Cyclics and PolymersNet to Pursue Korean Compounding Market; PolymersNet to Develop and Sell CBT Resin Based Compounded Products

SCHWARZHEIDE, Germany--March 16, 2005--PolymersNet Co. LTD and Cyclics Corporation are forming an alliance to sell CBT(R) resin-based compounds and masterbatch concentrate products in Korea. PolymersNet (www.polymersnet.com) sees immediate potential for CBT resin in digital products, mobile phones and sheet extrusion. For instance, Korea produces more mobile phones than any other country and the fast pace of product obsolescence pushes the boundaries of material technology each year. CBT resin may be able to satisfy that need acting as a flow enhancer to make more intricate parts, the matrix in highly filled conductive plastics, or improved stiffness and dimensional stability afforded with CBT-based nano-composites.

Cyclics CBT resins are a cyclic or small ring-shaped molecular form of polybutylene terephthalate (PBT), a well known engineering thermoplastic. From a practical standpoint it is a form of PBT that melts at a much lower temperature and a radically lower viscosity--similar to that of water. The ability to "wet out" fillers, especially nano particles, promotes better dispersion and enhanced compatibility with engineering resins like PBT, PET and PC. It has been referred to as a higher temperature polyester wax offering an alternative to popular "olefin waxes" with a unique set of compatibility and dispersion characteristics.

"We have had good success utilizing our CBT resin for the compounding and masterbatch markets in Europe and North America," said John Ciovacco, Head of Global Marketing for Cyclics Corporation. "PolymersNet has the relationships to distribute our material effectively in Korea and also provide the technical development and support with their customers."

PolymersNet has worked hard to establish itself as a global player in the development and delivery of high value plastic products. This relationship with Cyclics is further evidence that their capabilities are being recognized on the world stage.

"The market in Korea is moving towards higher value products to differentiate it from the emerging commodity markets in places like China," said Justin Jin, President and CEO of PolymersNet. "The time is right for a product like CBT resin that can really enhance the characteristics of commodity plastics through viscosity modification, reactive extrusion and nano composite concentrates. We are proud to play a key role in the introduction of this new and exciting product in Korea."

Cyclics first CBT resin plant, in Schwarzheide, Germany, will achieve an annual rate of over 10 million pounds in 2006. By the fourth quarter of 2005, Cyclics will announce the location of their second plant, expected to have an annual capacity of 50-100 million pounds. There has been no decision as to the new plant's location, with a number of sites currently being considered.

Cyclics Corporation, headquartered in Schenectady, New York, U.S.A. and its wholly owned subsidiary, Cyclics Europe GmbH based in Schwarzheide, Germany, manufacture innovative plastics that offer breakthroughs in processing, making new products possible and changing the economics of existing ones. The water-like processing viscosities of Cyclics' engineering thermoplastic products offer improvements in performance and productivity for structural composites, compounding, casting, nanocomposites, coatings and rotational moulding. Cyclics has alliances with Ahlstrom Glassfibre Oy, Alcan Composites, BASF, Davy Process Technology, Dow Automotive and The P Group.

PolymersNet Co. LTD, headquartered in Seoul, Korea was established in 2000 to supply knowledge and technical support to the Korean engineering plastics market. The company has had strong growth and includes a well equipped technical center and pilot plant to support market gaps for new plastic products. PolymersNet enjoys strong support from the Korean government who value their global activities that benefit the country's industrial base. PolymersNet represents materials from global suppliers like PolyOne, Teijin, Nanocor, PolyPlastics, Asahi Kasei and others. PolymersNet works directly with the end users to supply innovative plastics solutions and materials to companies including Samsung Electronics, LG Electronics, Hyundai Motors, Hyundai Mobis, Mando (Siemens), and GM Daewoo.

(R) CBT is a Registered Trademark of Cyclics Corporation.