SAN ANTONIO - PowerCold Corp. has announced a long-term business relationship with E.I. du Pont de Nemours and Company for the exclusive purchase and use of Caltrel® plastic tubing in the HVAC field for fluid coolers and fan coil heat exchangers. DuPont also granted an exclusive license for use of the DuPont Caltrel trademark.

For a period of five years, PowerCold has the exclusive right to purchase Caltrel material for use in fluid coolers and fan coil heat exchangers for HVAC applications. For a period of at least two years, DuPont will sell and deliver, and PowerCold will purchase and accept from DuPont, Caltrel plastic tubing. PowerCold has the first option to purchase the DuPont production equipment to produce Caltrel tubing, and agrees to purchase resins required for the production of the tubing solely from DuPont.

In January 2003 PowerCold first announced collaboration with DuPont to test new plastic materials for air conditioning units, and entered into a joint development agreement and a license agreement relating to DuPont Caltrel fluid energy transfer system applications in May 2003. PowerCold has applied to the U.S. Patent Office for a new modular design heat exchanger patent that features flexible designed plastic components. PowerCold's proprietary PlexCoil® fan coil air handler, primarily used in commercial buildings for room air distribution, was the first application designed for the new plastic heat exchanger. PowerCold has also developed and installed new fluid coolers of various sizes that incorporate Caltrel plastic tubing.