Equipment News & Updates for September 2007

Despite the absence of a newsletter of late, things are moving along at Aqua. Our intent is to publish our updates in a more timely manner so you will know how things are going. Sometimes they don't move as fast as we would like and sometimes they don't move in the direction we want, but things are happening. Lee lives a very harried life, and most of us don't see how he manages to keep so many balls in the air at one time, but he is doing a remarkable job. He spends a lot of time on the road between here and Albany, GA, Atlanta, GA, Knoxville, TN, and Tampa, FL.

The following information is presented here to bring you up to date with some of the happenings at Aqua. We are not going into a lot of detail because not everything has been nailed down yet. One of our early stockholders told us several years ago, “Tell us what is going on every month or so and it’s okay to tell us bad news.” So, this report is just the high spots of where we are:

Patents Filed
We filed our patents last month. It was decided to file four US patents and one catch-all international patent called a PCT (Patent Cooperation Treaty). We can now say patent pending on our platelets.

Houston Calling
A plastic company in Houston that makes high-end plastics is ready to meet with Lee. They appear willing to run some tests with our stuff on their nickel. Lee is trying to get a meeting date set up.

Pending New Discharge Requirement Shows “Power” Potential
Our electricity provider is Gulf Power, a member of Southern Co. There are new requirements for cleaning the discharge from coal fired generators coming and, of course, Lee thinks we have a solution to their problems. We have some guys doing some preliminary testing, and they agree with Lee. We don't yet know where this is going and will not speculate on it now. We will also try not spend too much time on it just yet. However, like a lot of other things we have looked at, it has great potential. 

Aqua Passes Fire Retardant Test
A company in Tampa wanted a small sample to test on their product to pass a required fire retardant test. Lee took a sample down and they rubbed some of our stuff in to their woven material and tested the fire retardant characteristics. The requirement was for the material to quit burning after 30 seconds. The best they had been able to accomplish was over 30 seconds. With our material, a test sample met the required 30 seconds with time to spare and they are trying to figure out how to put our material in their testing units. Some of our other researchers are trying to put our stuff in fiber and the Tampa guys will build their units with the fiber and test them. A lot of things have to work to make this happen.

New Cell Construction to Begin Soon
All of the parts have been ordered for our new cell and construction should be starting soon. It will probably take at least two months for the cells to arrive and be installed in our plant.

Improved Centrifuge Fix in the Works
Centra-Sep says they have a handle on our improved centrifuge and should begin construction on the fix for our unit next week. If all goes well, it will probably take six to eight weeks for the fix to arrive at our plant.

Body Armor Snag
We have run into a snag with the bureaucracy over the testing for the body armor. Lee is working on a solution and hopes to have it clarified soon. Some things take longer than others.

Paper Update
We are in discussions with a company about putting some of our platelets in the paper making world. We hope to have an update for you in the next newsletter.

Precipitator Problem
The small precipitator unit we were using in our plant died last week and the plant guys are trying to resurrect the old one as it will probably be another two months before the new one gets here. 

Annual Meeting Planned for November
We look forward to seeing everyone at the Annual Meeting which this year will take place on November 16th. Details on the Annual Meeting will be published on the website as well as mailed out to shareholders.

That’s it for this issue!