Mikronite

October 7, 2004

Carlstadt, NJ - Mikronite Technologies Group Inc. is pleased to announce that it has been selected to provide research and development services under a US Government contract for the United States Air Force. Mikronite will serve as a subcontractor to The Timken Company under the Versatile Affordable Advanced Turbine Engines (VAATE) Program. Mikronite's technology provides an integral role in developing surface engineered bearings for the next-generation aircraft. "We look forward to developing this important work with Timken over the next four years," said Jeffrey H. Coats, President and CEO of Mikronite.

The Timken Company was awarded its second delivery order under an existing $20 million U.S. Air Force contract for hybrid bearing development. The new $2.69 million order focuses on the development of advanced engineered surfaces for bearings used in current and next generation gas turbine aircraft engines.

The order calls for Timken to develop bearing surfaces with reduced friction and improved resistance to wear and corrosion under demanding engine operating conditions. The company will confirm enhanced performance characteristics through rigorous bearing testing. Timken is a recognized leader in engineered surface technology.

Last year Timken received its first order under the umbrella contract covering a total of $3.27 million for advanced bearing materials development and testing. The overall $20 million in federal funding is part of the Versatile Affordable Advanced Turbine Engine (VAATE) program phase 1, a joint initiative between the Department of Defense, Department of Energy, NASA and the U.S. aerospace industry. One of the program's goals is to increase the affordability of new turbine-propulsion technology over current designs.