Nano-Proprietary Develops Thin Film Transistors Utilizing Carbon Nanotubes For Flexible Microelectronic Applications

August 9, 2004 – AUSTIN, TX – Austin, Texas-based Nano-Proprietary, Inc. (OTC BB: NNPP), through its subsidiary, Applied Nanotech, Inc. (ANI), today announced that it has developed a low cost process for manufacturing thin film transistors utilizing monolayers of well dispersed single wall carbon nanotubes. The monolayer random network of single wall carbon nanotubes was deposited at room temperature from a solution using a process that is fully compatible with polymeric substrates that are the base of large area flexible microelectronics. The thin films transistors were built on silicon oxide but other dielectric materials are also suitable. The mobility performance of these transistors, even at this early stage, is an order of magnitude better than amorphous silicon or organic semiconductor transistors. Furthermore, this new type of transistors may considerably improve the sensitivity of ANI's carbon nanotube based sensor technology, with the transistors providing intrinsic amplification of the sensor detection signals.

"Our strategy of finding immediate and realistic applications of nanotechnology is illustrated by demonstrating the excellent properties of single wall carbon nanotubes, using current microlectronic processes, for today's markets needs" – said Dr. Zvi Yaniv, President and CEO of Applied Nanotech, Inc.

"This achievement is the result of the expertise that we have gained over the years in developing processes for controlling the electron emission from carbon nanotubes" – added Mr. Marc Eller, Chief Executive Officer of Nano-Proprietary, Inc.

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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 is included in Nano-Proprietary's annual report on Form 10-KSB for the fiscal year ended December 31, 2003, 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 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 field of electron emission applications from carbon film/nanotubes. Electronic Billboard Technology, Inc. (EBT) possesses technology related to electronic digitized sign technology. Nano-Proprietary's website is

Company Contact:
Doug Baker
Applied Nanotech Holdings, Inc.

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