NASA Awards Intelligent Optical Systems Inc. $600,000 Follow-On Contract to Develop Fiber Optic Hydrogen Leak Detection System

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For Immediate Release

NASA Awards Intelligent Optical Systems Inc. $600,000 Follow-On Contract to Develop Fiber Optic Hydrogen Leak Detection System

Total Contract Funding for Project Is Approximately $1,000,000

TORRANCE, CALIFORNIA, Jun. 15 -/E-Wire/-- Intelligent Optical Systems Inc. (IOS), a privately held R&D; company specializing in the design and development of proprietary optical communications, monitoring and signal processing technologies, today announced that it has received a $600,000 contract from the NASA Stennis Space Center to continue its development of a fiber optic hydrogen leak detection system for space launch vehicles.

On May 14, 2001, IOS announced that it and The Boeing Company(NYSE:BA - news) had successfully demonstrated the world's first fiber optic hydrogen leak detection system during a static fire test on a Delta IV orbital rocket at the NASA Stennis Space Center.

Reuben Sandler, president and chief executive officer of IOS, said: "This project was initiated at IOS by an earlier contract from the NASA Stennis Space Center, complemented by funding from Boeing. With this contract, IOS has received approximately $1,000,000 in corporate and government funding to develop a safe, efficient system for detecting potentially catastrophic leaks from cryogenic tanks and tubing containing liquid hydrogen and other high-energy propellants.

"We are very appreciative of NASA's support to move ahead with further engineering of the system and are honored to have received one of only 31 CalTIP grants issued this year by the State of California to fund technology commercialization.'

Sandler explained that IOS solved the problem of real time hydrogen leak detection inside and outside of the launch vehicle with a multi-point fiber optic sensor system composed of a low-cost light source, standard telecommunications-grade optical fiber as the transmission medium and easy-to-manufacture optrodes with temperature sensitive indicators.

Unlike electrochemical technology, optoelectronic sensors require no power at the sensing point, eliminating the possibility of faulty wiring causing a spark. Optical sensors are immune to electromagnetic interference and operate effectively in a wide variety of media. Optical fiber is flexible and resistant to temperature extremes and many caustic chemicals.

The current leak detection system utilizing electrochemical sensors connected to multiple monitoring units by copper wiring increases payload weight, power consumption and the potential for explosion caused by electromagnetic interference or a spark.

"The commercial opportunities for hydrogen sensing and cryogenic gas leak detection are expanding rapidly for various hydrogen fuel markets such as micro or portable fuel cells, vehicular fuel that will power larger devices such as gardening equipment, cordless tools, office devices and medical equipment. Vehicular fuel cells will power cars, trucks and buses. Stationery fuel cells will be designed to power anything from a highway sign to a house to an office building to an entire city. Safe hydrogen storage and distribution infrastructures will be needed. No matter what the size of the fuel cell or storage tank, hydrogen sensors will be needed to ensure safety,' Sandler continued.

"This project is an excellent example of our strategy to commercialize IOS's portfolio of intellectual property through partnerships, joint ventures and other affiliations. The proprietary optical communications, monitoring and signal processing technologies we have developed over the past decade also have exciting applications in medical diagnostics, fiber optic communications, aerospace and other industries with enormous growth potential,' Sandler said.

About Intelligent Optical Systems Inc.

Intelligent Optical Systems (www.intopsys.com) is a privately held R&D; company based in Torrance, that specializes in the design and development of proprietary optical communications, monitoring and signal processing technologies.

Intelligent Optical Systems Inc.

http://www.intopsys.com

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