Block Shield Share Discussion Threads

[fieldbeans] 19/1/2005 19:49

Have you caught sight of it? What are the salient points?
fb

[show me the money13] 19/1/2005 14:12

a 24 page broker note was published by durlacher today with buy rating

[show me the money13] 12/1/2005 07:56

see www.wavezero.com

[dafad] 12/1/2005 07:15

Patent Win



Embargoed Release: 07:00hrs Wednesday 12 January 2005

BLOCK SHIELD CORPORATION PLC

(`the Company or `Block Shield')

New Patent Awarded

Block Shield Corporation plc a leading provider of innovative elecromagnetic
shielding products for radio frequency emissions, has been granted a new U.S.
patent for multilayered structures including the related methods for
manufacturing.

The new patent is based on innovative Block Shield processes used to produce
polymer films (plastic) which are first shaped and then metal coated under
vacuum conditions. The patent confirms and strengthens the Block Shield's
proposition with respect to two important industrial applications:

I) Highly reflective metal surfaces to enhance brightness and optical
directivity of lighting products; and

II) Replacing tradition injection molded structure s (metal painted or
electroplated ), presently used as electronic equipment enclosures providing
electromagnetic interference (EMI) shielding .

The first application offers new innovative product flexibility to the
automotive and lighting industries.

In the automotive application, metal-coated plastic structures can replace
current high cost solutions which employ injection molded reflectors in
headlamp and tail light assemblies.

In the lighting industry metal-coated plastic structures can be used in
numerous applications to meet any optical reflectivity requirement whilst
offering shapes and colors with high aesthetic appeal.

Dr. Pier Antoniucci, President and CEO, commented:

"We already provide reflective metal depositing solutions for the lighting
industry and believe the new application is more flexible than any existing
solution ; it is cheaper, lighter, more practical for complex, tricky and
smaller pieces and, of course, like all our offerings, it is environmentally
friendly"

The second application offers a host of new customized products to the vast
market of high volume manufacturers of consumer electronic products. Products
can be designed and produced in different patterns, shapes, and colors to meet
the aesthetic requirements of modern electronic equipment enclosures. The
patent permits the Company to make these structures in a manner which enables
them to meet the technical requirements of electromagnetic compatibility . Not
only does the method eliminate the processes and costs of an extra
manufacturing step, it retains all the advantages possessed by existing
solutions and is compliant with impending onerous environmental regulations ,
relating to the use and recycling of certain materials

Dr. Antoniucci added:

"This further endorses the Company's assertion that we provide EMI shielding
structures which are a cost effective and ecologically compliant replacement
for conductively painted or electroplated structures presently used for the EMI
shielding of electronic equipment.

Our EMI Shielding Structures, are designed to meet new recycling regulations
and do so at a lower cost which we expect to drive a significant increase in
demand.

Importantly , this patent strengthens our intellectual property position and
product offering, bringing the total number of patents owned by us to eight
with 22 more in the application stage."

Detailed Technical Disclosure of

U.S. Patent No. 6,768,654

The Company is pleased to announce that it has received notification from the
United States Patent and Trademarks Office of U.S. Patent No. 6,768,654
regarding Multi-Layered Structures and Methods for Manufacturing the
Multi-Layered Structures. International patent applications are in process.

Background

The Company's products are made by using a properly designed mold in
combination with pressure, vacuum, and temperature (in a process called
thermoforming) to form a thin (0.254 mm) polymer film, like polycarbonate, into
a required three dimensional shape. The shape is then separated from the
surrounding film and metalized using the Company's patented processes to create
a part that appears and acts like a metal as it is electrically conductive but
has many of the desirable characteristics of plastic (low cost, light weight,
etc.).

The Company has pioneered the use of these metalized thin polymer films for the
purposes of providing EMI shielding. Its first major product which has received
excellent acceptance by major electronic product original electronics
manufacturers (`OEMs') is called Form/Met®. Form/Met® replaces other types of
EMI shields made from either conductively painted plastic or soldered sheet
metal forms.

New Patent

The subject patent provides for two new important product applications: (1)
highly reflective structures that enhance the brightness of lighting products
and (2) electronic product enclosure housings that simultaneously provide EMI
shielding.

Reflective Devices. The patent provides for metalized formed film structures
that are created in a shape that allows light to be reflected back to the user.
For electronic device applications, these "reflectors" have a chrome-like
appearance and can be integrated with LEDs to provide enhanced visibility or
greater aesthetic appeal.

In yet another application, the reflective formed film can be used in
innovative kitchen appliances that feature use electronic panels and LEDs to
control the functioning of the appliance.

Another application involves the use of these reflective structure in
automotive applications. Presently, the vast majority of automotive head and
tail light reflector assemblies are accomplished by vacuum metalizing pure
aluminum on plastic injection molded housings. Injected molded parts require an
expensive set of molds in order to create the proper reflecting surface (e.g.,
a parabolic shape). The Company's technology can be used to create a metalized
(and obviously highly reflective) shape of the required surface geometry using
low-cost tools.

Enclosure housings. The Company's new patent provides for metalized and shaped
films that can be used both as an electronic device enclosure (AKA, housing)
and as an EMI shield. Presently, electronic device housings are made of
injection molded plastic that requires both the creation of expensive molds
into which hot plastic is injected and a post-molding operation involving the
use of conductive paint to achieve a conductive surface suitable for EMI
shielding. However, with the enforcement of the European Union directive on
Waste Electrical and Electronic Equipment (WEEE) to start in 2005, electronic
product OEMs selling into Europe will face the additional burden of recycling a
high percentage by weight of any electronic device it markets. As the removal
of conductive paint and electroplating from injection molded plastic is
extremely problematic and expensive involving a multitude of chemical and
mechanical activities, OEMs must search for new methods of achieving EMI
shielding. This is where the Company's approach of using metalized thin film
will see its biggest advantage because the Company's film products can be
conveniently and economically recycled by simply returning the parts to
WaveZero. WaveZero intends to regrind the core product and reuse in its new
products thus providing savings to the OEM and reducing demands on disposal
sites.

The concept of replacing injection molded housings with formed thin film
housings has yet another useful application. Presently, for instance, cell
phone manufacturers are working hard to provide customized and highly
decorative housings that appeal to the younger generation. As painting is now
impractical due to WEEE, OEMs are shifting to a process called decorative
appliqué in which a thin film containing a desired design (sports logos,
personal pictures, etc.) is formed into injection molded clear plastic. The
process adds costs to the final product and does not provide for EMI shielding.
With the Company's approach, a thin film containing a decorative appliqué is
thermoformed into the desired shape before it is finally metalized on the
inside to provide an EMI shielding capability. The Company believes such an
approach can provide a more economical and appealing solution to consumers.

For Further Information:

Block Shield Corporation plc

Rocky Arnold (00)1 408 745 0561

Teather & Greenwood Limited

Stephen Austin 020 7426 9548

Hansard Communications plc

Andrew Tan 020 7245



END

[safe haven] 11/1/2005 09:51

There is supposed to be a bullish report coming out soon from Durlacher.

[dafad] 11/1/2005 07:50

Moving up this am,been tipped anywhere,news on the way??

[keane16] 05/12/2004 20:19

have bls a website?

[dafad] 29/11/2004 08:30

Suggest a few of you should take a closer look at this co,tipped in a newsletter
over the week end,this was their last Rns:-

Embargoed Release: 07:00hrs Monday 4th October 2004

Block Shield Corporation PLC

("Block Shield" or "the Company")

Block Shield establishes proprietary position in RFID arena.

Block Shield Corporation plc, a leading provider of innovative Electro Magnetic
Shielding products and solutions, is pleased to announce that it has
successfully manufactured proprietary prototypes of antennas for Radio
Frequency Identification (RFID) applications to an industrial standard. The
prototypes consist of vacuum deposited conductive metal on plastic film, in a
pattern required by leading manufacturer of RFID systems.

RFID is a new technology which uses digital radio decoding (where
electronically recorded digital messages can be transmitted from a chip) with a
small antenna which is attached to the object to be identified and can be
activated and read by a central radio receiver or reader. RFID is intended and
anticipated to replace light decoding technology (traditional bar codes).

The creation of the new antennas involves the employment of two recent Block
Shield discoveries which utilize the Group's established proprietary technology
processes of vacuum deposition of metal on plastic films (and other dielectric
substrates) for Electro Magnetic Compatibility applications. The inventions add
to the already considerable endowment of Intellectual Property of the Company
and are protected by two specific patent applications, namely:

* Antenna subassemblies for radio frequency identification RFID; and

* Environmentally protected RFID tags.

RFID is rapidly emerging as a superior approach for automatically collecting
and disseminating data about products, places, times and transactions.
Companies such as Wal-Mart, Target and UPS (who have each announced their
respective intention to implement the technology in early 2005) expect to save
billions of dollars per year by mandating extensive use of RFID for tracking
and inventory control. Wireless connectivity makes RFID much more versatile
than the bar code approach which requires a light source and a line-of-sight
connection. The cost of an RFID tag, now in the 1$ range, is expected to drop
below 10 cents and concurrently the applications are expected to soar in the
trillions range as RFID tags replace bar codes. Block Shield solutions for the
integration of the antennas and chips in the tags are a fundamental
contribution in that direction and the antenna can be manufactured in quantity
and at a price which is competitive and consistent with market expectations.

Dr. Pier Antoniucci, Chief Executive Officer, commented:

"The vacuum deposition of metal over thin polymer films has been expounded by
Block Shield, and enthusiastically received by the electronic industry, as a
most creative solution for Electromagnetic shielding which has a market
estimated to be around $2 billion per year. The Company has now created a
totally different application using the same basic Block Shield proprietary
technology to address the RFID market, with business potential estimated in the
tens of billions of dollars. This opens a completely new range of commercial
opportunities for the Company."

For Further Information:

Block Shield Corporation plc

Rocky Arnold (00)1 408 745 0561

Teather & Greenwood Limited

Stephen Austin 020 7426 9548

Hansard Communications plc

Andrew Tan 020 7245 1100

[safe haven] 05/11/2004 12:51

A big line of old shares was placed belowthe market at 105p yesterday, causing a markdown in the price. I understand a number of insitutions came on board for the first time, which is encouraging.

[georgie53] 03/11/2004 12:10

Rate Shares Mag advice

[junior21] 30/10/2004 20:11

could u post what it says chasbo, thi would be appreciated.

[chasbo] 29/10/2004 17:32

Recommended as play of the week in Shares Mag this week

[keane16] 27/10/2004 22:40

anybody bought in?

[oswd] 16/10/2004 19:24

BLS seems to be perking up.

Roll on!

[junior21] 12/10/2004 21:27

Cheers for the thread Mark, very informative. The share has just been brought to my attention thru Pat Lay's smaller companies spotlight over on this is money. Definitely looking to get in either sooner or later.

J21

[mark watsonmitchell] 04/10/2004 13:24

This morning SQC Research has published a profile on Block Shield Corporation following its latest results announced last Thursday (also see the latest news announcement about RF-ID Tags).

I hope that readers find it of interest.

Principal activities:
The Company's principal activity is the provision of patented solutions and products for shielding electronic components from electromagnetic radiation.

FT Sector: AIM
EPIC Code: BLS
Price: 106.5p
52 Week Trading: High: 113.50p Low: 88p
Shares issued: 25.55m ordinary shares of 1p each
Market Cap: £27.2m
Gearing: Net assets at Admission: $4.27m and cash of $3.88m (see text).
Results: Finals – March Interims – September AGM - May
Marketability: Three market makers deal in up to 10,000 shares on a 5p spread
Brokers: Teather & Greenwood (020 7426 9000)
Company Contact: Michael Fitzgerald, Non-Executive Chairman (00377 93 25 67 19) or Dr Pier Antoniucci, Chief Executive Officer (00 1 408 745 0561 EXT: 104)

Year T/o $ PTP $ EPS c DPS
2004 Est 2,000 (3,700) (0.15c) Nil
2005 Est 17,000 2,500 0.10c Nil

CONCLUSION 'Early stage opportunity of world-class potential'

Block Shield is an exciting new company, possessing patented technology to solve the problem of electronic interference in a better, cheaper and more environmentally acceptable way. It has just started commercialising its technological advantages and is aggressively targeting a huge $2bn plus global market.

Based in the United States and led by experienced management with a successful record of developing leading technology into substantial shareholder value, Block Shield today represents an early-stage investment opportunity in a potentially world-class company. We understand that the Company is close to breaking even, certainly before the year end. We consider that the market has yet to recognise the Company's potential, there is massive upside for its shares. We confidently set a six-month Target Price of 150p.


COMPANY BACKGROUND

The Company was formed in 2000 to bring together a highly experienced management team from the United States electronics industry to introduce new technology into the global electronic shielding industry. At foundation the Group owned an existing decorative metallising business and acquired key patents for its technology.

Block Shield Corporation is a member of a group of companies of which it is the holding company. It has three wholly owned subsidiaries, WaveZero Inc, New WaveZero Inc and VPI Inc, all of which are incorporated in the Unites States. The activities of the Company are currently primarily in the United States where it has headquarters in Silicon Valley, California and production facilities in Wisconsin.

The Group is now in a mature stage of development and is beginning to commercially exploit its range of patented technological solutions. It listed on AIM on 27th April 2004. The Company chose to list on a stock market in London rather than in the United States as it has ambitions to be a global supplier.

The principal shareholder is Australian entrepreneur Michael Fitzgerald, who is a successful investor in and manager of technological and biotechnological companies.


DIRECTORS

Michael Fitzgerald. Non-Executive Chairman, aged 45

Michael is a qualified lawyer and has authored numerous articles on banking and company law. He has founded or co-founded a number of healthcare, material science and medical device companies. He was co-founder and Chairman of Gemini Genomics plc prior to its successful merger with Sequenom Inc which valued Gemini Genomics at $239m.

Dr Pier Antoniucci. Chief Executive Officer and President, aged 62

Excited by Block Shield's potential Pier, who has more than 30 years of technical and business leadership experience from the electrical manufacturing sector, has returned from semi-retirement to become CEO of Block Shield. He is the former President and Chief Operating Officer of P-Com. While at P-Com, yearly sales grew from $700,000 to about $200 million and the company went public in 1996. Prior to joining P-Com, he launched and led as President the Granger-Telettra JV, a US provider of digital microwave systems, successfully sold to Alcatel Network Systems in 1992.

Dr Rocky Arnold. Chief Technical Officer, aged 55

Rocky is a founder of Block Shield. He has five degrees and a broad background in electronic product development and the commercialisation of technology. From 1995 to 2000 he was employed as a consultant and then business development director and manager of radio frequency design at Logical Service Inc. He has worked with the US Army on three research products involving EMI shielding and for Ford Aerospace and Communications Inc (now Loral, Inc). He also has significant start-up and turn-round management experience.

Kenneth Judge. Non-Executive Director, aged 49

Kenneth is a qualified barrister, experienced in the technology and natural resource sectors. He is a director of other AIM-listed companies including Brazilian Diamonds and Hidefield and Alto Ventures, listed on the Toronto Stock Exchange.




Richard Gadbois. Non-Executive Director, aged 46

Richard is President and founder of Vantis Capital Management, a Los Angeles and New York asset based management company. He has held senior positions with Merrill Lynch, Prudential Securities and Shearson Lehman Hutton.

The Group intends to appoint a Finance Director in the near future.


COMPANY ACTIVITIES

Block Shield and its subsidiaries use their know how and proprietary and patented processes to create innovative solutions to eliminate, reduce or contain electromagnetic interference (`EMI') within electronic devices, as well as to guide component generated electromagnetic radiations along targeted transmission paths.

With operating facilities in Sunnyvale California and manufacturing facilities in Mauston, Wisconsin, the Company addresses the consumer electronics, communications, medical and military markets. The Company's Electro Magnetic shielding innovations provide solutions to an increasing number of applications brought about by the ever expanding types and families of electronic equipment, such as data and telecom devices and their expanding speed and range of processed electrical signals.

Whilst the Company's products are increasingly needed also to meet a growing set of environmental regulations to contain Electro Magnetic pollution, they themselves meet all existing and promulgated international standards for environmental compliance, such as the European Waste Electrical and Electronic Equipment Directive ('WEEE').


THE ELECTROMAGNETIC INTERFERENCE (EMI) MARKET

All electrical devices generate electromagnetic radiation. EMI is unwanted and/or disruptive electromagnetic radiation which has to be shielded, ie suppressed or contained. An electronic device or product which is not shielded will emit outgoing interference which will disrupt the proper function of other electronic devices nearby. Also it will be subject to possible incoming interference from other devices.

Moreover, the increasing complexity of modern electronic devices and products has meant that each product will incorporate several separate sources and types of EMI, each of which must be shielded from the other for the whole product to function correctly.

For example a modern washing machine will incorporate an electric motor and electronic programmers and controls which will, if individually unshielded, interfere with the proper functioning of the other components. A computer will have a power supply and substantial number of individual printed circuit boards which must be shielded individually.

The traditional technologies to effect shielding are:

1. Metallised injection-moulded plastic outer housings with the plastic incorporating metallic elements;
2. Sheet metal enclosures made entirely from metal, usually aluminium;
3. Die-cast metal enclosures;
4. Heat stakeable plastic cups; and
5. Painting, spraying or lining plastic casings with metallic film or paint


REGULATORY CONSIDERATIONS

The market has been driven by legislation throughout the world which prohibits the marketing and sale of products which do not comply with minimum standards of electromagnetic compatibility (EMC). These standards are becoming more onerous over time. The most stringent EMC regulations have been enacted by the European Union. However, all manufacturers will have to conform to the most stringent regulations enacted anywhere in the world as the cost of making special products for different jurisdictions with differing regulations is prohibitive.

Additional to shielding standards is the need to dispose of electrical equipment safely after its useful life is over. In 2002 the EU enacted both WEEE and the Restriction on Hazardous Substances Directive (RoHS). Manufacturers will be prohibited from using specified materials (eg mercury and lead) within electronic products and will be required to recycle certain products containing specific metals (eg copper and gold). This will affect the choice of shielding technology leading to a legal or de facto prohibition on the use of existing technologies which are lead-based paint or contain gold and copper.


ELECTRONIC PRODUCT CONSIDERATIONS

Other factors affecting the EMI market include:

• Increasing complexity of electronic products which are required to perform more functions;
• Miniaturisation of products, eg mobile phones and PDAs;
• Ever higher frequencies being used, especially for science and military applications;
• Increasing use of plastics over metal due to cost and ease of design and manufacturing;
• The growing number of electronic products being produced; and
• Increasingly, manufacturers are designing in electronic shielding at product design stage.


MARKET SIZE

Block Shield estimates that the total market size for the global EMI market is currently around $2bn. Of this the Company's estimate for the two largest segments is approximately $1.6bn: the EMI shielding service market is today worth $900m; and the shielding materials market was $700m in 2000. Block Shield is involved in both these markets.

Examples of industries which need to employ EMI shielding include consumer electronic products, IT hardware, telecommunications, automotive, instrumentation, medical devices, aerospace and military.


BLOCK SHIELD's SOLUTIONS

Block Shield's principal product solution is marketed under the Form/Met registered name. Its shielding products are made from vacuum metallised thermoformed plastic. Polymer films chosen by Block Shield include PC, PETG, PBT or PVC based films which are, typically, only 10 mil thick. The patented process involves the vaporisation and deposit of a thin film of 99.8% pure aluminium onto the polymer film. The finished Form/Met film is readily shapeable into any desired form to suit a wide range of electrical and electronic components and products.

Having such a flexible product, Block Shield has pioneered the concept of an Insertable Shield. Typically this will effectively envelop individual components in shaped Form/Met film. It will also provide an insertable wrap for a product between the circuitry and the outer housing.


The principal advantages of Block Shield's solution are that:

• The shielding is thinner and lighter than traditional solutions, eg some 20% of the weight of steel.
• Form/Met shielding is cheaper than traditional solutions. Fast prototyping, low tooling costs and reduced logistical costs can provide a saving of 30% to 50% in producing the shield and attaching or inserting it into the electronic component or product. Manufacturing labour costs can be reduced; for example the cost and time usage of painting or spraying outer plastics can be saved with the simple insertion of a Form/Met shield.
• The product equals the best of traditional solutions at 75dB shielding effectiveness. However, with the use of double-sided metallisation, the level of shielding can be raised to provide extra levels of shielding where required, for example where high frequencies are involved.
• As the Form/Met insertable shield is detachable from the product component(s), it allows easy removal and re-installation for repairs.
• Form/Met shielding is compliant with all existing legislation and it is expected that this will apply in the future. The insertable shield can easily be detached or removed prior to the product being recycled or disposed of. The shield itself is separately recyclable.
• The EMI shielding can be planned in at the product design stage. Currently, product design is normally done first and EMI solutions are added later in the design stage when the need for EMI shielding is identified. This gives OEM's greater control over the manufacturing process, shorter product cycle times and times to market.


PRODUCT DEVELOPMENT

The Company has been developing additional solutions for special applications including, so far, shielding for cables, vacuum metallising of complete printed circuit boards, shielding of connectors, applications where airflow systems are involved and a reflective shield for use in vehicle headlights.

Each application has its own trademarked product. The Company continues to develop special solutions for further shielding markets.


PATENT PROTECTION

Block Shield acquired three pieces of intellectual property from Mr Jack Grabower, the original inventor of the process of metallising thermoformed plastic. Mr Grabower is still employed by the company.

The Company has a policy of fully protecting its intellectual property. There are now five patents owned covering both processes and design elements. Patent protection applies until 2015 for three of the patents so far granted and until 2020 for the others. A total of 24 patent applications are pending and provisional filings have been made for 7 further applications.


COMPETITORS

3M, Chomerics, Laird Group and W L Gore are the largest providers of EMI shielding products and/or services. Product companies manufacture materials, for example conductive paint, metals or plastics. Service companies apply the materials and tooling or fabricate materials. Block Shield will be involved in both product and services.




CUSTOMERS

Early adopter clients include Siemens Medical Bose, OCLI/JDS Uniphase, Rockwell, Sun Microsystems and Orasure.

The early acceptance of and expressions of interest in Block Shield's EMI solutions by these leading global companies in the electronics industries is impressive and indicates that the solutions will be taken up by a range of further customers.


FINANCES

Over $12m has been invested in the company to date. The Company has raised $5.2m prior to listing on AIM and was considered to have adequate assets to finance working capital during its initial launch and development phases.

SQC Research estimates that the current net cash balances are circa $750,000.


SHAREHOLDERS

The Company has less than 100 shareholders. There are 25.55m ordinary shares of 1p each in issue.

Major Shareholders (as at 30th September 2004):
Cloverleaf Holdings Ltd (dup), 14,168,254 shares (56.11%); Michael Edward Fitzgerald (dup), 14,168,254 shares (56.11%); Salina Investments, 1,125,000 shares (4.46%); Westwood Venture Partners LLC, 1,113,648 shares (4.41%); and Umbria Investment Corp, 787,500 shares (3.12%). Director Rocky Richard Arnold holds 194,877 shares (0.772%).


CORPORATE STRATEGY

The Company has a manufacturing capacity, VPI in Wisconsin, which produces prototypes, limited production orders and proves scalable production. It also has a five-year strategic partnership with WaveZero Manufacturing, a private company set up by the CEO of Sigmatron, a Nasdaq contract electronics manufacturer, to manufacture longer production runs of vacuum metallised films and products. In relation to very high volume manufacturing, which cannot be handled by VPI or WaveZero, the Company will licence out manufacturing to contract manufacturers or other appropriate Manufacturers.

The Company initially sub-contracted its sales operations in order to put in place a broadly based sales network for the aggressive rapid penetration of key markets and access to a substantial number of customers. QuinTec, a newly formed sales organisation was established to market Block Shield products and services to the United States electronic industry. QuinTec was appointed exclusive distributor in North America and aims to have in place around 100 sales representatives by the end of 2004. QuinTec was acquired by Block Shield on the 1st September 2004 (see below).

Initially manufacturing and marketing operations will be tested in the United States markets prior to expanding on a global scale.


ACQUISITION OF QUINTEC (announced 2nd September 2004)

Through its US subsidiary WaveZero on 1st September Block Shield acquired the 70% of the issued share capital of QuinTec LLC not already owned by the Company and accordingly QuinTec has become a wholly owned subsidiary of Block Shield.

QuinTec is Block Shield's Master Sales Representative Organisation responsible for appointing, co-ordinating and training sales representatives for the Company's products throughout the USA.

Pursuant to the acquisition arrangements, the consideration is to be satisfied by the issue of 300,000 fully paid ordinary shares of £0.01 each (at a deemed value of £1.10 per share). These shares are to be held by a nominee of the vendors and may not be sold or otherwise disposed of prior to 1st September 2005, without the consent of the Company. As a consequence of the purchase:

• warrants granted to QuinTec by Block Shield in respect of not less than 900,000 ordinary shares will be cancelled;
• all key employees of QuinTec will join the Block Shield group; and
• the Company will become entitled to retain for its own profit an amount equal to 5% of its gross revenues which QuinTec was entitled to receive.

As part of the arrangements Block Shield has also transferred its 30% holding in M-Inence LLC (the Northern California sales representative company for Block Shield's products) to the controllers of that company.

The Company does not envisage that QuinTec will require additional working capital from Block Shield.

For the 7 months to 31st July, 2004 the unaudited management accounts of QuinTec
show that it had turnover of $503,140.22 and made a profit before tax of $4,220.86. As at that date it had net assets of $897,493.13.

Block Shield's Chief Executive Officer, Dr. Pier Antoniucci, commented:

'I am very excited by the acquisition. QuinTec has done an excellent job in identifying and training sales representatives for Block Shield throughout the USA. Block Shield and the management of QuinTec believe that, as product demands increase, customer satisfaction with our products and services can be more efficiently and profitably achieved by having our sales organisation working together with our other subsidiaries under the same corporate umbrella. This should also, obviously, permit us to make further savings through shared costs of operations. We are very happy with the manner in which QuinTec operates and have no intention of interfering with this methodology.'


LATEST RESULTS (Interims – announced 30th September 2004)

The Interim Statement for the eight-month period ending 31st August 2004 showed turnover of $622.911 against $1,034,898 for the twelve month period to December 2003. Research and Development expenses for the eight-month period were $1,375,985 against $300,786 for the twelve months to December 2003. The period's loss fell from $2.70 to $0.19 per share.

The first eight months of 2004 proved to be an exciting, highly productive and transforming period for the Group. In addition to the Company's floatation on the AIM market, the Group has been increasingly active and successful in: identifying and securing new and potential customers, for both existing and expanding product lines; strengthening its R&D by continuing to create new product and expand engineering capabilities; and solidifying the Group structure with the reported appointment of a new CEO in July and the acquisition of QuinTec and its direct sales organisation in August.

Importantly, during the reporting period, the Company experienced a significant shift in the general approach of customers, who now embrace the capabilities and advantages of its products and have turned their focus towards the methodology of incorporating those products into their devices. Product adoption is starkly evidenced by the dramatically increased level of prototyping, pre-production and production orders which the Group is currently enjoying.
In relation to sales developments, the Company's customer market penetration has grown rapidly. During the reporting period, the Group received production orders – or commenced working on specific projects with – a number of important high volume business customers. These include Bose (consumer electronic devices), Siemens Medical and Watkins Johnson (medical electronic devices), Sun Microsystems (personal computers) and Juniper/Celestica (data communications equipment).

The extension of its network of sales representations now covers major industrial areas of the USA. A total of 10 representative groups, with about 70 Block Shield trained representatives, have been engaged so far, covering 36 USA states and territories. Post the reporting period end the Company acquired its Master Sales Organization, Quintec Inc., on terms believed to be highly beneficial and advantageous to the Group.

Those recent milestones and achievements in the Company's marketing and sales growth constitutes a solid base for the expectation of a substantial increase of both orders and order size for shielding products with consequent ramp-up of revenues in the next six months.

On the research and development front, the Company continues to focus on creating new and innovative products, solutions and applications both on its own initiative and in conjunction with its customers in response to their requests. The growing acceptance of the applications of its products and the increasing adoption of its technology has led to customer requests for assistance in creating automated assembly solutions suitable for attaching the products in a volume sub-assembly manufacturing phase. This is seen as a satisfying indicator of the reliance which customers increasingly place on its technological capability to propose related industrial solutions. Efforts in this regard have been successful and consequently the Company has researched, developed and validated solutions to the challenges. They have comfortably fulfilled customers' requirements and have entitled the Company to seek patent protection for those processes.


CURRENT TRADING AND PROSPECTS

The Company has put in place all the elements to found a successful development of its technology, including research and development, manufacturing and marketing. The promotion of Pier Antoniucci to Chief Executive Officer has Dr Rocky Arnold, previously CEO of the Company, to focus on driving the group's technical innovation to continue the creation of further products and applications for customers.

The acquisition of the initial list of Tier 1 customers by the marketing team augurs well for the adoption of the Company's technology by the electronic manufacturing sector, initially in the US and progressively throughout the world.

On Friday 30th July the Company announced its first update on trading since its Admission to AIM in April 2004. Since April 2004, the Company has secured production orders from leading OEMs including Siemens Medical, Sun MicroSystems, OCLI-JVS Uniphase, Bose, Harmonic, Refraction Technologies, B. Braun and others. These orders are for the retrofitting of Form/Met shields to existing devices and for fitting Form/Met shields into new devices. Retrofitting requires the shield to be built and attached within a pre-existing design with little or no room for compromise.

These constraints require an efficient method of attaching the shield to the device, most commonly a printed circuit board. In promptly addressing this novel attachment issue, the Company has been successful in developing a proprietary form of electrically conductive adhesive, which has been shown to offer OEMs a simple, cost effective attachment method which provides higher levels of shielding, adhesion and ease of fabrication.

The Company has continued to expand its representative network of sales agents to new regions including Los Angeles, Pacific North West, Boston and the Minnesota-Chicago area and estimates completing its network of US representatives within the next three months.

Finally, as previously announced, the Company appointed Dr. Pier Antoniucci as
Chief Executive Officer on 28th June 2004. He brings with him more than thirty years of technical and business leadership experience in the electrical manufacturing sector. Commenting on these recent developments, Dr. Antoniucci said:

"The Company has developed a compelling and increasingly necessary technology. Although I have just joined the Company, I am very excited and impressed by the quality of our customers and the level of market acceptance, which has exceeded my expectations. Being involved in the design process for new devices is obviously very rewarding, but particularly exciting is the demand for retrofitting of existing devices. This demand evidences the shortcomings of traditional solutions and valuably provides us with the opportunity to become familiar with our customers' design processes for future devices. Successfully tackling the attachment concerns of OEMs demonstrates the Company's ability to react quickly to customer needs and produce innovative and effective solutions which enjoy high margins."

Successfully addressing the attachment issues referred to above, meant that trading in the first half of the year was behind the Directors expectations, nonetheless the Directors are confident that the lost ground will be made up in the second half. Consequently, cash balances are lower than forecast but, together with the facilities available to the Company, the
Company has sufficient working capital to take it through to cash break even.

As electronic devices become more complex and miniaturised, and importantly, as traditional shielding methods become prohibitively threatened by onerous and looming regulation, shielding requirements and constraints are becoming elevated to a significant problem which needs to be addressed at the design level.

The progressively increasing growth trends in both customer numbers and initial orders during the last eight months have solidified the Board's view that the Company is well placed and well advanced to provide the new and lead solutions which the industry needs. It is optimistic about its ability to continue to gain acceptance and significant sales during the remainder of this year and beyond.


CONCLUSION:

'New technology in the right place and at the right time – Block Shield offers early stage opportunity of world-class potential'

Block Shield is an exciting new company, possessing patented technology to solve the problem of electronic interference in a better, cheaper and more environmentally acceptable way.

It has just started commercialising its technological advantages and is aggressively targeting a huge $2bn plus global market.

By 2005, Block Shield expects that 80% of EMI will be 'on the board'. The Company's electronic shielding solutions aid electronics manufacturers in moving the shielding nearer the source of interference. This is an additional overall factor in making Block Shield's technology a compelling choice for the huge global electronics industry.

The Company seems destined to capture a commanding share of this market and reckons that market drivers will give it a tail wind over the next few years. Nowhere is this more true than in the field of regulatory compliance where traditional competitors have been disadvantaged and Block Shield offers an elegant solution to new constraints.

Block Shield's flotation on AIM has already witnessed a 37% rise in its share-price and this out-performance looks to continue in the future.

Based in the United States and led by experienced management with a successful record of developing leading technology into substantial shareholder value, Block Shield today represents an early-stage investment opportunity in a potentially world-class company.

We understand that the Company is close to breaking even, certainly before the year end. We consider that the market has yet to recognise the Company's potential, there is massive upside for its shares.

We confidently set a six-month Target Price of 150p.

[andyh78] 05/7/2004 09:57

Doesn't look like our fame has attracted many punters oswd......
Ah well, maybe our wealth will do when BLS starts releasing contract news.

[andyh78] 04/7/2004 13:44

Good news, although I'm hoping to see this rise buy more than a couple of pence over the next year or two : )

[oswd] 02/7/2004 20:53

AndyH78 - we hit the Greystone column :



Cheers Greystone ;-)

Look for a mark up on Monday possibly +2

[andyh78] 02/7/2004 08:50

Opening to new highs, which is nice.

[oswd] 29/6/2004 18:50

Seems to be in an upward trend, maybe worth tucking a few away DYOR.

[oswd] 29/6/2004 18:50

If you missed the first post :

This was a tip from the Telegraph a few weeks ago:

Watch out for Block Shield Corporation, which makes it's AIM debut on Tuesday. The loss-making group has developed patented technology for suppressing electro-magnetic interference (emi),which is generated by all electronic devices. Due to changes in legislation, the company believes demand for products to shield against EMI is likely to grow strongly. The shares have been placed at 72p,but we expect them to open at a large premium since the company is baced by proven moneymaker - Mike Fitzgerald, an Australian entrepreneur who made a fortune with Gemini Genomics, a biotechnology campany. A high risk punt.

Market cap is 26m.

[oswd] 29/6/2004 16:25

All the recent news about mobile phones affecting mens sperm count must also be good for the likes BLS.

[andyh78] 29/6/2004 16:12

Opened a long position on these, potential is massive!

[safe haven] 27/5/2004 08:25

Some positive news not long away now.