Applied Nanotech Achieves Greater than 40 and 30 Percent Improvements in Flexural and Tensile Strength for Carbon Nanotube Enhanced Vinyl Ester Resins
Improves FRP Flexural Strength by 31 Percent and Flexural Modulus by 20 Percent

Austin, TX - August 10, 2011 - Applied Nanotech Holdings, Inc. (OTC BB: APNT) is pleased to announce that it has achieved a greater than 40 percent improvement in flexural strength and greater than 30 percent improvement in tensile strength and modulus for its vinyl ester/carbon nanotube composites in the base resin form. These improvements were obtained through the chemical and mechanical modification and functionalization of carbon nanotubes in order for them to be accepted and integrated properly into the vinyl ester matrix.

Applied Nanotech has made significant progress in this development of vinyl esters, particularly for use in fiberglass reinforced plastics (FRP). Many have tried adding carbon nanotubes to make vinyl ester-based materials stiffer, lighter, and stronger, but results have been mixed, due to the challenges in reinforcing vinyl ester resins with nanomaterials because of some key technical issues.  Furthermore, the properties of these new vinyl ester/carbon nanotube composites have historically not been easily transferable to FRPs, but by using its new composite, Applied Nanotech has achieved a very promising 31percent improvement in the flexural strength and 20 percent improvement in the flexural modulus of the final glass FRP composite.  

“There exists a very positive and defined market opportunity for this technology.  By extending the improvements of mechanical properties in our vinyl ester base resin to FRP composites, our carbon nanotube reinforced vinyl ester resins will further reduce the weight of composite materials in these applications while maintaining adequate strength,” said Dr. Zvi Yaniv, Chief Executive Officer of Applied Nanotech, Inc.

Vinyl ester materials are used in a variety of industries and are the fastest growing segment of thermosetting resins because of their combined inherent toughness with outstanding heat and chemical resistance. Vinyl esters are thought to be the next generation replacements of existing thermosetting resins such as unsaturated polyesters.   The foremost application of vinyl esters is in glass reinforced laminates for corrosion resistant equipment and parts. Vinyl ester corrosion coatings are widely used today for steel tank linings and industrial flooring. Vinyl esters are also used in renewable energy sectors, where more than 100 million pounds of vinyl ester resin was used for wind mill blades in 2009.  Other significant markets for vinyl esters include construction and electrical components, automotive structural applications, polymer concrete vessels for mining and chemical operations, grating, high performance marine applications, and sporting goods.

“Building on our recent successes in sporting goods and defense applications, we will pursue customers and strategic partners in other markets served by this potentially breakthrough technology, leveraging our position of strength to gain traction in new and different sectors,” commented Mr. Doug Baker, Chief Executive Officer of Applied Nanotech Holdings, Inc.

About APPLIED NANOTECH HOLDINGS, INC.

Applied Nanotech Holdings, Inc. is a premier research and commercialization organization focused on solving problems at the molecular level. Its team of PhD level scientists and engineers work with companies and other organizations to solve technical impasses and create innovations that will create a competitive advantage. The business model is to license patents and technology to partners that will manufacture and distribute products using the technology. Applied Nanotech has over 300 patents or patents pending. Applied Nanotech’s website is www.appliednanotech.net.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties concerning our 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 our annual report on Form 10-K for the fiscal year ended December 31, 2010, and in reports subsequently filed by us 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 our website listed above. We hereby disclaim 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@appliednanotech.net

Investor Relations Contact:
Mercom Capital Group
512-215-4452
apnt@mercomcapital.com

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