SOURCE: Nano-Proprietary, Inc.

January 26, 2006 08:35 ET

Nano-Proprietary, Inc. to Receive $1 Million for Biological and Chemical Air Purification System

AUSTIN, TX -- (MARKET WIRE) -- January 26, 2006 --Texas-based Nano-Proprietary, Inc. (OTC BB: NNPP), through its subsidiary, Applied Nanotech, Inc. (ANI), today announced that it will receive $1 million for further development of its PhotoScrub™ concept, a thin film coating on a flexible fiberglass cloth that decomposes pollutants at the molecular level in gases and liquids. This funding was included in the 2006 Defense Appropriations Bill recently signed by the President.

The PhotoScrub™ concept is based on an air-purification technology originally developed by one of our strategic partners, Andes Electric, Co. Ltd., and currently uses nano-structured photocatalyst materials that decompose air contaminants and pollutants at the molecular level in solid, liquid and gaseous samples. The funds will be utilized to apply proprietary technology that improves the efficiency of the concept and to explore other air purification concepts.

Our goal is to develop technology that is more effective and reliable in fighting airborne biological and chemical contaminants, while at the same time being more affordable than existing methods. The next step in the process is to structure a formal agreement with the Department of Defense.

"We're enthusiastic about being approved for these funds and working to meet the demands of national security," said Marc Eller, Chief Executive Officer of Nano-Proprietary. "In light of this funding, and other demands from the military for our sensor technologies, our outlook for additional revenue in these categories is extremely positive."

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, 2004, 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 web site listed below. Nano-Proprietary hereby disclaims any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.

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 fields of electron emission applications from carbon film/nanotubes, sensors, functionalized nanomaterials, and nanoelectronics. Electronic Billboard Technology, Inc. (EBT) possesses technology related to electronic digitized sign technology. Nano-Proprietary's website is www.nano-proprietary.com.

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