Lumera Corporation (Lumera), incorporated in 2000, develops, manufactures and markets devices using proprietary polymer materials. The products based on these materials are developed for two primary markets: bioscience and electro-optics. It designs and synthesizes polymer materials at the molecular level by using nanotechnology. Bioscience products Lumera develops disposable biochips fabricated for both deoxyribonucleic acid (DNA) and protein analysis, and a surface plasmon resonance (SPR) biosensor designed to enable detection and analysis of possible drug candidates that target protein molecules, biomarker discovery and protein pathway elucidation. NanoCapture Arrays are biochips that are coated with proprietary hydrophobic polymers. These water-resistant polymers surround the microwells on the biochips, better containing the DNA samples in the microwells and reducing cross-contamination between wells. In addition, the polymers used on NanoCapture Arrays are compatible with silicon, glass, metal, plastic or other materials that provide the base layer for biochips, allowing for a range of additional biotechnology applications. NanoCapture Arrays are being tested by major research centers. During the year ended December 31, 2005, Lumera acquired exclusive rights within its markets to Helix BioPharma Corporation's Heterodimer Protein Technology (HPT). The combination of HPT technology and proprietary nanosurface modification chemistry will allow researchers to consistently utilize existing DNA arrays to produce protein arrays that accurately mimic the native living cell environment of the body. In 2005, it also entered into a collaboration agreement with the Institute for Systems Biology (ISB) to develop a high-throughput, label-free detection platform. The technology platform consists of ProteomicProcessor and NanoCapture Array technology. The ProteomicProcessor tool reads high density NanoCapture Microarrays in real-time, without the use of molecular labels. This collaboration resulted in the first generation ProteomicProcessor. This machine is an analytical reader using SPR, a process that reads the changes in the refractive index of the samples in the microwells. Working with the ISB, it has identified the transcription factor binding to certain DNA sequences, which is critically important information for new drug development. Electro-optics products Electro-optic devices, such as modulators translate electric signals into optical signals used in communication systems to transfer data, either over fiber-optic networks or between chip-based circuits, acting like high-speed switches. Lumera is developing a new generation of electro-optic modulators and other devices for optical networks and systems based on proprietary polymer materials. The applications for these advanced materials include electro-optic components such as modulators and ring oscillators, polymer electronics, such as high performance diodes and transistors, and optical interconnects for high speed (greater than 20 billion cycles per second) inter and intra semiconductor chip communication. It has designed and manufactured polymer-based electro-optic modulators that operate at speeds up to 95 gigahertz. In addition to polymer-based electro-optic products in development for commercial markets, Lumera develops customized products on a contract basis for United States government agencies and government subcontractors, including high performance electro-optic modulators. These development contracts provide the Company with revenues, helps fund research and development efforts and provides access to certain technological resources of the government and government subcontractors. Lumera is working on two government contracts to produce polymer-based modulators for use in defense communications and detection systems and phased array radar.

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