Battery Recycling Collaboration
05.15.07

Applied Intellectual Capital (AIC) is pleased to announce that it has begun
working in collaboration with OnTo Technology LLC to research and develop
technology to recycle advanced batteries used in hybrid and electric vehicles.
The contract was awarded to OnTo Technology by the Vehicle Recycling Partnership
of the United States Council for Automotive Research (USCAR). Set out below is
the announcement to be issued today by USCAR.

USCAR VRP CONTRACTS WITH 'ONTO TECHNOLOGY' TO ADVANCE HYBRID
AND ELECTRIC CAR BATTERY RECYCLING

BEND, Ore., May 14, 2007 - The United States Council for Automotive Research's
(USCAR) Vehicle Recycling Partnership (VRP), composed of DaimlerChrysler AG,
Ford Motor Company and General Motors Corporation, recently awarded a contract
to OnTo Technology LLC of Bend, Ore., to research and develop technology to
recycle advanced batteries used in hybrid and electric vehicles.

The research will involve two kinds of advanced battery chemistries -
nickel-metal hydride (NiMH) and lithium ion - and will examine the technical
feasibility of recycling these types of automotive batteries, based upon
laboratory scale experiments to evaluate the utility of materials produced from
various recycling processes. The results will be used to project the investment
necessary to adopt new recycling technologies in pilot scale operations.

"Hybrid electric vehicles require high power and energy advanced battery packs.
Because of these requirements, they are larger than the highly recycled lead
acid batteries found in conventional vehicles," said USCAR Executive Director
Don Walkowicz. "USCAR's Vehicle Recycling Partnership, representing the three
U.S. automakers, is working to get ahead of the curve by promoting new
technologies to recycle these batteries when hybrid vehicles reach their end of
life."

OnTo Technology develops new and clean processes to recycle advanced batteries
from consumer electronics. "We will use our technology to recycle HEV and EV
batteries," said Steven Sloop, founder and chief executive officer of OnTo
Technology LLC. The company has received support of the Oregon Department of
Energy to build a pilot plant in Bend, Ore.

"We recycle advanced batteries to recover micro and nanomaterials for reuse in
new batteries. It goes beyond the old smelting solution, where these valuable
materials are burned, and only the crude metal mixtures are recovered," Sloop
explained.

To maximize the recycling yield OnTo will work in collaboration with Applied
Intellectual Capital (AIC) of Emeryville, Calif. AIC's core expertise is in
electrochemical technology, nanomaterials and advanced separations.

"Our collaboration with OnTo is typical of our incubation strategy of providing
complementary expertise and resources toward developing a technology that has
immediate industrial application," said Stephen Clarke, chief executive officer
of AIC.The research is expected to conclude in six months.

About OnTo Technology LLC

OnTo develops technology for business sustainability. It uses green chemical
methods to provide products and services to the mobile power market. Advanced
batteries are the basis of both the mobile communication revolution and future
personal transportation. OnTo's expertise improves advanced battery
serviceability and recyclability. OnTo provides efficient recycling technology
that is fundamental for the continuing expansion of rechargeable battery
dependent markets - from cell phone communication to hybrid and electric cars.

About Applied Intellectual Capital

Applied Intellectual Capital funds, develops, patents and commercializes
electrochemical and advanced separations technologies in clean energy,
electricity storage, water treatment, metals recovery and other emerging
markets. It is, in essence, a technology incubator fund. However, unlike other
incubator funds, its unique business model enables AIC to move technologies from
idea to market rapidly - often in less than two years.

About the USCAR and the VRP

Founded in 1992, the United States Council for Automotive Research (USCAR) is
the umbrella organization for collaborative research among DaimlerChrysler, Ford
and General Motors. The goal of USCAR is to further strengthen the technology
base of the domestic auto industry through cooperative research and development.

The Vehicle Recycling Partnership (VRP) is part of USCAR, under which
DaimlerChrysler, Ford and GM cooperatively address shared technological and
environmental concerns related to sustainable and environmentally friendly
vehicle recycling practices.

FOR FURTHER INFORMATION PLEASE CONTACT

Applied Intellectual Capital
Dr. Stephen Clarke
Tel. +1 510 463 0211

Mirabaud Securities Limited
Tel. +44 (0) 20 7321 2508
Peter Krens

Nabarro Wells & Co. Limited
Tel. +44 (0) 20 7710 7400
Marc Cramsie
John Wilkes

Pelham Public Relations
Charles Vivian Tel. +44 (0) 20 7743 6672 / +44 (0)7977 297903
Archie Berens Tel. +44 (0) 20 7743 6679 / +44 (0)7802 442486