NDIA 6TH ANNUAL DISRUPTIVE TECHNOLOGIES CONFERENCE Washington DC October 14 15, 2009

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NDIA 6TH ANNUAL DISRUPTIVE TECHNOLOGIES CONFERENCE Washington DC October 14 15, 2009 simply better protection! Title: NEW PACKAGING AS A CLUTTER REDUCTION METHOD Keith Donaldson Director of Research & Development Intercept Technology Group www.libertypackaging.com www.staticintercept.com Joe Spitz Sales & Marketing Intercept Technology Group 1

Intercept Technology Clutter comes in many forms How to get it safely across the ocean? How to protect without oil? How to locate something packed in a barrier material? Obsolete but not driven? How to prevent failure in a circuit in traditional ESD packaging after 6 weeks in India 2

Clutter Caused by dis-organizational issues Caused by excessive packaging Caused by the use of non-recyclable packaging Caused by the use of packaging that cannot be opened and re-sealed in the field, resulting in waste, in-efficiencies and creation of lost parts and debris (scrap) Caused by obsolete parts and field failures Caused by thick layers of regulations that have not allowed for flexibility, change or streamlining 3

Packaging and De-Cluttering Environmental Concerns Minimization of Packaging Effectiveness of Packaging Impact of RoHS and other legislation Restriction of Hazardous Substances (RoHS) TRGS Legislation in Germany / Europe Need for more robust Packaging i.e. Active barriers instead of passive ones Need to look for new technologies, new developments 4

Environmental Impacts 3 R s Reduce / Re-Use / Re-Cycle Carbon Footprint RoHS and environmental legislation in Europe Increase in air pollution worldwide putting more stress on products, many already compromised by RoHS restrictions Recycability versus landfills Equally important is to develop / push re-usable packaging to reduce overall packaging needs 5

An aerial view of the Worsening Worldwide Corrosion Issue 6

Global Economy - Atmosphere If one visits Mount Hood in Oregon one can see that the snow on the side of the mountain facing China has grey shade while the east side is bright white James Brenzel The Economists Sept 30th, 2006 Industrial Economies make it difficult to ship or store electronics or equipment 7

A better alternative? 8

Environmental Impacts Reactive versus Passive Barrier We need to demand more from our packaging Current Mil B-131 bags are passive barriers Changes in packaging, such as the Intercept Technology, provide reactive barriers, actively providing protection Intercept Technology goes even farther, providing more than a 50% reduction in carbon footprint over a mil 131 bag Additionally, Mil-131 bags are not recyclable, leading to increased landfill usage and more clutter in military settings 9

Intercept Technology INTERCEPT INTERCEPT TECHNOLOGY TM INTERCEPT was developed and patented by Lucent Technologies and Bell Laboratories in 1987. Highly surface area copper particles are permanently reacted into a plastic matrix and then allowed to react with all corrosive gases as they try to penetrate the film or bag. The Technology was designed to protect all materials under all environmental conditions equally. The material is volatile free so no increase in VOC loading and is not a VCI. 10

US Army TACOM (Tank Command) EVALUATION OF INTERCEPT BARRIER MATERIAL FOR MILITARY PACKAGING SALT-FOG Test Data Comparison <<<<< Days of protection against corrosion >>>>>>> Intercept VCI MIL-PRF-131 Metal coupon Poly Poly Foil / Poly 4-mil 4-mil 5-mil Steel 102 28 62 Aluminum 130 59 91 Brass 130 28 91 Zinc 97 59 77 Sam Sakar - 8th Annual Government/Industry Shelf-life Symposium, October 29-31, 2002 Kansas City, Missouri 11

Re-Usability Equally, if not more important than recycling is to be able to reuse a packaging material and/or be able to re-seal it (close it) in the field. Foil bags (mil 131) require RH below 37%, so they cannot be re-sealed easily in the field, it would require additional desiccant and vacuum sealing equipment Also, cannot read RF signals through foil Intercept can easily be re-taped in the field Re-using reduces the overall packaging material, while providing the ability to decrease clutter. Intercept is designed for 5 to 10 years or more of protection / easily allowing for re-use applications 12

Examples of Re-Use Small components to large dunnage systems can be reused, reducing cost and clutter Fuel injectors small vacuum formed tray that took a corrosion critical part from 300% inspection to 200% and one way packaging to over 3 years use with no failures Engine block bags for shipments between continents and storage 13

Examples of Re-Use A NIPHLE Packaging Award winner Intercept was used to line the crates to ship the armored plated cabs to the Middle East, the same crate was then used to return the old, non-plated cabs. No Rust / No Failures 14

Reduce The ultimate goal of packaging is to reduce the amount of it, or to reduce the amount of additional materials required to get our products / materials safely to their destination. Advanced shrink films can allow a reduction in crating required. Effective shrinkwrap allowing safe deck top shipping 15

Over 120,000 Parts packed 0 Rejects 16

Weaving Machine traveling between Germany and Russia sat outside for 3 months after 8 10 week sea shipment. Arrived in perfect condition. Quick Pack Method: -Place 4 mil oversize bottom sheet on pallet -Place equipment on bottom sheet -Place pre-made bag over equipment -Bring up excess bottom sheet and securely tape around the whole item overlap the bottom sheet and bag by 6 inches -Can evacuate for better performance -May add desiccant if going overseas 17

Intercept Technology Intercept Technology 1. Green Packaging Recyclable / Re-usable / Sustainable 2. Permanent ESD protection long term Corrosion protection 3. No contamination no outgassing (ideal for aerospace) 4. Ease of use 5. Proven effective 6. Approved and used by key companies and militaries worldwide 7. Easier and more effective than foil packaging 8. RFID transparent an active barrier that can have RFID transmission 9. Same packaging can be used for short term or long term storage 10. Flexibility and availability 11. Protects against Bio-Corrosion 18

Thank you for your time Liberty Packaging Company A member of the Intercept Technology Group www.libertypackaging.com www.staticintercept.com 19