LONGMONT, Colo. – NanoProducts Corp. will expand its nanoscale material manufacturing and marketing capability following a $16.4 million investment led by a subsidiary of Koch Genesis Company, LLC. Koch Nanomaterials, LLC, which becomes a majority owner in the company, is a new investor; Southern California Gas Company has also recently increased its investment.

“ Since our founding, we have focused on developing and manufacturing nanotechnology-enabled products that are transforming industries, ” said Tapesh Yadav, company founder and chairman of the board. “ We have focused on applications that generate differentiating value for market leaders. We have also systematically and ambitiously scaled up our nanotechnology manufacturing capabilities to provide enabling customer solutions.

“ This new investment provides us the growth capital to expand our manufacturing capabilities, accelerate business development initiatives and pursue our business plan. ”

NanoProducts was founded by Tapesh Yadav, a pioneer in the nanotechnology industry, to develop and commercialize nanotechnologies. NanoProducts ' array of high performance materialsinclude metal oxide, non-oxide and formulated, functionalized compositions. These advancedmaterials are being used today in coatings, paints, cosmetics, textiles, polymer additives,electronics, biomedical, clean energy, lubricants and polishing products. The company owns more than 90 key patents in a wide range of nanotechnology processes, products and applications.

“ We believe NanoProducts has the technology and experience that can revolutionize products and chemical processes through the use of their high performance nanoscale materials, ” said Tim Cesarek, president of Wichita, Kan.-based Koch Genesis. “ The company ' s team members have distinguished themselves as entrepreneurs who are focused on innovation. NanoProducts has a robust technical platform supported by an extensive patent estate of process and applications allowing it to address the needs of customers in a number of industries. ”

In addition to the significant investment, Koch Nanomaterials brings us operational expertise, technical capabilities and market channel access, ” said Rick Strandlund, president and chief executive officer. “ We are excited about the future and our ability to invest in more entrepreneurial opportunities and create value and optionality for the company and its stakeholders. We are looking forward to adding top talent to our management team, forming additional corporate partnerships, and adding top quality, highly reliable manufacturing capacity to serve our markets. ”

NPC markets its products and performance-enhancing solutions worldwide. Its manufacturing capabilities are ISO 9001:2000 certified.

NanoProducts Corporation is based in Longmont, Colo. The company develops and manufactures nanoscale materials (those less than 100 nanometers in size), employing patented technologies to produce nanoscale particles (nanotechnology building blocks) in commercial volumes. The company ' s nanoscale powders are ideal for use in a wide range of industries including coatings, electronics, photonics, biotechnology, personal care, plastics, thermal, energy, sensor, information technologies, automotive, aerospace, and sporting goods applications. NanoProducts has successfully produced more than 250 different technology-intensive material compositions including nano-engineered metal oxides, carbides, nitrides, borides, chalcogenides and metal powders.

See www.nanoproducts.com .

Koch Nanomaterials, LLC, based in Wichita, Kan., is a subsidiary of Koch Genesis Company, LLC. Koch Genesis provides direct capital investments to early stage companies that have disruptive, revolutionary ideas and products. Koch Genesis is an indirect subsidiary of Koch Industries, Inc., which owns a diverse group of companies engaged in operations, trading and investments. Koch companies have a presence in about 50 countries and employ about 80,000 people.

See www.kochgenesis.com .

The Gas Company is the nation ' s largest natural gas distribution utility, providing safe and reliable energy to 19.5 million consumers through 5.5 million meters. The company ' s service territory encompasses approximately 20,000 square miles in most of central and Southern California. The Gas Company strives to provide exceptional customer service to enhance the quality of life in the community. The Gas Company is a regulated subsidiary of Sempra Energy (NYSE: SRE). Sempra Energy, based in San Diego, is a Fortune 500 energy services holding company.