IET has developed and acquired extensive proprietary technology. This technology includes a variety of overall coordinated system and subsystem concepts, detailed engineering calculations and design features. Since the formation of the Company, a substantial amount of intellectual property has been developed in addition to the concepts that constituted the initial inventions licensed by the Company. The intellectual property developed since the founding of the Company constitutes the majority of the Company's proprietary property.

A total of 42 patents related to PEM™ technologies are owned by, licensed by, or have been assigned to, IET. In addition to these issued patents, IET has a number of patent applications pending in the U.S. Patent Office. Corresponding patent applications have been filed in certain key foreign markets. In addition to its patents, an extensive amount of proprietary intellectual property that has been developed is protected by trade secrets. IET continues its development of intellectual property. The initial inventors of much of IET's intellectual property were Dr. Daniel R. Cohn, Charles H. Titus and Jeffrey E. Surma. Mr. Titus, Dr. Cohn and Battelle Memorial Institute (Mr. Surma's employer at the time of invention) have granted an exclusive license allowing IET worldwide rights for development and commercialization of the initial patents. Development of new intellectual property will involve contributions by the initial inventors, as well as new members of IET's technical team. Detailed proprietary engineering designs for commercial systems have been completed.

In addition to the PEM™ system, IET has licensed patents and patent applications for two additional R & D 100 Award winning monitoring technologies that were developed at MIT by Charles Titus, Daniel Cohn, Jeffrey Surma, David Lamar and Paul Woskov. These technologies can enhance the capability of PEM™ systems and for certain applications. The first is a Continuous Temperature Monitor (1994 R & D 100 Award), which has the ability to take real time temperature measurements to over 10,000o C in smoky, hostile environments. This technology could allow for more accurate monitoring and control of the PEM™ operating conditions, which could allow more efficient and economic processing. The second technology is a Refractory Corrosion Monitor (R & D 100 Award), which is used to monitor the wear of the furnace lining in areas where a visual inspection would be impossible. This technology could allow for greater planning for scheduled maintenance shutdowns and overall operational reliability. Along with the two monitoring technologies, IET has licensed patents from MIT related to the use of plasma hydrogen production technology in systems using PEM™ technology. These systems can enhance PEM™ capability for environmentally attractive electrical power generation.

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