in high performance, high speed motors and generators, today announced the successful completion of the acquisition of carbon fiber winding technology from Xymid, LLC. The acquisition covers not only an exclusive license to the technology, but also the transfer of all existing equipment and related process know-how that goes into winding high-speed shafts.

Carbon winding technology is utilized by Calnetix for a portion of its high speed motor and generator business. The winding technology is able to contain the surface mounted permanent magnets at over 1000 ft/sec (300 m/sec) tip speeds. Several of Calnetix's motors and generators in production for compressor and gas turbine applications operate at these tip speeds utilizing this technology.

The technology was originally developed by the DuPont Company, and transferred to Xymid, LLC for commercialization. This transformation was successfully completed by Xymid, LLC in the field of high speed motor/generator rotors.

"It was important to closely monitor and improve one of the enabling technologies for high speed machines. Currently we are the global leader in high speed motors and generators with operating speeds exceeding 450,000 rpm and power levels exceeding 2MW". This acquisition will not only allow us to improve this technology for enhanced product performance, but will also offer cost advantages in our production units," said Vatche Artinian, President and CEO of Calnetix, Inc.

The acquisition was finalized in August of 2003 with all equipment and support transferred in September of 2003. Calnetix has already started an accelerated internal research program to expand the current limitations beyond 1100 ft/sec.

"With this process in-house we can work to enhance the current performance of our products to offer higher tips speeds, allowing us to design and produce even smaller and faster motors and generators for the turbomachinery industry. This will further increase the system efficiency advantages that our products offer customers. For today's energy conscious end-users of industrial equipment, operating costs are above 75% of the total cost of ownership. Our drive systems are able to shave a significant portion of the operating costs in terms of electricity bills, maintenance, and eliminating down time," said Patrick McMullen, VP and CTO of Calnetix, Inc.

About Calnetix, Inc.

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 companyâ's products are utilized in distributed power generation, power conditioning, gas processing, semiconductor manufacturing, automotive, medical equipment and other industries worldwide. Additionally, Calnetix provides a unique cost effective solution for Power Quality and UPS applications through its subsidiary Vycon, which manufactures energy storage flywheel based UPS systems.

About Xymid, LLC

Formed on October 1, 1998, Xymid, LLC consists of several new and growing businesses created by the DuPont Company. The majority ownership and management of Xymid, LLC held various leadership roles in these businesses within the DuPont organization. Xymid's current products include fabrics for sportswear, bedding, military garments and footwear as well as products for the printing industry.