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Posted: October 24, 2007

Nano-Proprietary, Inc. Awarded Homeland Security Contract for CNT-Based Gas Ionizer

(Nanowerk News) Nano-Proprietary, Inc. (OTCBB: NNPP) announced that its subsidiary, Applied Nanotech, Inc. (ANI), has been awarded an SBIR Phase II contract for the continued development of a "Carbon Nanotube (CNT)-Based Gas Ionizer to Replace Radioactive Sources" from the Homeland Security Advanced Research Project Agency (HSARPA). This 18-month contract is for approximately $1,000,000 and results from the successful completion of the Phase I contract for the same project.
Domestic Nuclear Detection Office (DNDO) has an overall objective of aiding in the development of novel technologies to replace radiological sources used in commercial applications as a means of reducing the risk of nuclear material being diverted for dirty bombs. Under this contract, ANI is partnering with Sionex Corporation to continue development of innovative CNT-Based field emission ionization source technology. The goal of phase II is to develop the technology to replace the ion source in a specific ion detection device manufactured by Sionex.
Sionex's Chief Scientist, Dr. Erkinjon Nazarov, reported, "The project is the result of applying sound fundamental scientific principles to very sound high technology. The result is the stable production of ions, both positive and negative, at atmospheric pressure without the need for a radioactive source, conventional plasma, or corona discharge technologies. This impact will change the commercial viability of mobility spectroscopy systems across many market segments."
"The commercialization of electron emission from CNTs is expanding beyond display and lighting devices to novel commercial applications such as ionization sources, x-ray sources, neutron sources, electron sources, sensors, and many other sources, that are relevant to both homeland security and consumer applications," said Dr. Zvi Yaniv, President and CEO of ANI. "We are well positioned to support our strategic partners with our knowledge and the intellectual property that we have accumulated over the years."
"This contract represents an ideal blending of two of our technology platforms, involving both CNT emission technology and sensors," said Tom Bijou, Chairman and CEO of Nano-Proprietary.
ABOUT SIONEX CORPORATION
Sionex Corporation provides breakthrough chemical and biological sensor chips and subsystems based on its proprietary microDMx detection technology. Sionex maintains its worldwide headquarters and laboratories in Bedford, Massachusetts. The Company is privately held and was founded in 2001 with patented technology exclusively licensed from the Charles Stark Draper Laboratory. Additional information about Sionex Corporation is available at www.sionex.com.
ABOUT NANO-PROPRIETARY, INC.
Nano-Proprietary, Inc. is a holding company consisting of two wholly owned operating subsidiaries. Applied Nanotech Inc. is a premier research and commercialization organization dedicated to developing applications for nanotechnology with an extremely strong position in the field of electron emission applications from carbon film/nanotubes, sensors, functionalized nanomaterials, and nanoelectronics. Electronic Billboard Technology, Inc. (EBT) has investments related to electronic digitized sign technology. The Companies have over 200 patents or patent applications pending. Nano-Proprietary's business model is to license its technology to partners that will manufacture and distribute products using the technology. Nano-Proprietary's website is www.nano-proprietary.com.
Safe Harbor Statement
This press release contains forward-looking statements that involve risks and uncertainties concerning Nano-Proprietary's business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect our business, products, and financial results are included in Nano-Proprietary's annual report on Form 10-K/A for the fiscal year ended December 31, 2006, and in reports subsequently filed by Nano-Proprietary with the Securities and Exchange Commission ("SEC"). All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) at www.sec.gov or from Nano-Proprietary's website listed above. Nano-Proprietary hereby disclaims any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.
Source: Nano-Proprietary