The IGR technology breakthrough is likely to create several new business opportunities that have been inaccessible due to limitations of the existing oxygen production technologies. An example of such a novel business opportunity is the manufacture of a vehicular source of "under-the-hood" oxygen to improve engine performance and to minimize harmful soot, carbon monoxide, and unburned hydrocarbon emissions from gasoline, natural gas, and diesel sources.

IGR's technology has a number of unique and proprietary features and advantages, which in appropriate oxygen markets make it superior to other oxygen generation techniques currently available or under development. The technology is modular and scalable thereby enabling a wide range of potential new businesses and devices based on this technology breakthrough.

IGR Enterprises, Inc. of Beachwood, Ohio is in the final stages of the pre-commercial development of its novel, solid-state electrochemical technology for oxygen generation. Oxygen is the third highest-volume chemical produced in the U.S. with an annual production of over 50 billion pounds. IGR expects the initial market penetration of this proprietary technology to occur within a term of roughly 12 to 18 months.

This innovative technology, when commercialized, will be only the third technology generally available and suitable for the production of pure (>95+%), commercial and medical oxygen. The two older commercial/medical oxygen production technologies are 1. Cryogenic liquefaction of air which was introduced in the 19th century, and 2. Air separation based on zeolite clays which was commercially introduced in 1971. IGR's oxygen generator technology is the first fundamentally new technology in this multibillion dollar market in the last 30 years.

The oxygen markets of immediate interest include: a. ambulatory, battery-operated medical oxygen, b."table-top" wall-powered medical oxygen, c. a range of disinfecting and sterilizing devices for medical, institutional, and residential use, and d. larger, industrial-scale oxygen plants.

Based on IGR's business analysis we expect the initial market penetration of the new technology to be an ambulatory, battery-operated, medical oxygen device for use by patients on long-term oxygen therapy. This will be closely followed by a 3-5 lpm "table-top" unit. Long-term oxygen therapy is beneficial for the treatment of chronic obstructive pulmonary disease, and several other hypoxemic conditions. These IGR technology devices will offer a safe, sterile, continuous oxygen supply as well as unencumbered mobility to the patient in a home medical care or non-hospital setting*. The technology is also very suitable for life support and emergency acute medical care in both the military and civilian sectors.

The ambulatory medical unit will compete with: a. existing small, high pressure, oxygen gas bottles, and b. small, portable, cryogenic (liquid) oxygen storage devices. The IGR unit will have a similar costing to the existing devices but will never run out of oxygen. The batteries in the IGR device will be similar to the batteries in a portable computer and may be recharged at home or in a vehicle, or may be exchanged for a fully charged battery pack where desired.

The table-top medical units will compete with existing oxygen concentrators based on zeolite beads. The IGR and zeolite units are expected to have similar costs, but the IGR unit will be smaller, lighter, quieter and more mobile.

* In 1994, the American Association for Respiratory Care estimated that 600,000-750,000 patients in the U.S. use home oxygen, with 90,000 new patients using oxygen each year.