ENERGY SCIENCES INC. EB COATING DEVELOPMENTS FOR GRAPHIC ARTS

ENERGY SCIENCES INC. EB COATING DEVELOPMENTS FOR GRAPHIC ARTS

WHAT IS EB? INNOVATIVE METHOD OF IMMEDIATELY DRYING INKS COATINGS ADHESIVES WITHOUT HEAT OR LIGHT.

HOW DOES AN E-BEAM WORK? Ø FILAMENTS EMIT ELECTRONS. Ø ELECTRONS ARE ACCELERATED USING HIGH VOLTAGE. Ø ELECTRONS PASS THROUGH THE WINDOW FOIL AND STRIKE THE PRODUCT. Ø ELECTRONS CAUSE MOLECULAR CHANGES IN THE PRODUCT.

POLYMERIZATION & CROSS LINKING Electron Source Wet Film Thickness (WFT) = Dry Film Thickness (DFT)

The Mix Coating Ink Adhesive Crosslink Packaging Converting Labels Films Silicone Tapes Tires Furniture Flooring Batteries X X X X X X X X X X X X X X X X X X X

EB PROCESSED PRODUCTS

EB TRENDS Incremental EB chemistry growth by 2006 = Inks Coatings Adhesives Sub Total Below 30 in $ 5,000,000 $ 10,000,000 $ 10,000,000 $ 25,000,000 Above 30 in $ 25,000,000 $ 10,000,000 $ 25,000,000 $ 60,000,000 TOTAL GROWTH= $85,000,000 WHY? EB CREATES EITHER 1. A BETTER PRODUCT AND / OR 2. A LOWER COST PROCESS.

LOW VOLTAGE EB Next Generation in Electron Beam Technology

NEW LOW VOLTAGE EB

LOW VOLTAGE EB - I MAX SPEED 1,100 FPM WEB WIDTHS 20 to 66 DIMENSIONS 5 H x 5 L x WEB WIDTH NEW & EXISTING: FLEXO, ROTO, OFF-SET PRESSES

LOW VOLTAGE EB - III MAX SPEED: 750 FPM WEB WIDTHS: 20 to 66 DIMENSIONS: 8 H x 3 L x 7 W NEW & EXISTING: FLEXO, ROTO, OFF-SET PRESSES

LOW VOLTAGE EB - DF MAX SPEED: 1,100 FPM WEB WIDTHS: 20 to 54 DIMENSIONS: 5 H x 4.5 L x 6 W NEW & EXISTING: DRENT VSOP OFFSET, FLEXO, ROTO PRESSES

WHERE DOES EB FIT? AFTER THE LAST COATING/LAMINATING STATION ON: FLEXOGRAPHIC ROTOGRAVURE OFF-SET PRESSES

EB EQUIPMENT PRICE 48 BEAM @ 1,000 FPM $1,200,000 $1,000,000 $800,000 $600,000 $400,000 LV EB-III $200,000 $- 1990 1994 1998 1999 2002

EB CHEMISTRY PRICE $ PER POUND $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $1990 1996 1998 2002

EB CURING PARAMETERS

REVIEW OF BASIC OPERATING PARAMETERS Electron Voltage Determines electron penetration depth Remains fixed during operation Electron Current Determines product treatment level (dose) Varies proportionally with line speed

PRODUCT TREATMENT PARAMETERS Dose The level of energy required by the ink, coating or adhesive to cure Defined as the amount of energy deposited per unit mass Treatment units defined as Megarads or kilogray (Metric)

EFFECTIVE ELECTRON PENETRATION AT VARIOUS HIGH VOLTAGES IN AIR/NITRO. High Voltage kv 90 110 125 150 175 200 250 300 Depth Mils 0.8 1.2 1.8 3.5 5.0 7.0 11.0 16.0 Depth Gm/M2 20.0 30.0 45.0 90.0 125.0 175.0 275.0 400.0

EQUIPMENT PRODUCTION CAPACITY Equal to dose times maximum speed Units are Megarad-meters per minute Example: System rated at 1000 Mrad m/min. Dose (Mrad) 1.5 3.0 5.0 Speed Range Application (m/min) 0-660 Silicone Release 0-330 Inks & Adhesives 0-200 Crosslink Films

EB CURING APPLICATIONS

LOW VOLTAGE EB APPLICATIONS 1. EB COATINGS. COATINGS Replace laminations. Replace Water, Solvent and UV coatings. 2. EB WET ON WET CI FLEXO INK Replace Solvent & Water Ink. 3. EB LAMINATING ADHESIVES. Replace Solvent, Water & Solvent-Less adhesives.

EB COATING Replace Conventional Lamination

REPLACE LAMINATION WITH EB COATING = LOWER COST 1. HIGH GLOSS 2. HIGH RESISTANCE 3. NO/LOW ODOR OR EXTRACTABLES 4. CONSISTENT & STABLE C.O.F.

FDA COMPLIANT DIRECT FOOD CONTACT EB CURABLE COATINGS FROM 2 SUPPLIERS LOW EXTRACTABLES FDA COMPLIANT FOR DIRECT FOOD CONTACT INSIDE COATING FOR FLEXIBLE FILM PAPER PACKAGING MULTI-WALL PACKAGING FOOD PACKAGING

LAMINATED STRUCTURES & COSTS BEFORE (laminated) AFTER (monoweb) 48 gage clear OPP EB clear top coat Printing Ink Adhesive 1.1 mil white OPP two (2) opp sheets $0.0923 per msi. Adhesive $0.0100 per msi. TOTAL: $0.1023 per msi Printing Ink 1.5 mil white OPP opp base sheet $0.0768 per msi. EB top coat $0.0157 per msi. TOTAL: $0.0925 per msi RESULT: 10% SAVINGS IN RAW MATERIAL COST

CONVENTIONAL LAMINATION THE OLD WAY Print Laminate Store Store

EB COATING Print and EB Coat In-Line (eliminate steps) Ship the Same Day

EB COATINGS VS. LAMINATIONS CURRENT STRUCTURE PROPOSED STRUCTURE 50G BOPP/RP/Adh/1.1 mils BOPP 1.5 mil BOPP/Surface Print/EB OPV $ per 1,000 Square Inches (MSI) $ per 1,000 Square Inches (MSI) Cost of 50G & 1.1 mils OPP $0.0923 ---- Solvent Based Adhesive $0.0100 ---- Cost of 1.5 Mil OPP ---- $0.0768 EB OPV @ $4.00/lb & 1.7 lbs/ream ---- $0.0157 $0.1023 per MSI $0.0925 per MSI $15,909,696 $14,385,600 10% $1,524,096 Product Width Production Hours Line Speed Total Annual Production 54 Wide 4,000 hours per year 1,000 feet per minute 155.52 Million MSI Total Total Cost Per Year Net Savings Assumptions:

EB COATING REPLACING LAMINATION BENEFITS: Eliminate Film Layer. Eliminating Steps in Process. Improve Turnaround Time. RESULT: DOUBLE DIGIT SAVINGS!

CONVENTIONAL CI FLEXO PRINTING

CI FLEXO EB INK Electron Beam

CI FLEXO EB INK Electron Beam EB Ink eliminates interstation dryers.

CI FLEXO EB INK & COATING WET FLEX INK ON PAPER OR POLYMER FILMS Electron Beam EB Top Coat

CI FLEXO EB INK & IN-LINE LAMINATING ADHESIVES CLEAR or OPAQUE TOP FILM Electron Beam EB LAM ADH WET FLEX INK ON PAPER OR POLYMER FILMS NIP ROLLERS

IMPROVED DOT GAIN CONTROL HIGHER VISCOSITY STRONGER THAN OTHER INK TYPES PRODUCE SMALL & THIN INK LAYER SIGNIFICANTLY LESS INK SPREADING DOT STRUCTURE ON PLATE MIRRORED ON SUBSTRATE

IMPROVED DOT GAIN CONTROL Conventional Ink Dot Gain EB INK Dot Gain

NEW REDUCED COST EB-FLEXO PRINTING EB Wet-On-Wet Advantages: NO SOLVENTS NO VOC S, LICENSING, INCINERATION or COSTS NO INTERSTATION DRYING NO HEAT less waste NO PHOTOINITIATORS NO/LOW EXTRACTABLES NO/LOW ODOR IMPROVED DOT GAIN CONTROL POTENTIAL IN-LINE LAMINATION

LOW VOLTAGE EB leb WAS: l$1,000,000 ltoo + BIG lonly FOR INKS lonly FOR BOARD ltoday, las EB IS LOW AS $230,000. lcompact SIZE links, COATINGS & ADHESIVES lpaper, BOARD FILM, FOIL & EB... THE BEST CHOICE FOR PLGA

LOW VOLTAGE EB THANK YOU FOR YOUR ATTENTION QUESTIONS? RICK SANDERS ENERGY SCIENCES INC. WILMINGTON, MA. TELE: 978-694-9000 EMAIL: rsanders@ebeam.com

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