AmberWave Systems Acquires Pasadena-Based
Caltech Spinout Company, Aonex Technologies

Partnership Brings Caltech Expertise and Intellectual Property to
New Hampshire Technology Company

Salem, N.H. – May 6, 2008 – AmberWave Systems, a leader in the research and development of advanced materials technologies, has acquired Aonex Technologies, Inc. and its suite of materials-integration technologies originating from the California Institute of Technology (Caltech).

Aonex, a subsidiary of Arrowhead Research Corporation (NASDAQ: ARWR), a publicly traded company commercializing new technologies in life sciences, electronics and energy, was co-founded in 2004 by Arrowhead and Caltech professor Harry Atwater, whose research in materials integration and applications for advanced, laminate composite semiconductors led to the development of the company. Since then, Aonex has explored materials relevant to solar energy and advanced laser products; making significant progress in demonstrating the viability of laminated semiconductor materials for high-efficiency electro-optical devices. The company’s materials processing expertise complements AmberWave’s existing competency in laminate materials and, more broadly, advanced semiconductor integration technologies.

“The existing Aonex-Caltech relationship complements our broad strategy of supporting early stage research at major universities, identifying market opportunities for critical technologies, and then working to develop the technology for those markets through strong industry partnerships,” said Richie Faubert, CEO of AmberWave Systems. “Our heritage as an MIT spinout based on commercializing semiconductor processing technology has positioned us as a leader in this key technology space. Our expanding sphere of relationships has incorporated several U.S. and foreign universities and new materials technologies with application to the energy markets. We strongly believe that a continuing relationship with professor Atwater will yield significant gains for us in building a position in solar energy materials.”

AmberWave Systems focuses on methods that bring together dissimilar semiconductor materials, which are viable in the marketplace by delivering the advantages of low manufacturing costs and high performance. The success of the company’s silicon germanium-based, strained silicon integration technology is an example of how its efforts have benefitted the VLSI industry. AmberWave Systems has become a leader in laminating strained silicon layers on bulk silicon for the CMOS industry, and will be expanding its portfolio of laminate technologies to access broader markets, such as solar energy and advanced electro-optical devices.

Having worked on this technology for several years before founding Aonex, and after working closely with his team for the past four years, professor Atwater is pleased to continue his association with AmberWave Systems on the commercialization of the technology.

“I have always been enthusiastic about the potential for Aonex and the lamination process,” Atwater said. “The company is now at a stage where it has proven the core concepts, but needs a significant investment in market development to elevate to the next level. AmberWave Systems brings needed market experience and financial resources to build on the foundation that has already been established. I am very pleased that I can continue to be a part of this exciting venture and am looking forward to an ongoing collaboration with AmberWave Systems.”

About AmberWave Systems
Founded in 1998, AmberWave Systems has become a leader in the research, development and licensing of advanced technologies for semiconductor manufacturing. By funding and guiding university research, AmberWave Systems is bringing new technology developments to fruition through patents and technology licensing. In conjunction with its university research projects, AmberWave Systems conducts its own research, development and limited manufacturing in its semiconductor fabrication facility in Salem, New Hampshire. In addition, AmberWave Systems collaborates with other technology focused companies to further expand and develop its research. For more information about the company, please visit its Web site at www.amberwave.com.

About Aonex Technologies Inc.
Aonex Technologies, Inc. is a developer of proprietary substrates that both enhance the efficiency and reduce the production cost of devices such as LEDs and high-efficiency solar cells. The Company is based in Pasadena, California.