Nanotechnologies, Inc. Announces Spin-Off

AUSTIN, Texas--April 12, 2006--Nanotechnologies, Inc., a leading manufacturer of high-performance metal nanoparticles, nanoparticle based materials and processing technology, announces the formation of Energetic Materials and Products Inc. (EMPI), a new company focused on the emerging nanoenergetics market.

"The applications for our proprietary nanoaluminum based technology have tremendous potential for our country's defense and EMPI will be able to accelerate the development and commercialization of these products," said Dr. Dennis Wilson, who will become the Chief Executive Officer of EMPI. The company will initially establish its research and test facility in northern New Mexico near Los Alamos National Laboratories (LANL). Eventually, it plans to establish a permanent testing facility in Socorro, NM. "New Mexico has an exceptionally supportive infrastructure for our business, including the Energetic Materials Research and Testing Center at the New Mexico Institute of Mining and Technology," said Wilson of his decision to locate the company in New Mexico.

Nanotechnologies, Inc. has been working in advancing nanoenergetics programs for over four years given Dr. Wilson's unique experience and knowledge in applications enabled by nanoaluminum. His efforts led to multiple collaborative agreements with large defense contractors and numerous development contracts with various defense agencies, providing an opportunity to offer additional product development services.

"We look forward to a close strategic partnership with EMPI as we leverage NTI's strong portfolio of energetics IP, materials and formulations. Our joint development efforts with our partners, supported by EMPI's facilities to formulate, test and scale-up nanoenergetic formulations and products should prove to be a powerful combination," said Steve Leach, President and CEO of Nanotechnologies, Inc. The spin out of EMPI further reinforces Nanotechnologies' focus on its core markets: electronics materials and revolutionary curing systems, healthcare and life science applications, and high performance metal nanomaterials.

About Nanotechnologies, Inc.

Founded in 1999, Nanotechnologies, Inc. is a leading developer of nanoparticle based products and solutions for the electronic materials and healthcare markets. The company's core particle synthesis platform is based on proprietary pulsed plasma technology. Based in Austin, TX, Nanotechnologies, Inc. offers customers access to a scaled production technology, and complete in-house development and test capabilities to support its customers' programs and its own product commercialization efforts. For more information, please visit www.nanoscale.com or contact Iga Hallberg at 512-491-9500, ext. 218.