2006

FOR IMMEDIATE RELEASE
CONTACT:          Jean Donovan, NYSERDA
                          Communications - (518) 862-1090 ext. 3516   

                          Herb Armstrong, Starfire Systems
                          Vice President, Marketing / Sales - (518) 899-9336

                          John Ball, The United Group
                          Chief Operating Officer - (518) 687-7315

State Energy Authority Announces Partnership that will Lead to the Growth of Clean-Energy and Environmental Technologies in New York State

Albany, NY -- July 5, 2006 -- State officials today announced the partnership between the New York State Energy Research and Development Authority (NYSERDA); Starfire Systems, Inc.; and The United Group of Companies, Troy, New York, to begin construction on a 105,000-sq.ft. facility at the Saratoga Technology + Energy Park (STEP) that will be home to a number of clean-energy and environmental technology companies. Starfire Systems is the first company to sign a lease to occupy 25,000-sq.ft. of space in the building to develop and manufacture high-performance nanostructured advanced ceramic products and materials.

In 2001, Governor George E. Pataki announced the establishment of STEP. NYSERDA joined with the Saratoga Economic Development Corporation (SEDC) and the University at Albany to collaborate on developing the 280-acre site as a technology park devoted to clean-energy, energy-efficient, and environmental technologies. STEP is the only technology park in the nation with this focus.

"The growth of the clean-energy technology industry is evolving into an exciting new economic engine with tremendous potential," said Peter R. Smith, President and CEO of NYSERDA. "NYSERDA, along with Starfire Systems, the United Group, and the STEP team, is helping to fulfill the vision of technology growth in New York's Tech Valley. The new facility will be a great attraction for clean-energy and renewable-energy companies like Starfire to help us achieve our goal of reducing dependence on imported energy while bolstering New York's economy. We are pleased to be a part of this monumental effort because this is only the first step in growing clean energy technologies in New York at the Saratoga Technology + Energy Park."

Representative John Sweeney said, "The technology foundation we are laying at the federal, state, and local level will change the face of technology and jobs for the future here in the Capital Region. I'm proud to be a strong advocate for Starfire Systems. I have obtained over $3.6 million in federal funding for Starfire Systems to continue research and development in the areas of defense, homeland security, transportation, and energy efficiency with more federal funding on the way. The commitment of federal and local dollars has paid off, with the announcement of  Starfire Systems being the first company to sign on to occupy a building in STEP to develop its technologies, it demonstrates the commitment its CEO, Rich Saburro, has to continue to grow jobs and lead in the area of clean-energy technology right here in Upstate New York's Tech Valley."

Senate Majority Leader Joseph L. Bruno said, "Starfire is a tremendous business success story and it's great to see them growing for the future. The cutting-edge, clean energy technology of Starfire will help them continue to grow into the new building and create more jobs in Saratoga County. Coming on the heels of the AMD/Luther Forest announcement, this is more good economic news for the Capital Region."

Richard Saburro, Starfire System's President and CEO, noted "This is a great day for Starfire. It represents an important milestone and demonstrates the results that can be achieved in New York State through NYSERDA's creative support of new energy-related technology initiatives. We view the new facility as symbolic of a new era of growth for Starfire, as we introduce exciting new products for global markets, particularly in the areas of electronics and transportation. We are also pleased that the Saratoga Technology + Energy Park is growing. We believe STEP will be an important asset to help us attract and retain top engineering talent, stimulate innovation, and convey a professional image to our customers. STEP is quickly becoming the preferred place for clean-energy companies to be."

Paul Sausville, Supervisor of the Town of Malta said, "We are excited about the announcement of Starfire's expansion. It is a low-impact business with the potential to employ many local residents. It is the kind of 21st Century business that will be a long-term asset to our community."

Ken Green, President of the Saratoga Economic Development Corporation said, "SEDC and Luther Forest would like to add our congratulations for this important economic development announcement with Starfire Systems. Again, the public/private team partnership has produced important technology jobs for our region and at the same time reduced our dependence on off-shore energy. This is only one of many great announcements to come for Saratoga County and Tech Valley."

Michael Uccellini, President and CEO of The United Group of Companies, Inc., which will develop and manage the new building at STEP, said, "We are excited about our role in the expansion of one of Tech Valley's most promising initiatives, working with NYSERDA on the Saratoga Technology + Energy Park and supporting the growth of Starfire Systems, one of the Park's early success stories." Uccellini added, "This announcement, following on the heels of last week's news that the nearby Luther Forest Technology Park will be home to a new semiconductor facility, is proof that the collaborative effort to attract and grow technology companies is paying off for the Capital Region. We hope that this will be only the first of many projects we work on at STEP with NYSERDA."

Construction of the building is expected to begin in September and be completed in mid-2007.

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About STEP

Located in the heart of New York's Tech Valley, the Saratoga Technology + Energy Park (STEP) is the nation's first location dedicated to developing clean-energy and environmental technology companies. STEP is designed to attract companies involved in: alternative and renewable energy, environmental technologies, transportation technologies, power generation, buildings, and clean-energy workforce development.

STEP is designed to support collaboration and interaction in a campus-like setting, and is an entry point into New York's network of state agencies, universities, and centers of excellence. STEP is uniquely positioned to help clean-energy and environmental technology companies take advantage of potential NYSERDA funding opportunities, including research and development, technical assistance, and incentives for purchasing and installing energy-efficient measures.

Currently, there are seven tenants at STEP, including Advanced Energy Conservation, the Building Performance Institute, Carbon Ceramics, DayStar Technologies, Global Resources Options, North American Board of Certified Energy Practitioners, and Starfire Systems. Ongoing marketing efforts for STEP are being handled by CB Richard Ellis - Albany. For more information about STEP, visit step.nyserda.org

STEP and New York's Tech Valley

STEP is strategically located in New York's high-tech corridor between the New England and Mid-Atlantic regions. STEP offers central access to the population centers of the northeast, major energy markets, colleges and universities. STEP is centrally located in Malta, New York - about 30 minutes from Albany, three hours from New York City or Boston, and four hours from Montreal. More than 1,000 technology companies in New York's Tech Valley employ some 50,000 high-value employees, representing approximately $2 billion in annual payroll and $5 billion in annual economic impact.

About Starfire Systems, Inc.

Starfire Systems offers a unique family of patented nanostructured silicon carbide forming polymers for the manufacture of advanced ceramic materials and products. Starfire's range of ceramic-forming polymers and materials systems greatly simplify the formation of engineered ceramic products for new applications in aerospace, power generation, microelectronics, and transportation. Its team of materials scientists and polymer chemists engineer light-weight high-strength ceramics that can resist corrosion and wear at most any temperature. For more information on Starfire and its enabling technologies and products, visit www.starfiresystems.com

About the United Group

The United Group, based in Troy, is a full-service real estate development firm specializing in building for the technology industry and other targeted industry segments. The company has a proven track record of providing buildings and real estate services that meet the needs of communities and industries.

The United Group provides in-depth expertise in every phase of development. From concept, design, and financing, to construction supervision, marketing and management, The United Group offers new ideas and customized solutions. The company is currently driving the redevelopment of the Congress Street-Ferry Street Corridor in Troy, developing space within the Rensselaer Tech Park, and working on intergenerational residential projects in Colonie and Brunswick, New York, and in Atlanta, Georgia. United also has more than 3200 units of student housing on its drawing board.