Friday, March 21, 2003

The Company plans to exploit an opportunity to develop a next generation energy source based on Low-Energy Nuclear Reactions ("LENRs") in metals highly loaded with protons. In view of the urgent need for new, low-cost energy sources that are biologically safe with environmentally attractive features, successful development and commercialization of Lattice's LENR technologies could have significant implications.

The Company's business goal is to develop highly competitive, modular LENR heat sources based upon Lattice's patent-pending, high-temperature electrode designs. The Company's proprietary LENR heat sources, integrated with third-party generation components such as high-efficiency thermoelectric devices, could enable development of a variety of compact, highly competitive devices and systems for use in portable and distributed power generation.

Lattice Energy believes that it can arrange for contract manufacturing of integrated thin-film LENR power devices in high unit volumes with adaptation of existing process equipment and selected technologies utilized by the semiconductor industry.

Lattice Energy's challenge is to develop turn-key LENR-based heat-source devices and power generation systems, with low capital and operating costs and high power densities, that are biologically safe and highly scalable for use in a broad range of global market applications for the generation of portable power and electricity.

Lattice Energy LLC - commercializing a next-generation energy source