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Comtek develops and applies innovative technology to create new, lower cost products and services. Our typical solution combines materials, design and process innovation so that we can produce a similar or better product at a lower cost compared with the current best-of-breed product in production. We also look for new opportunities for the use of composites, particularly in the replacement of conventional metal structures in system component applications. Besides the advantage of low cost composite production, our recent R&D activities have confirmed the significant potential for the use of composites in higher temperature environments than have previously been practical - an application of great interest to engine manufacturers, among others.

Since its inception, Comtek has invested many millions of dollars in research and development. In recent years, the company has invested heavily in technology development, at a level representing 15-20% of gross sales. The company has been successful in obtaining Canadian government support for research and development programs, typically through the IRAP and TPC programs that are managed by the National Research Council (NRC) and Industry Canada. Available SR&ED tax credits have been fully utilized as well. The company is now well-positioned to capitalize on this investment by applying its proprietary technology to innovative product development and licensing opportunities. We intend to protect the innovative aspects of our technology development by patent, with the first of several patent applications having been submitted..

Another key aspect of technology development and its application is the use of automation, information technology and advanced manufacturing techniques to reduce costs in the infrastructure of the business and in costs of sale for both manufacturing and repair activities. The use of computer simulations in design, analysis, and process development are key tools in which the company has developed significant expertise.

World class R&D work has been performed in collaboration with the NRC Institute for Aerospace Research (NRC-IAR) and selected Canadian universities (e.g., McGill University, University of British Columbia, University of Waterloo, McMaster University). The company is continuing to work with university centers of excellence to push forward the frontiers of its proprietary technology.

While Comtek's foundations are certainly in the aerospace and defense marketplace, we see ourselves not only as an aerospace company but as an advanced technology composites company with aerospace application. We see immediate and exciting opportunities to apply our technology in other industry sectors outside of aerospace, either directly or through licensing agreements.

With an established US presence in Phoenix, Arizona, Comtek is actively exploring additional opportunities in the US aerospace and defense market.