Flexpoint’s Technology Yields New Applications

DRAPER, Utah--Flexpoint Sensor Systems Inc. (OTCBB:FLXT) today announced the company has been working both internally and with potential customers to develop new applications for its Bend Sensor^® Technology. The company wanted to inform the market on recent significant events as well as discuss the expansion of its product line.

Flexpoint has designed a number of sensors for the automotive industry which provides the largest revenue potential for the company. Among a number of applications, two separate technologies are currently in advanced development: the Pedestrian Impact Detection System and a Seat Belt Reminder System or SBR. The SBR is an additional application of the company’s technology.

Four separate automotive suppliers and OEMs are at various stages of testing the Pedestrian Impact Detection System. On June 13^th, 2006 Flexpoint announced a Joint Development Agreement with Faurecia, Europe’s second largest automotive supplier, to advance the development of the Pedestrian System.

“Since this announcement the company has been working with Faurecia and its engineers to finalize the testing,” stated CEO Clark Mower. “The testing requirement has taken longer then we originally anticipated because the Pedestrian Safety Requirements are new for the automotive industry and that, combined with the unique Bend Sensor^® technology, has required us to develop new testing protocols which exceed all standards that previously existed. Being compelled to go through all this redundant testing has not only proven to the marketplace the significance of our technology but validates the true potential of our sensors and has spurred the development of new applications.”

One of the applications of our technology that was spawned from this testing is the Seat Belt Reminder, a sensor which alerts the occupant to fasten their seat belt upon entering the vehicles seat. The company is currently working with multiple manufacturers to potentially replace existing devices in the marketplace with a system that is superior in performance and will be at a lower price point. Because this sensor replaces existing technology the implementation phase is significantly reduced.

Flexpoint has received renewed interest in the Occupant Classification System from a Tier 1 supplier. The OCS is an array of sensors placed in the seat of an automobile to classify the weight and position of the occupant. The system can differentiate between a large adult, a smaller adult, a child, an infant seat, or detect bags or items placed on the seat. By identifying the size and position of the occupant, the system can adjust the deployment of the airbag so it will not impact an adult in the same manner as a child.

Flexpoint is working with two Tier 1 Suppliers on an updated version of its horn switch. This system places sensors in the steering wheel to activate the horn control upon pressure on any part of the steering wheel’s surface. There are a series of problems with current horn switches and airbag systems in the marketplace that Flexpoint believes they can solve using its Bend Sensor^® technology. Due to recent changes in the industry, including new safety standards, the company has seen renewed interest from suppliers for this system. Currently, the company is working to adapt its horn switch to the specification of an auto manufacturer’s. The horn switch has been vigorously tested over the years but the company discovered the system was too far advanced for the marketplace.

The company has also developed a number of sensors for the Medical Industry, including sensors for a medical bed mattress. The sensors in the medical bed detect movement and body position on the surface of the air chambers in the mattress. The sensors can monitor if a patient has moved within a given period of time and can detect an increase in pressure on any given area of the body. Once pressure is detected the bed can make slight adjustments to help in the comfort of the patient, or relieve pressure from an area of recent injury, surgery, or trauma. The bed can also be used to increase and decrease pressures, helping to eliminate the formation of bed sores, and assist in the “rolling” of the patient to aid in patient treatment and care.

On September 28^th, 2005 Flexpoint announced a contract with R&D Products to supply sensors for the medical bed mattress.

This contract remains a viable agreement. Due to the advanced nature of this technology the medical community has been hesitant to purchase these mattresses in any quantities until insurance companies adopt standards for the industry. R&D has worked diligently with industry leaders to set these standards. R&D believes these standards are close to being accepted which will pave the way for new sales. Flexpoint continues to work with R&D products and other 3^rd party bed suppliers.

A commercial application for the bed is also being developed. A prototype of the commercial version of the bed is in the final stages of testing in preparation for R&D to begin marketing to commercial distributors.

Flexpoint also has an expanding line of commercial and industrial applications:

Vibration Detection Sensors can be installed in rotating or spinning equipment to detect when the equipment begins to wear or becomes out of alignment which induces vibration.

Flow Sensors measure the presence or amount of liquid flow in a pipe or other similar apparatus. The direction and/or amount of liquid flow can be determined and monitored at all times. The company expects this product to go to market in the next 3-6 months. Flexpoint is also working with a number of other customers who are interested in measuring fluid flow in a wide variety of environments. The current market for this type of device exceeds $400 Million dollars annually worldwide.

Safety Switch allows for the shutdown of equipment and/or machinery when it detects a foreign object entering into the operating or safety zone. The unique single layer design allows the Bend Sensor^® to be molded into rubber or plastic materials. As the rubber is deflected, it also bends our sensor. As the resistance level increases above the desired threshold, the piece of equipment is automatically shut off. The company is working with a manufacturer of lawn mowers for incorporation of the Bend Sensor^® into their product.

Touch Control is a sensor that is placed on a control panel, and either acts as an on/off switch or allows values of specified equipment to be changed with the touch of a finger. Flexpoint is working with a major manufacturer to incorporate the sensor into a product they are developing for a significant client.

Humidity Sensors detect and measure changes in humidity. Some of the advantages of the Flexpoint humidity sensor are: lower cost, ease of manufacture, and flexibility of design form. The company is collaborating with a prominent manufacturer in the development and refinement of the sensor, which Flexpoint expects to soon be marketing.

Building Security-The Bend Sensor^® can be configured and printed into relatively large arrays or mats that can be placed at the entrances of buildings. The mats then monitor or identify the type of traffic entering and exiting of the building. The thin nature of the substrate will allow the sensors to be laminated into carpets or door mats, making the sensor inconspicuous. The uniqueness of the sensor mat is that it is a single layer and does not need secondary or tertiary layers to function. Because of this they can provide a high level of reliability and durability.

Counting Switch is a very basic application of the Bend Sensor^®. The sensor can be set up to count any number of items in various processes. This can range from counting boxes coming through an assembly line to counting actuations on a life cycling machine.

Ricochet Development uses the sensor to count paint balls as they drop down from the hopper which resides atop the paint ball gun. Each time the paint ball drops from the hopper down into the gun, the counter counts down by one. The display shows the individual how many paint balls they have left in the hopper at any given time.

Toy Sensor-Flexpoint is also working with a major toy manufacturer to incorporate the Bend Sensor^® into a product they are developing for a client. The sensor is incorporated into the toy and allows the toy to give various programmed responses, in reaction to the touch. This gives the toy a more realistic, or humanistic character. Flexpoint has a history of success within the toy industry.

“As you can see we have a diversified and extensive line of Bend Sensors applications that are in various stages of development. The majority of the sensors we have mentioned, which are among numerous applications being developed with a third party manufacturer or in conjunction with suppliers who can expedite the technology to market,” commented Flexpoint’s CEO Clark Mower.

Mr. Mower continued, “We are working very diligently on developing new products and we are taking a new approach in the way we communicate these events to the investing and financial community. Moving forward you will see regular communication from the company. We have been working on a number of contracts but due to the uniqueness of our technology the testing phase has taken longer then we had anticipated. We want to ensure our shareholders that we continue to make great progress in realizing significant relationships and contracts that will build the financial success of the company and its future.”

Flexpoint Sensor Systems, Inc.

Manufacturers a patented cutting edge flexible sensor, that has also proven to be an extremely durable switch. The single layer Bend Sensor® product allows for the measurement of mechanical movement, air flow, water flow or even vibration. It can be used as a range of motion sensor, or as a durable, & reliable switch in most harsh environments. Flexpoint serves numerous industries including automotive, medical, industrial controls & more.