Woburn, MA, July 16, 2003 - Boston Applied Technologies Incorporated (BATI) is pleased to announce that it has entered into an agreement today with an industry leader on strategic alliance in developing high-end functional ceramic materials. Signed by the chief executives of both companies, the agreement marked the completion of a nearly 12-month Phase I development effort and the onset of the Phase II program. Under the Agreement, BATI will use its state-of-the-art manufacturing and R&D capabilities to develop high-end functional ceramic materials exclusively for the sponsoring company's applications. "This represents the culmination of a 12-months collaborative effort between the two companies," said Dr. Hua Jiang, President and CEO of BATI. "We are very excited about the opportunity to work with an industry leader. The additional resources provided by this Agreement will greatly enhance BATI's long-term commitment to commercialization at a very significant scale," added Dr. Jiang.