spraycool™ overview

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spraycool overview
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Overview - Background

• Privately-held, self-funded Small Business
• Founded in 1988
• Incorporated in 1992 (C-Corp)
• Headquartered In Eastern Washington
• 260 Employees and growing
• Average salary 68K
• Government and Commercial Operations
• Majority of revenue from government business
• Huge emerging commercial opportunities

Liberty Lake, Washington
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Mission / Vision
SprayCool system solutions enable electronic
devices to be cooler, quieter, more powerful and
more durable
Our Vision Fundamentally change the way products
are packaged, powered and cooled
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Overview - Locations

• Liberty Lake, WA
• 67K sq. ft. Two facilities
• Corporate headquarters
• Program Management
• Product Development
• Engineering Test
• Manufacturing Operations
• Pullman, WA
• 14K sq. ft. facility
• Co-located with 2 universities
• Research and Development
• Advanced Development
• Major Expansion in 06

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Overview - Facilities

• Wichita, KS
• Sales Office
• Washington, DC
• Sales Office
• Seattle, WA
• Marketing Headquarters
• Mountain View,CA
• Consumer Products

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Background / History
ISR Is one of Washington States and the Nations
Fastest Growing Companies.

• 5-Year Growth (01-05)
• 300 Headcount Growth
• 882 Revenue Growth
• 13 on WA State Fast 50
• 198 on National Fast 500
• 297 on Inc. 500

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SprayCool Technology - IP

• Products have delivered strong performance both
  commercial and government Data Center market
  tests indicate significant lead over competition
• Government 10 successful programs in all
  branches of US military including Air Force,
  Army, Marine Corp and Navy PNNL committed to
  over 400K in SprayCool solutions
• Commercial Two base Data Center tests documented
  over 250 increase in computing processing
  capacity for SprayCool configured Data Centers1
• Aggressive patent strategy has secured ISR
  differentiation by protecting core technologies
  that provide efficient transfer of heat
• 20 issued patents including Heat Exchanger,
  Atomization Apparatus Cooling System
  Evaporative Spray
• 48 patents pending including Commercial Active
  Venting System
• 8 International filings
• 480 disclosures
• Detailed intellectual property plan in place to
  defend assets and ISR competitive advantage for
  the future leveraging 500 man years of work

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Current Design Challenges

• Constantly increasing processor performance
• More electric aircraft/vehicle initiatives
• New and existing platforms are weight, volume and
  power challenged
• Electronics are constantly exposed to harsh
  environments
• Life cycle costs are critical to a programs
  success

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Government Division
ISRs has a strong foothold in the Government
sector, having delivered award winning results in
10 major programs
100MM government contracts have been awarded to
ISR under Sole Source status
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Rugged Integrated Battlefield Server (RIBS)

• Army Battlefield Server
• Runs high end Sensor Data Software
• Deployed and operating in Afghanistan via 10th
  Mountain Division

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System Performance

• Enables the highest density of processing per
  unit of volume / weight / power / price when
  compared to traditional methods

U-2 Spy Plane
Global Hawk Unmanned Aerial Vehicle
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Environmental Isolation

• Electronics are sealed and thus isolated from
  harsh military / aerospace environment
• SprayCool eliminates exposure to sand, humidity,
  salt spray, etc. which has a direct correlation
  with electronics failures

AH-64D Apache Landing in Iraq
USMC EFV incorporates SprayCool
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Commercial Division
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• Demographics
• Workforce
• Suppliers

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ISR Workforce by Division
260 Total Employees 22 work in
Manufacturing
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ISR Workforce by Education
85 of workforce have a secondary education
beyond high school Over 65 of workforce have a
Bachelors degree or better
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ISR Manufacturing Workforce Trends 2005-2006

• Trends in Manufacturing
• 30 Increase in Engineering Professional roles
  Most Bachelors and Masters Degree
• 18 Decrease in Technical Assembly roles Most
  Associates and Technical Degrees
• Technical talent is becoming more difficult to
  find

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• Education and encouragement of Washington State
  youth is highly important to the success of our
  State and Country. Increasing tuitions
  decreasing grants are one cause of decreased
  enrollment and could be offset by the State.
• Washington State has a NON business friendly tax,
  workers comp., unemployment insurance, minimum
  wage and overall cost of doing business
  environment compared to neighboring States
  particularly Idaho. Of all the major
  manufacturers to move into our region in the last
  couple years they have moved into the Idaho side
  of the border (Buck Knives, Sysco) vs. the
  Washington, State side due to these factors.
• Demographic trends as Boomers start to retire may
  create an even greater shortage of technical
  workers than diminishing college enrollments
  would indicate.

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Policy Implications for WA State Manufacturing

• Encourage product-based new business development
  leveraging technology competencies within the
  state
• ISR data shows that during the research and
  product development phases, these new businesses
  will create a demand for local small to medium
  sized manufacturing
• Support existing WA state manufacturing
  businesses to retain their technical and
  manufacturing competitiveness
• ISR data shows that companies will seek out world
  class suppliers wherever they are located

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