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June 4, 2003: PowerCold And DuPont Announce Joint Agreement

June 4, 2003
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LAVERNIA, Texas — PowerCold Corporation has announced the signing of a joint development agreement and license agreement with E.I. du Pont de Nemours and Company for DuPont Caltrel® Fluid Energy Transfer System applications.

DuPont and PowerCold plan to cooperate in the final development of commercial Caltrel Fluid Energy Transfer Systems so that PowerCold can market HVAC products containing the systems worldwide. DuPont will provide technical assistance and participate in this joint development work. DuPont and PowerCold will commence final development of products under the agreement and anticipate that improvements to the technology will be made during this final phase.

The Caltrel Fluid Energy Transfer System is an energy transfer system that includes a heat transfer surface or core as well as a fluid distribution system such as end tanks, hoses, and piping, whether made of plastic or other materials.

As part of its relationship with DuPont, PowerCold will be licensed to manufacture and sell the Caltrel systems.

The two companies have begun testing the use of new plastic heat exchangers in desiccant air conditioners in high salt and high humidity environments in controlling moisture levels for outside air to furnish required ventilation for building occupants.

Robert Yoho, president of PowerCold ComfortAir Solutions Inc., said, "We have installed and are testing DuPont Caltrel heat exchanger coils on systems in three buildings in Florida: the Don Cesar Hotel in St. Petersburg, the Elks Lodge and Mike's Pizza and Deli in Largo." The systems are being monitored by DuPont to evaluate durability and efficiency. PowerCold and DuPont expect that the plastic heat exchanger coils will be equivalent to or exceed the performance of metal coils with respect to water flow, airflow, and heat transfer.

"So far, these tests are very positive, especially in heat transfer, durability, and pressure drop," commented Yoho.

He added, "Upon completion of the tests, we will begin installing the plastic heat exchangers, fabricated from Caltrel, in the outside side makeup air units including our DesertMaster™ desiccant units in various applications such as Burger King restaurants, Eckerd Corporation drug stores, Hilton Hotels, Wingate Hotels, and other national chains. We believe these coils will help address corrosion problems. No longer will our customers need to worry about coating coils for sea area locations or future coil replacement because of contaminated outside air caused by acid rain, agricultural products, or extreme age of the coil. We plan in the near future to install these coils in air handlers and fancoil units for guest rooms and patient rooms for hotels, nursing homes, extended care facilities, etc."

PowerCold's CEO Frank Simola stated, "Our strategic plan is to develop and market unique total plastic products. Our initial plan is to replace the copper tubing used in all our products with DuPont's Caltrel plastic tubing. We are planning to install the first two Nauticon® prototype units using Caltrel plastic tubing at an Eckerd Corporation drug store and one in Hong Kong."

Christopher Zenel, DuPont's Caltrel business manager, said, "We are very excited about our new relationship with PowerCold. We expect Caltrel plastic tubing to bring a significant advantage to the PowerCold product line. Our combined technologies can add substantial value and innovation in the HVAC marketplace."

For more information, visit www.powercold.com.

Publication date: 06/02/2003

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