Nano-Proprietary, Inc. Announces Key Patent Issuance

Austin, Texas – July 6, 2006 – Nano-Proprietary, Inc. (OTC BB: NNPP), today announced that its Raman spectrum patents have been issued in the United States, China, and South Korea. The European filings related to this patent have been validated in France, Germany and the U.K., and we are in the final stages of the prosecution of the patent in Japan.

The Raman spectrum patents cover emissions from carbon that fall within a specific range on the UV Raman band. Our research has determined that all carbon emissions suitable for use in displays fall within this range. These patents cover emissions from all forms of carbon including carbon films, carbon flakes, carbon nanotubes, etc. This patent is a basic patent with broad coverage related to the activities that are covered by the patent.

The Raman spectrum patents greatly increase our ability to license our portfolio of display patents. It removes any potential disputes about the form of carbon being used, and its worldwide coverage will require potential licensees to license prior to selling product in almost any jurisdiction. The coverage provided by the Raman spectrum patent in China, South Korea, and potentially Japan provides a significant value to our portfolio.

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 extremely strong positions in the fields of electron emission applications from carbon film/nanotubes, sensors, functionalized nanomaterials, and nanoelectronics. Electronic Billboard Technology, Inc. (EBT) has investments related to electronic digitized sign technology. The Companies have over 200 patents or patents pending. Nano- Proprietary's website is www.nano-proprietary.com.

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 for the fiscal year ended December 31, 2005, 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.

Company Contact:
Doug Baker
Applied Nanotech Holdings, Inc.
248.391.0612
dbaker(at)appliednanotech.net

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