CurAegis Technologies Inc (fka CRGS)

[Torvecian]

There is a new CEO update out today....

It appears that things are moving along nicely....

http://torvec.com/messagefromceo052107.htm

Message from the CEO
May 21, 2007

I want to share with you some interesting news concerning the projects we told you about at our annual shareholders meeting in January.

Recently, a major U.S. manufacturer furnished us with a purchase order for approximately $100,000 to acquire several constant velocity joints. The manufacturer intends to incorporate the CVJs in a new vehicle design to enable it to land a new production contract.

We have also been informed by NASA that the space agency will be providing us with a purchase order in the near future to build and incorporate several electrically modified transmissions and IsoTorque differentials in its lunar rover for that agency’s planned return to the moon. The estimated amount of the order exceeds $200,000.

You will recall that we provided NASA with a model of our transmission in January to test its suitability for the lunar rover. NASA’s decision to move forward to acquire several transmissions and IsoTorque differentials is a tribute to the quality of our technology and the next logical step in our working relationship.

Last year, we shared with you that we had shipped an IsoTorque differential to a Nissan-affiliated racing team. We have since shipped Isotorque differentials to a number of additional racing teams to demonstrate its high performance capability and durability. This is a well established approach used by automotive industry executives to “vet” new technology.

I want to quote from a letter sent to us last week from one of these teams:

Nissan gave us the 350z in hope of developing it to the point of winning the manufacturers title at the Run-Offs.

We have been winning with the Z consistently, but have been having problems with the Nismo diff. We were having to change the fluid out constantly because of the amount of heat generated was cooking the fluid. It was always pushing fluid out the vent and after just a handful of weekends, the diff expired. This past weekend we ran at Laguna Seca in a SCCA regional event just to test the car and go after the track record. We broke the track record in our class last month at Thunderhill Raceway and I then set the goal of going after the record at all the west coast tracks that we run. We had never run the car at Laguna before. The track record was a 1.43.50 held by another competitor. We immediately were going faster than the track record and our driver had good things to say about how the IsoTorque diff worked. During practice we ran an unofficial time of 1.41.80 and in qualifying we were fighting a lot of slower traffic but still managed to break the track record with an official time of 1.42.30. The car has more left in it, we did not do any chassis tuning at the track and were running on use tires from a previous race weekend.

Our driver says the diff really feels good. The Nismo unit always felt like the car was bound-up and in a binding situation causing the car to go into a “loose” condition when the power was applied. The IsoTorque makes the car feel free and gives our driver the ability to really put the power down. I am anxious to go to a track that we have run before with the old diff so we can directly compare how much quicker our lap times are.

We will be running the car for a few more west coast National races in order to qualify to get invited to the Run-Off’s held at the end of the season in Topeka. Like I told you on the phone, I already have a few of these units sold to fellow Z racers once you go into production.

While we are not surprised by the update, we, of course, are very pleased the team shared its experience with us. In this regard, even if you can guess the identity of the team, please do not contact or pester team members with your calls or emails. These teams do not like to be bothered, are very protective when it comes to sharing information on technologies which give them a competitive advantage and eventually refuse to provide companies such as Torvec with ongoing information if they feel harassed.

Obviously, we prefer to keep the lines of communication open with our racing teams and share with you all that we can. So, let’s all respect the confidential nature of the relationship. Otherwise, we will not be able to share such interesting news with you.

This is the first in a series of CEO Updates describing recent events about your company. In the next Update, I will describe the progress we are making with the City of Chicago, the Chinese and our school bus program. And, please remember, just because I am not mentioning a given project does not mean that the project has been abandoned. We are moving forward on all fronts with all our technologies (yes, including the FTV) and I will share with you what I can share, when I can share it.

Sincerely,

James Gleasman
CEO