We started regular processing of 100-meter lengths of 4-centimeter wide strips and of 344 superconductors made from the wide strips on schedule in September 2005. At that time, we also began to order new full- scale manufacturing equipment for our pilot manufacturing line -- ahead of our original schedule. We expect to achieve a manufacturing capacity of 300,000 meters per year of 344 superconductors by December 2007.

-Greg Yurek

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