Organic Metal for Corrosion Protection:
Chemische Werke Kluthe and Ormecon Chemie signed a Sales Cooperation Agreement

The Chemische Werke Kluthe GmbH (Heidelberg, Germany) and Ormecon Chemie GmbH & Co. KG (Ammersbek near Hamburg) agreed to cooperate in sales of CORRPASSIV^TM . Beginning 1^st of November, Kluthe will start to promote these new anti-corrosion coating systems produced by Ormecon. The sales will be concentrated first in Germany and tested, and will then be extended to other countries in Europe, where Kluthe is active.

Under the trade name CORRPASSIV^TM Ormecon is producing revolutionary corrosion protection coating systems. Their extraordinary performance is based on the Organic Metal also developed by Ormecon. After almost 20 years of fundamental research, this privately held company succeeded 1996 as the world's first one to commercialise an Organic Metal (chemically: poly-phenylenamine). Applications have been found in corrosion protection and in the manufacturing of printed circuit boards.

The Organic Metal protects against corrosion in comparison to conventional coatings much more efficiently. Due to its noble metallic character, it ennobles the surface of corrosive metals, additionally, it builds a permanent passivating oxide layer between primer and metal surface via a catalytic process.

During more than one year of internal tests, Kluthe became convinced of the outstanding performance of CORRPASSIV^TM . The practical success of Ormecon in industrial reference objects the first market success stories and also the scientific basis of Ormecon's corrosion research shows the future oriented concept of this basic innovation.

Kluthe GmbH was founded in 1950 and is operating today 5 production sites in Germany; it has subsidiaries and/or production facilities in the Netherlands, France, Austria, Spain and soon in Poland (altogether 9 factories). The Kluthe group has 600 employees, produces about 100.000 t of products including paints and coatings, and has a turnover of about 280 Million DM.

With more than 95 salesmen and technicians "on the road", Kluthe has a powerful sales organisation. For Ormecon, this contract is an important increase of their own sales activities and a significant breakthrough for the Organic Metal. The sales contract is actually non-exclusive. Existing sales channels are being respected by both partners. The new partners do not exclude that, in case of success, an even more intensive sales cooperation might be agreed upon.

Heidelberg / Ammersbek, Oct 30,. 98

Hans Kluthe Dr. Bernhard Weßling

(Chemische Werke Kluthe GmbH) (Ormecon Chemie)