successfully bonding polyurethane treads to new and used rubber casings has allowed us to create the composite tire. This technology has opened markets for new tires having unique tread designs and has simplified the retreading process for used tires. over a twelve month period, amerityre worked with desert research technology (drt) to create a composite tire for sand car applications. Here, reconfigurable polyurethane tread designs are molded onto new rubber tire casings. In october 2007, we granted drt the exclusive rights to manufacture and sell sand tires based on our technology. retreads also present an important market opportunity for amerityre. According to the tire retread information bureau, nearly half of the nearly 37 million replacement tires purchased by truck fleets in the u. S. And canada during 2004 were retreads. The appeal of retreads is cost; retreads cost between 30% and 50% less than new truck tires. amerityre? S retreading process involves applying polyurethane tread material to a rubber tire casing so that the tread locks to the tire casing without the temperature and pressure of vulcanization. in september 2006, amerityre began working with qingdao quizou rubber co. , ltd. To establish a retreading capability for large otr (off the road) tires in china. quizou is currently building the manufacturing facility where the tires will be made. amerityre is to supply the polyurethane material and the related pouring equipment. production from this facility is expected to commence in the first quarter of calendar 2008. this is an important and timely market opportunity for amerityre, since some mining trucks are being delivered without tires, and an 18-month lead time of new tires from the big three tire manufacturers has resulted in a significant loss of productivity on a global basis.