James Eagan, Member of the Board of Directors

CEO William S. Robinson recently announced the appointment of James Eagan as the first outside member of Integral Technologies' Board of Directors. James Eagan will concentrate his efforts on commercializing our ElectriPlast™ technology and transforming Integral into a global company. In spite of his very busy schedule, James consented to being interviewed for the Company Corner.

Doug: Welcome to Integral Technologies and Company Corner, James . How did you first learn of ElectriPlast™?

James: I was introduced to Integral when I was Chief Marketing Officer of ORBCOMM 10 years ago. ORBCOMM was developing a tracking solution for Evergreen, a large Chinese shipping company, and needed an antenna that would fit onto its fleet of 75,000 container carrying trailers. Integral was developing its Plastenna™ technology back then and I thought it was an ideal fit. Unfortunately, I transferred to Australia and the Evergreen project didn’t get the same focus at ORBCOMM after I left.

Doug: What is it about the technology that interested you?

James: I was more attracted to the company than its technology, especially since I had a previous relationship with Integral. You don’t join a company and commit to help build a business solely because you’re interested in the technology. There are easier ways to play that, like buying ITKG shares, which I already own. I especially like Integral’s unique position of having one of the world’s largest IP portfolios of conductive material. From a business standpoint, you need an edge to compete, especially for a small company. ElectriPlast™ allows us to do that.

Doug: Very interesting, James. Thanks. And what about James Eagan? I am sure the shareholders would like to hear about your background.

James: Well, I grew up in Southern California and played all kinds of sports, but my favorite was playing varsity tennis throughout high school and being team captain in my senior year. As a youth, I watched the UCLA/USC football rivalry and had dreams of attending USC, but when it came down to it, I attended UCLA on a Navy ROTC scholarship majoring in economics. After graduation, I joined the Navy and served aboard USS Inchon for three years. The highlight of my tour was rescuing civilians from the US Embassy in Monrovia, Liberia in the early 1990’s during the Liberian civil war. During that operation, I was the ship’s Weapon’s Officer, and my job was to ensure all the Marine helicopters were fitted with the proper ordnance and the Marines conducting the rescue were well armed. The operation was successful, with no casualties. I still remember how tough those Marines were.

While I was in the Navy, I also worked in the Aegis shipbuilding program, my first opportunity to be part of a large production program comprised of government and commercial contractors. At any given time, we had five ships under construction 24/7 at the shipyards in Bath, ME and Pascagoula, MS. Each ship cost $500 - $700 million back then so you can quickly get the scope of the program.

I later joined ORBCOMM Global LP, the international satellite operator, and was responsible for developing their business in Asia and the Pacific. Unfortunately, the company was not able to weather the difficult market conditions of the 2000 time period and filed for Chapter 11. By that time I had developed relationships with ORBCOMM’s international licensees and we formed a group to acquire the assets from Chapter 11. We restructured the company, reduced the burn rate from $1.5M to less than $900K per month. We also repositioned the company to a low cost service provider. These actions saved the ORBCOMM business.

Doug: How do you think you can help Integral?

James: The company is in a transitional phase, from a company that was for a very long time focused on developing its IP, to one that is now commercializing the IP. This type of transition takes a different organizational structure and new skill sets. We are working to establish the right organization, looking at areas of weakness and ways to strengthen those weaknesses. We are doing that both internally and through discussions with our external partners.

In addition to the organizational effort, I want to explore business opportunities with some of the large companies I have worked with before, both here in the US and abroad.

Doug:..What do you see as some of the biggest challenges for Integral?

James: The biggest challenge people always think a company like Integral faces is its financial health. Clearly, it is always the 600-pound gorilla in the room. But in addition to focusing on our financial health, we need to have a long term focus on gaining market recognition, credibility and acceptance of our technology. In this kind of business we need to have a longer-term focus. I think in some areas we are making strides, especially in the automotive sector. We need to make similar progress in other verticals.

Doug: Thanks, James, for that very interesting perspective. We all look forward to you helping Integral to move to the next level: Unqualified commercial success.

Doug B.

CAFE Standards and ElectriPlast

For most, the word CAFE invokes images of coffee shops, lattes and espresso bars. However, since our forte is conductive resin pellets, not roasted coffee beans, you might wonder what does CAFE have to do with ElectriPlast? Plenty. CAFE, in the automobile industry, is the acronym for Corporate Average Fuel Economy.

In 1975, the US Congress, recognizing the need to conserve energy and increase fuel efficiency, directed the National Highway Traffic Safety Administration to regulate the automobile industry to ensure that manufacturers progressively increased fuel efficiency in their fleet. (The same congressional measure also gave the Environmental Protection Agency responsibility for calculating vehicle fuel efficiency.)

Since that time, an expanding field of automobile manufacturers have sought to meet the congressional mandate by producing compact, mid-sized and hybrid vehicles whose size and/or combustion systems have provided the weight reduction necessary to increase fuel efficiency and energy conservation. However, with the introduction of ElectriPlast, many automobile parts (battery covers, connectors, fuses, shielded plugs, etc.) can be replaced by ElectriPlast parts. Consequently, the switch will save fourteen pounds or more for shielding applications and greater weight savings in larger autos. Moreover, ElectriPlast parts will be less expensive for the Tier 1 supplier to manufacture and ship, cheaper for the motorcar manufacturer to buy, and easier on the consumer's budget because less weight equals better fuel efficiency. And that should keep the CAFE bean-counters in Washington happy.

In ElectriPlast, Integral Technologies has a revolutionary solution that reduces weight, increases, fuel economy, and conserves energy while helping the automobile industry meet the CAFE mandate. So, the next time your mind drifts to coffee shops, lattes and espresso bars, remember ElectriPlast and CAFE.

ElectriPlast is now on Facebook

ElectriPlast has just launched its Facebook page. Follow us through Facebook and you can receive our news updates directly to your Facebook page or mobile phone.

http://www.facebook.com/pages/ElectriPlast/167526249092

2 New Patents Awarded

The US Patent and Trademark Office recently awarded Integral another 2 patents based on our ElectriPlast technology. This now brings our total of approved patents t0 52.


Method to form vehicle component devices from conductive loaded resin-based materials

patft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=7,829,006.PN.&OS=PN/7,829,006&RS=PN/7,829,006


Low cost key actuators and other switching device actuators manufactured from conductive loaded resin-based materials

patft1.uspto.gov/netacgi/nph-Parser?Sect1=PTO1&Sect2=HITOFF&d=PALL&p=1&u=%2Fnetahtml%2FPTO%2Fsrchnum.htm&r=1&f=G&l=50&s1=7,829,807.PN.&OS=PN/7,829,807&RS=PN/7,829,807

Stock Quotes

The recent increase in trading volume in ITKG stock has spurred numerous inquiries about large spreads and apparent poor fills. Given the ITKG trading volume this week, we feel it is worth revisiting a topic we covered a few months ago in the Company Corner.

Over the last several months, several market makers, most notably Knight, have chosen not to publish their bid and ask on the OTCBB quotation system. Instead they are posting on the Pink Sheet OTC Market combo system. As a result, depending on who you get your quotes from, you may not be getting an accurate bid/ask. For example, Yahoo quotes only include the OTCBB quote system, which does not include Knight and several other market makers. So, if you use Yahoo for quotes, you are not receiving accurate information. I only mentioned Yahoo because it is widely used, but most quote systems are not currently reporting an accurate bid/ask. By the way, this applies to all OTCBB stocks, not just ITKG.

Until your quote system makes the appropriate changes to include both systems you can use www.otcmarkets.com which currently provides live bid/ask from both systems. The last trade on this system is delayed and the level 2 only includes the market makers from the Pink OTC Market.

It is important to note that most, but not all, trading desks operate using a consolidated system which takes in to account the best bid/ask from the two systems combined. It is possible though that a trading desk is not operating under a consolidated system which makes it possible for a market order to fill at a price other than the best bid/ask. To avoid this problem, it is best to use limit orders and avoid market orders.

Doug B.

Clarification of Recent Press Release

The 28 September 2010 press release, Integral Announces 6th License on ElectriPlast™, contained a typographical error in paragraph three. The last sentence in that paragraph should have read, "Integral has begun to manufacture the blends and anticipates that the pellets will be shipped by the end of September 2010."

The Progress of Mo

In the brief 13 months since Mo Zeidan and his team of electrical engineers and materials experts joined Integral, we have experienced steady and significant progress toward our goal of commercializing our proprietary ElectriPlast™ technology. During that time, Mo worked very closely with the independent laboratories that tested ElectriPlast™ and he subsequently published the 8 data sheets that have generated enthusiastic responses from many industries. Moreover, he established the Integral laboratory, which was instrumental in expediting the initial testing of numerous materials. As a result of the expertise Mo and his team brought to Integral, we have signed 3 additional licensing agreements in the last year. Also, Mo and his team have worked in concert with a licensee to perfect and advance our ElectriPlast™ wire technology.

Mo's vision and plan for the commercialization of ElectriPlast™ has enabled the company to develop strategies and focus on those markets which we can penetrate quickly. In this regard, Mo and his team of engineers and materials experts have provided expert guidance and solved many intricate problems, while serving as the end users' full-service support team at Integral as they began the switch to ElectriPlast™.

Mo's reputation within the industry has enabled us to develop significant relationships that would ordinarily take years to establish. Moreover, his past experience, sterling reputation and industry-wide relationships are proving to be invaluable to Integral. We look forward to more great things from Mo Zeidan and his dedicated team of experts in the coming year.