Battelle and Unidym Inc. Form an Alliance Focused on the Use of Carbon Nanotubes in Composites

Unidym, Inc., a majority-owned subsidiary of Arrowhead Research Corporation (NASDAQ:ARWR), and Battelle have extended their existing relationship to include an alliance focused on multi-functional nanocomposites for aerospace and transportation applications. Under the alliance the companies will collaborate with aerospace and automotive companies, and their composite materials suppliers, which require carbon nanotube formulated coatings, sealants, adhesives and load-bearing composites. Research has shown that carbon nanotubes enhance these materials through higher strength-to-weight ratios, corrosion resistance, toughness, dampening and/or multi-functional electrical properties, such as electrostatic dissipation, EMI/RFI shielding and electrical conductivity. "Unidym and Battelle have both been approached by customers with strong interests in seeing carbon nanotubes introduced into composite materials,” noted Art Swift, Unidym’s president and CEO. "For some time now we have supplied sample quantities of nanotubes to a variety of composite materials suppliers and their industrial customers. By aligning with Battelle, we are now able to leverage each other’s complementary strengths for the benefit of our customers.” "Battelle and Unidym have capabilities to advance the development and commercialization of high performance composite materials,” said Carl Kohrt, Battelle’s President and CEO. "We have performed years of research into various applications of carbon nanotubes. Combining our experience with Unidym’s materials manufacturing capabilities and foundational patent portfolio provides our clients with an opportunity to accelerate the use of carbon nanotubes in nanocomposite material formulation and fabrication.” The companies have combined resources in this way to jointly approach manufacturers and material suppliers in order to discuss the application of current research, gather specific customer requirements for high performance composite materials and present a licensing program for their intellectual property portfolios. Both companies have seen significant industrial interest in applications such as high performance carbon nanotube enhanced carbon fiber composites, carbon nanotube based thermoplastic nanocomposites that can be injection molded, and thermoset nanocomposites that can be fabricated with various resin transfer molding (RTM) processes and through the compression molding of nanostructured sheet molding compound (SMC) formulations. In addition to the market interest seen by both Battelle and Unidym, significant academic research has been under way in the area of carbon nanotube enhanced composites. In his article in the February 15th 2008 issue of Science (Vol. 319), after briefly covering the significant findings of his group’s recent research in this field, Professor Satish Kumar of the Georgia Institute of Technology states that "Potential applications of carbon nanotube fibers will thus be those requiring high strength and stiffness in tension, high energy absorption, and electrical and thermal conductivity. The low density of these fibers would provide further weight savings.” In the same article, Professor Kumar goes on to conclude "Next generation carbon fibers used for structural composites will thus likely be processed not from polyacrylonitrile alone but from its composites with carbon nanotubes.” About Battelle Battelle is the world’s largest non-profit independent research and development organization, providing innovative solutions to the world’s most pressing needs through its four global businesses: Laboratory Management, National Security, Energy Science and Technology, and Health and Life Sciences. It advances scientific discovery and application by conducting $4 billion in global R&D annually through contract research, laboratory management and technology commercialization. Headquartered in Columbus, Ohio, Battelle oversees 20,400 employees in more than 120 locations worldwide, including seven national laboratories which Battelle manages or co-manages for the U.S. Department of Energy and the U.S. Department of Homeland Security. Battelle also is one of the nation’s leading charitable trusts focusing on societal and economic impact and actively supporting and promoting science and math education. For more information visit www.battelle.org or contact Media Relations Manager Katy Delaney at 410-306-8638 or at delaneyk@battelle.org. About Unidym, Inc. Unidym is a leader in the manufacture and application of carbon nanotubes (CNTs), a novel material with extraordinary electrical, thermal, and mechanical properties. Unidym provides bulk materials, CNT-enabled products, and intellectual property to a wide range of customers and business partners. As a result of its recent merger with CNI, Unidym possesses a foundational patent portfolio that covers nearly every aspect of CNT manufacturing and processing as well as multiple product applications. Unidym is focused on the electronics industry where its initial products include transparent electrodes for touch screens, flat panel displays, solar cells, and solid state lighting; electrodes for fuel cells; and thin film transistors for printable electronics. Unidym is also pursuing an aggressive, cross-industry partnership strategy to capture value from the wide ranging uses of CNTs. Unidym’s licensing program, technical expertise and manufacturing facilities can enable partners to rapidly develop CNT solutions for their specific applications. Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. These statements are based upon our current expectations and speak only as of the date hereof. Our actual results may differ materially and adversely from those expressed in any forward-looking statements as a result of various factors and uncertainties, including the future success of our scientific studies, our ability to successfully develop products, rapid technological change in our markets, changes in demand for our future products, legislative, regulatory and competitive developments and general economic conditions. Arrowhead Research Corporation’s Annual Report on Form 10-K and 10-K/A, recent and forthcoming Quarterly Reports on Form 10-Q and 10-Q/A, recent Current Reports on Forms 8-K and 8-K/A, our Registration Statements on Form S-3, and other SEC filings discuss some of the important risk factors that may affect our business, results of operations and financial condition. We undertake no obligation to revise or update publicly any forward-looking statements for any reason.