sales and distribution agreement with ITOCHU Plastics
The below news I think will be a turning point for the share price.
January 12, 2009
The Manager
Company Announcements Office
Australian Stock Exchange Limited
Dear Sir / Madam
· Lighting Pioneer BluGlass signs Exclusive distribution agreement with
Japanese company, ITOCHU Plastics Inc.
Energy efficient lighting pioneer BluGlass Ltd (ASX code: BLG) has signed a sales and distribution agreement with ITOCHU Plastics Inc (CIPS), a wholly-owned subsidiary of one of Japan’s oldest
and largest trading companies, Tokyo-based Itochu Corporation. CIPS has won the sole rights to
market BluGlass’s unique Australian-bred LED manufacturing technology in Japan.
“This is a breakthrough in the commercialisation of our next generation lighting technology,” said
BluGlass chief executive officer Mr Giles Bourne. “We have been talking to CIPS, since August and
they, together with BluGlass, have successfully introduced BluGlass technology to the Japanese
market.
The BluGlass technology allows the production of gallium nitride based (GaN) semiconductor
wafers considerably cheaper than existing processes. GaN based wafers are used in high
performance LED general lighting devices for use in homes, offices and factories that are
considerably more energy efficient than traditional incandescent or fluorescent bulbs and tubes.
Executives from CIPS visited BluGlass’s pilot manufacturing plant in late December before the
distribution deal was signed “CIPS’ highly skilled sales team will promote the RPCVD technology
with equipment to demonstrate the core competencies of both companies in GaN based
semiconductor wafer business for the Japanese LED market,” stated Yamamoto, General Manager
of CIPS. “BluGlass’ technology and equipment are a perfect complement to those that CIPS
already delivers to the Japanese LED market, as well as enabling expansion of CIPS sales
products, materials for LED, to leading edge GaN LED applications, “ Yamamoto added.
Mr Bourne said the agreement was an important milestone and BluGlass will be seeking to set up
similar agreements in different markets around the world. He said that it indicated that the company
was progressing well on its long-stated plan to commercialise the GaN technology, which was
developed by scientists at Sydney’s Macquarie University.
“Our ultimate plan is to sell our semiconductor manufacturing equipment to the Japanese market
through Itochu,” Mr Bourne said. “That would involve payments for the plant equipment and also
ongoing licensing fees. We are also hoping to negotiate strategic collaborations with Japanese
corporations so that we can further develop uses for our technology.”
About Itochu
ITOCHU Plastic Inc. (CIPS) is a trading arm of Itochu Corporation and specialises in importing and
exporting materials for electronic devices, packaging, industrial materials and synthetic resin
materials. Its annual sales are 230 billion yen ($A3.5billion). Itochu Corporation has operated since
1858, since which it has established many trading, operating and investments businesses. Its
shares trade on the Tokyo Stock Exchange, it has paid-up capital of 202 billion yen ($A3.3 billion)
and total assets of 5,800 billion yen ($A93.5 billion).
About BluGlass
BluGlass is commercialising a unique Australian-bred manufacturing technology known as Remote
Plasma Chemical Vapour Deposition (RPCVD) to reduce the cost of Gallium Nitride (GaN) semiconductor
wafers. GaN wafers are a core component of high brightness light emitting diodes
(LEDs) for which there is a US$4 billion market, expected to treble to US$12 billion by 2012.
Applications for these LEDs include use in mobile appliances, signs/displays, automotive, signals
and illumination. BluGlass’s breakthrough in low cost manufacture of GaN could allow LEDs into
mass markets such as the US$100 billion general lighting market currently dominated by
incandescent and fluorescent lights. LEDs will slash carbon emissions and green house gas
emissions from electricity generation because they are 4-5 times more energy efficient than
incandescent bulbs and last up to 50 times longer.
Contact information
Giles Bourne, Chief Executive Officer, BluGlass 02 9334 2300
Alan Deans, Last Word Corporate Communications 0427 490 992
Mark Furness, Last Word Corporate Communications 0419 275 504