PALO ALTO, CA -- (Market Wire - Aug 22, 2005) --  Nanosys, Inc. today announced that it has signed an agreement expanding its collaboration with In-Q-Tel, a venture group of the Central Intelligence Agency (CIA), to utilize Nanosys' high-performance thin-film electronics technology (Macroelectronics) to develop specialized antennas for the U.S. Government. The terms of the agreement include development funding to Nanosys, as well as an equity investment in Nanosys by In-Q-Tel.

While no details were given regarding the specific application and product targets for this program, the technology developed will support Nanosys' ongoing commercial efforts in the area of novel high-performance phased-array antennas in the form of low cost, thin and lightweight flexible sheets. Commercial opportunities for this technology include low-profile, electronically steerable RF antennas that can be used as stand-alone units or be integrated into the outer surface of other objects, such as airplanes and laptop computers, to provide advanced wireless networking and communications capabilities.

"Nanosys has delivered everything they promised and exceeded expectations during our initial collaboration," said Gilman Louie, President and Chief Executive Officer of In-Q-Tel. "We are pleased with Nanosys' accomplishments and delighted to expand our work program with Nanosys to develop a specific product in the area of high-performance communications."

"In-Q-Tel has been extraordinary in identifying opportunities for our technology to address specific government needs compatible with our development of near term commercial products," said Calvin Chow, Chief Executive Officer of Nanosys. "We look forward to working with In-Q-Tel in this expanded collaboration to apply our Macroelectronics technology to new opportunities in the rapidly growing field of wireless communications."

About Phased Array Antenna

A phased array antenna consists of multiple small antenna elements that are electronically combined to produce a focused beam that can be redirected (or scanned) without the need for moving parts. Phased array antennas have many advantages over traditional antenna technology, including increased range, lower power consumption, high rejection of interfering signals, compact profile, and high reliability. Phased array antennas have broad applicability for both commercial and government applications, including wireless network connections for laptops and PDAs, cellular phones, and advanced radar and satellite communications systems.

About Macroelectronics

Nanosys' proprietary Macroelectronics uses a unique nanostructured thin-film to form large area high-performance electronic circuits, without the need for many of the complex and costly processing steps common in traditional thin-film transistor manufacturing. The technology is compatible with flexible or rigid substrates such as plastic or glass, and enables electronic integration of multiple functions directly onto a single substrate material. In addition to phased array antennas, Macroelectronics can be applied to numerous other application areas, including portable and large area flat panel displays and low cost RFID (radio frequency identification) tags.

About In-Q-Tel

In-Q-Tel is a private, independent, not-for-profit venture group funded by the CIA. Launched in 1999, In-Q-Tel's mission is to identify and invest in companies developing cutting-edge information technologies that serve United States national security interests. Working from an evolving strategic blueprint that defines the CIA's critical information technology needs, In-Q-Tel engages with entrepreneurs, established companies, researchers and venture capitalists to deliver technologies that pay out in superior intelligence capabilities for the CIA and the larger Intelligence Community. Learn more at www.in-q-tel.org .

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 350 patents and patent applications covering fundamental areas of nanotechnology, at multiple levels, from basic nanostructures to functional devices to end applications. Based in Palo Alto, California and privately held, Nanosys collaborates with industry leaders including Sharp, 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 .

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