RENO, NV -- (MARKET WIRE) -- 05/02/2006 -- Altair Nanotechnologies Inc. (NASDAQ: ALTI ) announced today it has entered into a Collaborative Research, License and Commercialization Agreement with the Elanco Animal Health Division of Eli Lilly and Company. The agreement provides Elanco with exclusive rights to develop animal health products using Altairnano's nanotechnology-based products.

The agreement establishes the framework under which Altairnano and Elanco may commercialize animal health products using Altairnano technology. Payments may be made to Altairnano as predefined development and testing milestones are met, including submission to the FDA and FDA approval. Additional payments may commence with market introduction and product sales. Altairnano has specific rights with respect to the manufacture of products for Elanco.

"We are pleased to be working with Lilly, an innovation-driven company that has shown its commitment to developing and delivering the best-in-class, market leading pharmaceutical products for 130 years," said Altairnano CEO and President Alan J. Gotcher, PhD. "The agreement provides a schedule for expedient progress from development and proof of concept to readying products for clinical trials and regulatory approval. We are confident in our products' capabilities and are committed to working closely with the Elanco team to obtain commercialization. Through our discussions with Elanco, we have gained great respect for the global reach of Elanco's business."

About Altair Nanotechnologies Inc.

Altairnano is an innovator and supplier of advanced ceramic nanomaterials. With a skilled team of scientists in its 100,000 square foot facility who, coupled in collaborative ventures with industry partners and leading academic centers, have developed a unique portfolio of intellectual property and novel products. These researchers are complemented by a seasoned management team with substantial experience in commercializing innovative, disruptive technologies.

Altairnano focuses on nanotechnology applications to enable new potentially high-growth markets. In alternative energy, Altairnano is pioneering new battery materials and systems. The company is applying nanotechnology to the development of drug candidates for humans and companion animals, coatings materials for implants, and materials for dental applications. Its high performance nanomaterials have applications in paints, coatings, and the treatment of water and air. The Altairnano Hydrochloride Pigment process, the first new patented pigment process in 50 years, is an environmentally friendly method for manufacturing white pigment used in paints, paper and plastic. For additional information, visit http://www.altairnano.com .

About Elanco Animal Health

Elanco is a global research-based animal health company that develops and markets products to improve the health and production of animals in more than 100 countries. Elanco is a division of Eli Lilly and Company ( http://www.lilly.com ), a leading innovation-driven pharmaceutical corporation. Elanco products enhance animal health, wellness, welfare and performance. Additional information about Elanco is available at http://www.elanco.com .

Forward-Looking Statements

This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may lead to the discontinuation of commercialization efforts, a failure to obtain regulatory approval for end-products or a withdrawal of end products from the market or otherwise cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the risks that in future animal, laboratory or other tests, Altairnano products may not demonstrate expected results, may have serious side effects or may otherwise not prove competitive with existing products; that, irrespective of a products potential, Lilly may abandon commercialization or market efforts for various for internal reasons; that applications for key patents may be denied; that for political, technical, financial, competitive or other reasons, animal wellness products using Altairnano's technology may not receive approval from the FDA or comparable international regulatory authorities for commercialization; and that even if such products are approved and enter into the market, sales may not reach expected levels for one or more reasons, including competition, ineffectiveness, serious side effects, public relations issues, subsequent introduction of a superior product or a withdrawal of approval by one or more regulatory agencies. There is a significant risk that, for the reasons set forth in this paragraph and other reasons, one or more of those assumptions may prove to be materially inaccurate. In addition, other risks are identified in the company's most recent Annual Report on Form 10-K, as filed with the SEC. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events. For Additional Information: Institutional Investors: C. Robert Pedraza VP Strategy & Business Development 775.856.2500 Email Contact Individual Investors: Marty Tullio Email Contact Mark D. Tullio Email Contact McCloud Communications, LLC 949.553.9748 SOURCE:  Altair Nanotechnologies, Inc.