MATERIAL TECHNOLOGIES

Material Technologies is an USA engineering, research and developing company specializing in technologies to measure microscopic fractures and flaws in metal structures and monitor metal fatigue in real time. The company employs 4 people only and the chairman and CEO is Robert Bernstein. The chief engineer is Dr John Goodman.

I have been looking to invest in the USA to diversify my portfolio, as I have no exposure to the USA market. I have been looking for a tech small caps with a growth potential. The company trades on the NASDAQ OTC BB (Nasdaq aim type market) and symbol is NASBB :- MTNA under Material techs. The company is based in Los Angeles and specialises in measurements in metal fatigue in areas such as aircraft, bridges, and turbine engines. Products are already patented or pending. You can read all about in on the web links later.

I have spent 2 months doing some research and this is what I have found. In 2002 / 2003 losses were over $1m but due to a massive R & D phase. This has now slowed and now the actual products are to be delivered and marketed. This may mean another year before real income and gross profit occurs but the potential is huge. The company has been financed in Sept 2003 for the marketing and testing of its products via convertible debenture from banks and stock offerings worth $5 million. This has had some downward effect on its investor interest and why it has started again at $1.50. The P/E ratio is HIGHER than the average for this type of stock. As the company starts to use its great products in a commercial drive and contracts from the USA military and government starts the revenues should flow later this year. A 3-year financial projection is a gross profit of $68,500,000. The company has $8.2 million of government money for development and testing.

Here is a selection of information. Some make be slow to link but the info can be found within the first link.

Links - http://www.matechcorp.com/contact.html

http://www.matechcorp.com/market.html

http://www.matechcorp.com/press_12_16.html

http://www.matechcorp.com/press_12_9.html

http://www.matechcorp.com/presentations/Business_Plan_3-24.pdf

This is used for interest only and no way a tip to buy. The information is out their, make your own mind up. As always the risk reward or loss is high on BOTH sides!! Due to the favourable exchange rate you pound goes a long way. I cannot give you a price expectation that is based on anything but the 14 16 $ range is my target in a 2-year time span. So this is a longer-term investment not a short term one. Good reading. I cannot guarantee the accuracy of all the information but is what I have found out.

Comments please.

This is ready to burst out as technology proves to work and contracts are about to start from states. By law they must have bridge test every 3 years and MTNA is by far the cheapest now. Target is $12 near term ( 6 months).

Material Technologies, Inc Conducts Beta Tests on Los Angeles
and New York Bridges

Business Editors LOS ANGELES--(BUSINESS WIRE)--June 8, 2004 Material Technologies, Inc. (MATECH) (OTCBB: MTNA) today announced that it has completed beta tests (testing before commercial release) of its crack detection Electrochemical Fatigue Sensor (EFS) device on a bridge in California and one in New York.

The California bridge is in Culver City, a suburb of Los Angeles; and the New York bridge is in the city of Babylon, Long Island.

For each of these bridges EFS sensors were placed at presumed fatigue-critical locations, i.e., those areas most likely to have fatigue cracks, and a heavy truck traversed the bridge to induce significant loads. The Babylon bridge also had strain gages installed to monitor stress levels at these critical locations. Both bridges were cross-checked using an eddy current non-destructive test to verify the EFS findings.

No cracks were detected in either bridge by EFS or the eddy current test. The Culver City bridge was recently upgraded for earthquake safety, and the Babylon bridge is relatively new (four years old); its measured stresses were well below levels that would induce fatigue cracks, so the absence of cracks in each bridge was not unexpected.

Matech expects to be conducting additional beta tests on bridges in Ohio, Massachusetts, and additional bridges in California. These other bridges are considerably older and more likely to have some fatigue damage.

"These beta tests are a very important step in our development and we are very pleased to have the interest and support of the cognizant engineering authorities. These inspections will take place over the next several months, leading up the inspection of the bridges in Pennsylvania, as previously announced in the press release dated December 9, 2003," said Robert M. Bernstein, Matech's President and Chief Executive Officer.

MATECH is engaged in the research and development of metal fatigue detection, measurement, and monitoring technologies. As such, the Company has developed a suite of devices for the non-destructive testing (NDT) of metal fatigue and monitoring of structural integrity. These technologies can be applied in virtually any industry in which metal is a significant structural component; i.e.: Bridges, Aerospace, Turbine Engines, Oil & Gas, Construction, Shipping, etc.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Statements in this document looking forward in time involve risks and uncertainties, and therefore actual results may be materially different. Factors that could cause actual results to differ include activity levels in the securities markets and other risk factors such as customer order rates, cancellations, late delivery of customer components, late system delivery, production delays, dependence upon certain customers, dependencies upon key executives, competition, product liability risk, control by management, and other risks detailed in the applicable U.S. Securities and Exchange Commission requirements.

CONTACT: Material Technologies, Inc. Robert M. Bernstein, 310-208-5589

Last Updated: June 8, 2004 09:30 EDT