SOURCE: Dais Analytic Corporation

January 22, 2007 13:44 ET

Dais Analytic Announces Shipment of N-Still Water Desalination System to Singapore-Based Firm

A Singapore Pilot Project Follows the Company's In-House Successful 6-Month Operational Tests

TAMPA, FL -- (MARKET WIRE) -- January 22, 2007 -- Dais Analytic Corporation (PINKSHEETS: DLYT), a nanotechnology polymer materials company, announced today it is shipping a pilot version of its N-Still™ water desalination system to a Singapore-based engineering and construction firm.

Following Dais's successful six-month system test which produced clean potable water at its Tampa Bay, Florida, facility, the Singapore firm ordered a pilot unit to validate N-Still's performance in field conditions. This validation project is expected to be completed in 1Q 2007. It will be followed, based on performance, by an expanded demonstration and commercialization program for the system across South East Asia.

The patent pending N-Still system -- based on Dais's nano-structured polymer membranes properly configured -- produces clean potable water from seawater or brackish water.

According to the American Water Works Association, nearly $95 billion will be expended on desalination processes worldwide from 2005-2015, with nearly $30 billion of that for new installations of membrane-based systems.

Uniquely cost-effective, energy efficient and environmentally friendly, N-Still has the potential to be a significant player in the burgeoning, multi-billion-dollar, world-wide water desalination market as either a scale-able stand-alone desalination facility or as a way of making existing reverse osmosis (RO) plants more productive.

Tim Tangredi, CEO of Dais Analytic Corporation, said, "We are excited about the N-Still system's successful tests, and we are confident it will perform equally well under field conditions and the program will stay on track for expansion in South East Asia."

Tangredi added, "Equally important, this event further validates the power of the Company's nano-structured materials. As this initial N-Still project is being implemented, Dais continues to seek business partners in other parts of the world to complete testing and to begin full commercialization."

N-Still reduces costs and environmental risks

Dais's N-Still system offers reductions of capital costs, lower operational and maintenance costs, and less elapsed time to construct a desalination facility.

Popular reverse osmosis (RO) systems employ more expensive membranes through which seawater is forced under high pressure to filter out the salt and create clean water. RO systems are capital and energy intensive, generally presenting operational challenges while creating environmental disposal issues.

N-Still, using low quality waste heat or exploiting existing thermal energy found in hydrological or geothermal sources, uses concentration differences generated at low temperatures and low pressures to molecularly separate clean water from salt water. The Dais nano-structured material, with salt water flowing on one side, allows clean water to diffuse to the other side while rejecting other dissolved solids along with bacteria and viruses.

Bob Brown, Vice President of Dais Analytic, stated, "The N-Still process demonstrates yet another application of our proven, commercially available membrane materials. A similar version is used in our ConsERV™ Energy Recovery Ventilator product line. ConsERV is on target to reach $11 million in revenues by 2009 -- helped by our nationwide agreements with Comfort Systems as well as key repeat customers including Wal-Mart. We expect to see similar market validation for our N-Still system and we continue to look for quality partners worldwide to implement this exciting new technology."

About Dais Analytic Corporation

Dais Analytic Corporation (PINKSHEETS: DLYT) is a newly public nanotechnology materials company designing and commercializing new materials and processes that exceed the limits of conventional materials. Dais is one of the few pure plays in the nanotechnology space now earning revenue on its inventions.

Currently, the Company generates revenues from its first commercial product -- ConsERV™ (www.conserv.com), which is a Heating, Ventilation, and Air Conditioning (HVAC) product saving on average 33% in HVAC capital costs, 30% or more on operational energy costs and 20% peak energy reduction all while improving indoor air quality. For more information about Dais Analytic Corporation, please visit www.daisanalytic.com

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of the company and its subsidiaries. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by the company may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices, and other economic factors. The company assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

Pursuant to an August 15, 2006 agreement, Consulting For Strategic Growth 1, Ltd. ("CFSG1") provides Dais Analytic Corporation. ("the Company") with consulting, business advisory, investor relations, public relations and corporate development services, for which CFSG1 receives a fixed monthly fee for the duration of the agreement. Independent of CFSG1's receipt of cash compensation from the Company, CFSG1 may choose to purchase the Company's common stock and thereafter sell those shares at any time it deems appropriate to do so. For more information please visit www.cfsg1.com.

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