Frankfurt am Main - Nanostart AG has been able to gain a number of famous US institutional investors and one of Germany's three biggest banks as new shareholders. The US investors include SBI USA, a US fund manager and financial advisory concern, as well as the New York investment managers Williams, Jones & Associates, Inc. It was agreed that no details would be released about the identity of the major German bank, which will be putting equity of its own into Nanostart AG.

With the shareholdings acquired by these leading investors, Nanostart AG has now established itself on the international stage as an attractive investment opportunity in the nanotech segment. The new move is a major success for the Frankfurt-based nanotech investment company, since American investors in particular have in the past focused almost entirely on big listed companies in Germany. Nanostart AG is an exception here, and CEO Marco Beckmann believes it is due to the company's sustained growth: "Despite the difficult economic conditions in Europe – and especially in Germany – we have taken the opportunity over the last months and years to build up a high-quality investment portfolio in the nanotechnology sector. We are extremely pleased that top institutional investors are now confirming that we are on the right path by investing in our company."

The new shareholders will be playing an active part in the future development of the company. The networks they have at their disposal can play a key role in the future, for example in preparing IPO's for Nanostart's portfolio companies.

"We are well aware of the importance of this move by well-known investors, and of the opportunities it presents," says CEO Beckmann. "As an investment company, Nanostart AG has one clear objective: dynamic, rapid and sustained growth with – and thanks to – nanotechnology. Our new partners and their global networks will open up all kinds of doors to us."

To make it easier for institutional investors to gain exposure to Nanostart AG, the executive board has decided, with the approval of the supervisory board, to launch a cash capital increase, offering current shareholders subscription rights at 19:1. The issue price for the new shares that are being offered to the current shareholders under the capital increase has been set at EUR 12 per new share. The issue of up to 250,000 new shares will boost Nanostart AG's share capital from its current EUR 4,750,000 by up to EUR 250,000 to as much as EUR 5,000,000. The new exposure has been facilitated by the fact that Nanostart's major shareholders are waiving their right to some of the new shares. The transaction is being managed by VEM Aktienbank AG, Munich.

The subscription period for the new shares is scheduled to begin on 10 October, and will end on 24 October 2005. The subscription rights will not be traded. It is planned that the new shares will be included in official trading in November 2005. They will then be fully entitled to dividends from 1 January 2005 onwards, and will thus qualify for the full 2005 fiscal year. Nanostart shareholders will receive information on subscription to the new shares from their custodian banks.

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