Bridge 8 05

Slide1: 

(OTC-BB:MTNA) Material Technologies, Inc. 11661 San Vicente Blvd, Suite 707 Los Angeles, CA 90049 (310) 208-5589 * Fax: (310) 473-3177 matech@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

What Does Matech Do?: 

What 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

Bridge Inspection Division: 

Bridge 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!

What would it mean to commerceif this bridge was suddenly “posted” to disallow “heavy vehicle” traffic?: 

What would it mean to commerce if this bridge was suddenly “posted” to disallow “heavy vehicle” traffic?

Slide5: 

The 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????

Bridge Inspection Methodology: 

Bridge 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.

C 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: 

C u r r e n t B r i d g e I 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 > 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.

The Matech Solution for bridge inspection: 

The 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

E 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: 

E F S V a l u e P r o p o s i t i o n t 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

Matech’s EFS Value Propositionto Bridge Inspection Companies(For a Typical 2-3 Span Bridge): 

Matech’s EFS Value Proposition to Bridge Inspection Companies (For a Typical 2-3 Span Bridge) Capital Expense: $10K inspection kit (>50 uses) Typical Variable Expense: Cost per inspection 32 man hours @ $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 DOT’s INDICATE THIS COST IS VERY ACCEPTABLE

EFS Revenue ModelPrimarily from licensing of the technology: 

EFS Revenue Model Primarily from licensing of the technology ROYALTY $1,000 per inspection (some additional profit from sale of kits and test consumables, too)

Matech Alliancesto promote adoption of EFS technology : 

Matech Alliances to 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

Key Members ofBoard of Advisors: 

Key Members of Board 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 60+person 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 Administration’s Non-Destructive Evaluation Validation Center.