The JV is focused on developing and commercializing BluGlass’ proprietary Remote Plasma Chemical Vapor Deposition (RPCVD) technology to grow materials including GaN and AlGaN at low cost.

 Australian green technology innovator BluGlass Limited has entered a Joint Venture (JV) agreement with SPTS, a global supplier of advanced capital equipment and process technologies for the semiconductor and related device industries.

The purpose of the JV is to complete the development and commercialization of BluGlass’ proprietary Remote Plasma Chemical Vapor Deposition (RPCVD) technology. BluGlass will receive AUD $ 5.2 million investment from SPTS for a subscription of ordinary shares at $0.11 per share.

SPTS is a leading provider of plasma based process equipment to tier-1 and tier-2 manufacturers of LEDs, semiconductors, and other electronics globally. With over 400 employees and 35 locations worldwide, SPTS is seeking to expand its product portfolio into adjacent process equipment sectors. SPTS President and CEO, William Johnson said BluGlass has developed promising technology that fits well with SPTS’ technical roadmap and product/customer base.

“Through this joint venture, SPTS and BluGlass intend to bring the RPCVD technology to market on field- proven production platforms, offering significant competitive advantages for customers in the rapidly expanding high brightness LED industry,” Johnson added. “We are delighted to partner with BluGlass and look forward to collaborating on the commercialization of this potentially disruptive technology.”

 In establishing this strategic partnership, SPTS will become a cornerstone investor in BluGlass Limited, subscribing for approximately 47.7 million fully paid ordinary shares of BluGlass at an issue price of $0.11 per share to give SPTS a post placement holding of 19.9% of the expanded issued ordinary share capital of BluGlass.

This investment involves two tranches. The initial tranche, 23,297,379 shares (subscription amount: $2,562,712) is to be placed within 5 days of this announcement The balance of SPTS’s subscription (24,431,780 million shares for a subscription amount of $2,687,496) exceeds the Company’s placement capability and requires the approval of shareholders of BluGlass, to be sought at the Company’s AGM to be held on 1 November 2010.

BluGlass has also agreed to offer SPTS the right to participate in any future issue of securities, to the extent necessary to maintain its holding at the time, and SPTS will have an ongoing right to nominate a representative to the BluGlass board (on the condition that SPTS has more than 10% in BluGlass).

 BluGlass Chairman, George Venardos said, “As part of our new strategic relationship with SPTS, I am delighted that the BluGlass Board will be unanimously recommending William Johnson as a nominee for a board seat at the upcoming 2010 AGM”.

 BluGlass CEO Giles Bourne added “SPTS’ existing plasma deposition equipment manufacturing expertise and capabilities, along with its substantial customer base are enormously complementary and synergistic to BluGlass’ commercial goals.”

 “SPTS is the perfect fit partner for our technology and its commercialization and we are delighted to announce this Joint Venture agreement with this dynamic company. This is a major commercial milestone for BluGlass” he continued.

 RPCVD will potentially offer cost, throughput and efficiency advantages for the production of nitride semiconductors. The Joint Venture will be co-capitalized by the two parties exclusive and additional to the initial $5.2 million investment into BluGlass by SPTS. BluGlass will maintain a majority stake of the equipment JV with 51% ownership and will also retain 100% ownership of device (such as LEDs and solar cel) intellectual property.

The JV will focus exclusively on the development of the RPCVD equipment portfolio and sales. BluGlass will exclusively license its RPCVD intellectual property for the purposes of the JV with SPTS. SPTS has existing manufacturing capability in plasma based process equipment, and both companies bring complementary intellectual property and know-how into the venture.

 BluGlass will continue to operate its Silverwater facility and through the JV it will establish RPCVD development and demonstration equipment at SPTS facilities. “SPTS is already a global leader in the supply of specialist semiconductor production equipment. We believe that this Joint Venture will enable BluGlass and SPTS to emerge as a front runner in supplying process equipment for the LED and PV-solar industries,” concluded Bourne.

SPP Process Technology Systems SPP Process Technology Systems was established in October 2009 as the vehicle for the merger of Surface Technology Systems and acquired assets of Aviza Technology. The company is a wholly-owned subsidiary of Sumitomo Precision Product , and designs, manufactures and sells advanced semiconductor capital equipment and process technologies for the global semiconductor industry and related markets.

 BluGlass Limited is an Australian green technology company which uses Remote Plasma Chemical Vapour Deposition (RPCVD) to grow semiconductor materials such as gallium nitride (GaN) and indium galium nitride (InGaN). These materials are crucial to the production of high efficiency devices such as next generation lighting technology Light Emiting Diodes (LEDs) with significant low cost potential.