Smart Inlay Production at NanoPierce Card Technologies GmbH to be Spearheaded by Bernhard Maier, New Director of Operations

    MUNICH, Germany--Jan. 14, 2002--NanoPierce Card Technologies GmbH, a subsidiary of NanoPierce Technologies, Inc. (OTCBB:NPCT), announced today the appointment of Bernhard Maier, effective immediately, as Director of Operations to spearhead the development of high-volume smart inlay production for NanoPierce Technologies.
    Until now, Mr. Maier held the position of Manager, Marketing and Sales. His former duties will be assumed by Mr. Michael von Mackensen (see press release dated January 8, 2002).
    Successful WaferPierce(TM) developments at NanoPierce in Colorado Springs along with favorable smart inlay developments in the Munich laboratory represent both a solid basis and a springboard enabling NanoPierce to launch application-based production activities. Smart inlays will soon become NanoPierce's first high-volume commercial application, to take advantage of the benefits of the revolutionary NanoPierce Connection System NCS(TM) in a market with enormous growth potential. Mr. Maier, a founding member of NanoPierce Card Technologies GmbH and a longstanding co-worker of Dr. Michael E. Wernle, will be in charge of establishing the smart inlay production activities.
    "This is a significant step and a new challenge for NanoPierce Technologies, but over the past few months we have developed a sound foundation in our laboratories for initiating smart inlay production. Not only is the timing perfect, but smart inlays are also the ideal product for proving the suitability of WaferPierce(TM) in an industrial manufacturing environment. There is no doubt in my mind that this project will be an unqualified success for the Company, and I appreciate management's confidence in my ability to manage and execute this vital task," said Mr. Maier.
    Michael Wernle commented: "I have known Bernhard Maier for several years; he was part of my team at Meinen, Ziegel & Co. He is a dedicated, resourceful and highly capable manager, and it is difficult to imagine a better choice for establishing NanoPierce's presence in this large strategic market. Without exception, every project he has been responsible for has been completed successfully. I feel very fortunate to have him on our team."
    Inlays are used by manufacturers to produce smart labels, smart cards and other RFID (radio frequency device) products, such as smart tags. RFID tags are currently employed for tracking and identifying luggage, autos, shipping containers, express mail, rail cars, personal access, automated toll collection, article surveillance, library books and vehicle immobilizer or "smart key" applications, to name just a few applications. It is reported, for instance, that Texas Instruments has shipped more than 50 million RFID tags used in vehicle immobilizers and that Ford Motor Company has used smart tags, embedded in the ignition key with an encrypted ID number to start the engines on Ford automobiles less than 8 years old.
    Paul H. Metzinger, President and Chief Executive Officer of NanoPierce, noted: "According to a 1999 Venture Development Corp. study, 'Global Markets and Applications for Radio Frequency Identification Equipment and Systems,' the market for RFID systems will be about $1.6B in 2002 and its expected to grow 25% annually for the next five years. They predict that end-to-end tracking of materials used in the complete supply chain in all manufacturing industries may be the next killer application for RFID tags."

    About NanoPierce Technologies, Inc.

    NanoPierce Card Technologies GmbH is a 100% subsidiary of NanoPierce Technologies, Inc., of Denver, Colorado, USA, which is traded on the Nasdaq stock market (OTCBB:NPCT) as well as in Frankfurt and Hamburg (OTC:NPI). In addition to the 12 patents it owns, NanoPierce has numerous applications pending, others in preparation, and various other intellectual properties related to NanoPierce's proprietary NCS(TM) (NanoPierce Connection System). This advanced system is designed to provide significant improvement over conventional electrical and mechanical interconnection methods for high-density circuit boards, components, sockets, connectors, semiconductor packaging and electronic systems.
    For more information about NanoPierce Technologies, Inc., log on to the Company's website at http://www.nanopierce.com.
    This announcement contains forward-looking statements about NanoPierce Technologies, Inc., and its subsidiaries, that may involve risks and uncertainties. Important factors relating to the Company's operations could cause actual results to differ materially from those in forward-looking statements and are further detailed in filings with the Securities and Exchange Commission (SEC) available at the SEC's website (http://www.sec.gov). All forward-looking statements are based on information available to NanoPierce Technologies, Inc., on the date hereof, and NanoPierce Technologies, Inc., assumes no obligation to update such statements.