Phononic Devices Selected for ARPA-E Award to Commercialize Advanced Thermoelectric Devices

Pioneering Start-up Selected from Among over 3,600 ARPA-E Applicants Focuses on
Converting Waste Heat into Usable Electric Power

CARY, N.C.--(Business Wire)--
Phononic Devices, Inc. has been selected for a $3 million grant from the
Department of Energy's new Advanced Research Projects Agency-Energy (ARPA-E).
The grant will enable the company to further develop its new class of highly
efficient thermoelectric devices that convert waste heat from industrial and
commercial processes into usable electric power. Phononic Devices was one of
only 37 companies selected by ARPA-E for funding to pursue "transformational"
energy breakthroughs.

"We are honored to partner with ARPA-E to develop our unique thermoelectric
technology," said Dr. Anthony Atti, President and CEO of Phononic Devices. "With
ARPA-E resources and support from our venture investors Venrock and Oak
Investment Partners, we can expand our research team and accelerate device
engineering."

The Department of Energy estimates that more than half of all the energy
consumed in the United States is wasted as heat, turning its recovery and
profitable use into an area of intense interest. Phononic Devices` approach
combines proprietary design concepts, nanostructured materials, and a thin-film
semiconductor platform to dramatically improve heat-to-electricity conversion
efficiency. The company`s breakthrough will enable Thermoelectric Generators
(TEG) that harvest waste heat for power generation; it can also be applied in
reverse, enabling Thermoelectric Coolers (TEC) that can pump heat out of a
system for cooling. Phononic Devices` technology stands to unlock the latent
$125 billion market for thermoelectric energy harvesting, cooling, and
refrigeration, enabling mass manufacturing and customer adoption at price points
undercutting incumbent technologies. Phononic Devices will partner with leading
semiconductor and thermoelectric institutions including the University of
Oklahoma, the University of California Santa Cruz, and the California Institute
of Technology in order to commercialize thermoelectric devices for power
generation (TEG) and active cooling (TEC).

"The high-efficiency conversion of heat-to-electricity and vice versa could be
game-changing across the energy landscape," said Matt Trevithick, Partner at
Venrock. "Whether to convert heat from combustion processes into electricity, or
to replace compressors in air conditioning applications, Phononic Devices`
approach promises disruptive gains in energy efficiency."

About Phononic Devices

Headquartered in Cary, North Carolina and with venture capital investors Venrock
and Oak Investment Partners, the company is commercializing advanced
thermoelectric materials and devices expected to dramatically improve
heat-to-electric energy conversion efficiency. With exclusive access to core and
enabling intellectual property from the University of Oklahoma, the Company`s
approach combines enhanced thermopower with a thermally insulating, and
manufacturing-friendly thin-film semiconductor platform.
www.phononicdevices.com.

Horn Group, Inc.
Amy Grady, 415-905-4045
agrady@horngroup.com

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