FACT SHEET – March 16, 2005
Cyclics Plant – Schwarzheide, Germany

Company History

Cyclics Corporation was founded in April, 1999 to produce and sell unique, high-value plastic resin. It has been a development stage company to date, with research and development taking place at the world headquarters in Schenectady, New York, and a plant in Schwarzheide, Germany. Sales efforts have been ongoing in both the US and Europe, and more recently in Australasia and South Africa. Having generated significant customer interest, secured financial backing from KfW IPEX-Bank, and completed our first plant, we are becoming a commercial enterprise in 2005.

Schwarzheide Plant Financing

In June 2004, Cyclics Europe GmbH and KfW IPEX-Bank closed on a €59.4 Million project financing package to finance Cyclics Corporation’s first plant co-located with BASF Schwarzheide GmbH. The four main elements of the project finance are:

• KfW IPEX-Bank financing totaling € 30.2 Million

• Subsidies and grants totaling € 17.6 Million (50% of the plant’s construction costs)

• Equity from the from the US parent corporation totaling € 11.6 Million

• 80% deficiency guarantee of the Federal Republic of Germany & State of Brandenburg

KfW IPEX-Bank offers short, medium and long term export finance in Euro, US-Dollar and major currencies, complex structured and project finance, partly covered by European Export Credit Agencies, asset based financing, credit lines, corporate loans and factoring. It covers the business areas of industry, transport and infrastructure as well as telecommunications, raw materials, energy, environmental technology, aviation and shipping.

Plant Details

Plant Capacity by year:

● 2005: 2500 tons (approximately 5 Million lbs)

● 2006: 5000 tons (approximately 10 Million lbs)

Cyclics is leasing land for the plant from BASF Schwarzheide as well as purchasing utilities, raw materials, and other services.

Employment: 68 people today rising to 70 people soon.

Dimensions of plant approximately: 10,000 square meters

Dimensions of property approximately: 20,000 square meters

Intellectual Property

• Founded with the purchase of 48 patents from General Electric. 9 new patents issued, 41 pending worldwide and 4 disclosures ready with technological innovation continuing.

Customers

• Dow Automotive agreement signed in 2003 for long term rights to represent Cyclics to the automotive industry.

• Ahlstrom signed in 2004 for rights to represent Cyclics to the wind power and marine composites marketplaces.

• P-Group signed in 2004 to represent Cyclics for rotational molding in Europe among other marketplaces of interest.

o Signed agreements with the three above as well as Alcan Composites and Emerson & Cuming Composite Materials represent more than 50% of forecast volume in 2005 and 2006.

o Have letters of interest from 20 additional companies which would sell out over twice the capacity of the plant.

Past and Future Manufacturing

• Have toll produced over 30 tons (60,000 lbs) of material prior to opening of the Schwarzheide plant.

• Have begun site selection process for second plant, which will have 25,000 – 50,000 tons (approx. 50-100 Million lbs) annual capacity. Anticipate completion in 2009.

Capitalization

• Have raised over $17.6 million in equity and $9.5 million in convertible debt from private investors.

Corporate Media Contact: Tim Ullman +1 518.881.1411 tim.ullman@cyclics.com

Cyclics web site: www.cyclics.com

Reader enquiries

Cyclics Corporation
2135 Technology Drive
Schenectady, NY 12308
U.S.A.

+1 518 881 1440

www.cyclics.com