PRIZMALITE INDUSTRIES INC.

was incorporated in Nevada in July 1999 and reincorporated in Delaware in April 2001. The Company is privately-held and headquartered in New York City.

The Company was established to commercialize a new micro particle-based, materials enhancement technology. Prizmalite glass microspheres are patent protected for their applications in a broad range of carriers, [paints, inks and coatings] and supply protected through an exclusive supply relationship with the world’s largest manufacturer of glass beads. In addition, Prizmalite has developed and patented a range of proprietary coatings for application to its microspheres that are designed to deliver specific characteristics to further enhance the performance of Prizmalite products.

As a result of its experience and expertise in working with glass microspheres, Prizmalite has begun to develop finished products that incorporate its microspheres, primarily spheres that have been coated with proprietary coatings specific to the application. Prizmalite’s first product is a specially-formulated guard rail paint that can be spray applied on site to provide a continuous “ribbon of light” to enhance nighttime visibility. Prizmalite has recently developed a road lining paint that displays significantly improved durability and longevity partly as a result of specially-coated glass beads that are both incorporated into and applied on top of the Prizmalite paint. Prizmalite has also developed proprietary inks that incorporate glass microspheres to improve abrasion resistance and/or to display enhanced retro reflectivity.

INTELLECTUAL PROPERTY

PRIZMALITE attempts to protect its technology through patent filings, trademark defense and trade secrets, primarily trade secrets that pertain to its coatings formulas and application processes. The Company’s core patent [US Patent NO. 6,242,056] protects the use of clear, solid glass microspheres under 20 microns in diameter when they are incorporated into paints, coatings and polymeric formulations. Claims include enhanced light emission, improved color depth, and performance of surface treatments that contain clear, solid glass microspheres. The Company’s US Patents NO. 6,482,519 and NO. 6,525,111 expand upon its core technology. The Company protects the formulas it has developed for its proprietary coatings and their application process through trade secrets.