PALO ALTO, CA -- (MARKET WIRE) -- 01/18/2005 -- Nanosys, Inc. today announced it entered into a collaborative agreement with Sharp Corporation of Osaka, Japan, to develop nanotechnology-enabled fuel cells incorporating Nanosys' proprietary nanostructure technology. Under the terms of the agreement, Nanosys will collaborate with Sharp to utilize its nanostructure technology to help develop high performance fuel cells for use in portable consumer electronics such as laptop computers, cell phones and cameras. Financial details of the agreement were not disclosed.

"Sharp's expertise and success in the development and commercialization of portable electronics and renewable energy products makes them an excellent collaborator for Nanosys," said Calvin Chow, Nanosys' Chief Executive Officer. "We are excited about the opportunity to apply our nanostructure technology with Sharp to address the numerous opportunities in the rapidly growing multi-billion dollar portable power market."

"Through this agreement, we look forward to further developing our fuel cell technology for use in our portable electronic products," said Dr. Kenji Ohta, Corporate Executive Director, Chief Research and Development Officer and Group General Manager of Corporate Research and Development Group, Sharp Corporation. "We are very pleased to be working in this field with the leading nanotechnology company."

The tremendous growth in unit sales of portable electronic devices, coupled with an increasing burden on battery life as applications become ever more complex, has created a serious concern amongst device manufacturers about power requirements. The inherent higher energy density of small fuel cells in comparison to batteries has the potential to lead to both longer operational time and serve the power demands of next generation portable electronics.

About Nanosys

Nanosys, Inc. is a leader in the development of nanotechnology-based products utilizing high performance inorganic nanostructures. Nanosys has built one of the broadest technology platforms in the industry with more than 300 patents and patent applications covering fundamental areas of nanotechnology. Based in Palo Alto, Calif., and privately held, Nanosys collaborates with industry leaders including Sharp, Dupont, Intel, Matsushita Electric Works and SAIC to develop revolutionary high-value, high-performance products for computing, optoelectronics, communications, energy, defense and the life and physical sciences. Additional information on Nanosys can be found at www.nanosysinc.com

About Sharp Corporation

Sharp Corporation is a worldwide developer of innovative products and core technologies that play a key role in shaping the future of electronics. As a leader in liquid crystal displays (LCDs) and digital technologies, Sharp offers one of the broadest and most advanced lines of consumer electronics, information products and electronic components, while also creating new network businesses.

Sharp Corporation employs about 55,100 people in the world (as of November 30, 2004) and recorded consolidated annual sales of over 2,257,273 million yen for the fiscal year ended March 31, 2004. For more information, please visit Sharp's Web site at http://sharp-world.com.

CONTACT:
Peter Garcia
Chief Financial Officer
Nanosys, Inc.
(650) 331-2154
pgarcia@nanosysinc.com

SOURCE: Nanosys, Inc.