Alexium, SSM Team To Commercialize RST Technology

Greer, S.C.-based Alexium Inc. — a wholly owned subsidiary of Australia-based Alexium International
Group Ltd. — and Spring City, Tenn.-based SSM Industries Inc. — a manufacturer of flame-resistant
(FR), cut-resistant and thermal fabrics for military, fire and rescue and industrial applications —
have signed a commercial license option and facilities access agreement under which SSM will have
an option to license Alexium’s Reactive Surface Treatment (RST) technology to produce fabric that
will be supplied to racing suit manufacturers, and Alexium will have access to SSM’s manufacturing
facility for its own production purposes.

Alexium International currently holds proprietary patent applications for the RST technology,
a process developed at the U.S. Air Force Research Labs, Materials and Manufacturing Directorate
and Air Base Science Division. The technology enables surface modification and attachment of
nanoparticles or multiple chemical functional groups onto a variety of surfaces or substrates to
provide water- and oil-proofing, antimicrobial, nonstick and ultraviolet protection as well as
other functions.

An Alexium RST microwave unit installed at SSM’s plant is currently being used for
commercial-scale treatment of textiles. SSM is evaluating the technology for possible use in racing
suit and other FR workwear fabrics that it would supply to the U.S. market under an exclusive
license. The company also might expand the license to include oil repellency on hi-visibility and
FR workwear.

Alexium will provide maintenance services for the unit, as well as technical support and
training to personnel at SSM’s facility — which comprises knitting, weaving, finishing and dyeing
operations — and will have access to the RST unit and permission to use SSM’s facility for
commercial-scale production of treated textiles it will supply to the U.S. Department of Defense
and potential commercial partners.

“We have jointly identified a number of areas where we believe RST technology can
significantly enhance the performance characteristics of personal protection apparel,” said Scott
Hilleary, SSM. “This agreement will enable SSM to pursue these opportunities commercially in
addition to its existing business as a leading manufacturer in the US for flame resistant apparel
for military, fire and rescue, industrial and automotive racing use.”

November 30, 2010