Industrial Nanotech, Inc. (Pink Sheets:INTK) has entered into an agreement with an undisclosed scientific group to further develop a nanocomposite to keep automobiles cooler and reduce fuel consumption. The company is to produce a prototype and the specifications for the manufacturing equipment used for the high volume nanocomposite production.

The nanocomposite, which is a re-engineered version of the company’s Nansulate product, is being developed to provide thermal insulation for the interior of automobiles. The company indicated that the thermal insulation would reduce air conditioning load, which in turn would lower fuel consumption. CEO, Stuart Burchill, in February, 2004 submitted the technology for patent approval. According to Mr. Burchill, "We believe that Industrial Nanotech can develop a technology that will keep car interiors cooler in warm weather, thus conserving fuel and reducing an automobile's energy consumption. Additionally, we are confident that the cost of integrating this composite into current manufacturing processes will be commercially viable and enable us to target automotive OEM's for incorporation into their product lines. With the current energy crisis in this country, such a product could generate substantial demand, potentially altering the automobile manufacturing process."