AUSTIN, Texas, Aug. 3, 2005 (PRIMEZONE) -- Austin, Texas-based Nano-Proprietary, Inc. ( NNPP - news ) , through its subsidiary, Applied Nanotech, Inc. (ANI), today announced that it has received a new Small Business Innovation Research (SBIR) grant from the U.S. Air Force. The purpose of the grant is to design and build a high current density electron source for continuous beam operation using carbon nanotube cold cathodes for Traveling Wave Tubes (TWT) applications that can be used for radar and other microwave device applications. If successful, the use of carbon nanotube based cold cathodes will allow a higher current density that can be used for high power microwave applications.

Successful completion of the grant will also benefit the company's current research in the areas of field emission displays and X-ray source technology. ANI will receive approximately $75,000 for this project. This project is expected to be completed within nine months.

"We are pleased to be working with the Air Force on this important project," said Dr. Zvi Yaniv, Chief Executive Officer of ANI. "This grant, when combined with another SBIR Phase I grant that we have received from the Air Force, gives us approximately $165,000 in new SBIR grants this year," continued Yaniv.

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/A for the fiscal year ended December 31, 2004, 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.

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 an extremely strong position in the field of electron emission applications from carbon film/nanotubes. Electronic Billboard Technology, Inc. (EBT) possesses technology related to electronic digitized sign technology. Nano-Proprietary's website is www.nano-proprietary.com.

CONTACT: Nano-Proprietary, Inc. Doug Baker, Chief Financial Officer (248) 391-0612 dbaker@ameritech.net Media: BlabberMouth Public Relations Patti D. Hill (512) 218-0401 patti@blabbermouthPR.com