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Company Overview
Technology solutions that shape the future are those with the greatest potential to improve the way we live and work—and the greatest potential for commercial success. Large companies rarely conceive these technologies. Rather, they are more often the product of visionary inventors or small companies working intensely, with a strong sense of purpose, dedication and cooperation—people who want to make a difference in the world through their work. Manhattan Scientifics, Inc. (OTC: BB MHTX) advances technologies with potential world-changing impact to the threshold of commercialization by following these principles of purpose, dedication and cooperation. With highly skilled scientific and engineering expertise, resourceful, experienced management, and strategic alliances Manhattan Scientifics is working to bring technology solutions that shape the future into the commercial marketplace today.

In 1998 Manhattan Scientifics, Inc. (the Company) became a publicly held company to provide capital for MicroFuel Cell™ and holographic data storage research and development. Since then the Company has acquired two more technologies and retains a significant interest in an Internet technology company. Manhattan Scientifics remains diligent in its search for promising, innovative patented technologies and retains a close association with the scientific research community at Los Alamos and Sandia National Laboratories, two of the most prestigious national laboratories in the United States. 

Table of Contents for this Section:
A. Brief Technology Holdings Overview
B. Company History
C. Management Profiles

Currently, the Company is developing the following patented and patent pending technologies:

MicroFuel Cell™ Technology
Environmentally safe, AlwaysOn™ portable power for small electronics, such as pagers and cellular phones powered by methanol and water.

Mid-Range Fuel Cell Technology
Efficient, lightweight, portable power for larger applications such as laptop computers, power tools and mobility devices.

Novint / e-Touch™ Technologies
e-Touch™ software adds the sense of touch to 3D computer interaction.

 

Technology Summary
Fuel Cell Technologies

Fuel cells have been described as "the great green hope" in the search for cleaner non-fossil fuel energy sources. Fuel cells—which have no moving parts—create electricity not by burning fuel, but by the process of electrochemically rearranging the fuel’s atoms to produce electric current. This process produces trace amounts of water, or water vapor and carbon dioxide, as the only emission. Fuel cell research and development has recently received attention in the press and investment publications as an important emerging technology for the future. While other companies are beginning research into what many consider the most important energy source for the 21st century, Manhattan Scientifics believes that the advanced stages of research and development of its two fuel cell technologies puts the company in a strong strategic position to be a significant player in this important emerging technology marketplace.

MicroFuel Cell™
(Industry Week 1999 Technology of the Year Award Winner)
Conventional batteries are becoming inadequate for the increasing power requirements and complexity of portable electronic devices such as cell phones, pagers and video recorders. In addition, new small portable electronic devices are developed each year such as portable Internet music players, wireless Internet appliances and "wearable" computers. All will require a reliable, inexpensive and constant energy source to realize their full potential of consumer convenience. 

The MicroFuel Cell being developed by Manhattan Scientifics is actually the result of more than sixteen years of research by physicist and inventor, Robert Hockaday. It is in a working prototype stage approaching a state of technical development that is sufficiently mature to interest potential manufacturing partners prepared to advance it to commercialization.

Using the philosophy "nature provides the models for energy solutions," Hockaday designed a fuel cell modeled on the cells of animals with the collection and energy distribution scheme similar to the capillaries and veins. He then employed the same materials and miniaturization technologies that transformed computers from large machines the size of a refrigerator to tiny silicon chips smaller than a thumbnail. Another aspect of his innovative design approach was to make his micro fuel cell easy and inexpensive to mass-produce. The Hockaday MicroFuel Cell which runs on a mixture of methanol and water similar to common windshield washer fluid recently achieved an energy output three times greater than standard lithium ion batteries currently used for cellular telephones. Manhattan Scientifics researchers believe this achievement of three times the output of lithium ion batteries is a step toward incremental increases in energy output toward their target goal of exceeding 20 times the energy output of conventional batteries. 

Advantages of Manhattan Scientifics MicroFuel Cell Technology

  • AlwaysOn™ power for small electronic devices.
  • Patented design characteristics solve many of the engineering problems that previously prevented fuel cell technology from being applied to small electronics.
  • -Lightweight
  • -Designed for inexpensive mass production
  • Constructed of environmentally safe materials
  • Runs on methanol and water mixture
NovArs
Mid-range Fuel Cell Technology
On August 6, 1999 Manhattan Scientifics, Inc. completed arrangements to acquire the pending patents, intellectual property and exclusive worldwide commercial development rights to a mid-range fuel cell technology of NovArs Gessellschaft fuer neue Technologien, GmbH, a private company based in Passau, Germany. This addition to the Company’s fuel cell development efforts expands the scope and speed of fuel cell market positioning and dovetails with the MicroFuel Cell research efforts. The NovArs fuel cell research is directed toward high current, low voltage applications—lap-top computers, cordless appliances and power tools, wheelchairs, bicycles, boats, and home energy fuel cell systems — while the MicroFuel Cell addresses low current, high voltage applications. 

The NovArs fuel cell design is based on the conventional fuel cell stack with these non-conventional, innovative and proprietary design differences that make it simpler, lighter, less expensive and more efficient: 

The NovArs device offers superior power density. This means more power output from less weight making it ideally suited for use in cordless portable power tools, communication devices, electric wheelchairs, bicycles and laptop computers.

Presently the NovArs fuel cell operates with hydrogen fuel using a variety of sources ranging from pressurized fuel containers to more advanced metal hydride cartridges. Future approaches might involve direct methanol as fuel. The Hockaday team and Koschany team intend to work closely to achieve a hybrid product design. Manhattan Scientifics, along with many others, are working to improve the safety of hydrogen fuel sources. At this time Federal regulations prohibit the use of hydrogen on commercial airplanes.

As a working demonstration and proof of principle of its design, NovArs has developed the Hydrocycle, a prototype electric bicycle powered by a fuel cell stack that produces a power output of 170 W. The development of the Hydrocycle prototype alone has profound commercial implications, both for its potential application in many other mid-size portable electronic applications, and for its more immediate application to the electric bicycle market. That market alone is estimated by Japan Cycle Press to grow to three billion bicycles and one billion electric-assisted bicycles before the year 2020. 

Novint Technologies
e-Touch™ Software
Novint™ Technologies is a computer software company that specializes in advanced human computer interfaces. Our software utilizes haptics (the sense of touch) and other human senses in a completely 3D domain. Novint Technologies was established in Albuquerque, New Mexico in April of 1999. The company's founder, Tom Anderson, has over 6 years of experience in the field of haptics. We believe in the premise that the computer should conform to the user instead of the need for the user to conform to the computer.

At Novint, we have created a haptic user interface software called e-TouchTM that allows people to touch what is in the computer in the same way that a monitor lets people see what is in the computer. Haptics is the field that refers to our sense of touch. The technology represents a fundamental change in the way that people will use computers, and it has the potential to revolutionize all of computing. Imagine sitting at your computer at home, and rather than using a mouse sitting beside your keyboard you use a haptic device. The haptic device, a robotic stylus, allows you to touch any objects you see on the screen. Specifically, our software is both a user interface for end users that can be used in any 3D computing application and a programming interface for developers to add the sense of touch into applications. Overall, haptics has an amazing wow factor and will permeate all areas of computing in the near future.

Novint’s mission is to revolutionize the human-computer interface. Initially, Novint will develop dental and medical training simulators and will fundamentally change the ways that doctors learn. Novint is the first company that delivers simulators with realistic touch feedback along with visual feedback. The sense of touch for medical training is crucial, and therefore effective medical training utilizing computers has never before been possible. Novint’s goal is to become the market leader for medical training.

Today’s personal computers are very different from those of the mid-1980s in all ways but one. Today’s personal computers are far more powerful, have far better graphics and come with a high-speed connection to the world. The only thing on today’s PCs that has not advanced is the user interface. We are still using the same keyboard and mouse that was developed in the 1970s. There is a tremendous need for the computer interface to catch up -- to become natural, more intuitive and more powerful. The e-Touch software has been developed to bring the user interface “up to speed”. The software provides a computer interface:

  • that works in 3 dimensions, not just 2
  • that utilizes your senses of touch and hearing as well as sight
  • in which the digital world behaves like the real world
To learn more about e-Touch please visit our website at www.etouch3d.org
To learn more about Novint Technologies please visit www.novint.com

 

Company History
The story of Manhattan Scientifics begins with the holographic research component of the Company. In the late 1980s the Microelectronics & Computer Corporation (MCC), invested approximately $25 million in holographic data storage research. 

The research produced no conclusive results. However, Manhattan Scientifics CEO, Marvin Maslow, fascinated by the potential of holographic storage, was reluctant to give up, believing that eventually, its time would come. He decided a more intense and focused research effort, with new expertise, might eventually produce the long-sought results. 

Meanwhile, in August 1997 Maslow visited Los Alamos National Laboratory (LANL) to investigate new technologies with commercialization potential. LANL’s Civilian Industrial Technology Program Office, functioning in the capacity of matchmaker, introduced Maslow to Robert Hockaday, a LANL physicist who had taken entrepreneurial leave-of-absence to refine a patented MicroFuel Cell technology he had been developing with his own funds. Maslow recognized that the holographic project might benefit from the expertise of Los Alamos National Laboratory materials science experts, and, combined with the MicroFuel Cell technology, would be a solid foundation for a technology incubator to commercialize leading-edge technologies. 

Knowing that fledgling companies can flounder during the standard capitalization process of protracted analysis and negotiations, and that getting a new technology to market quickly is crucial to success, Maslow deployed what he calls a "guerrilla financing" strategy. In a period of approximately four months he formed Manhattan Scientifics, Inc., raised the capital Hockaday estimated he needed to begin intensive development of a working prototype, and took the Company public on January 9, 1998 by means of a reverse merger.

Management Profiles
Marvin Maslow
Chairman and Chief Executive Officer, Manhattan Scientifics, Inc.
Marvin Maslow pursues an investment strategy that is best described as guerrilla entrepreneurship. The traditional entrepreneurial path usually wanders through a maze involving meticulous study of business plans, analysis of balance sheets, investigation of profit potential, followed by protracted negotiations with the company seeking funding. By then, the fledgling company may have dissolved for lack of capital to continue its project. 

Maslow cuts to the chase. 

Does the company have a high-potential, proprietary product or technology? As important, what are the people like? Maslow invests in people because he believes it is the perseverance, creativity and vision of people that will advance a product or technology to its full potential.

However, Maslow’s ‘just do it’ style is tempered with an extensive business background and a clear vision of future application of the technology. As a merchant banker, he founded and managed 10 successful enterprises. Later, Maslow was the principal in a private investment company and placed substantial capital in privately held, emerging growth companies. His responsibilities involved managing these investments as well as the growth and direction of their attendant organizations as the companies matured.

Jack Harrod
Chief Operating Officer
Jack Harrod joined Manhattan Scientifics, Inc. as Chief Operating Officer (COO) in August 1998. He leads the Company's research and development strategy and is tasked with finding, evaluating, and launching new business opportunities related to those technologies. 

Before joining Manhattan Scientifics, Harrod worked for Texas Instruments (TI) for 32 years in a variety of leadership positions. As an executive vice president, he led TI's Corporate Venture Projects organization that included managing the Digital Imaging activity from its inception in 1992 as an entrepreneurial venture to initial production. That venture was set up to develop and exploit the Digital Micromirror Device (DMD) to initial production and market introduction of products based on the resulting Digital Light Processing (DLP) technology. Harrod accomplished this by setting up a worldwide network of partnerships and alliances that, along with his own organization, allowed first-to-market product (SVGA) performance and helped provide the basis for TI's market position today.

The technologies developed to commercialization under Harrod's direction won numerous prizes for innovation including the Eduard Rheim Technology Award, PC Magazine's New Peripheral Product of the Year Award, the Academy of Motion Picture Awards "Oscar", and others.

Tom Anderson
CEO, Novint Technologies
Novint Technologies’ President, Founder, and CEO, was the inventor and principal investigator during the five-year e-Touch™ project at Sandia National Laboratories. At Sandia, Tom was a pioneer in the field of haptics (haptics refers to our sense of touch) and developed the core technology for Novint’s applications. He was a Member of the Technical Staff at Sandia until he obtained an exclusive license from Sandia and founded Novint Technologies. Tom has a BS in Electrical Engineering, Magna Cum Laude, from the University of New Mexico, and an MS in Electrical Engineering from the University of Washington, where he studied both computer interface technology and business management.

Science and Business Advisory Board

Donald J. Sandstrom
Donald J. Sandstrom retired from Los Alamos National Laboratory after 30 years of employment. During his career at the Laboratory he was involved in the development of materials and processing technologies that were applied to virtually all of the technical and scientific programs of the Laboratory where materials and/or materials processing expertise were required. 

Sandstrom has always had a very strong interest and involvement in Technology Transfer and he has been a leader in the promotion and encouragement of the transfer of Laboratory-developed technologies to the private sector. He assumed a lead role in the development of new processes for the manufacture of precision microminiature components, the development of polymer thin films and the synthesis of special "doped" polymer films that had specialized chemical and mechanical properties.

In the three years immediately preceding his retirement from Los Alamos National Laboratory, Sandstrom was given a special assignment to serve as the Principal Technical Advisor to the President of EG&G/Rocky Flats. In this capacity, he assisted the EG&G/RF management in the definition of appropriate planning and management of the clean-up of the former nuclear weapons production plant in Rocky Flats, Colorado.

For his efforts in developing the Necessary and Sufficient Standards for the safe management, operations and conduct of work at the Laboratory, Sandstrom received citations from both Vice-President Al Gore and then Secretary of Energy, Hazel O’Leary, for his contributions to both the Laboratory and National Programs aimed at the re-engineering of the federal government. 

Martin Cooper
Martin Cooper is widely recognized as a pioneer in the personal communications industry and has been called the father of cellular telephony after introducing the first portable cellular radiotelephone in 1973. 

Mr. Cooper joined Motorola in 1954 as a research engineer and advanced through a number of engineering and management positions before becoming a corporate officer in 1969, vice president and general manager of the Communications Systems Division in 1977 and finally Corporate Director of Research and Development for Motorola, Inc., responsible for the creation and stimulation of technology throughout Motorola. 

During his 29-year tenure at Motorola, Mr. Cooper was involved in the creation of a number of major businesses including:

High-capacity paging – annual sales in 1996 over $1 billion; trunked mobile radio systems (knows as SMRS) – annual sales over $1 billion; cellular radio telephone – annual sales over $20 billion; quartz crystals, oscillators, liquid crystal displays, and piezo-electric components – annual sales several hundred million dollars; Motorola A.M. Stereo technology, earning in excess of $1 million a year in royalties; various mobile and portable two way radio product lines
After leaving Motorola he founded Cellular Business Systems, Inc. (CBSI), now a part of Cincinnati Bell. Before its acquisition, CBSI provided billing and management services to most cellular companies in the U.S. 

Mr. Cooper was awarded the IEEE Centennial Medal in 1984 and the RCA Fred Link award in 1996. Mr. Cooper has served on technical committees of the Electronic Industries Association and the National Research Council as well as numerous industry and civic groups. He is a Distinguished Lecturer for the International Electronics Consortium and serves on its Advisory Board.

George A. Cowan
George Cowan is a founding member of the Santa Fe Institute, a world-renown research center for complex, adaptive systems. He became president on its incorporation in 1984, retired from this position in 1991 but continues to serve on the board and is a Distinguished Fellow of the Institute. 

However, founding the Santa Fe Institute was only one accomplishment in a long and diverse career in fields as diverse as nuclear physics and banking. Trained as a physical chemist, Mr. Cowan graduated from Worcester Polytechnic Institute in 1941, joined the Physics Department at Princeton to work under Eugene Wigners direction on research leading to the design of the first uranium chain reactor. 

Mr. Cowan became an instructor at the Carnegie Institute of Technology in Pittsburgh while completing work on his graduate degree. In 1949 he returned to Los Alamos and helped identify products from the first Russian atomic bomb test. He continued at Los Alamos, retiring from full time employment in 1988 after serving as Associate Director for Research and Senior Laboratory Fellow. During this period, he was awarded the New Mexico Academy of Science Distinguished Scientist Award, the Robert H. Goddard Award, and the E.O. Lawrence Award. He served on the White House Science Council in the Reagan years. In 1991 he was awarded the Enrico Fermi Prize for his contributions during his career as a nuclear scientist. He is a fellow or member of numerous professional societies, including the American Academy of Arts and Sciences, the American Chemical Society, the American Physical Society, and Sigma Xi.

Mr. Cowan served on numerous boards and advisory groups of federal, state, and government agencies. These include the U.S. Air Force Technical Applications Center, the U.S. Defense Intelligence Agency, NAS/NRDC, the Regents of New Mexico Institute of Technology, the Los Alamos Hospital, the Santa Fe Opera, the Santa Fe Opera Foundation, the National Center for Genome Resources, and chair of the Los Alamos Concert Association and the Los Alamos Public Utilities Board. He is a board member of the National Foundation for Functional Brain Imaging and the Center for the Neural Basis of Cognition. In the business community he was a founding director of the Los Alamos National Bank, serving as chair for thirty years during which period it rose to its present position as the largest private bank in New Mexico. He also chairs the board of Trinity Capital Corporation and continues to serve on these and various other boards.

Arthur Lipper


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