NEW YORK--(BUSINESS WIRE)--Sept. 15, 2005--Advance Nanotech, Inc., (OTC BB:AVNA.OB - News) announces execution of a licensing agreement between Advance subsidiary NANO Electronics Limited, SAMCO, INC., and the University of Cambridge for ferroelectric nanotube manufacturing technology. New York-based Advance is the premier provider of financing and support services to drive the commercialization of nanotechnology discoveries. SAMCO and the University of Cambridge have invested in a number of patents to support commercialization Kyoto-based SAMCO Inc. is a process equipment company that develops and manufactures a wide variety of unique deposition, etching, and surface treatment systems for a worldwide network of major industrial customers and academic facilities.

SAMCO and the University of Cambridge began collaborating in the field of thin film deposition systems for ferroelectric films in 1999. The ferroelectric nanotube manufacturing technology is based on SAMCO's "misted deposition" technique, which enables the simultaneous fabrication on large numbers of micro-devices, a significant breakthrough in this vital process. Until now, conventional CVD and RIE processing techniques were incapable of accomplishing this. The licensing agreement extends on the highly successful, six year relationship between SAMCO and Cambridge.

The research on ferroelectric nanotube manufacturing at Cambridge has been led by Professor James Scott, a global authority in the field of ferroelectrics research. For the past six years, he has been an integral part of the SAMCO/Cambridge Laboratory, which has driven the discoveries covered by the agreement. This group is responsible for the 2003 development of the world's first technique for manufacturing ferroelectric nanotubes. SAMCO and Cambridge have since filed numerous joint patents on the technology.

There are high expectations for applications in next generation ink-jet printer heads, which require liquid flow control precision on the picoliter order. In addition, there is excellent potential for utilization in fields such as new micro-TAS devices, bio-chips, and drug delivery systems (DDS).

The technology licensing contract was signed on Sept. 15 in Kyoto, Japan by Prof. Ekhard Salje, Department Chair of the Cambridge Department of Earth Sciences and Inorganic Materials Research, Magnus Gittins, President and CEO of Advance Nanotech, and Mr. O. Tsuji, President and CEO of SAMCO Inc.

"We are pleased to be signing this important agreement with our colleagues at Advance Nanotech," said Mr. O. Tsuji, president and CEO of SAMCO Inc. "This licensing agreement is the culmination of six years of hard work between SAMCO and Cambridge and the results are gratifying."

Commenting on the agreement, Magnus Gittins, CEO of AVNA said, "It is always thrilling when we move a step closer to realizing the commercialization of any of the discoveries we work with at Cambridge. Today marks an important day in supporting that goal as it relates to our work in ferroelectric nanotubes."

About Advance Nanotech, Inc.

Advance Nanotech Inc. is dedicated to ensuring nanotechnology discoveries reach maximum market potential through successful commercialization. Advance is the trusted guide to commercial success for nanotech entrepreneurs spanning the globe, partnering with leading universities to provide scientists and researchers with mission critical infrastructure support to transform their discoveries to marketable solutions. The organization provides a range of services and support including financing, leadership assets and counsel on intellectual property, licensing and regulatory issues. With a portfolio of 20 companies developing technologies which offer potentially breakthrough nanotechnology discoveries in the electronics, biopharma and materials sectors, Advance's goal is to transform the potential for nanotechnology discoveries into innovative products that further evolve existing industries and enable new markets.

About SAMCO, Inc.

SAMCO was founded in 1979 to provide cutting edge thin film processing equipment to researchers and engineers across the globe. Since the humble beginning in a local garage, SAMCO has grown steadily into an important equipment supplier with business centers in diverse geographical locations. Current SAMCO facilities include the Kyoto Headquarters, OPTO Films (a research and development facility in Silicon Valley), and sales offices in Taiwan, Singapore, Tokyo, Nagoya, Kanagawa, Tsukuba and Hiroshima. The name SAMCO is an acronym for Semiconductors And Materials Company, and was chosen to express the company's focus on developing products for the semiconductor and high tech materials industries. SAMCO offers a broad range of thin film processing equipment for both research and production applications, including CVD systems, dry etching systems and dry surface cleaning systems. These systems are used for the development and manufacturing of devices such as integrated circuits, flat panel displays hard disk drives and optical communication components. SAMCO equipment is popular among organizations both in Japan and overseas, and this global recognition is a clear indication that SAMCO provides equipment that offers superior performance and reliability. We at SAMCO place a special priority on maintaining "pioneer" status in all fields in which we are engaged and we are determined to continue to offer unmatched thin film processing tools to research and manufacturing organizations across the globe.

This document contains forward-looking statements by Advance Nanotech regarding its expectations as to its business, and involves risks and uncertainties and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements.

Factors that may cause such a difference include, but are not limited to, problems and risks associated with developments in the nanotechnology industry in general and in Advance Nanotech's products under development in particular; the potential failure of Advance Nanotech's products under development to prove safe and effective in application; uncertainties inherent in the early stage of Advance Nanotech's products under development; failure to successfully implement or complete research programmes; failure to receive marketing clearance from regulatory agencies for our products under development; acquisitions, divestitures, mergers, licenses or strategic initiatives that change Advance Nanotech's business, structure or projections; the development of competing products; uncertainties related to Advance Nanotech 's dependence on third parties and partners; and those risks described Advance Nanotech 's filings with the SEC. Advance Nanotech disclaims any obligation to update these forward-looking statements.

Further information about these and other relevant risks and uncertainties may be found in the Advance Nanotech's findings with the Securities and Exchange Commission, all of which are available from the Commission as well as other sources.

Contact: Public Relations: Racepoint Group Peter Prodromou, 781-487-4604 pprodromou@racepointgroup.com or Investor Relations Contact: CEOCast Cormac Glynn, 212-732-4300 cglynn@ceocast.com