IMGC Intermagnetics General

- Funding Will Accelerate Attainment Of A High Performance US-Based Commercial Production Facility For Second-Generation HTS Wire LATHAM, N.Y., Jan. 4 /PRNewswire-FirstCall/ -- Intermagnetics General Corporation's (NASDAQ:IMGC) Energy Technology subsidiary, SuperPower, Inc., today announced that it has been awarded a $10.7 million follow-on contract from the U. S. Department of Defense (DOD) Title III program to partially underwrite the cost of R&D for second-generation (2G) high-temperature superconducting (HTS) wire development. The Title III program was established by the DOD, and is co-funded by the U. S. Department of Energy (DOE), with the objective of developing domestic 2G HTS wire manufacturing capability that can provide sufficient high performance wire quantities for near-term military and commercial applications. Glenn H. Epstein, chairman and chief executive officer of Intermagnetics, said, "The U.S. military, in conjunction with the DOE, is particularly aware of the enormous reliability, environmental and economic benefits that will result from the transition to HTS technology. This Title III funding will be a significant factor in enabling SuperPower, a U.S. company, to continue the excellent progress it has made toward producing long lengths of high performing wire in a reasonable timeframe and at an acceptable cost." The 50% cost-share funding is being provided through the Air Force Research Laboratory (AFRL) at Wright-Patterson Air Force Base in Ohio. SuperPower expects its R&D expenses under Phase 3 of the Title III program, that will run through June 2008, to be approximately $10.7 million, of which $5.35 million will be covered by Title III cost-share funds. This is the latest in a series of Title III contracts that brings cumulative Title III commitments for SuperPower to $14.2 million. Philip J. Pellegrino, president of SuperPower said, "Phase 3 of the program will build on the successful results achieved in Phases 1 and 2 that included scale-up of each of SuperPower's manufacturing processes to 200-meter lengths, with performance of 100 amps per centimeter width and the establishment of a complete quality control (QC) operation. Thanks in part to the Title III program, SuperPower expects to supply nearly 10,000 meters of 2G wire to Sumitomo Electric Industries in 2006 for the fabrication of the world's first 2G HTS cable, which will be part of the HTS Cable Project being installed in the distribution system of National Grid by SuperPower in Albany, New York. Expectations for Phase 3 of the Title III program include increasing wire length to greater than 1,000 meters and improving critical current to more than 500 amps per centimeter width. These results are expected to be achieved by refining on-line high volume production equipment, by continuing the underlying R&D to improve product performance and by further refining QC operations." Second-generation HTS wire offers more than 100 times the power density when compared to conventional copper wire as well as higher efficiency, thereby opening up a broad range of applications in both military and commercial sectors. Electrical devices such as power cables, transformers, motors and generators are significantly smaller, lighter, safer and more environmentally friendly than the conventional devices based on copper wire. SuperPower, Inc. (http://www.igc-superpower.com/), a wholly-owned subsidiary of Intermagnetics General Corporation, uses core capabilities in materials, cryogenics and magnetics to develop state-of-the-art 2G HTS wire and electric power components such as underground transmission and distribution cables, transformers and fault current limiters. Intermagnetics (http://www.intermagnetics.com/) draws on the financial strength, operational excellence and technical leadership in the market of Magnetic Resonance Imaging (MRI), as well as its expanding businesses within Medical Devices that encompass Invivo Diagnostic Imaging (focusing on MRI components & imaging sub-systems) and Invivo Patient Care (focusing on monitoring & other patient care devices). Intermagnetics is also a prominent participant in superconducting applications for Energy Technology. The company has a more than 30-year history as a successful developer, manufacturer and marketer of superconducting materials, high-field magnets, medical systems & components and other specialized high-value added devices. Safe Harbor Statement: The statements contained in this press release that are not historical fact are "forward-looking statements" which involve various important assumptions, risks, uncertainties and other factors. These include, without limitation, the assumptions, risks, and uncertainties set forth here as well as in the company's Annual Report on Form 10-K, including but not limited to, the company's ability to: (1) attract and maintain strategic partners for its HTS initiatives; (2) invest sufficient resources and receive additional external funding to continue its development efforts; (3) attract and retain the personnel necessary to achieve its objectives; (4) attain commercial acceptance for and adoption of its products and technology; (5) successfully develop commercially viable production methods and successfully improve those methods to meet the cost-benefit ratio that will be critical to making HTS technology commercially competitive; and (6) avoid the potential adverse impact on the company of emerging patents in the highly competitive energy technology field. In addition, the Title III program contract award is dependent upon government funding which is subject to annual appropriations. If the amount committed to SuperPower is not appropriated annually during the contract term, then the award commitment may be adversely impacted. Except for the company's continuing obligation to disclose material information under federal securities law, the company is not obligated to update its forward- looking statements even though situations may change in the future. The company qualifies all of its forward-looking statements by these cautionary statements. DATASOURCE: Intermagnetics General Corporation CONTACT: Philip Pellegrino, President, SuperPower, Inc., +1-518-346-1414; or Cathy Yudzevich, IR Manager, +1-518-782-1122 Web site: http://www.intermagnetics.com/ http://www.igc-superpower.com/

Copyright