Southern Research and Siemens Business OpportunitiesSouthern Research and Siemens Business Opportunities

January 2004

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Southern Research InstituteSouthern Research Institute

• Not-for-profit business founded in 1941 by Industry to help Industry

• About 600 employees

• Business Areas:- Transportation/Automotive research

- Drug development and discovery- Materials research and applications- Electromechanical systems- Image analysis research and applications- Environmental and energy- Chemical and biological defense- Homeland Defense

• Locations:Birmingham, Wilsonville and Fort McClellan, AL Frederick, MD; Research Triangle Park, NC Annandale, VA; and Fort Leonard Wood, MO

S RO U T H ERN ESEARC HI N S T I T U T E

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Southern Research Automotive DivisionSouthern Research Automotive Division

• Born from initial work with Mercedes-Benz US International in 1998

• Located at the Engineering Research Center in Birmingham, AL

• 85,000 ft2

• A comprehensive R&D and testing facilities servicing Automotive clients nationwide.

• ISO 9001 and ISO 17025 Company

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Materials Testing for Automotive Materials Testing for Automotive Structures and SystemsStructures and Systems

• Strength Verification and Testing:• Thermal Property Analysis• Failure Analysis of Components• Weld/Bond Testing and Analysis• Mechanical Testing of Parts and

Systems• Systems and Failure Analysis of:

– Electrical Systems and Components

– Brake Systems and Components

– Powertrain– Connection Systems (tubes,

belts, etc.)– Others

• Hardness Verification and Testing

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Environmental Testing and SimulationEnvironmental Testing and Simulation

• Long-term Aging Studies• Environmental Simulation

• -460° to 5000°F capabilities

• Thermal Cycling of Parts and Systems

• Saltwater Corrosion Testing• Saltwater Fog Testing• Vibration Simulation• Full Vehicle Chamber to be

installed 1st Qtr 2004

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Noise Vibration & Harshness, Squeak and RattleNoise Vibration & Harshness, Squeak and RattleSpectrum Technologies PartnershipSpectrum Technologies Partnership

• NVH• Squeal and Rattle Development• Root Cause Analysis• Warranty Reduction• Stress Analysis• 18 years experience• Automotive lighting expertise• Component to full vehicle

testing• Environmental capabilities• Full NVH program management

and Design• Sound Enclosures

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SEM/Failure Analysis LaboratorySEM/Failure Analysis Laboratory

• EDS Capabilities• 11-30,000x resolution • Failure analysis• Material Analysis• Characterization of fracture surfaces• Identification of inclusions using

SEM/EDS• Measurement of pearlite spacing• Microstructural characterization• Compositional analysis• High-Resolution Imaging

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Non-Destructive EvaluationNon-Destructive Evaluation

• Microscopy verification and Analysis• Surface and Contour Profiling• Bonding Inspection and Analysis• Corrosion Inspection• Porosity Detection and Sizing• Precision Thickness Gauging of

Complex Parts• Multiple Layer Inspection• Radiography (X-ray) including CT,

Scanning of Large Parts• Ultrasonic Inspection and Testing• Electrical Properties Evaluation• Optical Metrology• Conventional Metrology

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High-Performance ComputingHigh-Performance Computing

• Numerical geometry modeling• Numerical mesh generation• Scientific visualization and virtual

environment technology• High performance parallel computation

Facility• The Intel® processor-based IBM x335 Series

Linux clusters with a total of 128-processors • 1 Terabyte storage unit• One-wall stereoscopic display system

• Fully integrated, projection-based VR system with head-tracking and stereo display which is 10 feet diagonal

• High resolution 8ftx8ft display wall with a 3x3 configuration that is capable of a combined screen resolution of 3000x2300 pixels

• 20-processor LINUX cluster using SuperMicro Server that is used to drive the projector array of the VisWall.

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Processing and Process VerificationProcessing and Process Verification

• Thermogravimetric Analysis (TGA)

• Differential Scanning Calorimetry (DSC)

• Dynamic Mechanical Analysis (DMA)

• Constituent Mass and Volume Fractions in Cured Polymer Based Composites

• Total and Apparent Porosity• Pore Size Distribution• Effective Porosity• Permeability

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Specialty MachiningSpecialty Machining

• High-Speed CNC 3 Axis Vertical Machining Center• X,Y,Z travel = 60,29,26 inches• 20 tool magazine capacity

• High-precision lathes (10-21” swing)

• Bridgeport milling machines• Surface grinders• OD grinders• Full sawing and grinding

capabilities• High-speed steel to Diamond

tooling

• Full Welding Capabilities• Metal fabrication shop

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Current Capabilities - SummaryCurrent Capabilities - Summary

• Product R&D• Materials R&D• Failure analysis• Material analysis• Component testing• Environmental

simulation and conditioning

• Quality assurance• System analysis and

modeling• Specialized machining

• Materials testing for automotive structures and systems

• Non-destructive evaluation of materials

• Processing and process verification

• SEM Laboratory • Analytical Chemistry• Catalyst Research• Full program

management• NVH (Noise Vibration

and Harshness)

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Our Strategic PartnersOur Strategic Partners

• Spectrum Technologies• Full NVH laboratory• Light duty chassis dyno facility• Acquisition in progress

• University of Alabama at Birmingham• High-performance computing, enabling technologies• Materials science

• University of Alabama-Tuscaloosa• Engine dyno facilities• Noise and Vibration

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Some of Our Current CustomersSome of Our Current Customers

• OEM’s• Mercedes-Benz US International, Honda, AM

General

• Suppliers• ZF Industries, Dana Corp., AP Technoglass, CRH

North America, Delphi, Continental Teves,

• Heavy Truck• Webb Wheel

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Our Broader MarketOur Broader Market

65

20

85

20

55

85

65

65

AtlanticOcean

0 50 100

MILES

GulfOf

Mexico

Auto and Light Truck

Heavy Truck

Nissan GM

Ford Honda

BMW

Mercedes

GM

GM

GM

Ford Toyota

Freightliner

Freightliner

Volvo

Ford

Nissan

Nissan GM

Ford Honda

BMW

Mercedes

GM

GM

GM

Ford Toyota

Freightliner

Freightliner

Volvo

Ford

Nissan

Hyundai

SRI/SRA

Navistar Toyota

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SRI/Siemens Growth OpportunitiesSRI/Siemens Growth Opportunities

Fuels, Lubricants, Emissions• Strategic hire to drive technology growth

• 1st Qtr 2004• Joint hire with University of Alabama

• Develop emissions business based on established models• Consortium based participation

• Develop state-of-the-art facilities in conjunction with UA, Barber Motor Sports Park, and others

• Showcase for latest Siemens engine and chassis dynamometer facilities• EPA compliant engine and chassis dyno facilities

• Emissions research• Fuels and lubricants development• Test bed for our Green House Gas Technology Center

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SRI/Siemens Growth OpportunitiesSRI/Siemens Growth Opportunities

Noise, Vibration, and Harshness• SRI is acquiring Spectrum Technologies

• 6000 ft² of NVH equipment• 18 years of expertise• 2nd – 3rd qtr 2004

• Equipment partnerships• 4wd chassis facilities coupled with a hemi-anechoic chamber• Mileage accumulation dynos• Onboard diagnostics

• Durability assessment • Fleet testing• EPA drive cycles

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SRI/Siemens Phase ISRI/Siemens Phase I

Emissions and NVH Related Equipment

• Located at the Alabama Institute for Manufacturing Excellence (AIME) center at The University of Alabama. • This would be a public/private

partnership between Southern Research and UA to develop state-of-the-art research laboratories for automotive clients that facilitates commercial testing and fundamental research opportunities.

• World-wide exposure to our facilities and Siemens equipment

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SRI/Siemens Phase I - EquipmentSRI/Siemens Phase I - Equipment

• 4wd Chassis Dyno• Suitable for NVH applications• To be coupled with an Anechoic

Chamber

• Medium Duty Engine Dyno Facility• <450HP• Certifiable by the EPA• Fuels, lubricants, and emissions

research and testing

• Heavy Duty Diesel Dyno• Certifiable by the EPA• Fuels, lubricants, and emissions

research and testing

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SRI/Siemens Phase I – Financial OptionsSRI/Siemens Phase I – Financial Options

• Existing space will be modified or new construction will be built to house the equipment• Combination of UA, SRI, State and Federal funds.• Space is already available for the chassis dyno facility

• Option 1 is to setup a very attractive lease arrangement where SRI would pick up the lease and operate the facilities. • Possible profit share arrangement for revenue generated on the

equipment

• Option 2 is to purchase the equipment outright at a discounted price• This is less attractive to us since our capital resources are limited and

would have to phase in the Phase I outline.

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SRI/Siemens Phase I – BenefitsSRI/Siemens Phase I – Benefits

• State of the art, world-class research facilities for Southern Research and the University of Alabama• Facilitates new and ongoing research efforts• Helps our local manufacturing base• Additional infrastructure to attract engineering and R&D companies to

the area.• Greater exposure of us to Siemens's potential customers for the other

services that we provide• Provides a showcase of Siemens equipment to potential Siemens

customers• Allows the engineering and sales team access to the equipment to

demonstrate the capabilities to their clients making their sales job easier.

• Exposes Siemens to all of our customers and associates the brand with “research quality”

• Potential tax advantages by providing equipment to not-for–profit entities.

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SRI/Siemens - Beyond Phase ISRI/Siemens - Beyond Phase I

• Southern Research Institute, The University of Alabama, and our other partners are committed to developing comprehensive automotive R&D facilities in the South to attract the customers, people, businesses, and talent that is necessary to expand our successes in this industry.

• Our association with Siemens at this stage can lead us and Siemens to a path of success as we both expand our North American presence.

• The short-term need for Phase I equipment will quickly turn into a much larger need for additional equipment as our businesses grow in these areas. By being a partner in our business growth early on, our relationship will grow with expanded facilities and equipment purchases.