KVA, Inc. / 124 S. Market Place, Suite 200 / Escondido, CA U.S.A. (760) phone (760) fax WELD

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KVA, Inc. / 124 S. Market Place, Suite 200 / Escondido, CA. 92029 U.S.A. (760) 489-5821 phone (760) 489-5823 fax 1-888-410-WELD www.kvastainless.com About KVA, Inc.: Located in southern California, KVA, Incorporated is a growing R&D venture focused on developing and promoting uses for low-cost advanced high strength martensitic stainless alloys. KVA's technical staff, with a combined 60 years experience in thermal processing, metallurgy, automated welding, brazing and mechanical design, have developed numerous proprietary and patent-pending processing and manufacturing methods to enable the use of high-strength, lightweight, corrosion-resistant, hardened stainless steel components throughout industry. KVA s president, Mr. Ed McCrink, founded Hi-Temp, Inc. in 1953 and grew the company to become one of the largest processors of martensitic stainless steels in North America. Since successfully selling the Hi-Temp, Inc. plants in the 1970 s, he has continuously pursued his vision of utilizing commonly available martensitic stainless steels to reduce weight and increase strength in structures. KVA s research and development efforts, privately funded by Mr. McCrink, are dedicated to developing, educating and licensing intellectual property regarding martensitic stainless processing, automated welding and production heat-treating to arrive at cost-effective, superior mechanical and structural solutions. As the charts and tables below indicate, the superior mechanical properties of KVA martensitic stainless allows for significant weight savings and/or stronger components. Comparison of Ultimate Tensile Strengths 1400 UTS - MPa 1200 1000 800 600 400 200 0 Mg alloy AZ91D Al alloy 2024-T3 stainless type 304 low alloy steel Ti alloy Ti6Al4V KVA stainless - 1 -

density E UTS Specific modulus specific strength cost index specific cost index g/cm 3 GPa MPa GPa/g/cm 3 MPa/g/cm 3 cost/weight (low alloy steel=1) cost/volume (low alloy steel=1) Mg alloy AZ91D Al alloy 2024-T3 Stainless type 304 low alloy steel Ti alloy Ti6Al4V KVA stainless 1.80 45 234 25.00 130.0 4.25 0.97 2.80 72 345 25.71 123.2 3.75 1.34 8.00 193 621 24.13 77.63 3.05 3.11 7.85 206 880 26.24 112.1 1.00 1.00 4.49 121.5 1000 27.06 222.7 20.00 11.44 7.74 200 1400 25.84 180.9 2.40 2.37 Mechanical Properties and Costs of common engineering metals compared to KVA martensitic stainless technology While martensitic stainless alloys cost more per-pound than low alloy mild steels, designs using KVA technology are easily capable of weight savings far exceeding traditional costly highperformance engineering metals, such as aluminum and magnesium alloys. In fact, parts designed with KVA stainless achieve weight reductions rivaling those using titanium alloys, but at a mere 1/5 th of the cost. relative weight: optimized part material cost: optimized part Mg alloy AZ91D 86% 366% Al alloy 2024-T3 91% 341% Stainless type 304 144% 440% low alloy steel 100% 100% Ti alloy Ti6Al4V 50% 1007% KVA stainless 62% 164% Component Relative Weights and Costs vs. low alloy steel (strength based-design) - 2 -

Component Weight strength-based design (relative to low alloy steel) 140% 120% 100% 80% 60% 40% 20% 0% Mg alloy AZ91D Al alloy 2024-T3 stainless type 304 low alloy steel Ti alloy Ti6Al4V KVA stainless Component Cost strength-based design (relative to low alloy steel) 1000% 800% 600% 400% 200% 0% Mg alloy AZ91D Al alloy 2024-T3 stainless type 304 low alloy steel Ti alloy Ti6Al4V KVA stainless The important thing to note about the above charts is as follows: When a steel part is redesigned to take advantage of a high performance engineering material, namely to reduce weight while maintaining current strength levels, a part redesigned with KVA technology utilizing martensitic stainless steel can achieve a significant weight reduction and cost much less than other lightweight metals. - 3 -

A key benefit of KVA technology is the ease of forming complex part geometries. The material can be readily formed in its softer, annealed state, with low force, low cost tooling. Once the desired geometry is created, the parts can be heat-treated to a high-strength condition with lowcost thermal processing methods. typical annealed Yield Strength: 300 MPa Tensile Strength: 530 MPa elongation: 30% min typical hardened Yield Strength: 1030 MPa Tensile Strength: 1350 MPa elongation: 8-10% KVA s technology has overcome the conventional limitations of high-speed welding airhardenable martensitic stainless steels. Previous difficulties, such as cold-cracking of the weld zone under mechanical straining and forming, have been eliminated. The following images demonstrate the improved weld-seam properties, from a macro-level to the microstructural level, that KVA processing enables. Conventional processing Weld seam cracking KVA processing Improved performance Stainless seam-welded tubing: Conventionally processed and KVA processed - 4 -

1mm Seam-welded tubing microhardness test profile Hardness spacing: 100 microns, load 500g Seam-welded tubing microhardness test profile Conventionally processed, KVA processed, Hardened It is important to note that KVA seam-weld technology effectively reduces the hardness of the weld, in both the fusion zone and the heat-affected zone. This reduction in hardness, and associated improvements in ductility, toughness and formability, allows air-hardenable martensitic stainless steels to be used in welded applications historically considered impractical. In addition, KVA seam-weld technology does not limit the part from fully transforming into a homogenous, uniform microstructure after a solution heat-treatment. The base metal, heataffected zone and fusion zone all reach uniform properties after hardening. - 5 -

Photomicrographs (30x magnification) of Seam-welded martensitic stainless tubing From top: Conventionally processed, KVA processed, Hardened - 6 -

KVA stainless steels are ideal substitutes for boron-treated steels in hot stamping operations, or alternatively can be thermally processed with efficient, high throughput continuous furnaces or induction methods. The unique air-hardening property of KVA stainless allows for simultaneous hardening and brazing to be performed, with minimum distortion due to the slow cooling rates involved. The result is that martensitic stainless steels can now be used in a wide variety of structural applications, without significant cost increases. Ideal applications for KVA technology include: Automotive structures Aviation structures Bridge structures Sports equipment Bicycle frames Our efforts thus far have been concentrated on reducing weight - typically achieving a 30 to 45% mass reduction while maintaining or exceeding current strength levels - in automotive applications. We have been received very well and have completed several successful prototype fabrication and testing trials with better-than-expected mechanical, environmental and cost performance. Sample KVA high-strength automotive prototypes - 7 -

Sample KVA high-strength bumper beam automotive prototype Ideal applications of KVA tubular/shelled welded martensitic structures in the automotive industry include: Removable chassis components (bumper beams, frame crossmembers, suspension control arms, subframes, etc.) Safety/Intrusion management components (side impact beams, roof bows, roof rails, B-pillars, etc.) Entire chassis frame rails Fuel/hydraulic lines Fuel injection rails Vehicle seat frames and supports Vehicle accessories (tow hooks, racks, running boards, etc.) In summary, KVA has developed proprietary methods to produce welded and brazed tubular forms, stamped and shelled structures, using martensitic corrosion-resistant steels. High strength structural shapes can now be integrated into high performance structural assemblies to reduce weight, increase strength and stiffness, without significant cost increases. Entire assemblies can be heat treated to uniform microstructures and hardness/strength levels tailored to the individual application. Tensile strengths in excess of 200 ksi (1400 MPa) are capable from simple low-cost, air-hardening quench processes. Excellent mechanical properties, including specific strength and stiffness, toughness and fatigue performance, in addition to corrosion-resistance, can be achieved using martensitic stainless steels in place of other materials. KVA is interested in aggressively pursuing production and licensing agreements to arrive at costeffective, superior mechanical and structural solutions. If you would like more information, technical or otherwise, please contact us to further discuss KVA s enabling technologies. - 8 -