Solutions

Retro-reflectivity is defined as the efficient return of light back to the light source along the same light path. When driving at night, a STOP sign is reflecting the light that strikes it from the headlights of an approaching vehicle. The light is then returned or "retro-reflected" back to the source and subsequently the viewing lens of the drivers' eye. This event allows for the nighttime driver to identify and react from a much greater distance, rather than simply relying upon the headlights to eventually illuminate the object. Nearly everything that retro-reflects at night today relies upon reflective tape. While retro-reflective tape is an effective product that allows the everyday driver to identify and react to road signs and even small patches of highway guardrail delineators, it has never been able to address large and complex areas that require visibility at night. In addition, tape has several limiting factors that include:

Substrate Limitations - Tape relies upon basic adhesive to adhere to a substrate, usually aluminum. Aluminum is utilized because it does not rust like mild steel.

Adhesion Limitations - Tape has limits on what it can adhere to. For example, tape cannot be utilized on complex fabrications. It is mostly utilized on flat surfaces.

Durability Limitations - Retro-reflective tape has a limited life span, due to the fact that the basic polymer utilized in most all tape is not UV stabilized. In other words, sunlight causes the molecules in the tape to become unstable and fade.

Cost Limitations Retro-reflective tape is extremely expensive

It is precisely because of these factors above that the nighttime visibility arena is prime for an advance in retro-reflective technology. " There really has never been any type of retro-reflective coating for simple or complex fabrications available on the market that I have heard of." Paul J. Carlson, Ph.D., P.E. Division Head - Operations and Design Division Retro-Reflective Studies TTI (Texas Transportation Institute) Texas A&M University.

Halo Technology A Breakthrough in Retro Reflective Coatings In 2003, the founders of Halo were awarded United States utility patent that has been assigned to the Company. The Halo patent covers the complete process for forming a retro-reflective layer utilizing the powder coating process and includes any retro-reflective surface that is achieved via the process of powder coating. The world of coatings is broadly divided into two types: liquid coatings (paints) and powder coatings. Powder coatings are more durable, efficient and environmentally friendly than liquid coatings. "The use of powder coating techniques for coating and coloring the exposed surfaces of finished articles has increased in recent years, taking the place of traditional painting and dipping techniques. Powder coating techniques offer numerous advantages over conventional coating processes utilizing paint, lacquer or other solvent-based carriers

Advantages

A first, and perhaps the most important advantage, is the fact that powder coatings are applied without the use of solvents, thereby greatly reducing the amount of polluting volatile organic compounds released into the atmosphere. This allows the coating industry to meet ever increasingly strict environmental regulations and worker safety concerns easily and inexpensively. This aspect of powder coating, along with the fact that excess powder spray can be collected for reuse, also reduces the cost of disposal of potentially hazardous and flammable waste. Also, powder coating provides the most durable, and corrosion resistant coating available on the market of paints/coating today." - Finishing Today magazine

Since the awarding of its patent in 2003, Halo has spent the last 5 years perfecting, testing and scaling up its process to allow for nearly any substrate (ferrous/non-ferrous metals, wood, glass, plastic, etc.) to be coated in a high volume production atmosphere. Halo technology produces a coating that has superior corrosion resistance and abrasion durability, supreme adhesive characteristics, and that retro reflects and exceeds the reflectivity of Engineered Grade Tape.

Halo Coatings Focused on Major Market Opportunities Halo's breakthrough in retro reflective technology means the nighttime viewable landscape and the nighttime appearance of any product, from guardrails, street signposts, fire safety systems, cable barrier systems, bicycles, architectural design, fishing, etc is about to
change dramatically and for the better. For the first time ever, guardrails become life saving contiguous lines of visible light at night; children's bicycles appear any color in the daytime and light up a bright and luminous white at night; the black trim of yellow school buses can light up to protect its occupants from side impact at night and marketers can extend their brand message to safety as they double the frequency of impressions of their logos and product silhouettes with visibility at night. Halo management is focused on the highway safety and transportation markets to drive initial revenues and has successfully introduced Halo Powder Coatings to industry leaders in each of these two multi-billion dollar markets:

1. The Highway Safety Market The Highway Safety market utilizes specifications from the U.S. Department of Transportation (USDOT) in order to standardize products that are to be used on the highways. Up until now, there has been little standardization in the field of retro-reflectivity. Thanks to the retro-reflective tape manufacturers lobbying, there is now, for the first time, legislation in the works for 2009 that will mandate reflectivity on a standardized basis for guardrails.

The Federal Government's new focus on nighttime reflectivity could not have arrived at a better time for the Company. Halo will be able to meet all federal mandates for the Highway Safety market, but also for the inevitable and subsequent focus for children's bicycles, trucks and trailers, and construction equipment. Halo is entering the highly regulated world of highway safety with key industry leaders as market partners, specifically in the areas of:

The Japanese Ministry of Highway- Halo has initiated talks with the Japanese Ministry of Highway and leading manufacturers in Japan and Taiwan re: bringing Halo products to the Pacific Rim.

A number of school bus makers in the US and abroad

Two motorcycle companies and distributors

Many transportation industry leaders

Leading Safety transportation manufacturers and officials

Fire & Police Chiefs

Many city commissioners