Circle Group Holdings, Inc. Acquires License to ThraxVac, an Anthrax/Bacterial Spore Collection and Elimination Device

June 25, 2003

MUNDELEIN, Ill. -- Circle Group Holdings, Inc. announced today that they have acquired the exclusive license to an Anthrax/Bacterial Spore Collection and Elimination device technology developed at the U.S. Department of Energy's Brookhaven National Laboratory, Department of Energy Science & Technology, by Dr. Carl J. Czajkowski and Dr. Barbara Panessa-Warren under its federally funded Threat Reduction Program.

Anthrax, as well as other bacterial spores have been known about and used in warfare by a number of countries including the U.S. Although clean-up efforts were implemented in the various outbreaks in the US, spores continued to be found over an extended period of time. Unlike bacterial cells, bacterial endospores are not easily killed by bleach, alcohol , acids, bases, UV radiation or solvents. Any anthrax spores not killed, can remain a threat for many years.

Brookhaven Lab's patent-pending technology, known as ThraxVac, is a flexible device that is designed to simultaneously capture and kill anthrax and other bacterial spore biohazards. The ThraxVac captures ambient anthrax/clostridial endospores via conventional vacuum cleaner technology. After which, the device's novel second stage "tricks" captured spores into germinating thus, rendering themselves vulnerable. In the third stage of the device, the stream of newly activated spores is exposed to alpha particle bombardment via a small, safe, self-contained, low-level polonium source that damages the spores' DNA containing protoplast - effectively killing the spore and making it incapable of germinating or producing infection.

The collection device is as portable as any home vacuum (i.e., one person can carry it). However, the ThraxVac concept can also be embodied as part of a whole building HVAC system, continually capturing and killing suspect bacteria and spores. In both iterations, an integral disposable HEPA filter is fitted with its own novel, low-level polonium source constituting a "continuous killing repository" for the collected spores - insuring that every collected spore will be dead when the filter is ready to be discarded. When fully developed, this tool will give HAZMAT personnel the ability to effectively remove anthrax and other bacterial spore biohazards from surface areas as well as continuously removing airborne hazards from buildings. ThraxVac's competitive advantage lies in its portability which will allow first responders to quickly and safely capture unknown, potentially infectious powders and spills.

"The ThraxVac technology is a terrific opportunity for Circle Group. The system is one of the most timely security detection technologies that we have seen to-date. We are very excited about its potential and its need in the marketplace," said Circle Group CEO and chairman Gregory Halpern. "In addition, ThraxVac is a perfect fit with our previous acquisition -- The Mini Raman Lidar technology, which detects biological and chemical toxins at a distance without collecting a physical sample. After we complete commercialization of the two devices, we will be in position to detect and destroy toxins whether they originate from weapons or environmental hazards."

The U.S. Department of Energy's Brookhaven National Laboratory conducts research in the physical, biomedical, and environmental sciences, as well as in energy technologies. Brookhaven also builds and operates major facilities available to university, industrial, and government scientists. The Laboratory is managed by Brookhaven Science Associates, a limited liability company founded by Stony Brook University and Battelle, a nonprofit applied science and technology organization. Brookhaven National Laboratory is located in Upton, N.Y.

Circle Group Holdings, Inc. is a pioneer of emerging technology companies. The Company provides small business infrastructure, funding, and substantial intellectual capital to bring important and timely life-changing technologies to market through all early phases of the commercialization process.

Source: Circle Group Holdings