DuPont to Acquire Majority Interest in Magellan Systems International

WILMINGTON, Del. and RICHMOND, Va.,  April 04, 2005  —  DuPont and Magellan Systems International today announced that they have signed definitive agreements under which DuPont will increase its equity interest in Magellan. Financial terms of the agreements were not disclosed.

Magellan – an eight-year-old company with research and development facilities and a pilot manufacturing site located in Richmond – has been working with DuPont Advanced Fiber Systems (AFS), which also is based in Richmond, to develop M5®, an ultra high-strength performance fiber. As a next generation material in protective applications, M5® contains unique attributes of strength, stiffness, and resistance to high temperatures. While still under development, the material has a range of potential uses to enhance protection of military, law enforcement, fire fighters and industrial workers, and also to address high-performance industrial applications.

DuPont is a leading innovator of high-performance materials, including the widely recognized DuPont™ Kevlar® and Nomex® brand fibers. Kevlar® is five times stronger than steel on an equal weight basis – providing unique strength, performance, and light weight properties. Its balance of unique attributes allows a broad range of applications from ballistic vests to cut-resistant gloves. Nomex® has inherently flame-resistant properties combined with unique textile, chemical and electrical properties.

"With our established Kevlar® and Nomex® advanced fibers widely recognized for their unique properties, the addition of M5® will complement and extend DuPont's current portfolio of safety and protection innovations and capabilities," said William J. Harvey, vice president and general manager – DuPont Advanced Fiber Systems. "The addition of M5® will further DuPont's development of innovative technologies to enhance protection against a growing range of threats to meet our customers' emerging needs. We have been working with Magellan for several years on a pilot initiative. Today's announcement is an important step in our joint development and commercialization of this innovative fiber. Our work with Magellan and the development of M5® fiber is a great example of DuPont's strategy to 'put science to work' – by providing innovative solutions to enhance safety and protection in our world today."

"While working with DuPont during the past two years on this project, we have been extremely impressed by DuPont's technical expertise and dedication to the development of Magellan's M5® fiber," said Gene Vetter, Magellan's chief executive officer. "We can't imagine how we would have made as much progress, as quickly as we have, without DuPont's assistance. This arrangement will make it possible to accelerate the commercialization of this amazing new fiber, and I firmly believe that with DuPont's leadership, Armed Services personnel, fire fighters and police forces will see it a lot faster than we could have provided it to them on our own – and that's what counts."

DuPont is a leading innovator in ballistic, thermal, and chem-bio personal protection materials. Earlier this year, DuPont announced that its latest innovation relating to Kevlar® fiber – Kevlar® Comfort XLT™ technology – has been used to develop a new ballistic vest to protect agents of the U.S. Customs and Border Protection Border Patrol. Emerging applications for Nomex® fiber include innovative turnout gear for firefighters and emergency personnel, industrial filters, electrical insulation materials, and fire-resistant racing gear for professional automotive drivers.

Magellan Systems International, LLC was formed in 1997 to seek, capture and provide paradigm-breaking technologies to the defense and industrial market sectors. Magellan acquired the M5® patents, intellectual property rights and equipment from its original European developer in 2000, and subsequently moved its M5® research and development operation to Richmond, Va., in 2002. Since the time Magellan acquired this technology, it has worked very closely with the United States Army, Natick Soldier Center, on projects to demonstrate the impressive ballistics protection potential of this material. In December 2004, Magellan completed construction of its 30,000 square foot state-of-the-art M5® fiber production plant, also in Richmond.

DuPont AFS is part of the DuPont Safety & Protection platform. The DuPont Safety & Protection platform is focused on finding solutions to help protect people, property, operations and the environment. The platform seeks to leverage and expand over 200 years of DuPont experience as one of the safest companies in the world with recognized excellence in science and technology and in-depth knowledge of key markets.

DuPont is a science company. Founded in 1802, DuPont puts science to work by creating sustainable solutions essential to a better, safer, healthier life for people everywhere. Operating in more than 70 countries, DuPont offers a wide range of innovative products and services for markets including agriculture, nutrition, electronics, communications, safety and protection, home and construction, transportation and apparel.

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04/04/05

The DuPont Oval, DuPont™, The miracles of science™, Kevlar® and Nomex® are registered trademarks or trademarks of DuPont or its affiliates. M5® is a registered trademark of Magellan Systems International, LLC.