March 2005 Board Meeting

1. March 2005 Board Meeting

2. Executive Director’s Report

3. Strategizing for the “Next $150 Million” • Targeting major growth in: • Federal • NIH • NSF • DOE • DHS • Industry / Tech Transfer

4. The Course We Adopted in 2003… Research Focus New Facilities New Faculty Positions Strategic Partnerships Improved Service to Faculty

5. Overview • Focus – identification of high priority areas to be supported with strategic investments • Faculty – a dramatic increase in the number (and quality) of faculty to serve students and meet the academic and research ambitions of the University • Facilities – a dramatic expansion of USC’s physical infrastructure to match its ambitions

6. Research Focus • Top universities built around top programs • The Moore School of Businessundergraduate international business program is ranked No. 1 in the country; graduate international business program is ranked No. 2 in the country • Marine Science program is ranked among the Top 10 programs in the United States • The Chemistry and Biochemistry Department is ranked among the Top 50 chemistry departments in the country and is ranked in the Top 20 nationally for the number of doctoral graduates it produces annually • The School of Library and Information Science is ranked in the Top 15 • The English department is ranked 31st in the country

7. Research Focus • Four areas selected through internally driven process: • Biomedical Sciences • Environmental Research • Nanotechnology • Next Energy Making investments to bolster number and quality of faculty, students, facilities and technology

8. NewFaculty • “Critical mass” required to succeed in focus areas • Committed to bringing the best and the brightest minds to USC • 250 additional USC faculty hired over 5 years • 600 new USC faculty, including replacement hires

9. NewFacilities • Currently planning for the next phase: • 3 USC Research Buildings • Next Energy (also a “test bed”) • Shared Biomedical Research (SCCC; Neural Science Center) • Second Arnold School of Public Health Building • 2 Private Partner Buildings • Next Energy • Biomedical Research • Animal Care Facility • 2 Parking Decks (2,400 spaces) • Total Square Footage of USC & Partner buildings = 560,000 sq ft

10. Proposed parking deck location New student housing project site Block slated for research campus Engineering Sciences building Carolina Coliseum Strom Thurmond Fitness and Wellness Center Horizon Center – completion in 2008 Main Blossom Wheat Assembly

11. Horizon Center

12. Health Sciences – Completion in 2007

13. The “Vision”

14. Strategic Partnerships • Strategic Partnerships Include: • Medical University of South Carolina • SC School of Pharmacy as first step to greater synergy • Health Sciences South Carolina • SRNL - Strengthening bonds • Midlands Technical College • City and County Leaders – Research Campus, Next Energy Initiative • Private Sector – Intel (Signal Integrity), Kemet (endowed Chair support), Voridian (PNC)

15. Improving Service to Faculty • SAM – Integrated approach to grants management • “To be the Best in the Nation” • Coupled pre- and post-award services • GRANT – Staff training • Intellectual Property Office – additional staffing has led to significant advances in deal flow, revenue and start-ups

16. Centers of Economic Excellence

17. Centers of Economic Excellence - highlights • Hired first chair holder – Professor Richard Webb • Health Sciences South Carolina provides tremendous boost to USC and MUSC in efforts to gain match and win awards • Significant progress in earning required match funds • Strategic recruitment efforts underway • Polymer nanocomposites symposium

18. CoEE FY03 Funding Status

19. CoEE FY04 Funding Status

20. CoEE Proposals for FY05 • USC led Proposals – Requests total $27.5 M • Carolina Laser Lighting • Memory Therapeutics (Health Sciences SC proposal) • Fuel Cell Economy • Translational Cancer Research (Health Sciences SC proposal) • Technology Commercialization and Innovation Management • Biodefense and Biosecurity • MUSC led Proposals involving USC $13.5M • Clinical Effectiveness and Patient Safety (Health Sciences SC proposal) • Vision Research Center • Center for Stroke Research • Clemson led Proposal$2.5 M – Molecular Nutrition

21. Performance Update

22. Economic Development Update

23. Foundation Success Story USCRF accepts IP portfolio from Voridian USCRF invests $500K in program USC receives CoEE Award $3.5M USCRF receives Equipment Award $1.2M ORHS identifies Research team USCRF Board member Provides $500K match Recruiting Chair Forming Industry Group

24. Economic Development - Highlights • USC BusinessLINK • Significant to growing City/USC partnership • Next Energy Initiative with city and regional leaders • Growing relationship with Moore School • Technology Assessments • CMAT • SBDC • New Incubator facility – 1225 Laurel Street • New local angel network in Columbia

25. Sponsored Programs Update

26. SBIR/STTR Report – YTD FY 2005

27. Highlights: Currently Funded Research Projects • PRINZ CDC, NIDA, NICHD ~ $13.3 M Projects relating to the Research Consortium on Children & Families • BAYNES NIDDK ~ $ 1.63 M Glycation of Protein in Diabetes (MERIT award) • STTR/NIH ~ $ 78 K Non-Invasive Detection for Diabetes Screening • NCRR/NIH ~ $ 3.53 M INBRE (Pending) • FLETCHER NOAA ~ $ 7.38 M Carolina Coastal Ocean Observing & Predicting System (Caro- COOPS) • UNC/ONR ~ $ 2.23 M SE Atlantic Coastal Ocean Observing System (SEA-COOS) • GLOVER & KELLOGG $ 2.75 M African-American Public Health Fellowship & Development Program PASTIDES to Address Health Disparities • KHAN JPL/NASA $ 60 K Robust AlGaN/GaN Micro-sensor for Chemical Warfare Agent Detection • SMDC/DOD $ 4.23 M III-Nitride MOSHFET Based on Advanced RF Circuits • SMDC/DOD $ 4.29 M AlInGaN MOSDHFET Based RF Circuits • DARPA/DOD $1.3 M Deep UV Emitters Based on Quaternary AlGaN Multiple Quantum Well Heterostructures • SMDC/DOD $ 3.03 M Manufacturing & Lifetime Testing of Novel Insulating Gate GaN – AlGan FET Devices & Circuits • SMDC/DOD $ 4.84 M III-Nitride MOSHFET Based Advanced RF Circuits • FEIGLEY CDC/HHS ~ $ 5.63 M SC Center for Public Health Preparedness

28. Intellectual Property Update

29. FY 04/FY 05 YTD Comparison Chart

30. 2005 SC Start-Up Companies • Companies Currently in Operation • Ometric • Michael Myrick, PhD, Department of Chemistry and Biochemistry • Inhibix • Joseph Roberts, PhD, Department of Basic Pharmaceutical Sciences • R&H Associates • Jim Ritter, PhD, Department of Mechanical Engineering • Companies Under Negotiation • Colon Cancer Diagnostic • Drug Vaccine • Hydrogen Storage • Processes for Behavioral Conduct • Opto-electric characterization • Plant Biotech

31. Introduction and Discussion: Inhibix Antiviral of South Carolina, LLC Gregory S Grice

32. Inhibix Antiviral of South Carolina Intellectual Property Path to Commercialization IP Accelerator™ Inhibix Technologies Stranded Technology Unusual Roadblock Project Management Innovator Support

33. How We Bring Value to USCRF Miami University Technology Inhibix Technologies Management Scientific Board Board of Advisors Project Management Financials Capital Source Marketing SBIR/STTR Funding Modular and Expandable Inhibix Antiviral of South Carolina Clemson University Technology

34. Treasurer’s Report & Budget

35. USC Research Foundation Budget Statement for the period ending January 31, 2005

36. Review of Fiscal Year 2004-05 through January 31, 2005 • Actual revenues-recognized-to-date are 52% of annual total • Normally 40% of annual revenue is received in final quarter • 52% of revenue through 7 months is a strong pace • Actual expenses-recognized-to-date are 46% of annual total • Operating and other expenses are near planned levels • Support programs have not yet reached spending potential due to lag in budgeting and spending for Centenary Hiring Plan

37. Outlook for remainder of Fiscal Year 2004-05 and beyond • Continued steady growth requires investment in faculty and facilities • University likely to soon call for balance of 14% facilities fund

38. USC RESEARCH FOUNDATION BUDGETPERIOD ENDED JANUARY 31, 2005

39. Budget Provisions • The budget is authorized only to the extent that revenue and reserves are available. • In the event the funds flow to USCRF is greater than expected and the funds flow to the USC Vice President for Research and Health Sciences is less than expected, and to the extent that the change in flow is the result of the revenue estimates, the USCRF Executive Director is authorized to transfer such excess from USCRF to USC in the amounts necessary to cover any deficits that result from those estimates.