News Release

For immediate release, Santa Clara, CA, September 28, 2005.

sp3 to provide diamond film deposition at MEMS Exchange
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Company Wins DARPA Contract to Implement Innovative Process for MEMS Manufacturing

sp3 Diamond Technologies, Inc., a leading supplier of diamond film services, equipment and products, has been awarded a DARPA contract to introduce its nanoparticle diamond thin film deposition process into the MEMS Exchange. This will give MEMS developers the ability to make cost-effective use of the thermal, mechanical and wear benefits of diamond in their designs.
"We look forward to the formal introduction of sp3's diamond thin-film process," said Michael Huff, Director of the MEMS and Nanotechnology Exchange. "A diamond process is a significant addition to the many enabling processes already available to MEMS Exchange users."
sp3's award from DARPA covers a 10-month project in which the company will also transfer a nanoparticle seeding process developed by the Naval Research Laboratory into sp3's process flow. At the end of the project, sp3's diamond thin film deposition process will be available on 4-inch and 6-inch wafers through the DARPA supported MEMS Exchange. sp3 also has the ability to provide diamond thin films on 200-mm and 300-mm wafers.
"DARPA's support for the use of diamond thin films in MEMS devices, as evidenced by this contract, is a critical recognition of our technology," stated Dwain Aidala, president and COO of sp3 Diamond Technologies. "The properties of diamond make it an ideal material for use in MEMS devices where thermal and mechanical management issues are key. By reducing wear and stiction problems MEMS devices will perform better and last longer than devices manufactured with other materials."

About the MEMS and Nanotechnology Exchange
The MEMS and Nanotechnology Exchange is the nation's leading provider of high-quality foundry and consulting services. Our 54 individual state-of-the-art foundries collectively offer the most comprehensive and diverse set of implementation solutions for MEMS, micro- and nano-technologies to be found anywhere in the world. The MEMS and Nanotechnology Exchange customer list includes nearly 600 organizations around the country including multinational corporations, small start-ups, leading academic research institutions, and government facilities.

DARPA Support
The content of this release does not necessarily reflect the position or the policy of the Government, and no official endorsement should be inferred. For more information about the Defense Advanced Research Projects Agency (DARPA) see http://www.darpa.mil/

About sp3 Diamond Technologies, Inc.
sp3 Diamond Technologies is focused on developing diamond-based applications for electronics thermal management, diamond-on-silicon, and enhanced cutting surfaces. Based in Santa Clara, California, USA, the company provides diamond deposition services, hot filament CVD reactors, and deposition consulting services to companies worldwide across a broad spectrum of industries.
sp3 Diamond Technologies is a subsidiary of sp3 Inc., a full service provider of products and services relating to thin-film and thick-film diamond deposition and other diamond materials. sp3 Inc. is comprised of sp3 Diamond Technologies and sp3 Cutting Tools. For more information about the company and its products and services please visit www.sp3inc.com.
For more information on this release please contact: Dwain Aidala, President, sp3 Diamond Technologies Inc., (877) 773-9940.