sarin nerve gas

IMT HOLDINGS LIMITED 2003-03-17 ASX-SIGNAL-G

HOMEX - Sydney

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The US military has released publicly a report on the utilisation of
Phoslock in the disposal process for sarin gas, a highly toxic nerve
agent. The work using Phoslock was authorised under Project No
778117, Assembled Chemical Weapons Assessment Program.

The report concludes that Phoslock is effective as a significant part
of the disposal process.

BACKGROUND

The US is a signatory to the Chemical Weapons Convention which
requires destruction of existing chemical weapons stockpiles in the
US by April, 2007. The US Army was directed by Congress to report on
alternative technologies other than incineration for chemical weapons
disposal.

PROCESS

The destruction process in which Phoslock was used was neutralisation
followed by biodegradation. A major by-product of the process is an
organic compound known as MPA. It contains phosphorus to such a level
that MPA cannot be readily discharged into open water bodies.
However, Phoslock was highly effective in removing MPA.

RESULTS

The degraded sarin was treated with Phoslock and uptake of MPA by
Phoslock was "complete within a few minutes".

The report stated: "The residual MPA from this effluent was
effectively encapsulated in Phoslock, thereby providing a high
quality effluent of low toxicity and low phosphorus content".

IMT will continue to promote Phoslock to the US military for these
purposes. This creates a new application of Phoslock, other than its
traditional role in removing the inorganic form of soluble phosphate.

The potential for Phoslock to react with and neutralise other
dangerous chemicals has been apparent for some time and IMT is
currently investigating alternatives. These include arsenic removal.

Copies of the report can be obtained from the following website:

http://www.stormingmedia.us/cgi-bin/order.php?reportNos=A193804

PUREZZA GROUP INC

Involvement with the US Army was an initiative of our US licensee
Purezza Group Inc. Significant progress continues to be made in
developing the Phoslock business in the US. Purezza has entered into
a marketing agreement and a sales force has been engaged.

Purezza lodged on 4 March, 2003 a disclosure document with the US SEC
regarding the public sale of its securities. Further details of its
business development are set out in that document, which can be found
on the SEC website, www.sec.gov.

For further details, please contact Brett Crowley, CEO, on
02 96980622.

http://www.asx.com.au/asx/statistics/showSignalgDetail.do?issuerId=4915&announcementId=556180