EXTON, PA, November 1, 2004 /- Principia Partners estimates that the North American demand for microsphere fillers will exceed $250 million in 2004 based on a multi-client study currently underway. As a result of several emerging applications, growth is expected to be over 10% per year through 2008. In the world of fillers, microspheres are unique owing to their engineered performance in terms of particle size, strength, density, and purity. Dozens of applications exist for microspheres, although these products have experienced excellent growth in recent years, as several new high-value, high-growth markets have emerged.

Microspheres are spherical additives fabricated from a variety of raw materials, most commonly engineered glass, plastics, and ceramics. However, products made from fly ash, carbon, quartz, cellulose, silica, or metal are also available. Microspheres can be either solid or hollow with diameters ranging from 5 to 200 microns. Because they are engineered, particle shape is consistent and size distribution is very tight providing excellent filler packing and free flowing products.

Traditional applications for microspheres include reflective media for traffic paint, light weight fillers for spackling compounds, additives for auto putties and sealants, and density modifiers for explosives. These markets represent the more established, lower value-added segment of the market. Newer applications which are projected to drive demand over the next decade include:

• Specialty composites -- to reduce weight and improve processing
• Cosmetic additives -- for gloss control and soft focus products
• Syntactic foam -- for thermal insulation, strength, and buoyancy for offshore oil and gas production
• Medical -- for tissue imaging and to assist burn victims
• Electronics -- for electromagnetic shielding
• Ink -- for flexible display electronic inks

Numerous other applications exist including specialty adhesives, powder coatings, other specialty coatings, polymer concrete, specialty plastics, paper and board fillers, building insulation and batteries.

Depending on the application, microspheres are used for weight reduction, improved strength, buoyancy, thermal and acoustic insulation, electrical resistance, or appearance properties. These products compete with other traditional fillers including calcium carbonate, talc, or silica, but provide unique performance attributes not available with mineral fillers. A major factor in the emergence of several of these high-growth applications has been recent developments in finer particle size microspheres (often below 20 microns) and developments in sphere coating and encapsulation technology providing microsphere complexes with unique appearance, electrical and other performance properties.

Currently, there are over a dozen suppliers of microspheres in North America. Leading producers include 3M, PQ/Potters, Sovereign, Fillite, Akzo Nobel, and Emerson and Cuming. In recent years, several new suppliers have entered the picture including Prizmalite.

A new multi-client market study from Principia Partners entitled Specialty Growth Opportunities for Microspheres will investigate over a dozen high growth applications for microspheres in North America. The study will provide estimates for current and forecast market demand for each application, identify current or potential customers, examine unmet performance needs and relevant technology developments, as well as profile the leading producers of microspheres.

Principia Partners is recognized as a leading consultancy serving the minerals industry. The firm is an international business consulting firm focused on the greater materials and related manufactured goods industries. For more information, visit the company's website at PrincipiaConsulting.com. For a prospectus on the study, call either Carl Eckert or Steve Van Kouteren at 800-378-8330.

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Contact:
Principia Partners, 800/378-8330
Carl Eckert, ext. 241
CEckert@PrincipiaConsulting.com
Steve Van Kouteren, ext. 242
SteveVK@PrincipiaConsulting.com