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http://www.jacksonville.com/tu-online/stories/031602/bus_8892746.html

Saturday, March 16, 2002

Last modified at 10:33 p.m. on Friday, March 15, 2002

Company seeks A3 Technologies

Reverse merger deal is on the table

By Earl s

Times-Union business writer

A local company that develops air filtration systems that kill harmful

microorganisms and biological warfare agents, including mold and anthrax, is

in the process of being bought by a Knoxville, Tenn., holding company.

Tennessee-based Tice Technology has an intent to acquire A3 Technologies of

Ponte Vedra Beach, said Forrester, chief commercial officer at A3

Technologies.

However, if the proposed deal occurs, A3 Technologies would keep its name

and remain in the area. The seven-person company at 814 N. Highway A1A would

take control of Tice in a so-called reverse merger.

For the deal to take place, Tice Technology would have to sell two of its

businesses, gain shareholder approval of a 10-for-1 reverse stock split and

get $6.5 million in private investment.

Yesterday, Tice officials did not return messages to discuss the deal.

A3 Technologies is 50 percent owned by Atmospheric Glow Technologies, a

research and development company based in Knoxville. Last year, the company

spun off A3 Technologies to test and bring the company's atmospheric plasma

technology from the concept phase to market.

So far, A3 Technologies has created two subsidiary companies, EPS and

PlasmaGen, which are the names of products it has created.

EPS, which is an acronym for Enhanced Plasma Sterilization Filter Systems,

is an air filtration system that will be tested later this month, Forrester

said. Such a system could be used in large warehouses and other buildings.

PlasmaGen focuses mainly on DNA preparation for nucleic acid research. This

application could be used in the study of genetics and forensics.

Traditionally, plasma, a high-temperature ionized gas, is made in a vacuum

with nonatmospheric gases, such as argon and compressed helium, which is

costly and time-consuming.

A3 Technologies' plasma production process can be done at room temperature,

Forrester said.

" The reason we have great potential is that the technology offers dramatic

improvements in cost, " he said. " It reduces the time that it takes to

prepare DNA for analysis from several hours to about 2 minutes and 15

seconds. "

" And from a scientific point of view, the kill rate is 99.9999 percent

efficient. Those four nines would not have much meaning to the average

person, but a scientist would understand that it has to do with logarithmic

math functions. "

The atmospheric plasma technology was developed by scientists at the

University of Tennessee. In January 2000, they formed Atmospheric Glow

Technologies.

Staff writer Earl s can be reached at (904) 359-4689 or via e-mail at

edaniels@....

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