US Global Nanospace Inc (USGA)

[stakddek]

<><><> PRESS RELEASE FROM USGA <><><>


Press Release Source: US Global Nanospace


US Global Nanospace, Inc. Investor Update
Tuesday February 3, 2:52 am ET


CARSON CITY, NV--(MARKET WIRE)--Feb 2, 2004 -- US Global Nanospace, Inc. (OTC BB: USGA) today released the following investor update.

A third party recently published misrepresentations regarding US Global Nanospace in what we consider to be a malicious effort to temporarily discredit our company for short-term financial gain. We believe this effort was perpetrated by a coordinated group comprised of a website that circulates negative information about publicly traded companies to its paying subscribers in advance of releasing the information publicly and certain internet chat board posters. We have contacted and requested assistance from applicable law enforcement and government agencies to bring the perpetrators to justice and have provided information for them to do this. US Global is among many other corporate victims that these people have attacked and we are now preparing to begin a dialogue with these companies to form a coalition against such further attacks.

We have received significant support from many of you and thank you for your confidence in us. We assure you that we are exploring all our legal remedies against the perpetrators of this malicious act and we will not rest until the company and its stockholders have been made whole.

We realize that the complex nature of our materials and technologies can be confusing and sometimes misunderstood. In our continuing attempt to clarify our technological achievements and challenges, we have updated our website at www.usgn.com so you may continue to make informed investment decisions regarding the company.

Specifically, we have listed information regarding patents and provisional patent applications licensed to or owned by US Global Nanospace below and on our website at www.usgn.com/pats.pdf. Also, supplemental information about our All-Clear decontamination foam and historical notes about our Enhanced Security Cockpit Door program follows the patent information below.


NanoFilterCX
US P* Patent Application 60/481,111 filed July 21, 2003.
International patent filed with a priority date of July 21, 2003.

NanoFilter
US Patents utilized per Patent/License agreement on file:
5,368,635 issued November 29, 1994
5,540,761 issued July 30, 1996
5,647,890 issued July 15, 1997
5,855,653 issued January 5, 1999
Plus all respective international patents.

All-Clear
US Patent Application utilized per Patent/License Agreement on file:
2003/0109017 Filed June 12, 2003

Ballistic Impact resistant Nano-denier fiberous Woven sheet
US P* Patent Application 60/327,684 filed 10-6-01
Intl Patent Application PCT/US 02/12241, 4/15/2002

Anti-ballistic, lightweight Secure cockpit door
US P* Patent Application 60/349,988 filed 1-23-02
Intl Patent Application PCT/US 02/12055, 4/15/2002

Anti-ballistic, wide Angle peep-hole viewer
US P* Patent Application 60/349,990 filed 1-23-02
Intl Patent Application PCT/US 02/12053, 4/15/2002

Security Cockpit door; Integrally vented, pressure Equalized
Intl Patent Application PCT/US 02/12054, 4/15/2002

S.A.G. Turret
US P* Patent Application 60/481,080 filed 7-11-2003
P* - Provisional


All-Clear and EPA Regulation

US Global Nanospace recently provided a "tech-brief" to the Technology Support Working Group (TSWG), a group that supports technology for use by the military in the fight against various forms of terrorism. Providing tools to mitigate the threat of chemical and biological warfare (CBW) agents is one of the TSWG's goals. The TSWG had posted USGN's tech brief at www.tswg.gov, but removed the brief after a couple of days. The TSWG removed the tech brief pending our response to its request that we provide a clearer description of the capability of All-Clear and that we provide language that explains how the Environmental Protection Agency (EPA) regulates biocides under the Federal Insecticide Fungicide and Rodenticide Act (FIFRA). The EPA enforces FIRFA by classifying biocides and reviewing related company claims and instructions for product use. In order to register a biocide for sale and use within the U.S., the EPA requires that these products be proven as a sterilant via the AOAC Sporicidal Test. The EPA then determines whether the biocide should be granted emergency exemptions to remediate potentially contaminated areas. The EPA believes this to be the best way to ensure efficacy based on company claims and address biological weapons threats. It must be kept in mind that CBW agents are a relatively new threat to U.S. soil, and that the excessive toxicity and hazardous nature of previously used CBW decontamination solutions used by the military present ecological and corrosive challenges that the EPA must consider in balance with other U.S. regulations. We provided a revised tech brief to the TSWG for re-posting on its website and it is reviewing final language to comply with the EPA's request for labeling and suggested use of our All-Clear product.



It is important to further explain the specifics of the AOAC Sporicidal Test and how this test relates to testing All-Clear against anthrax. All-Clear has been tested at IIT Research Institue (IITRI), a biosafety level 3 laboratory (BSL 3) in Chicago, Illinois. As a BSL 3 lab, IITRI is approved to accomplish validation testing of products against actual strains of anthrax as well as actual chemical weapons agents. The testing at IITRI has shown that within sixty minutes, All-Clear is extremely effective in killing bacillus anthracis and in destroying G-type nerve agent. However, as stated above, the EPA standard for registration of a biocide as a sterilant is the AOAC Sporocidal Test, using two surrogates to bacillus anthracis -- bacillus subtilis and clostridium sporogenes. This provides the EPA with a means to test solutions against similar, but less hazardous spore forming organisms like bacillus anthracis in a safer environment. A lab following EPA-recognized protocol will be utilizing the AOAC Sporicidal Test, which will take approximately six weeks from this date to complete.

Thus, the TSWG's request for additional language in our tech brief should not be regarded as an indication that All-Clear is not effective against Anthrax. The IITRI testing has shown that it is. However, until the EPA develops a testing protocol that specifically uses strains of bacillus anthracis, they will rely on the historically used benchmark provided by the AOAC test. For this reason, we believe that the IITRI testing that shows effectiveness of All-Clear against the real threat is the most important point of this discussion. That said, the AOAC protocol is part of the effort to fully register All-Clear, and we continue to work with the EPA so that this can be accomplished.

As an aside, and reminder, All-Clear is not only a biocide in the specific remediation of Anthrax, but also is a chemical weapons remediation tool as supported by the IITRI testing. If there were to be an attack (and hopefully before such), we remain confident that All-Clear can be deployed as an effective chemical weapon clean up tool, which would be outside of EPA regulation under FIFRA, but would comply with ecological concerns, as the components of All-Clear were, from the start, chosen to be non-toxic and environmentally friendly.



All-Clear and Mitigation of Mad Cow Disease

Our detractors have mocked the use of our All-Clear product for BSE, or "mad cow disease". We recognize BSE is a serious disease in its link to vCJD (variant Cruetzfeldt-Jakob Disease), which is lethal in humans, and its large potential to damage the beef industries in the U.S. and abroad. We would like to reiterate that we do believe that "All-Clear" can be expanded to include remediation of agro-terrorism or pesticide threats and to mitigate other livestock or agricultural risk from diseases such as Mad Cow (BSE), hoof and mouth or bacterial wilt. Until an effective preventative solution for this and other such threats to our society are effectively developed we will continue to strive for solutions to minimize ongoing environmental contamination.

The following excerpts (with links provided) state that the infectious nature of transmissible spongiform encephalopathies (TSE), including Mad Cow Disease, is still under debate. If a viral agent is indeed part of the not-yet-fully-understood reproduction of prions, which are recognized as the key causal agent of TSE's, it is possible that All-Clear can be of use in the mitigation of threats from Mad Cow disease. Despite the irreverent way the third party has referred to the use of All-Clear in mitigating BSE, the point is made that it is not reasonable that All-Clear is ready to be used as an internal medicine to treat TSE. Obviously, such use would be quite a length of time away (probably years), and would need extensive FDA study and review. On the other hand, processing and disposal of BSE infected meat remains an issue, and the Food Safety and Inspection Service department of the USDA wants less corrosive, less toxic sanitation methods (see reference below). So, we think it is indeed wise and fair to offer that All-Clear deserves review if expansion of the formula can help mitigate a threat that so far isn't completely understood. This is not only true in that All-Clear can be an effective virucide, but also in that the chemical weapons remediation component of All-Clear may have significant promise in disrupting prion activity. As stated, the testing and proof of this would depend in part on the determination of the severity of the threat that BSE places on our economy and health, and the immediacy of placing safeguards within the system.


From The British Medical Bulletin, 2003

"Introduction to the transmissible spongiform encephalopathies or prion diseases,"[by] Chesebro B., Laboratory of Persistent Viral Diseases, Rocky Mountain Laboratories, National Institutes of Allergy and Infectious Diseases, Hamilton, Montana 59840, USA.


Sheep scrapie has been known for at least 200 years and was described as a
transmissible disease over 100 years ago. Since then, three groups of
transmissible spongiform encephalopathies or TSE diseases have been
identified in humans including familial, infectious and sporadic types. The
discovery of the prion protein (PrP) in the 1980s greatly accelerated
knowledge of the biology and pathogenesis of TSE diseases as this protein
was found to play a critical role in disease susceptibility and the TSE
species-barrier and may also be a component of the infectious agent itself.
Nevertheless, the nature of the TSE agents remains an enigma. Proof of the
protein-only hypothesis may require generation of biologically active
transmissible agent in a cell-free environment where a virus cannot
replicate. Conversely, proof of a viral aetiology will require
identification and isolation of a candidate virus. Further understanding of
the structure of the disease-associated protease-resistant PrP should help
elucidate the mechanism of PrP conversion from the normal to the abnormal
form. Such information should open up new approaches to both diagnosis and
therapy.

From http://www.gao.gov/new.items/d02183.pdf


The prion hypothesis is not universally accepted. Some scientists believe a
virus or other conventional agent, as yet undetected, gives rise to
TSEs.

From http://www.sciencemag.org/feature/data/prusiner/214.shl


Key questions remain, however. "The most important bit of information has
yet to come forward: What triggers the normal cell protein to transform
into the [disease-causing] isotype of the protein?" says Clarence Gibbs, a
virologist at the National Institute of Neurological Disorders and Stroke
and a longtime colleague of Gajdusek. (Prusiner addresses part of that
question on page 245, where he suggests that a possible missing element,
dubbed protein X, might help chaperone the PrP protein into its infectious
shape.) And no one has been able to inject a prion protein synthesized in
the test tube--and therefore free of any possible contaminating virus or
other nucleic acid--into a healthy animal and make it sick." says Laura
Manuelidis, a neuropathologist at Yale University who has argued that a
virus or other particle is involved. Prusiner acknowledges that there are
still many uncertainties. "There are all these other experiments that
should be done," he says. "I want to know more about all these
details."

From http://www.fsis.usda.gov/OA/topics/BSE_Thinking.pdf


FSIS believes that it would be prudent to develop methods that could
prevent the CWD [Chronic Wasting Disease] agent from contaminating
equipment used to slaughter livestock subject to mandatory Federal
inspection. The agents that cause BSE, CWD, and other TSE's are highly
resistant to heat, ultra violet light, ionizing radiation, and common
disinfectants and FSIS is not aware of any practical methods that could be
used to sanitize equipment that has been contaminated with a TSE agent.
Certain sanitation measures, such as treatment with sodium hypochlorite
(20,000 ppm of available chlorine) and treatment with hot 2N sodium
hydroxide solution for one hour, appear to be effective. But these
sanitation methods are harsh on equipment and can be hazardous. FSIS is
interested in receiving any scientifically based information on this
subject.



The Guardian Cockpit Security Door

US Global Nanospace's Guardian Door was in our opinion a technological success, although for the reasons we will summarize below, it has not been a commercial success for the company. For those of you who are uncertain of the facts regarding our Guardian Door, we would like to reiterate that this enhanced cockpit security door contained unique technological features that provided, in the opinion of the Israeli Services Protection and Security Division, a superior level of security to the cockpit and its crew. In fact, it was the only door to pass their tests, which actually include a real blast test, not one simulated by a shot from a 9mm like that of the FAA. We initially teamed with Raytheon, which later became L-3 via acquisition. Raytheon/L-3 was an ideal partner at the time because in addition to having a large work force (approximately 500 at that time) available for the project, they were also an FAA Designated Alteration Station (DAS), which gave them the authority to issue a Supplemental Type Certificate (STC). Many of the quotes that have been made in reference to our development schedule and projections were based on the working partnership with Raytheon/L3.

However, due to the high profile nature of this project for the Federal Aviation Administration (FAA), and the fact that FAA understanding of the security issue and design criteria changed frequently, the FAA decided that no DAS would be allowed to issue an STC for cockpit doors and that consequently final approval authority for all modifications would remain within the FAA offices.

These events led the company to focus on the air cargo carriers, which represented a significant niche market that was not being vigorously pursued by the OEM's. In an April 2003 Memorandum the FAA granted regulatory relief to the all-cargo transport category airplanes (document # FAA-2001-10770) effectively exempting them from the enhanced security cockpit door requirement. At this turn of events, the company reluctantly accepted this fate and recognized that in the process of developing the Guardian Door we had created several innovations that on their own have been the foundation of new products with very large market potential.

Conclusion

During the past 12 months we have released details about new products and technologies about which we remain optimistic, and we continue to work in areas where we believe the capacity for innovation exists. We are especially optimistic about disruptive technologies that have the potential to radically change the way problems are solved, whether by dramatically increasing product effectiveness, or delivering savings in cost or energy. In closing, we ask that you question the source of allegations against us, consider the underlying motives of those making such allegations, and give us the opportunity to clarify any misconceptions, before reaching any conclusions. We remain committed to our mission and truly appreciate those who support us.

About US Global Nanospace

US Global Nanospace, Inc. (OTC BB: USGA) is an applied nanotechnology company focused on developing products for commercial and defense applications to enhance and save lives. US Global's materials and products include G-Lam, G-Lam-C, NanoFilters, NanoFilterCX, All-Clear Chem/Bio Decon Foam, S.A.G. Turrets, GARDS HumVee Doors, BlastX, G-Armor and RadomeX. More info is available at http://www.usgn.com.


Contact:
Contact:
Rich Schineller
973.960.6962
[e-mail]

------------------------------------------------------------
Source: US Global Nanospace
++++++++++++++++++++++++++++++++++++++++++

Stakddek