Newsletter: Volume 1, Issue 3

AquaCat Patent Awarded By U.S. Patent and Trade Office

InTheWorks,Inc. was issued Patent No. 7,807,120 for ‘High-efficiency Catalytic Converters for Treating Exhaust Gases’ from the US Patent & Trade Office on October 5, 2010. While it may seem like it’s been a long time “in the works”, advisers tell us that it was an uncommonly swift process for us, given the complexity of our patent claims. We’re excited to have achieved this milestone and add this impressive asset to ITW’s portfolio. It goes a long way towards validating our-selves to prospective partners and investors as well as protecting the technology.

The patent was applied for in December, 2008. Since then, it’s been a long drawn-out discovery and review process to validate our technology. It’s quite an accomplishment to have achieved it with all of our claims having been allowed. This, along with our third party verification is what our network of potential partners and investors have said they want to see from us.

The next step is to obtain international patents, and according to CTO, Todd Han-sen, this is just the first in a long line of patents that ITW will be applying for. “I’ve got more ideas than time to act on them right now,” said Todd, “especially with all our time being focused on commercialization of our current technology.”

InTheWorks a Finalist at NWEN First Look Forum

Out of 40 applicants vying for a spot in the Northwest Entrepreneur Network’s “First Look Forum”, InTheWorks has achieved the finalist round and will be presenting on October 12th to investors, media and sponsors in downtownSeattle in a fast-paced, interactive environment. A criteria of NWEN’s “First Look Forum” is that the companies haven’t previously presented to formal investment groups or venture capitalists. This gives the whole event an air ofdiscovery as both media and investors look for those great ideas. With a patent and third party verification, ITW has the credibility and will take full ad-vantage of this opportunity. For more information: www.nwen.org

Letter From The President

It’s amazing to me that we’ve been able to achieve our third party verification, our U.S. patent, and keep our small talented team together at a time when even the biggest players in the marine industry have slashed R&D budgets by as much as 50%.

The economy has prolonged the timeline for us to be able to turn enthusiastic supporters into actual investors, and to find partners with the financial bandwidth to support a development partnership. As we work tirelessly to make these connections, we’ve been making good use of our well-connected advisors to fine tune our business plan and commercialization strategy.

At present, we’re excited to be in discussions withthe National Center for Manufacturing Sciences (www.ncms.org), a “collaborative manufacturing research consortium of 175 North American corporations”. We presented to them in September, they were impressed with what they saw, and they are now actively making the connections for us with potential manufacturers who have close ties to the Defense community.

This collaboration strategy will be a key component to funding the diesel adaptation of the AquaCat which will open doors throughout the military and in other arenas that have a compelling need for our technology.

In the meantime, part of our marketing strategy is to get more of the gasoline AquaCats onto high
end boats to get people talking about it. As we’re told over and over again, seeing really is believing, folks!

As always, I’d like to express gratitude to our investors who have gotten us this far and continue to express their support.

At this juncture, there’s nothing holding us back from a bright future; it’s just that it’s taking longer to get there than anyone could have anticipated.

To that end, we know that the flexibility, tenacity, and dogged determination that have gotten us this far will prevail and ITW’s “ship will come in”. It may be a tough economy, but it’s the right technology. Stay tuned!

InTheWorks in the News!

The September issue of Seattle Business, selfdescribed as “Washington’s Leading Business Magazine”, profiled ITW with an article titled “Not Blowing Smoke” along with the picture of Scott Reynvaan and Todd Hansen shown on the first page of this newsletter. The positive article highlighted the background of the company and featured the technology and potential applications beyond marine.

The Kitsap Sun also spotlighted InTheWorks for its recent finalist achievement at the First Look Forum of the Northwest Entrepreneur’s Network.