Title: OTCBB:MTNA Material Technologies, Inc' 11661 San Vicente Blvd, Suite 707 Los Angeles, CA 90049 310 2
1(OTC-BBMTNA)Material Technologies, Inc.11661
San Vicente Blvd, Suite 707Los Angeles, CA
90049(310) 208-5589 Fax (310)
473-3177matech_at_att.net Statements in this
document looking forward in time involve risks
and uncertainties. Therefore actual results may
be materially different. Factors that could cause
actual results to differ include activity levels
in the securities markets and other risk factors
such as customer order rates, cancellations, late
delivery of customer, late system delivery,
production delays, dependence upon certain
customers, dependencies upon key executives,
competition, product liability risk, control by
management, and other risks detailed in the
applicable U.S. Securities and Exchange
Commission filings. 8-12-05
2What Does Matech Do?
- Provides metal fatigue monitoring systems for
bridges - Exclusive rights to 7 patents
- What our systems do
- Find fatigue cracks more accurately (and often
earlier) than conventional means - Divisions
- Highway Bridges (100,000 inspections/yr)
- Ready to perform final testing prior to taking
products to the market
3Bridge Inspection Division
- Why is more accurate (and earlier) fatigue
detection in bridges - important?
- Cracks at fatigue-critical locations can lead to
catastrophic failures - Can lead to more efficient utilization of
resources - For bridges, finding metal fatigue earlier leads
to less expensive repairs, - avoiding later traffic rerouting, delays other
economic penalties. - Avoids more expensive unnecessary secondary
inspections, potentially saving governments
millions!
4What would it mean to commerceif this
bridge was suddenly posted to disallow heavy
vehicle traffic?
5The Bridge Inspection Market
Number of Metal Bridges in US 200,000
Each must be inspected at least every two years
by federal law (ie, 100,000 mandated
inspections/yr) These inspections performed
by 200 inspection companies, or local
government agencies / bridge authorities And
how do you think they are inspected????
6Bridge Inspection Methodology
And how do you think they are inspected???
A man on a ladder with a
hammer! i.e.,
visual inspection is primary The Federal
Highway Administration has said 56 of these
inspections are incorrect either by failing to
detect cracks and other structural flaws, or by
falsely reporting cracks or flaws.
7C u r r e n t B r i d g eI n s p e c t i o n
P r a c t i c e s
- A visual inspection is performed
- If a defect is suspected gt A second in-depth
inspection is performed - using X-Ray, Ultrasound, Eddy Current, etc.
- T H I S I S E X P E N S I V E !
- 50 of the time, nothing was seriously wrong, so
a second inspection was not necessary. Causing a
waste of money and resources. - Potentially catastrophic structural flaws are
frequently not - detected by visual-only inspections.
- Needed maintenance that can increase useful
bridge lifetime or prevent - catastrophic collapse will not be performed.
8The Matech Solution for bridge inspection
The Electrochemical Fatigue Sensor (EFS) small
currents are detected, collected, processed to
document a crack as small as 1/200 inch (or to
determine no crack with HIGH confidence) EKG
on a Bridge Most of the research and
development of this technology produced under US
Government funding (8.3M over 5 yrs) Validated
in the lab by Rockwell Scientific Corp. in late
02, - funded by MATECH
9E F S V a l u e P r o p o s i t i o nt o t h
e G o v e r n m e n t
- Screens out unnecessary false positive
- second inspections costing 20K or more
- Designed to detect imminent catastrophic failure
- Repair budget spent where really needed
- Flags bridges that truly need more frequent
monitoring - Can address bridges where heavy vehicles can lead
to collapse
10Matechs EFS Value Propositionto Bridge
Inspection Companies(For a Typical 2-3 Span
Bridge)
- Capital Expense 10K inspection kit (gt50 uses)
- Typical Variable Expense Cost per inspection
- 32 man hours _at_ 50/hr 1,600
- 100 in disposables, 1,000 in direct overhead
- 1,000 royalty to Matech
- Total variable cost 3,700
- MATECH ESTIMATES GOVERNMENT WILL PAY 10,000 FOR
AN INSPECTION DONE w/EFS SYSTEM -
- Since inspection is much better, and costs are
avoided - SEVERAL STATE DOTs INDICATE THIS COST IS VERY
ACCEPTABLE
11EFS Revenue ModelPrimarily from licensing of
the technology
- ROYALTY
- 1,000 per inspection
- (some additional profit from sale of kits and
test consumables, too)
12Matech Alliancesto promote adoption of EFS
technology
- We have good Washington DC and Pennsylvania
political contacts -
- US Committee for Bridge Safety
- A legislative effort to include the best
available technology for bridge inspection - Its goal to mandate use of EFS-equivalent
technology - Relationships with Departments of Transportation
- Penn DOT, Turnpike -- New Jersey
- California CALTrans
13Key Members ofBoard of Advisors
- Nick Simionescu
- Sr VP of HNTB, a large international
infrastructure - engineering co.
- Sam Schwartz
- former head of NYC Dept. of Bridges, now
heads up a - 60person infrastructure consulting firm,
Sam Schwartz Co. - Marybeth Miceli
- Director of Marketing for Sam Schwartz,
LLC, Graduate of - Johns Hopkins University, MS in Materials
Science and Engineering. - Brent Phares
- Associate Director for Bridges and
Structures at Iowa State University, - Previous Consulting Research Engineer at
the Federal Highway - Administrations Non-Destructive
Evaluation Validation Center. -