An anonymous director reports

ZECOTEK PROVIDES CORPORATE UPDATE ON 3D TECHNOLOGY DIVISION

Zecotek Photonics Inc. is providing shareholders with a corporate update on its path to commercialize its leading-edge 3-D display and 3-D printing technologies. The company was founded with a vision to grow shareholder value by commercializing photonic technologies that offer both superior performance and economic advantages over competing technologies. Zecotek's internationally patented 3-D auto-stereoscopic full-high-definition display monitor and patent pending 3-D metal printer provide substantial business opportunities for the robust and inevitable future markets based on 3-D technologies.

3-D display technologies

Zecotek's internationally patented technology is the only system that provides four key attributes required for commercial 3-D display systems:

1. No glasses required;
2. Significant depth;
3. Full high definition;
4. Continuous multiple views with parallax effect.

The commercial system must also include design considerations and cost flexibility to cater to both industrial and consumer markets alike.

The past four years have shown that the consumer electronics market overpromised and underdelivered the technology necessary to be successful on a consumer basis. Products like 3-D TV required the consumer to wear glasses to trick the eyes to see 3-D, and content providers were slow to develop quality content. This has led to negative market sentiment toward 3-D displays and little new development.

While Zecotek's 3-D display technology meets commercial requirements, the original design relies on a time-sharing approach that demands speed and uses a digital light projector with digital micromirrors. As a consequence, the company's first 3-D design is based on back projection. Fast technologies are being developed as an alternative to the DLP, and Zecotek will incorporate technologies such as fast OLED/LED to create a display that will offer a flat-screen configuration for the consumer market at large. This is expected to happen over the next three years. Meanwhile, the high-end and specialized industrial, scientific, advertising and desktop gaming applications remain the focus of the company and offer the most immediate commercialization opportunities, using the present DLP-based design.

The company is currently integrating real-time streaming to its 3-D display technology. This is scheduled to be completed by the third quarter of calendar 2015. A prototype will be built and the technology transferred to the product phase immediately after.

In July, 2014, Zecotek announced an LOI with the Russian government conglomerate, Aquarius. Due to external political reasons, the negotiations were put on hold. However, alternative efforts have taken place since, and the company is now finalizing joint agreements to transfer the technology with full financing and transition to a final product with developers and manufacturers working with high-end customers in well-defined specialized markets. The company expects to inform shareholders about this joint collaboration in the third quarter of calendar 2015.

3-D printer technologies

Zecotek and its strategic Armenian partners, the Institute of Chemical Physics and LT-Pyrkal, have developed a unique manufacturing technology for metal powders to be used with 3-D printers. The new manufacturing approach uses metal hydrides synthesis and has significant advantages over traditional techniques. These include high productivity, superior quality of synthesized hydride, significantly lower energy consumption, ecological purity and safety of the process, among other key functional parameters.

The uniqueness of the 3-D printing technology lies in the original hydride alloy powders and the printer engineering. Whereas the industry is mainly using 3-D printers for non-metal applications as well as specifically for prototyping, the company's new approach is in the use of the 3-D printer for the actual rapid manufacturing of metallic components for the industry at large, therefore replacing traditional production.

A working prototype of the high-speed 3-D printer is being assembled and is scheduled for third-quarter calendar 2015. A number of key technical challenges have been solved, and the new 3-D printer will be used for prototyping and distributed manufacturing with specific applications in electronics, aerospace, automotive, mechanical and health care industries.

Concurrently, Zecotek has been in discussions with two of the world's largest 3-D companies to explore joint commercial opportunities. The companies are testing Zecotek's 3-D printing technology, and the results of negotiations will be announced within the next three months.

Zecotek operates each of its divisions as autonomous entities, each with its own independent value proposition, therefore providing for flexible exit strategies to give shareholders optimum return on investment in a timely manner.

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