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In the early stages of introducing ultrasonic impact treatment
to the US, Europe, and Asia, most profitable applications were in metal highway and railroad bridges and in manufacturing
of automobile components with enhanced properties. The effectiveness of the technology has already been confirmed by numerous
studies and experiments, carried out at major universities in the United States, Europe, and Russia and validated through
experiments performed by the US Highway Administration, Nippon Steel Corporation, BMW, Dana Corporation, Texas Department
of Transportation, Volker Vessels and others.
AU’s penetration of the potentially lucrative bridge market
beginning in 2002 was the direct result of a comprehensive research project funded by the US Federal Highways Administration
and AU and was performed at Lehigh University. The business opportunities arising from this project include immediate and
long range programs. AU’s business in bridge retrofits has already grown 10-fold from 2002 to 2006. AU projects total
revenue growth of another 10-fold from 2006 to 2010, merely based on business developed from bridge and existing automotive
applications.
In addition to its work in the retrofit of existing bridges, AU has already licensed the technology
to two manufacturers of new bridges and has several in-place licensing agreements under review.
A major milestone in
the growth of the Company occurred in the first quarter of 2004. At that time AU entered into an agreement with Nippon Steel
Corporation (NSC), the second largest steel producer in the world and the largest supplier of sheet steel to the automotive
industry for companies such as Honda, Toyota and Nissan. Prior to entering into the agreement, NSC conducted an extensive
investigation regarding all aspects of AU’s business, the origin and ownership of the technology and a worldwide patent
verification process. Through this agreement, AU granted to NSC a license to conduct R&D and be a strategic partner in the
further development of the technology, use the technology in manufacturing and in maintenance of its equipment and facilities,
and also granted to NSC the exclusive rights to sublicense and market the technology in China, Japan, Taiwan and Korea.
AU
also owns extensive intellectual property, including five U.S. patents, two Russian patents, four U.S. patents pending, one
PCT patent pending and 35 patent applications with it’s partner NSC, and has four patents being prepared for filing.
The company has also extensive body of the technology “know-how”.
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UIT L.L.C., doing business as Applied Ultrasonics (AU), is developing
and marketing a revolutionary application of ultrasonic energy that has opened an exciting and expanding market for this unique
and patented technology. Originally developed in the Soviet Union under its highly classified submarine construction program,
this technology has migrated to the US while, at the same time, retaining a research laboratory and highly skilled staff in
its original location. The principal inventor and scientist behind the technology is now serving as Vice-President of R&D
of AU.
The company has invented, improved and patented the means, methods and devices to harness the power of ultrasonic
energy and introduce this energy into metals. The results include a substantial increase useful life and an increase in endurance
of metal structures (both stationary and moving) that significantly reduce the costs of maintenance for machines and structures.
The somewhat unusually slow growth in revenue since AU’s founding in 1998 reflects the time required for the technology
to be incorporated into assorted government construction codes and, quite frankly, the initial skepticism of potential customers.
As a result, most of the Company’s activities between 1998 and 2002 have consisted of low cost protracted life test demonstration
efforts.
With feasibility and cost effectiveness demonstrated, this revolutionary technology is now beginning to change
the way companies design, fabricate and maintain metal structures and components across a broad range of applications in various
industries.
AU technology can be used to meet the needs of practically any customer, since it is capable of enhancing
a component’s useful life, reducing metal fatigue and associated failures, increasing metal strength, increasing surface
hardness and modifying the surface and sub-surface properties of metals. These enhancements have been demonstrated to be effective
on a wide variety of metals, including carbon steel, high strength steel, stainless steel, manganese steel, aluminum, bronze,
ductile iron, gray iron, titanium, as well as specialty alloys.
The technology is particularly valuable when applied
to structures and components of all types of vehicles, machinery, and machine components that are made of metal and subject
to cyclical loading, (e.g. bridges, ships, automobiles, cranes, railroad cars). When incorporated into the design of new
products, the technology permits the use of lighter weight metals or alloys, more economical production methods, (e.g. casting
instead of forging), the use of thinner members and other design enhancements. The technology is also valuable when used on
existing structures and machinery, as it can improve the performance and reliability of metal structures and components increasing
their service life and reducing operating and maintenance costs.
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