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Markets for Radiation Detection Equipment Nano-635 Radiation Detection Materials Markets-2013 Nano-631

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2 About NanoMarkets

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2 Coverage Areas

NanoMarkets’ addresses the following markets as part of its practice

• ADVANCED MATERIALS

• RENEWABLE ENERGY

• EMERGING ELECTRONICS

• SMART TECHNOLOGY

• OLEDs

• GLASS AND GLAZING

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2 Radiation Detection Reports

Markets for Radiation Detection Equipment Radiation Detection Materials Markets-2013 Radiation Detection Materials Markets-2011

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2 Radiation Detector Markets The radiation detector market is large, diverse and global. It stands at about $25 billion (USD) in 2013 and projected to grow at 4% annually over the next 8 years to about $33 billion. The market is divided into medical radiation detectors (66% market share), safety & monitoring (14%) detectors and specialty & custom detectors (20%)

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Total Radiation Detector Market

Specialty/Custom

Medical Diagnostic

Safety/Monitoring

2 Radiation Detector Markets

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Total Global Market for Radiation Detectors 2013-2018

Process Monitors

Area Monitors

Backpack

Dosimeters

PRD/SPRDs

Oil & Resource Logging

Vehicle Mounted

Survey Meters

RIIDs

Portal Monitors

Nuclear SPECT

Custom Big Physics

Industrial Radiography

Radiography

Computed Tomography

Nuclear PET

2 Medical Detection Market Segments

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Exhibit E-1: Potential Example Segmentations of the Radiation Detector Market

Market Segments Product Types Applications Detector Types

Medical Dosimeters Dirty Bomb Detection Geiger Counters

Homeland Security/Defense

Radioisotope Identification Device

Cardio Stress Testing Ionization Chambers

Nuclear Energy Personal Radiation Device Dark Matter Detection Scintillation Counters

Occupational Safety Portal Monitors Effluent Waste Monitors Semiconductor Detectors

Industrial Component Inspection

Oil Logging Meters Whole Body Contamination Scanners

Cryogenic Detectors

Oil and Resource Exploration

PET Devices Oncology Treatment Monitoring

2 Medical Detection Markets Medical detectors include radiography and CT X-ray detectors, and PET and SPECT detectors.

This market will grow by 4% annually, driven by continued global demand for healthcare. The drivers are an aging population in mature economies and economic empowerment in emerging economies Digital Radiography (DR) has become the dominant detector in most radiography applications displacing its competition. Demand for computed radiography (CR), a transitional technology will flat-line or decline and analog film will continue a steep decline in market share. CT is increasing its utility as a go-to diagnostic tool as radiation dosages decline with higher slice devices. Ultra high slice devices employ DR detectors, expanding the utility of flat panel CsI thin films. SPECT techniques are successfully coupling with CT, but challenges remain to make SPECT/MRI a clinical modality. SPECT will continue its dominance in cardiology, unless improvements to the Anger camera detector can allow substitution for PET in oncology. PET will be part of multimodalities moving forward (PET/CT, PET/MRI etc). But will be available at larger institutions that can base the upfront costs. PET will only dominate SPECT of the costs can dramatically decrease.

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2 Safety and Monitoring Detector Markets

The safety and monitoring market includes homeland security, military, nuclear energy, and industrial and occupational sub-segments.

This market will grow at 5% annually driven by activities in global nuclear threat security and by the continued employment of nuclear power by most nations, especially China The 2011 Fukushima accident has not greatly affected the move toward nuclear, except in a few nations, and even Japan is rethinking its moratorium. Although not nuclear terrorism, severe terrorist events, especially the Boston Marathon bombings; keep the threat of nuclear terrorism on the public conscious. Growth in the market will come from the continued deployment of radiation portals and individual detectors to emergency response personnel The security and military markets are by far the most innovative sectors and new scintillation detectors may be on the market soon that challenge NaI and LaBr3 The need for personal radiation protection may see growth driven by the acceptance of food irradiation and the subsequent opening of new facilities.

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2 Custom and Specialty Detector Markets The custom and specialty detector market includes specialty oil well logging and safety devices, industrial radiography, detectors for Cosmology and High-Energy Physics, custom process monitors and vehicular mounted sized detectors.

This market is approximately growing at approximately 5% annually, and is characterized by unique applications of radiation detection or a reliance on custom built devices. Industrial Radiography represents the largest segment of this market and is dominated by X-ray based inspections. This will be the last hold out for film radiography as many major manufacturers have not transitioned specs to digital. Also firms may by-pass 2D DR inspections in favor of 3D CT. We suspect that gamma based inspections will be pushed out by X-ray or alternate non-destructive tests like ultrasound. Oil well logging devices will continue to be in demand as more and more hydrocarbons are taken from US “fracked” sources. Radiation detectors are needed to determine the size and shape of resource wells, and the materials that surround them. Big Physics at CERN may have discovered an elusive particle, and Cosmologists everywhere are seeking to understand dark matter. Despite tepid support from the US, globally Big Physics is enjoying a renaissance. China and Russia may well support similar projects in the future. These activities require custom and complex radiation detectors.

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2 Radiation Detection Materials “Radiation Detection Materials Markets 2013” predicts that scintillation (crystalline and thin-film), semiconductor, and non-3He neutron detector materials revenues will grow from $2.3 billion (USD) this year to $3.7 billion in 2020.

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Total Worldwide Radiation Detection Material Revenue

2 Radiation Detection Materials

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Worldwide Radiation Detector Materials Revenue by Application

Total Industrial

Total Geophysical

Total Nuclear Power

Total Medical Imaging

Total Military

Total Domestic Security

2 Radiation Detection Materials

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Worldwide Radiation Detection Material Revenue

Non-3He Neutron Detection Materials(10Boron and 6Li-Based)

Semiconductor Detector Revenues

Scintillation Detector Revenues

2 Current and Future Factors Shaping the Radiation Detection Materials Market

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In the medical field, an aging population in North America, Europe, and Japan has created one source of increased demand for radiological imaging equipment, and thus demand for scintillating radiation detection crystals. Economically emerging nations (BRIC nations and other similar economies) are creating demand for radiological imaging equipment in markets where there was previously little or no penetration of these advanced imaging techniques. Scintillation materials for medical imaging will slowly transition away from some of the oxides, such as BGO, to some of the silicates and LaBr3 if crystal growth techniques can help bring prices down to justify materials changes for improved performance. Thin-film scintillation materials for digital x-ray imaging represent a major area of growth over the next eight years. The transition from traditional film and phosphor plates is happening currently, and will accelerate as the cost of digital x-ray panel detectors based on CsI become the norm in the medical field. There is no “Moore’s law” for radiation detection materials. The physics of each material dictates the amount necessary for specific sensitivity to radiation. Likewise, resolution and light yield are intrinsic to the material. Cost reduction in radiation detection materials will come through economies of scale as larger improved factories come online, and performance will be improved through introduction of new materials with improved fundamental attributes.

2 Current and Future Factors Shaping the Radiation Detection Materials Market

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Domestic security applications represent a steady growth sector for the foreseeable future. Protection against radiological threats has been defined as a fundamental function of the domestic security apparatus in the U.S. and most other nations that could be a target of radiological terrorism. Once such funding becomes ingrained in the bureaucracy of state spending, while events like the current U.S. sequester may temporarily threaten such spending, ultimately the threats are empty and the funding grows steadily. Domestic security demand for improved resolution detection materials for portals is still a priority. Replacement of PVT-based detection materials with NaI in many cases is ongoing, but radiation detection materials for primary screening with improved isotope identification capability are needed. CLYC has just been introduced, but could be a candidate. CZT has the resolution necessary, but currently the cost is too high. 3He gas is currently the detection material of choice for slow neutron detection of nuclear materials. The demand for 3He is, however, three times current production. 3He currently is harvested from the decay of tritium in nuclear weapons and is nonrenewable, with the available weapons material declining due to disarmament requirements. As a result, the current crisis will only intensify. 3He is therefore no longer approved for portal use, and the industry has transitioned to 10B-lined tubes. 6Li has not been adopted significantly for portals due to its poor sensitivity in the presence of significant gamma radiation, but work continues to improve 6Li for such applications. Markets for nuclear power will likely experience slow growth, but may begin to rebound even in Japan as the cost of non-nuclear alternatives is felt. One opportunity for radiation detection near nuclear plants will be in the consumer market for dosimeters. It won’t be a mass market, but with new low-priced dosimeters available, there will be some demand.

2 Current and Future Factors Shaping the Radiation Detection Materials Market

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Military markets will have significant demand for new small electronic dosimeters that can be wirelessly linked to provide real-time information to commanders. The ability to more clearly understand the exposure of troops will provide better information to the command regarding the operational readiness of forces. Room temperature isotope detection equipment based on CZT will also likely see a significant uptick in demand in military applications. Eliminating the cooling requirement needed with current HPGe-based detectors for field operations will be a welcome improvement for military mobile isotope detection equipment. Finally, there will be steady demand for more radiation detection monitoring near bases worldwide. CZT represents a significant possibility for wide adoption in the isotope detection role, because it does not require cooling like HPGe. However, many years of work have gone into the crystal growth engineering of CZT, and while much improved, large single crystals like those grown in the semiconductor industry for silicon remain elusive. If costs can be brought down, the future is bright; if not, CZT may be limited to applications where its high cost can be absorbed. For materials suppliers, providing precursors for multiple paths of research at both lower purity and ultra-high purity will provide customers with the needed materials to quickly conduct research into new materials. In addition, subcontracting to key suppliers of more exotic materials will be helpful. Finally, offering equipment to facilitate automation of materials discovery could be a differentiating factor between suppliers.

2

Lawrence Gasman is the principal analyst at NanoMarkets and one of its two co-founders. Mr. Gasman has more than 30 years' experience of analyzing the commercialization potential of complex technologies and currently manages all of NanoMarkets' industry research.

Lawrence Gasman Principal Analyst

Jeff DeBord is a Senior Associate Analyst for NanoMarkets working in the areas of advanced materials. He is the author of the NanoMarkets report, “Radiation Detection Materials Markets.” His educational background includes a Ph.D. in inorganic chemistry from the University of Nebraska-Lincoln and postdoctoral work at the NEC Research Institute in Princeton, New Jersey.

Jeff Debord Senior Associate Analyst

Sean Dingman is a Senior Associate Analyst for NanoMarkets and the author of the report, “Markets for Radiation Detection Equipment.” Most recently he was a New Business Development Manager at Sigma-Aldrich’s SAFC Hitech business unit where he drove the expansion of their product lines and technologies for radiation detection materials. Mr. Dingman’s holds a Ph.D. in Inorganic Materials Chemistry from Washington University in St. Louis, MO

Sean Dingman Senior Associate Analyst

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