New technology for producing "fire standard compliant" (FSC) cigarettes. .

August 24, 2009 - Ecology Coatings, Inc., a leader in the discovery and development of nanotechnology-enabled, ultraviolet-curable advanced coatings, today announced that it has signed a collaboration agreement with a major tobacco company for the application of its technology for producing "fire standard compliant" (FSC) cigarettes. FSC cigarettes are designed to meet government reduced ignition propensity testing standards. Ecology has filed a patent application with the U.S. Patent and Trademark Office for its technology.

The agreement establishes the framework under which the two companies plan to test and commercialize FSC cigarettes using Ecology Coatings' unique paper coating technology. Milestone payments will be made to Ecology Coatings as predefined development and testing milestones are met. If those payments are met, royalty payments will commence with market introduction and product sales.

"The goal of our collaboration with this tobacco company is to meet government requirements for FSC cigarettes while at the same time allowing the manufacturer to produce at full production speeds," said Ecology Coatings CEO Bob Crockett. "Our solution has the potential to allow manufacturers to be self-reliant and eliminate the need for specialty paper. Our uniqueness resides in our ability to cure UV coatings at high speeds at substantial cost savings."

Crockett continued, "This application is an outgrowth of our patented disruptive paper barrier coating technologies. By designing the solution as part of the manufacturing process, manufacturers can reduce their costs. We believe this is an exciting opportunity that could be very rewarding to our company and its shareholders."

The Coalition for Fire-Safe Cigarettes reports that approximately 40 states in the U.S. and Washington, D.C., have passed legislation calling for the production of FSC cigarettes (http://firesafecigarettes.org/). The Coalition's goal is to save lives and prevent injuries due to cigarette-induced fires. The Coalition reports that 99.8 percent of the U.S. population is now or soon will be governed by state fire-safe cigarette legislation.

Market Size (2007): Five Trillion Cigarettes Produced Worldwide; 330 Billion Cigarettes Produced Within the U.S. (U.S. Department of Agriculture). Philip Morris USA, with approximately 50% of the US cigarette market, may have all fire-safe cigarettes by 1st half of 2010... R.J. Reynolds Tobacco has stated that it will start making all of its cigarettes fire-safe by the end of 2009. Reynolds makes up around 30% - one out if every three cigarettes of the domestic cigarette market.

Reference: Ecology Coatings Signs Development Agreement with Major U.S. Tobacco Company, PRnewswire.com, 8/24/2009.

Some related news briefs: Kansas - fire safe cigarettes as of July 1, 2009..; Philip Morris USA may have all fire-safe cigarettes by 1st half of 2010..; Arizona only fire-safe cigarettes sold starting August 1, 2009..; Indiana - fire-safe cigarettes - July 1, 2009..; Lives could be lost - Philip Morris refuses to set date to convert to fire-safe cigarettes..; http://snus-news.blogspot.com/2009/02/australia-wants-to-move-up-date-to-have.html; Australia - Victoria fires - arson thrown cigarette butt..; U.S.A. Fire-Safe Cigarettes for All 50 States - NOW..; USA States Self-extinguishing Cigarettes Becoming the Norm..; Dummies - Citizens Against Fire Safe Cigarettes..; Cigarettes “fire safe” in Minnesota as of December 1, 2008..; Fire - Safe Cigarettes for all 50 states - NOW.. and Switzerland could join EU requiring sale of only self-extinguishing cigarettes..

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