An employee of Siemens is seen through the components of an electric motor at the company’s plant expansion in Norwood, Ohio. Governor Ted Strickland views a small cooling component during a tour of the Catacel Corporation – Garretsville, Ohio. Ted Strickland, Governor Lisa Patt-McDaniel, Director Lee Fisher, Lt. Governor

Third Frontier December 2009 Commission Eric Fingerhut, Chair Ted Strickland, Governor, State of Ohio Chancellor, Ohio Board of Regents General Assembly, State of Ohio Norman Chagnon, Ph.D. Executive Director John Cullivan Dear Colleague, Consultant Richard Fearon Eaton Corporation We are pleased to present to you the 2009 Ohio Third Frontier Annual Report. The success William McCreary Pilkington of the program, as outlined in the personal stories and metrics in this report, demonstrate Lisa Patt-McDaniel how a visionary and bipartisan commitment to Ohio’s future continues to bring prosperity Ohio Department of Development Maureen Pero to the people and businesses of our state even in these challenging times. CareSource Management Group Mark Shanahan, Ph.D. Governor’s Energy Advisor The Ohio Third Frontier continues to support technology-based economic development Third Frontier in the State of Ohio through investments that not only create new products from Advisory Board Ohio ingenuity, but also create sustainable growth in companies in every stage of Mark Collar, Chair development. We understand that economic growth does not appear overnight, but Triathlon Medical Ventures Joseph Alutto, Ph.D. rather through strategic and consistent investments in people and places. The Ohio State University Office of Academic Affairs Thomas Brady, Ph.D. In its seven years of operation, the Ohio Third Frontier is living up to its commitment Plastic Technologies, Inc. to drive growth in company, job, and wealth creation throughout the state. SRI Charles Calvert Calvert Promotions International, in partnership with Georgia Tech, completed an independent study of Ohio Christopher Coburn Cleveland Clinic Third Frontier and related Ohio Technology-Based Economic Development programs. Foundation Innovations Their report showed that since inception, the Ohio Third Frontier has: Sandra Degen, Ph.D. University of Cincinnati s 'ENERATED  BILLION IN ECONOMIC ACTIVITY IN /HIO Nancy Enright SEIU/District 1199 WV/OH/KY s #REATED   TOTAL JOBS THROUGH $ECEMBER  Lloyd Jacobs, M.D. University of Toledo s 3IGNIlCANTLY IMPACTED THE DIVERSITY AND COMPETITIVENESS OF /HIOS MANUFACTURERS Daryl Laisure ZIN Technologies Albert Ratner s !SSISTED IN THE FORMATION ATTRACTION OR INITIAL CAPITALIZATION OF MORE THAN  Forest City Enterprises, Inc. COMPANIES AND Senator Kirk Schuring Ohio Senate s ,EVERAGED A  RETURN FOR EVERY DOLLAR INVESTED DURING   WITH THE Joe Sciabica USAF Research Laboratory expectation of increased impacts in the years to come. Barbara Snyder Case Western Reserve University We are proud to present the 2009 Ohio Third Frontier Annual Report, showcasing the Thomas Waltermire TeamNeo accomplishments and milestones reached through our continuous investment in Ohio. The program is fostering widespread growth in the technology sector and enabling Ohio to continue its leadership in our fast-changing economic climate.

Sincerely,

%RIC &INGERHUT #HAIR ,ISA 0ATT -C$ANIEL Ohio Third Frontier Commission Ohio Third Frontier Commission Chancellor Director Ohio Board of Regents Ohio Department of Development

The State of Ohio is an Equal Opportunity Employer and Provider of ADA Services Ohio Third Frontier 2009 Annual Report

In its seventh year of operation, Ohio Third Frontier is Ohio Third Frontier: living up to its commitment, implementing a clear and Making an Impact comprehensive strategy with a focus on Ohio’s traditional and emerging research and industrial strengths. In In Technology-Based Economic Development, there is no September 2009, SRI International, in partnership with such thing as a quick hit. Real success comes from having Georgia Tech, completed an economic impact study of a sustained, comprehensive effort grounded in smart Ohio Third Frontier and related Ohio Technology-Based choices and arising from an understanding of the inherent Economic Development programs. The study found technology and industry strengths of a state or region. THAT AS OF $ECEMBER   MILLION IN 3TATE OF /HIO 7HETHER REINVIGORATING A LONG STANDING INDUSTRY OR BLAZING expenditures related to Ohio Third Frontier had generated: new trails in an emerging technology sector, the goal of s  BILLION OF ECONOMIC ACTIVITY Technology-Based Economic Development investment is to be the spark that ignites spontaneous, market-driven s   TOTAL JOBS AND growth which ultimately transcends the public investment. s  BILLION IN EMPLOYEE WAGES AND BENElTS With ongoing care and nurturing, those seed investments become embedded deeply enough in the economic fabric 4HIS REPRESENTS A NEARLY  RETURN ON EVERY DOLLAR OF of a locality that they will have a meaningful and lasting /HIOS INVESTMENT IN THE PERIOD FROM   WITH THE positive impact on wealth and job creation. expectation of increased impacts in the years to come.

/HIO4HIRD &RONTIER IS BLAZING A NEW TRAIL AND CREATING A ! KEY PROGRAM STRENGTH IDENTIlED BY 32) IS THAT /HIO LOOKS national model for future Technology-Based Economic strategically at the key factors that determine innovation Development efforts. Ohio Third Frontier was founded capacity and makes investments on a scale that can make on the commitment to shape the future economy of a difference. In support of this view, they reported that the state through a portfolio of programs to support Ohio Third Frontier has made major contributions in the APPLIED RESEARCH AND COMMERCIALIZATION ENTREPRENEURIAL following areas: assistance, early-stage capital formation, and expansion s /HIO4HIRD &RONTIER AND RELATED INITIATIVES CONTRIBUTED of a skilled talent pool that can support technology-based to the major growth of venture capital investment economic growth. Co-opting a phrase from the national in Ohio, from $243 million IN  TO $446 million dialog on Technology-Based Economic Development, our IN  strategic intention is to create an “innovation ecosystem” IN /HIO THAT SUPPORTS THE EFlCIENT AND SEAMLESS TRANSITION s -ORE THAN 500 new companies have been created, of great ideas from the laboratory to the marketplace. ATTRACTED AND CAPITALIZED BY /HIO4HIRD &RONTIER ˆ EACH OFFERING THE POTENTIAL FOR SIGNIlCANT GROWTH s 3,000 Ohio students have been awarded internships WITH NEARLY  COMPANIES IN  OF /HIOS  COUNTIES s /HIO4HIRD &RONTIER HAS NOT ONLY CREATED ECONOMIC opportunities and wealth in Ohio, its projects have improved Ohioans’ quality of life through advances in medical care, producing affordable and sustainable sources of advanced energy, and protecting Ohio’s environment through better use of natural materials and sensors for our safety and security. In doing so, Ohio Third Frontier has fostered the emergence of new technology clusters across the state, including Biomedical Imaging, Fuel Cells, Photovolatics, and Liquid Crystals/Flexible Displays. s /HIO4HIRD &RONTIER WITH ITS long-term strategic approach, merit-based implementation, and its agility in responding to needs and opportunities, is a pathway to the positive economic growth trajectory enjoyed by many other high technology regions within the United States and globally.

Large tubes containing algae will be used in the control of carbon emissions at the University of Dayton – Dayton, Ohio.

2 Ohio Third Frontier 2009 Annual Report

Dupont – Circleville, Ohio

The SRI evaluation also compared Ohio’s program to In conclusion, SRI stated the following about Ohio Third other notable technology-based success stories: Research &RONTIERS /4& ECONOMIC IMPACT 4RIANGLE 0ARK .ORTH #AROLINA !USTIN 4EXAS 3ILICON 6ALLEY AND THE 2OUTE  "OSTON METROPOLITAN AREA 32) h)T IS IMPORTANT TO NOTE THAT THE  BILLION IMPACT IS ONLY IDENTIlED FOUR STRUCTURAL CHARACTERISTICS THAT THESE REGIONS for the OTF expenditures to date. These investments are share that are also present in our state because of Ohio likely to generate larger impacts in the years to come for Third Frontier and associated programs: several reasons. First, a majority of OTF funds remain to  2ESEARCH INTENSIVE COMPANIES AND UNIVERSITIES be spent. Some OTF funds have not yet been awarded, producing world-class research and training a world- and some funds awarded have not yet been entirely CLASS WORKFORCE spent. The economic impact of the program is expected TO INCREASE SIGNIlCANTLY OVER THE NEXT lVE TO TEN YEARS  6ISIONARY REGIONAL LEADERS Second, the OTF is generating successful outcomes in  .ETWORKS THAT INVOLVE BUSINESS RESEARCH AND spite of the longest U.S. recession in the post-World War lNANCE AND )) ERA4HE DIMINISHED DEMAND lNANCIAL CAPITAL BUSINESS activity, and job losses associated with the recession  3TRONG ENTREPRENEURSHIP SUPPORT INFRASTRUCTURE weigh down the net economic impacts generated by including early-stage capital and support for the OTF investments. However, it is likely that the new technology transfer and early-stage companies. PRODUCTS AND PROCESSES BEING COMMERCIALIZED BY /HIO companies and the new industries that are emerging will be in a position of strength during the next global Governor Ted Strickland views a ball that will be designed and programmed to move on its own power during a tour of Yost Engineering – Portsmouth, Ohio expansion.”

4HE lNDINGS OF THE 32) REPORT CONlRM THAT /HIO IS TRULY unique in its approach to Technology-Based Economic Development, and that the initiative has produced SIGNIlCANT AND MEASURABLE RESULTS IN A RELATIVELY SHORT period of time.

32) )NTERNATIONALS REPORT TITLED h-AKING AN )MPACT !SSESSING THE "ENElTS OF /HIOS )NVESTMENT IN4ECHNOLOGY "ASED %CONOMIC $EVELOPMENT 0ROGRAMSv IS AVAILABLE at www.thirdfrontier.com.

3 Ohio Third Frontier 2009 Annual Report

)N HIS RECENTLY PUBLISHED h /HIO Ohio Investment Capital: Venture Capital Report – Steady Growth and Resilience in a &OCUS IN 5NCERTAIN4IMES v $R -ICHAEL Camp, Director of the Center for Tough Economy Entrepreneurship at The Ohio State University’s Fisher College of Business, Capital is the lifeblood of any business, but especially reported that “in a year when the U.S. small, start-up technology-based businesses. Access to Dr. Michael Camp VENTURE CAPITAL INDUSTRY REALIZED NOT JUST capital is a critical factor that often determines whether a decline in total investment, but one A GREAT IDEA EVER BECOMES REALITY 2ECOGNIZING THIS /HIO OF THE MORE SIGNIlCANT DROPS IN THE LAST has made capital formation a pillar of its technology-  YEARS /HIOS TOTAL VENTURE CAPITAL BASED ECONOMIC DEVELOPMENT STRATEGY -INDFUL OF THE INVESTMENT IN  WAS  MILLION IN NEED TO HAVE SUFlCIENT CAPITAL RESOURCES AVAILABLE AT ALL nearly 200 companies.” stages of a company’s creation and maturation, Ohio has been one of few states to foster capital growth across /NE OF THE MOST NOTABLE lNDINGS OF the entrepreneurial continuum from the earliest pre- the report was that Ohio’s early-stage seed stage funding through later stage venture capital. INVESTMENT CAPITAL INCREASED FROM  It has accomplished this through Ohio Third Frontier, the MILLION IN  TO  MILLION IN  4ECHNOLOGY )NVESTMENT4AX #REDIT 0ROGRAM AND THE /HIO 4HIS REPRESENTED A  PERCENT INCREASE IN YEAR TO YEAR Venture Capital Authority. Applying this comprehensive investment activity at a time when the national investment AND SUSTAINED STRATEGY /HIO HAS MADE SIGNIlCANT PROGRESS activity level decreased by 20 percent. The momentum has in a relatively short period of time. been generated, in part, by Ohio Third Frontier’s steady INVESTMENT IN MORE THAN  PRE SEED FUNDS AND MORE THAN  MILLION IN4ECHNOLOGY )NVESTMENT4AX #REDITS ISSUED TO Arisdyne Systems, Inc. – Innovation for active angel investors in the last several years. Dr. Camp the Alternative Fuel Industry observed that, “Ohio’s angel investment community is one of the strongest and most active in the nation with more The ethanol industry is under pressure to be THAN  MILLION IN CUMULATIVE INVESTMENT IN THE LAST competitive with petroleum-based fuels and to lVE YEARSv increase yields to a level that makes renewable fuels not just an option, but a cost effective and !CCORDING TO THE SAME STUDY BETWEEN  AND  TOTAL PROlTABLE SEGMENT OF OUR ALTERNATIVE ENERGY ECONOMY VENTURE CAPITAL INVESTMENT IN /HIO GREW BY  PERCENT Innovative companies such as Cleveland-based PER YEAR FROM  MILLION TO  MILLION n more Arisdyne Systems Inc. aim to help ethanol producers than double the annual growth rate of total U.S. venture increase yields and reduce the cost per gallon. In capital investment during the same five-year period (5.1 -ARCH  !RISDYNE WAS AWARDED A  MILLION percent per year). The Ohio Venture Capital Authority has grant from the Ohio Third Frontier Advanced Energy CONTRIBUTED SIGNIlCANTLY TO THE GROWTH OF VENTURE CAPITAL 0ROGRAM4HE COMPANY HAS SECURED MORE THAN  ACTIVITY IN /HIO !S OF 3EPTEMBER   THE /HIO #APITAL MILLION IN PRIVATE EQUITY FUNDING DURING ITS lRST YEAR &UND HAS COMMITTED  MILLION TO  /HIO BASED AND of operation, including out-of-state investments from FOUR OUT OF STATE FUNDS4HOSE  /HIO BASED FUNDS INCLUDE Houston-based Chevron Technology Ventures and eight that have established a new presence in the state. Georgia-based Cordova Ventures. Collectively, these new-to-Ohio funds give Ohio companies

4 Ohio Third Frontier 2009 Annual Report

Rosalyn Baxter-Jones, MD (pictured) along with Michael Ross, MD A cautionary note was given in the Camp report that and Dean Koch founded CerviLenz Inc. in 2008. overall investment nationally may decline for the next several years, and that both public and private efforts in Ohio must continue to focus sharply on making the state’s portfolio companies highly attractive to follow-on capital if these positive results are to continue. There is no question that Ohio is up to the challenge. The SRI Report, SUMMARIZED ON PAGE FOUR OF THIS REPORT DETERMINED that Ohio Third Frontier and other state programs have not only dramatically increased the availability of early- stage capital, but have also markedly improved the entrepreneurial environment in Ohio that gives rise to investment-worthy companies. SRI stated that, “The /HIO4HIRD &RONTIER HAS SUCCESSFULLY lLLED IN THE MISSING elements of risk capital and entrepreneurial skills, and CATALYZED THE CONNECTIONS BETWEEN THE VARIOUS ELEMENTS IN CerviLenz – Predicting Preterm Birth Risk THE TECHNOLOGY COMMERCIALIZATION CONTINUUM ENSURING THAT the whole is greater than the sum of its individual parts.” -ORE THAN   BABIES ARE BORN PRETERM EVERY YEAR and are at risk of lifelong, even life-threatening health With meaningful and sustained support of activities across problems. Every day of pregnancy is important for the spectrum of entrepreneurial needs, Ohio will weather the baby, and every baby deserves a healthy start on the tough economy and continue to be a winner in the LIFE #ERVI,ENZ )NC BASED IN #HAGRIN &ALLS CAN HELP investment capital arena. #ERVI,ENZ MAKES A DISPOSABLE TOOL TO HELP DOCTORS and midwifes easily assess whether a pregnancy is AT HIGHER RISK FOR PRETERM BIRTH )N THE SPRING OF  #ERVI,ENZ RECEIVED   FROM /HIO4HIRD &RONTIER PARTNER *UMP3TART )NC ! FEW MONTHS LATER #ERVI,ENZ RECEIVED   IN SEED lNANCING FROM THE .ORTH #OAST !NGEL &UND )N -AY  #ERVI,ENZ RAISED  MILLION IN THE COMPANYS INITIAL ROUND OF VENTURE FUNDING FROM TWO -IDWEST VENTURE CAPITAL lRMS Chrysalis Ventures and Arboretum Ventures.

CH Mack – Providing Solutions ACCESS TO MORE THAN  MILLION IN VENTURE CAPITAL for Long Term Care for later stage investments. The four out-of-state funds REPRESENT MORE THAN  BILLION OF VENTURE CAPITAL THAT IS #( -ACK )NC BASED IN #INCINNATI PROVIDES A CASE also within reach of Ohio technology companies. management solution that extends the promise of CONSOLIDATED %LECTRONIC -EDICAL 2ECORDS TO LONG TERM While Ohio was not immune to the downturn in later-stage care scenarios. These solutions enable healthcare, venture capital, our state did show greater resilience than HUMAN SERVICES AND MANAGED CARE ORGANIZATIONS TO the nation as a whole. At a time when many other states reduce healthcare costs, improve quality of care, and REALIZED DECLINES OF AS MUCH AS  PERCENT IN THE YEAR TO shorten access time for delivery of services to a rapidly YEAR INVESTMENT ACTIVITY FROM  TO  THE DECREASE IN growing population in need of health and human Ohio’s venture capital investment was slightly less than SERVICES #( -ACK PROVIDES TRUE SEAMLESS INTEGRATION  PERCENT with both provider and payor systems. To date, CH -ACK A PORTFOLIO COMPANY OF /HIO4HIRD &RONTIER In total, Dr. Camp’s report suggests that Ohio has done a 0ARTNER 1UEEN #ITY !NGELS HAS RECEIVED MORE THAN  GOOD JOB IN UTILIZING ITS STRENGTHS AND ATTRACTING INVESTMENT million in private equity including an investment from in Ohio companies that, in the past, would more than likely Draper Triangle Ventures. have found its way to east and west coast opportunities.

5 Ohio Third Frontier 2009 Annual Report Biomedical

The Ohio Third Frontier award that established the Ohio’s Leading Biomedical biomedical imaging center reinforced the collaborations Imaging Cluster between world-class academic institutions in Ohio and companies developing state-of-the-art imaging systems. Ohio has a long and rich history in the development Industry clusters in fast moving high technology areas and manufacturing of biomedical imaging equipment invariably have strong links to near-by academic centers of DATING TO  WITH THE ESTABLISHMENT OF THE 0ICKER 8 2AY excellence. In the development of a new technology, some Corporation in Cleveland. Today, the industry is rapidly aspects of a project are best accomplished in an academic growing in Ohio, becoming the world’s premier location setting and some require the resources of a commercial for biomedical imaging. company. Ohio Third Frontier awards are structured to require these relationships and have strengthened both However, just a few years ago this bright future in Ohio sides of these partnerships in an effort to make Ohio’s was uncertain. Ohio Third Frontier investments supported economy greater than the sum of its parts. the industry at a critical time and assured its future in Ohio. Continued support from Ohio Third Frontier is helping the The Ohio State University – Columbus, Ohio. biomedical imaging cluster mature into a global leader, RESPONSIBLE FOR NEARLY   /HIO JOBS

)N  0HILIPS -EDICAL 3YSTEMS n A WORLD LEADER IN MEDICAL TECHNOLOGY BASED IN THE .ETHERLANDS n ACQUIRED -ARCONI -EDICAL WHICH #LEVELANDS 0ICKER 8 2AY HAD EVOLVED TO become through a series of acquisitions. Due to currency exchange rates and external factors, strong consideration was being given to relocating manufacturing operations to Europe. Capital opportunities created by Ohio Third Frontier BECAME A MAJOR FACTOR IN THE DECISION TO KEEP -AGNETIC 2ESONANCE )MAGING -2) MANUFACTURING IN /HIO AND TO expand new instrument development in our state. To move academic expertise in Ohio to the next level )N  WITH FUNDING FROM /HIO4HIRD &RONTIER 4HE and further broaden the scope of biomedical imaging Ohio State University established the Wright Center of expertise, Ohio Third Frontier awarded one of its largest Innovation in Biomedical Imaging. A major goal of this GRANTS IN THE /HIO 2ESEARCH 3CHOLARS 0ROGRAM TO THE AWARD WAS THE DEVELOPMENT OF AN 5LTRA (IGH &IELD  biomedical imaging arena. This award has supported a 4ESLA -2) SCANNER THAT GENERATES BODY SCAN IMAGES WITH TOTAL OF lVE ENDOWED RESEARCH POSITIONS TWO AT4HE /HIO extremely high resolution relative to current technology. State University, two at Case Western Reserve University, 4HE PROJECT IS A COLLABORATION WITH 0HILIPS -EDICAL 3YSTEMS and one at Wright State University. The imaging groups and Case Western Reserve University. at their respective academic institutions are among the most actively involved with the medical industry by virtue !S A RESULT OF THE CREATION OF THE 7RIGHT #ENTER 0HILIPS of their graduates being in high demand. Discussing decided to keep development of new imaging devices STUDENTS IN THE )MAGING 0HYSICS GROUP 0ROFESSOR 2OBERT and manufacturing in Ohio. Additional Ohio Third Frontier Brown of Case Western said, “I don’t even write letters of grants have helped to advance the goals of the Wright recommendation anymore – they just get hired”. #ENTER AND SOLIDIFY 0HILIPS CORPORATE COMMITMENT TO /HIO4ODAY 0HILIPS -EDICAL 3YSTEMS IS HEADQUARTERED IN 4HE /HIO 2ESEARCH 3CHOLARS 0ROGRAM AWARD BROUGHT THE Cleveland, representing a major anchor company within direct involvement of Cardinal Health of Dublin, Ohio into Ohio’s growing biomedical imaging cluster. Ohio can also the imaging cluster. Cardinal Health is the leading provider lay claim to the development and manufacture of the of radiopharmaceuticals for molecular imaging in the WORLDS MOST ADVANCED COMMERCIALLY AVAILABLE -2) 5NITED 3TATES 1UICKLY GROWING IN IMPORTANCE MOLECULAR imaging uses radioactive molecules that bind to targeted sites in the body, allowing enhanced imaging for early

6 Ohio Third Frontier 2009 Annual Report

Quality Electrodynamics (QED) was founded to design and manufacture new magnetic coil technology that is the heart of an MRI scanner.

DETECTION OF SPECIlC DISEASES %ARLY DETECTION LEADS TO ViewRay – Bedford, Ohio. faster diagnoses and better outcomes for patients. In this partnership, Cardinal Health will work with academic researchers on the development of new imaging agents, WHILE 0HILIPS FOCUSES ON IMPROVING THE CAPABILITIES OF THE imaging system used in conjunction with the molecular agents.

As a result of Ohio’s imaging expertise and resources, new start-up companies are forming and creating new jobs for Ohioans. For instance, three years ago, with assistance FROM /HIO4HIRD &RONTIER 1UALITY %LECTRODYNAMICS 1%$ was founded to design and manufacture new magnetic COIL TECHNOLOGY THAT IS THE HEART OF AN -2) SCANNER 1%$S #%/ HOLDS A 0H$ FROM #ASE 7ESTERN 2ESERVES 0HYSICS DEPARTMENT IN MAGNETIC RESONANCE IMAGING 1%$ HAS ALREADY CREATED  JOBS AND EXPECTS TO REACH  THIS YEAR With the world-class imaging research programs at nearby #OMPANIES LOCATED OUTSIDE OF /HIO ARE ALSO RECOGNIZING academic institutions and experienced workers trained at the advantages of being near the resources associated with OTHER IMAGING COMPANIES 1%$ FOUND TALENTED EMPLOYEES Ohio’s biomedical imaging cluster. ViewRay, now located TO SUPPORT ITS RAPID EXPANSION -ANY EMPLOYEES ARE in Bedford, Ohio, was founded in Florida but relocated engineering or physics graduates, helping to keep our to be near the expertise in imaging and Ohio’s existing intellectual capital in Ohio. supply chain advantages. Technology being developed by ViewRay, with assistance from the Ohio Third Frontier, will 3IMILAR TO 1%$ THERE ARE SCORES OF COMPANIES IN ALLOW THE SIMULTANEOUS ACQUISITION OF -2) IMAGES TO DETECT Ohio that represent a supply chain for the tens of any internal motion of organs during delivery of radiation thousands of parts that go into an imaging device. The therapy associated with cancer treatment. If detected, expertise in these smaller companies contributes to the the instrument will turn off the radiation beam to prevent innovation represented by new imaging systems in the damage to healthy tissue. form of advanced components. Hypertech Research, Inc., in Columbus, with assistance from Ohio Third The exact targeting of the tumor and calculating the Frontier, is developing specialty wire that will create dose actually received is one of the major challenges THE SUPERCONDUCTING CAPACITY NEEDED TO MAKE AN -2) of radiation therapy. Design and construction of an coil work without the need for the supercooling that is INSTRUMENT THAT INTEGRATES AN -2) WITH RADIOTHERAPY accomplished today with an expensive and limited supply sources is an extremely complex undertaking. of liquid helium. Grounded in a long history in Ohio, the biomedical imaging industry is enjoying a resurgence in our state, partly due to the targeted, well-timed investments made by Ohio Third Frontier. With state-of-the-art research institutions, world-class companies large and small, and a growing base of talent, Ohio’s biomedical imaging cluster is becoming a powerhouse of new innovation and a magnet for the attraction and expansion of leading imaging companies throughout the world.

Lt. Governor Lee Fisher visits Quality Electrodynamics (QED) – Cleveland, Ohio.

7 Ohio Third Frontier 2009 Annual Report Manufacturing

One such companing is Tremco Inc. Established with Making Things Well   IN  BY 7ILLIAM #4REUHAFT 4REMCO )NC IN Still Matters Beachwood, Ohio has been a manufacturer of sealants and protective coatings for commercial and industrial building roofs since its beginning. With assistance from Ohio Third Manufacturing Our Energy Future &RONTIER 4REMCO IS PLANNING TO LEVERAGE ITS  YEARS OF expertise in building materials and service to become a Inventing a better mousetrap or an advanced energy PLAYER IN THE DEPLOYMENT OF PHOTOVOLTAIC 06 PANELS FOR solution takes a great deal of inspiration, insight, and hard commercial structures. work. However, much of the real work starts when a great idea is being reduced to practice and made ready to meet 4REMCO IDENTIlED A PROBLEM IN lRST GENERATION SOLAR A SPECIlC MARKET DEMAND .OT ONLY MUST A SUCCESSFUL panel installation on buildings, often referred to as bolt- new technology work, it must address customer needs for on installation. The aesthetic is unsightly to many and usability, cost, quality, and reliability. more importantly, may interfere with the primary function and maintenance of the external building structure. A more elegant solution that may lead to wider adoption OF 06 SYSTEMS IS CALLED "UILDING )NTEGRATED 0HOTOVOLTAICS ")06 THAT MAKE THE 06 A DESIGNED IN FEATURE OF BUILDING structures like roofs and walls, not an add-on. Tremco is partnering with another Ohio Third Frontier supported COMPANY 8UNLIGHT #ORPORATION WHICH MANUFACTURES STATE OF THE ART mEXIBLE 06 PANELS TO GAIN A LEADERSHIP POSITION IN ")06 ROOF SYSTEMS MARKET

Tremco Inc. state-of-the-art customized photovoltaic roofing systems.

Governor Ted Strickland examines a wind turbine component at Lincoln Electric – Cleveland, Ohio. 7ITH ITS EXPERTISE IN TRADITIONAL ROOlNG SOLUTIONS 4REMCO IS This is where Ohio’s spirit of invention and innovation ADDRESSING THE ENGINEERING CHALLENGES OF CREATING A ")06 couples powerfully with its manufacturing heritage. roof that is functional in creating energy and protecting Companies with long histories of manufacturing the building integrity and less architecturally obtrusive. excellence in Ohio are proving invaluable in turning great ! UNIQUE FEATURE WILL ALLOW FOR THE REMOVAL OF THE 06 IDEAS INTO VIABLE PRODUCTS lNDING NEW OPPORTUNITIES IN module from the protective roof membrane for roof emerging growth markets and creating new wealth and maintenance and eventual recycling. If developing a useful jobs for Ohioans. renewable energy solution isn’t green enough, Tremco will offer a “cradle-to-cradle” business model, allowing the leased roof system, at the end of its service life, to be deconstructed, recycled, and reused as raw materials for a NEW ROOF !LLIANCE 3CHOOLS IN 3TARK AND -AHONING #OUNTIES will test the Tremco product on their facilities, collaborating WITH4REMCO TO CAPTURE A PIECE OF THE GROWING GLOBAL ")06 MARKET ESTIMATED AT  BILLION NEXT YEAR

8 Ohio Third Frontier 2009 Annual Report

&OR MORE THAN  YEARS 2EFRACTORY 3PECIALTIES )NC 23) IN 0ARKER (ANNIlN WAS ESTABLISHED IN  BY !RTHUR , Sebring, Ohio has supplied insulation and other products 0ARKER AS 0ARKER !PPLIANCE #OMPANY TO MANUFACTURE A for managing high-temperature manufacturing processes novel pneumatic brake system for trucks and buses. The in an array of traditional industries. Watching the growth company, headquartered in Cleveland, Ohio, is now a of the nascent fuel cell industry in Ohio and elsewhere, world leader in motion control technologies for industries 23) IDENTIlED AN OPPORTUNITY TO EXTEND ITS EXPERTISE TO SUCH AS AUTOMOTIVE AND AEROSPACE 0ARKERS HISTORY WITH improve the advanced manufacturing techniques required braking systems expanded with their Aircraft Wheel and to produce the functional heart of a Solid Oxide Fuel Cell Brake Division, where they became a dominant supplier of 3/&# CALLED THE FUEL CELL STACK brakes for helicopter rotors.

0ARKER (ANNIlN RECOGNIZES THAT ITS EXPERTISE IN ROTOR BRAKES has distinct transferability in the fast-growing renewable energy industry – brakes for wind turbines operate very similarly to those used to control rotational forces in helicopter blades. With assistance from Ohio Third Frontier, the company believes it can provide a brake product that meets wind industry demands for a more effective AND RELIABLE SYSTEM IS EASIER TO MAINTAIN AND HAS A SIGNIlCANTLY LOWER LIFE CYCLE COST Refractory Specialties, Inc. machining of Gemcolite® material – Sebring, Ohio. 7HEN SUCCESSFUL 0ARKER WILL HAVE A SUPERIOR /HIO Often made of ceramic materials, the components of manufactured braking solution focused on the world’s fastest THE FUEL CELL STACK MUST BE lRED IN A KILN LIKE A CLAY POT growing wind energy market – the United States. Taking at very high temperatures. Unlike a clay pot, the precise market share away from the Danish company that currently manufacturing tolerances that are required for the fuel cell CONTROLS  PERCENT OF THE GLOBAL MARKET FOR WIND TURBINE stack components to ultimately do their job of converting BRAKES 0ARKER EXPECTS TO TAKE PART IN THE GROWING DOMESTIC hydrogen to electricity present many challenges. wind energy supply chain, providing quality and cost advantages to original equipment manufacturers such as GE With funding from Ohio Third Frontier, RSI is developing Wind and Vestas when compared to off-shore suppliers. STATE OF THE ART 3INTER,YTE© KILN FURNITURE THE STANDS THAT SUPPORT THE STACK MATERIAL WHILE BEING lRED4HE NEW furniture will maintain the required shape of the part and keep it from picking up contaminating materials during THE PROCESS BOTH OF WHICH WOULD EFFECT HOW THE lNAL PRODUCT FUNCTIONS4HIS SOLUTION MUST NOT IMPART SIGNIlCANT ADDITIONAL COST TO THE MANUFACTURING OF THE lNAL FUEL CELL system.

When successful, RSI will help meet the U.S. Department of Energy’s goals for the cost per kilowatt hour of GENERATING ELECTRICITY FROM AN 3/&# COMMERCIALIZING A product here in Ohio that will enable companies such as #ERAMIC &UEL #ELLS ,IMITED !USTRALIA 7ARTSILLA &INLAND 6ERSA 0OWER $ELPHI 2OLLS 2OYCE AND 3IEMENS 0OWER TO deploy stationary fuel cells the world-over. These systems would generate grid electricity from an alternative energy Parker Hannifin supplies rotor brakes for the fast-growing renewable energy industry. source at prices competitive with traditional fossil fuel power plants, growing sales of RSI’s enabling product to AN ESTIMATED  MILLION BY 

9 Ohio Third Frontier 2009 Annual Report National Security

Used for intelligence surveillance, the layered sensing Hand in Hand: National systems being developed will ensure that American Security and Economic Security soldiers have the best possible information about combatant movements and capabilities regardless of 7AR STRUCK HOME IN  WHEN WORD REACHED THE FAMILIES weather conditions, camouflage, or location. OF  /HIOANS FROM #OLUMBUS BASED ,IMA #OMPANY rd "ATTALION th -ARINES THAT THEIR LOVED ONES HAD BEEN KILLED Capturing and combining information from a variety of IN ACTION IN )RAQ -ANY OTHERS HAD BEEN SERIOUSLY INJURED n sophisticated sensor systems provides a superior overall all in just two horrible incidents. intelligence picture compared to dependence on just one sensor system. Sophisticated cameras operating at 0ROTECTING OUR SERVICEMEN AND WOMEN OUTlTTING THEM different parts of the electromagnetic spectrum, electronic with the best possible equipment, and developing ways to signature recognition, data integration software, and improve their survivability and quality of life if wounded ADVANCED VISUALIZATION ARE ALL UNDER DEVELOPMENT BY /HIO are goals that are universally accepted as a high priority Third Frontier partners. for research, and are a prominent theme within Ohio 4HIRD &RONTIER .EW TECHNOLOGIES THAT PROTECT OUR SERVICE members also result in good jobs for Ohioans who make next-generation intelligence gathering sensors and medical devices, helping our brave young men and WOMEN AVOID INJURY lRST AND LIVE STRONGER AND BETTER LIVES in the event that they do need to heal when they come home.

Ohio Third Frontier funds research that will greatly reduce casualties of war by improving the intelligence and data gathering capabilities of today’s military and lRST RESPONDER COMMUNITIES4HE 5NIVERSITY OF $AYTON Research Institute and its industrial research partners at THE )NSTITUTE FOR $EVELOPMENT AND #OMMERCIALIZATION OF !DVANCED 3ENSOR4ECHNOLOGY )$#!34 ARE DEVELOPING THE world’s most sophisticated remote sensing systems.

Photon-X 2D Video Photon-X 3D Video

Other types of sensors being developed by Ohio Third Frontier partners include pathogen detections systems to protect the military from chemical and biologic threats AND BIOMETRIC SYSTEMS FOR FACIAL AND REAL TIME lNGERPRINT recognition that will help guard against terrorism. Research and development projects being conducted by IDCAST and its partners support the needs of the Air Force Research ,ABORATORY AND ITS 3ENSOR $IRECTORATE CENTERED AT 7RIGHT 0ATTERSON !IR &ORCE "ASE #OMPANIES THROUGHOUT /HIO ARE partnering to provide the devices and equipment needed by the military, including well-established companies such AS , #OMMUNICATIONS AND 7OOLPERT !SSOCIATES TO NEW START UP COMPANIES SUCH AS 0HOTON 8

Larrell Walters, Director of IDCAST – Dayton, Ohio.

10 Ohio Third Frontier 2009 Annual Report

A Marine salutes during a ceremony for the Columbus-based Lima Company, 3rd Battalion, 25th Marines Memorial held at the Statehouse.

UltraCell high altitude testing of portable fuel cells. 4HE 2EGENERATIVE -EDICINE #ENTERS MISSION IS TO accelerate the development of new technologies focused on the regeneration of bone, muscle, tendon, nerve, and blood vessels damaged by combat injuries. Adult stem-cell research enables scientists at the Cleveland Clinic and Case Western Reserve to provide advanced therapies that alleviate suffering, accelerate healing, and improve therapeutic success in treating trauma victims. The Functional Electric Stimulation Center at the Cleveland Veteran Administrations Hospital is developing a family of technologies that use external electrical stimulation to activate muscles, causing them to contract and relax, thereby gaining functionality. Ohio Third Frontier grants 0OWER SUPPLIES ARE ALSO CRUCIAL IN A COMBAT ENVIRONMENT have gone to companies such as Ohio Willow Wood To take advantage of the newest intelligence gathering to develop high-tech prosthetics that use advanced TECHNOLOGIES THE MILITARY AND OTHER lRST RESPONDERS materials to greatly improve mobility, to Arteriocyte to require assured power supplies. Today’s soldier must carry DEVELOP ARTIlCIAL BLOOD AND TO THE 5NIVERSITY OF !KRON FOR UP TO  POUNDS OF BATTERIES FOR A WEEK LONG MISSION AND advancements in burn and wound healing. the demand for personal electronic devices and electrical power is still growing. One promising technology to Ohio has an established tradition of military support. From reduce weight and ensure reliable power are portable fuel 7RIGHT 0ATTERSON !IR &ORCE "ASE TO .!3! ,EWIS 2ESEARCH cells operating from small replaceable canisters that are Center to General Electric Aviation, Ohio is at the forefront the hydrogen source to run the cells. UltraCell of Dayton OF RESEARCH DEVELOPMENT AND COMMERCIALIZATION OF is an Ohio Third Frontier funding recipient, conducting technologies that enhance the capability, effectiveness, research and scale-up manufacturing here in Ohio. and safety of Americans. Ohio Third Frontier is proud to contribute to the technologies that help keep our soldiers Similarly, larger scale fuel cells to power mobile data SAFE AS WELL AS AID IN COMMERCIALIZING THE TECHNOLOGIES CENTERS IN BATTLElELD CONDITIONS AS WELL AS THOSE NECESSARY that create good jobs for Ohioans. to power tanks and other vehicles, are being developed WITH /HIO4HIRD &RONTIER FUNDING4HE BENElTS OF MOBILE fuel cells are many, including the ability to provide power without the heat signature that conventional diesel generators emit, making safer technology for soldiers operating in “stealth” modes.

5NFORTUNATELY AS PROVEN BY THE TRAGEDY OF ,IMA #OMPANY servicemen and women are injured in the line of duty even with the best equipment and intelligence gathering. Ohio Third Frontier is funding pioneering work to provide better medical care and more quickly and fully restore INJURED SERVICE MEMBERS TO PRODUCTIVE AND FULlLLING lives. Anchored by Ohio Third Frontier investments at the Cleveland Clinic and Case Western Reserve University in tissue engineering and regenerative medicine, Ohio now proudly operates two major federal research centers that Governor Ted Strickland views a Black Hawk military helicopter at the are focused on improving health care for wounded soldiers GE Aviation headquarters – Cincinnati, Ohio. n THE !RMED &ORCES )NSTITUTE OF 2EGENERATIVE -EDICINE AND the Veteran Administrations Center for Functional Electric Stimulation.

11 Ohio Third Frontier 2009 Annual Report Advanced Materials

!LPHA-ICRON IS DEVELOPING THE WORLDS lRST AUTO ADJUSTING Ohio Companies Making “Adaptive Window.” The window is based on the company’s a Material Difference in 6!,I$© LIQUID CRYSTAL BASED TECHNOLOGY TO CREATE AN ADAPTIVE lLM THAT CAN BE LAMINATED TO WINDOWS AND HAS Advanced Energy a self-regulating and photovoltaic-powered electronically controllable tint. The window will transmit more winter )N RECENT YEARS /HIO HAS MADE SIGNIlCANT COMMITMENTS TO sunlight to assist with heating and less summer sunlight the support of advanced and alternative energy solutions, TO MINIMIZE OVERHEATING THUS TRANSFORMING WINDOWS FROM including the adoption of renewable portfolio standards A SOURCE OF ENERGY LOSS TO ONE OF ENERGY GAIN -ARKET and a State Job Stimulus program in advanced energy. APPLICATIONS TARGETED FOR !LPHA-ICRONS WINDOW INCLUDE Ohio Third Frontier has also made major investments, GREENHOUSES AUTOMOBILES AND OFlCE AND RESIDENTIAL accelerating the success of advanced energy projects and buildings. industries in Ohio. Underlying many of the successes in advanced energy is Ohio’s breadth and depth of world- class competencies in the area of advanced materials, which has also been a major focus for investment by Ohio Third Frontier. Whether improving on more mature energy technologies such as wind turbines or leading the development of next generation solar, research and COMMERCIALIZATION OF ADVANCED MATERIALS IS MAKING /HIO A RECOGNIZED SOURCE FOR ALTERNATIVE AND RENEWABLE ENERGY solutions. WebCore Technologies’ advanced polymer composite materials. ,OCATED IN +ENT !LPHA-ICRON )NC HAS BEEN CAPITALIZING on the depth of liquid-crystalline materials expertise 3EVERAL YEARS AGO -IAMISBURGS 7EB#ORE4ECHNOLOGIES THAT HAS EMERGED AT +ENT 3TATE 5NIVERSITY OVER THE PAST Inc. began working closely with leading research TWO DECADES AND HAS GIVEN RISE TO THE ,IQUID #RYSTAL LABORATORIES INCLUDING THE !IR &ORCE 2ESEARCH ,AB LOCATED Display industry. A major product focus of the company AT THE 7RIGHT 0ATTERSON !IR &ORCE "ASE IN $AYTON AND THE has been the use of liquid crystal materials to create .!3! 'LENN 2ESEARCH #ENTER IN #LEVELAND TO DEVELOP actively lightening and darkening lenses for motorcycle an advanced polymer composite panel system. Initially, helmets, ski goggles, and designer sunglasses. The same THE PRODUCT CONCEPTS FOCUSED ON MARINE EG BULKHEADS switchable property of the liquid crystals that makes these AND INFRASTRUCTURE BRIDGE DECKS APPLICATIONS THAT COULD applications possible is now being applied, with Ohio Third BENElT FROM THE NEW MATERIAL WHICH IS LIGHTER STRONGER Frontier funding, to an energy conservation product. and more durable than the steel and other metals it would replace. These very same properties may make WebCore’s technology an ideal material solution for the wind power industry.

The company is now developing the TYCOR® polymer composite material to provide a new, readily available core material for wind turbine blades. With assistance from Ohio Third Frontier, WebCore has developed a reliable supply of TYCOR® to improve wind turbine blade performance while decreasing overall turbine manufacturing costs. WebCore has partnered with leading wind turbine blade manufacturers and other suppliers IN /HIO 0ENNSYLVANIA )NDIANA AND -AINE TO BUILD capabilities that are expanding Ohio’s wind power supply chain and developing wind turbine blade composite core AlphaMicron – Kent, Ohio. manufacturing in Ohio.

12 Ohio Third Frontier 2009 Annual Report

Employees of Catacel Corporation listen as Governor Ted Strickland discusses education reform for a stronger economy.

!PPLIED 3CIENCES )NC !3) LOCATED IN #EDARVILLE WAS FOUNDED IN  BY RESEARCHERS FROM THE DEFENSE SCIENTIlC COMMUNITY TO CONDUCT PIONEERING WORK IN THE DEVELOPMENT OF CARBON NANOlBERS #OMPOSITES MADE FROM CARBON NANOlBERS ARE LIGHTWEIGHT STRONG AND HAVE unique electrical and thermal properties that make them ideal for high-performance aerospace applications. An early goal of the company was to be able to produce the carbon materials in a quantity and at a cost that would move them from specialty applications where expense is less important than performance, to their wider use in commercial aviation and automotive applications.

With funding from Ohio Third Frontier, ASI has more Foil strips produced by Catacel Corporation - Garretsville, Ohio. recently applied its carbon material expertise to pursue substantial improvements in lithium-ion battery technology. )N  AT A TIME WHEN THE CATALYTIC CONVERTER INDUSTRY !NODES IE THE POSITIVE POLE OF THE BATTERY MADE FROM was in its infancy, Camet Co. in Hiram, Ohio was founded !3)S SILICON COATED CARBON NANOlBERS WOULD EXTEND THE on a new catalytic technology invented by Dr. William mileage of hybrid- and all-electric vehicles to a range Retallick. Camet Co. created, developed, and manufactured COMPETITIVE WITH INTERNAL COMBUSTION ENGINES 0ARTNERING new emission control products made from metal foils WITH 'ENERAL -OTORS AND -ICHIGANS ! 3YSTEMS WITH CATALYTIC COATINGS "ETWEEN  AND  THREE Inc., a leading manufacturer of lithium-ion batteries, ASI Camet Co. team members – Dr. William B. Retallick, is further strengthening Ohio’s electric vehicle supply Richard Cornelison, and William Whittenberger – achieved chain and leveraging the transition to electric vehicles, international recognition in the catalytic converter industry providing a strong case for Ohio-based production of as experts in catalysis, metal foil substrate design, and lithium-ion batteries and stimulating the development and THE INVENTION AND COMMERCIALIZATION OF SUPERIOR CATALYZED manufacturing of electric automobiles in Ohio. metal substrate products for catalytic air pollution clean UP )N  THE THREE CREATED #ATACEL #ORPORATION IN Garretsville, Ohio, to use crossover technology from the EXHAUST TREATMENT BUSINESS CREATING AND COMMERCIALIZING new metal substrate products for heat exchange.

Still located in Garrettsville, Catacel Corporation, with funding from Ohio Third Frontier, has become the unsurpassed authority in catalytic heat exchange solutions UTILIZING THEIR ADVANCED METAL FOIL MATERIAL ! PRIMARY market for Catacel’s technology is the fuel cell industry, in which the metal foils help manage the heat coming A high resolution transmission electron micrograph (HRTEM) of a from the chemical reactions that reform natural gas and carbon nanofiber produced by Applied Sciences, Inc. – Cedarville, Ohio. other hydrocarbons into the hydrogen on which a fuel cell operates. The technology allows reactors to be made Ohio’s dominance in iron and steel, polymers, and various SMALLER LIGHTER MORE DURABLE AND ENERGY EFlCIENT THAN CHEMICALS HAS POSITIONED OUR STATE TO MAKE SCIENTIlC AND competing solutions, lowering the manufacturing and technological breakthroughs in new, advanced materials that operating costs of the fuel cells. Fuel cells are expected ARE REVOLUTIONIZING MANY INDUSTRIAL AND CONSUMER PRODUCTS to contribute to the technologies that will satisfy Ohio’s Advanced materials are platforms on which to build world- requirement for alternative energy production by our class competencies in many rapidly growing industrial electric utilities. sectors. The impact of these new materials on the advanced energy industry is one such application that promises to write the next chapter in our materials expertise.

13 Ohio Third Frontier 2009 Annual Report Education

Stark State College of 4ECHNOLOGY LOCATED IN .ORTH #ANTON Growing Role of Two-Year has become a world-class leader in fuel cell technology Colleges in the Ohio Third development and training. With funding from Ohio Third Frontier, Stark State serves the state’s fuel cell industry by Frontier CATALYZING PROTOTYPE CREATION CURRICULUM DEVELOPMENT and workforce preparation. The showcase for all these $ID YOU KNOW THAT  PERCENT OF ALL UNDERGRADUATE STUDENTS ACTIVITIES IS THE #OLLEGES &UEL #ELL 0ROTOTYPING #ENTER4HIS begin their studies at a two-year college? Ohio’s two-year state-of-the-art facility was instrumental in attracting Rolls- COLLEGE SYSTEM CONSISTS OF  TECHNICAL AND COMMUNITY 2OYCE &UEL #ELL 3YSTEMS TO ESTABLISH ITS .ORTH !MERICAN colleges located in every corner of our state. These two- headquarters at Stark State, further expanding the college’s year colleges have played an important role in economic fuel cell test capabilities and curriculum. development, providing highly responsive education and training opportunities tailored to the needs of their local communities. The unique and intimate relationships these schools develop with the businesses in their regions have allowed some to explore new kinds of collaborations that HAVE MADE THEM VITAL TO FULlLLING THE GOALS OF /HIO4HIRD Frontier.

Chancellor Eric Fingerhut (bottom center) is joined by Choose Ohio First Scholars at the Statehouse – Columbus, Ohio.

Ohio Department of Development Director Lisa Patt-McDaniel visits the Rolls-Royce Fuel Cell Systems headquarters at Stark State – North Canton, Ohio.

Several students in Stark State’s fuel cell program have been interns at Rolls-Royce Fuel Cell Systems, matriculating to full-time employment after completing their studies. Stark State continues to garner extensive state, federal, and industry support for its fuel cell activities. The school has developed new business RELATIONSHIPS THAT INCLUDE #ONTAINED %NERGY AND ,OCKHEED -ARTIN AMONGST OTHERS EXPANDED ITS FUEL CELL CAMPUS WITH THE NEW &UEL #ELL 3ERVICES ,EARNING #ENTER AND HELPED spur the concentration of fuel cell research, education, and business activity – causing the area to be dubbed the Ohio Fuel Cell Corridor.

#OMMUNITY COLLEGES ALSO RECOGNIZE THAT STRONG PARTNERSHIPS GROW /HIOS ECONOMY ,IMA BASED !MERICAN Trim and Ohio Third Frontier worked with Rhodes State #OLLEGE LOCATED IN ,IMA TO ESTABLISH TWO CENTERS TO DEVELOP AND COMMERCIALIZE ADVANCED MANUFACTURING methods for functional, decorative, and environmentally FRIENDLY THIN lLM COATING AND lNISHING PROCESSES

14 Ohio Third Frontier 2009 Annual Report

4HE !DVANCED -ATERIALS #OMMERCIALIZATION #ENTER !-## The Great Lakes Innovation & Development Enterprise (GLIDE) IS UTILIZING PHYSICAL VAPOR DEPOSITION lNISHING FOR A NEAR provides grants through its LCCC Innovation Fund – Elyria, Ohio. CHROME PROCESS FOR FULL SIZE BUMPERS AND TRIM PARTS FOR THE heavy-duty truck industry. The process is far “greener” than chrome plating, and with the new technology American 4RIM EXPECTS TO BRING lNISHING JOBS THAT HAVE STEADILY gone to less environmentally rigid overseas locations BACK TO THE 5NITED 3TATES4HE -ATERIALS $EPOSITION #ENTER -$# IS SCALING UP COATING TECHNOLOGIES INTO production-scale application systems for various projects INCLUDING A LOW COST lNISH THAT SIMULATES STAINLESS STEEL FOR refrigerators, ovens, microwaves, and washers and dryers.

As these two centers help the company advance new manufacturing techniques to improve the competitiveness goals in support of entrepreneurial business activity in of its products, Rhodes State College uses these same .ORTHEAST /HIO 7ITH THE &UND ,### PROVIDES GRANTS resources to educate and train students with the technical UP TO   TO PROMISING TECHNOLOGY BASED START KNOW HOW NEEDED BY !MERICAN4RIM TO EFFECTIVELY UTILIZE ups located or willing to locate within the  COUNTIES OF these promising new techniques. .ORTHEAST /HIo.

The awards are made to help technology-oriented ENTREPRENEURS PROGRESS THROUGH THE COMMERCIALIZATION continuum by providing resources to help validate the technologies and business models at the start-ups. In return, recipients of Innovation Fund awards are required to provide an entrepreneurial education opportunity OR AN INTERNSHIP FOR STUDENTS FACULTY OR STAFF OF ,### and/or one of the Innovation Fund’s partnering higher EDUCATION INSTITUTIONS 5SING THIS APPROACH ,### IS lLLING THE PIPELINE IN .ORTHEAST /HIO WITH HIGHLY DESIRABLE technology deals that are primed for investment by Ohio Third Frontier supported pre-seed funds such as JumpStart AND THE .ORTH #OAST !NGEL &UND4HEY ARE ALSO HELPING TO educate Ohio’s next generation of entrepreneurs.

Stark State College of Technology, Rhodes State College, AND ,ORAIN #OUNTY #OMMUNITY #OLLEGE ARE PLAYING A VITAL role in the Ohio Third Frontier by developing strategic ALLIANCES THAT ADDRESS THE COMMERCIALIZATION NEEDS OF The Advanced Materials Commercialization Center (AMCC) offers powder coating or Ohio’s business community and the development of a wetspray application in its state-of-the-art coating booth – Lima, Ohio. technically competent pool of talent in our state. Building on their traditional educational and training strengths, With support from Ohio Third Frontier and its successful these three schools have demonstrated the potential EXPERIENCE WITH THE 'REAT ,AKES )NNOVATION  for the state’s technical and community college system $EVELOPMENT %NTERPRISE ',)$% INCUBATOR ,ORAINE #OUNTY as a whole to use Ohio Third Frontier support to pursue #OMMUNITY #OLLEGE HAS CREATED THE ,### )NNOVATION &UND INNOVATIVE NEW ACTIVITIES THAT CAN CATALYZE TECHNOLOGY The Fund represents a unique approach that effectively based economic development in their respective blends the college’s education and economic development communities.

15 Ohio Third Frontier 2009 Annual Report Success

)N &EBRUARY  -ATT 'ARVER JOINED THOUSANDS OF OTHERS Ohio Third Frontier: People are in a similar situation by becoming a displaced employee the Heart of Our Success AS A RESULT OF A CHEMICAL COMPANY LAYOFF -ATT IMMEDIATELY began seeking employment through temporary agencies and numerous other employment opportunity outlets. New Opportunities He sought a position where his unique skill set could be UTILIZED AND HE COULD CONTINUE TO GROW AND ADVANCE IN HIS )N *ANUARY  THE COMPANY THAT -ICHAEL $IA HAD JOINED science and technology-related career.  YEARS EARLIER DECIDED TO DOWNSIZE ITS OPERATION -ICHAEL suddenly found himself without a job. Forty-eight years old with a wife and four children to support, time was not on -ICHAELS SIDE (AVING ONLY SIX MONTHS OF UNEMPLOYMENT BENElTS -ICHAEL KNEW HE HAD TO MOVE FAST AND USE EVERY resource available. He registered at The Source, a Toledo- BASED UNEMPLOYMENT AND JOB SERVICES ORGANIZATION AND constantly searched the Internet and checked The Toledo Blade FOR JOBS IN HIS AREA -ICHAEL SAID HE NEVER IMAGINED that looking for a job would be a full-time job in itself. Matt Garver – Zyvex Performance Materials – Columbus, Ohio. &EELING AS IF HIS LUCK WAS RUNNING OUT -ICHAEL RECEIVED an electronic announcement from Owens Community %NTER :YVEX 0ERFORMANCE -ATERIALS A #OLUMBUS BASED #OLLEGES PLACEMENT OFlCE ABOUT A COMPANY CALLED producer of nanotechnology-enhanced composite 8UNLIGHT #ORPORATION 8UNLIGHT A RAPIDLY GROWING SOLAR materials used to improve the performance of familiar company in Toledo, has been aggressively adding jobs products such as golf clubs, baseball bats, and bicycles, since receiving Ohio Third Frontier advanced energy as well as more high-tech applications in aerospace and AWARDS AND SUBSTANTIAL VENTURE CAPITAL INVESTMENT -ICHAEL MARINE PRODUCTS4HROUGH A TEMPORARY AGENCY -ATT was hired to use the skills he had learned as a stockroom began work in February 2009 with Zyvex. At the time, technician at his prior position to become a team leader, :YVEX WAS NOT IN A POSITION TO OFFER -ATT PERMANENT FULL helping other employees with development of computer, time employment. With the help of Ohio Third Frontier ORGANIZATIONAL AND MECHANICAL SKILLS !LTHOUGH OTHER FUNDING IN !PRIL  -ATT WAS HIRED FULL TIME IN *UNE AS OPPORTUNITIES BECAME AVAILABLE -ICHAEL CHOSE TO REMAIN A ,ABORATORY4ECHNICIAN4HE COMPANY IS HIGHLY SATISlED WITH 8UNLIGHT BECAUSE IT IS A COMPANY IN AN INDUSTRY OF WITH -ATT WHO IT SAYS HAS BEEN AN EXCELLENT ADDITION TO the future, offering both job security and a way to make a the Zyvex team, assisting in the advancement of high-level difference supplying clean, renewable energy solutions. projects and aiding in next-generation technology.

h8UNLIGHT #ORPORATION HAS BEEN Ohio Research Scholar fortunate to have received a great deal of support from the State of (EINZ 2OBOTA A SYNTHETIC FUELS CHEMIST JOINED THE 5NIVERSITY OF $AYTON 2ESEARCH )NSTITUTE 5$2) AS ONE OF Ohio over the years, and the Third THE  ENDOWED RESEARCH POSITIONS CREATED BY THE /HIO &RONTIER PROGRAM SPECIlCALLY HAS 2ESEARCH 3CHOLARS 0ROGRAM 2OBOTA AN EXPERT IN SYNTHETIC helped the company establish a fuels chemistry and catalysis, will be involved in ramping solid foundation for a successful up research at the Air Force’s Assured Aerospace Fuels company going forward,” said Research Facility in Dayton. #%/ $R 8UNMING $ENG 5$2) AND THE !IR &ORCE 2ESEARCH ,ABORATORY HAVE BEEN

Michael Dia – WORKING JOINTLY TO CREATE THE NATIONS lRST FEDERAL RESEARCH Xunlight Corporation – Toledo, Ohio. test facility dedicated to developing new, improved jet fuels from coal and biomass. Robota has more than  YEARS EXPERIENCE IN FUELS EMISSIONS CATALYSIS AND

16 Ohio Third Frontier 2009 Annual Report

Xunlight Corporation CEO Dr. Xunming Deng engages in discussion with an employee about Xunlight’s renewable energy solutions products. materials technologies. He most recently worked at Range can bring in recent college graduates and provide them &UELS )NC AN ALTERNATIVE FUELS START UP IN "ROOMlELD WITH SPECIlC CAREER TRAINING4HE4HIRD &RONTIER )NTERNSHIP Colorado, and as a director of research at the Syntroleum 0ROGRAM HAS ENABLED US TO TAKE THIS LATTER APPROACH IN THAT #ORP IN4ULSA /KLAHOMA 2OBATA HOLDS  PATENTS AND it defrays a substantial portion of these training expenses.” spent two years as an Alexander von Humboldt Fellow at THE 5NIVERSITY OF -UNICH Of the seven interns, two have been hired as full-time EMPLOYEES *AMES +ALBmEISCH WHO EARNED A BACHELORS Jointly sponsored by the Ohio Third Frontier and Ohio degree in Computer Science from the University of Akron, "OARD OF 2EGENTS THE /HIO 2ESEARCH 3CHOLARS 0ROGRAM is now on SDC’s software development team writing test AWARDED A TOTAL OF lVE ENDOWED SCHOLAR POSITIONS TO THE and automation programs. Dan Haas, also a graduate from University of Cincinnati and its collaborators UDRI and The 5! IN -ANAGEMENT )NFORMATION 3YSTEMS IS MANAGING THE Ohio State University to create the Center for Intelligent company’s internal information systems and working as 0ROPULSION AND !DVANCED ,IFE -ANAGEMENT WHICH WAS webmaster. created to advance next-generation jet engines. &OR  YEARS "IONIX $EVELOPMENT #ORPORATION LOCATED (EINZ 2OBOTA JOINED THE 5NIVERSITY OF $AYTON in Toledo, Ohio, has been a leader in the development, 2ESEARCH )NSTITUTE /CT  TO LEAD EFFORTS AT THE !IR manufacturing and marketing of innovative medical Force’s new Assured Aerospace Fuels Research devices including products for ear care, wound treatment, &ACILITY !!&2&  !!&2& WILL BE THE NATIONS lRST and even a novel formula bottle to help premature babies federal research test facility dedicated to developing learn how to oral feed. A small manufacturer in a highly new and improved jet fuels from coal and biomass. competitive market space, Bionix continually looks to Dr. Robota, whose position is funded through the manage costs. Heinz Robota /HIO 2ESEARCH 3CHOLARS 0ROGRAM CREDITS THE /HIO The company discovered the Ohio Third Frontier Internship Department of Development, Ohio Board of Regents, and the state’s Third 0ROGRAM USING IT TO HELP COVER THE COSTS OF A SUMMER &RONTIER 0ROGRAM FOR PROVIDING THE LEADERSHIP AND FUNDING THAT MADE THIS co-op student. Through the program, Bionix found Tamara position possible. “The State’s foresight and investments in bringing high -ASTERS AN UNDERGRADUATE STUDENT IN THE "IOMEDICAL powered research talent to Ohio will help raise the State’s level of technology %NGINEERING 0ROGRAM AT THE 5NIVERSITY OF #INCINNATI innovation, spawning new companies and products that will grow jobs,” Robota said. 3HE WORKED IN THE COMPANYS 0RODUCT $EVELOPMENT Department on devices for the radiation therapy market. As an intern with Bionix, she was given many challenging Ohio Third Frontier Interns TASKS INCLUDING WORK ON  $ #!$ MODELING PROTOTYPING and creation of the design documentation needed for the 3UMMIT $ATA #OMMUNICATIONS 3$# LOCATED IN !KRON launch of a new medical device. makes radio cards that slip into mobile devices, hand- held bar-code readers, wireless cash registers, and h-Y EXPERIENCE AT "IONIX GAVE ME THE OPPORTUNITY TO APPLY portable ultrasound machines that allow the devices classroom concepts and develop new engineering skills to to communicate with a base location from challenging HELP IN MY FUTURE CAREER v -ASTERS SAID environments. A young technology company currently housed in an Edison Incubator, the Akron Global Business 4HE ABILITY OF THE /HIO4HIRD &RONTIER )NTERNSHIP 0ROGRAM Accelerator, SDC was looking for cost-effective ways to add TO FACILITATE MATCHMAKING BETWEEN STUDENTS WITH SPECIlC TECHNICALLY QUALIlED EMPLOYEES TO SUPPORT THE COMPANYS skills and companies that can use those skills to address growth, especially in these tough economic times. SDC has immediate needs creates a positive result for everyone since hired seven Ohio Third Frontier Interns. involved.

“Our industry, and by extension, our company, requires “With Tamara’s assistance, we were able to get more FAIRLY SPECIlC EMPLOYEE SKILLS v SAID 2ON 3EIDE 3$#S products to market faster than we normally would have,” president. “Finding people that already have these skills SAID 0RODUCT $EVELOPMENT ENGINEER %DWARD -ARKEWITZ IS A DIFlCULT AND EXPENSIVE PROCESS !LTERNATIVELY ONE

17 Ohio Third Frontier 2009 Annual Report

FY 2009 Financial Information

Total Awards:   

Sources:4HIRD &RONTIER 2ESEARCH AND $EVELOPMENT &UND 7RIGHT #APITAL &UND "IOMEDICAL 2ESEARCH AND4ECHNOLOGY4RANSFER 4RUST &UND AND4HIRD &RONTIER !CTION &UND

Number of Program Amount (dollars) Awards Third Frontier Fuel Cell Program     Third Frontier Advanced Energy Program 9    Success and Pre-Seed Fund Initiative     Engineering & Physical Science Research and Commercialization Program     Biomedical Research and Commercialization Program     Wright Projects     Ohio Research Scholars Program*     Ohio Research Commercialization Grant Program     Third Frontier Internship Program** .!    Targeted Industry Attraction    Research Incentive .!    Administrative Expenses .!    Total Expenditures $131,479,588

/RIGINAL AWARDS MADE IN &9  WITH FUNDING TO COME FROM &9  AND &9  BUDGETS 4WELVE REGIONALLY BASED ORGANIZATIONS COORDINATE DEPLOYMENT OF INTERNSHIP FUNDS AT UP TO   PER POSITION

Performance Metrics

Performance Criteria As of 6/30/08 As of 6/30/09

State Funds Awarded      

State Funds Expended       Cost Share Reported       Leveraged Dollars         Leverage Ratio       Direct Jobs Created and Retained     Total Jobs Created and Retained*     Companies Created, Attracted, and Capitalized   Average Salary     Cost Per Job    

-ETRIC BASED ON MULTIPLIER FROM  32) 2EPORT h-AKING AN )MPACT !SSESSING THE "ENElTS OF /HIOS )NVESTMENTS IN 4ECHNOLOGY "ASED %CONOMIC $EVELOPMENT 0ROGRAMSv

18 Ohio Third Frontier 2009 Annual Report

Total Direct and Indirect Jobs

-ETRIC BASED ON MULTIPLIER FROM  32) 2EPORT h-AKING AN )MPACT !SSESSING THE "ENElTS OF /HIOS )NVESTMENTS IN4ECHNOLOGY "ASED %CONOMIC $EVELOPMENT 0ROGRAMSv

Leveraged Dollars Companies Created, Attracted, and Capitalized

19 Ohio Third Frontier 2009 Annual Report

Ohio Third Frontier Funds Awarded by Sector

$1.2M (IT)

$11.4M $26M

$82M $3M (AP) $88M $8M $39M $15M $31.5M $1M $64M

Lake $12.7M Lucas $3.4M Ashtabula $224M Fulton $28M Ottawa Williams Geauga $42M Cuyahoga Trumbull Defiance Henry Wood Sandusky Erie Lorain $61M Summit Portage Paulding Seneca Huron Medina $0.6M Mahoning Putnam Hancock Ashland Crawford Wyandot Wayne Stark Columbiana Van Wert Allen Richland Hardin Carroll Mercer Auglaize Marion Holmes Morrow Jefferson Knox Tuscarawas Logan Coshocton Harrison Shelby Union Delaware Darke Champaign Licking Guernsey Belmont Miami Muskingum Franklin

Clark Madison Noble Monroe Preble Fairfield Perry Montgomery Greene Pickaway Morgan Fayette Hocking Washington Butler Warren Clinton Athens Ross $0.3M (B) Vinton Hamilton Highland Meigs Clermont Pike Jackson $9M Brown Gallia Scioto $16M Adams $5M

Lawrence $12.6M (IT) $10M $58M $1.2M $20.9M $22M

$38M

$27M

$0.9M (AE) $4.8M $0.9M Total Awards by Sector Biomedical (ICE)

Advanced Energy $90.6M Instruments, Controls $190.6M $42.7M & Electronics $145.8M

Advanced Materials $129.5M Advanced Propulsion $358M Investment Funds $13.8M (IT)

20 Governor Ted Strickland speaking at the GE Aviation headquarters – Cincinnati, Ohio. Ted Strickland, Governor Lisa Patt-McDaniel, Director Lee Fisher, Lt. Governor 800 | 848 1300 www.development.ohio.gov

4HE 3TATE OF /HIO IS AN %QUAL /PPORTUNITY %MPLOYER AND 0ROVIDER OF !$! 3ERVICES