Romeoville , IL, October 18, 2005 – Nano phase Technologies (Nasdaq: NANX) , a technology leader in nanomaterials and nanoengineered products, announced that the Company and Competitive Technologies (AMEX: CTT) have entered into an exclusive agreement under which CTT will actively identify innovative nanotechnologies developed by multiple universities and companies that may be synergistic with Nanophase's technologies and strategic forward initiatives for Nanophase's evaluation and potential licensing. As such opportunities are identified, Nanophase has the exclusive option to evaluate, license and commercialize selected technologies as the Company deems appropriate.

“In view of Nanophase's strategic objectives and initiatives, the relationship with CTT offers Nanophase a direct conduit to the vast array of emerging or new nanotechnologies that are being developed in universities and companies,” stated Joseph Cross, Nanophase's President and CEO. “Our vision is to continue expanding the technology and product capability of the Company as those capabilities clearly relate to revenue growth, especially through relationships with our current and future market partners. CTT offers Nanophase a direct, real-time window into nanotechnologies, particularly those relating to nanomaterials that are being developed across the US . Obviously, given the level of activity and federal, state and private funding, there is a considerable amount of nanotechnology being created that, when combined with our current technology, may offer Nanophase future new products or market growth areas. CTT's capabilities, and its multiple university and industrial relationships, are expected to provide Nanophase with the necessary identification and potential commercial development opportunities to leverage our revenue growth rate going forward.”

Dr. D. J. Freed, CTT President and CEO, stated “We are excited to be collaborating with one of the premier nanotechnology companies in the world. It is critically important to successful advanced technology licensing to have partners who understand and are capable of evaluating and quickly commercializing these technologies. Nanotechnology is one such advanced technology that fits our long-term strategic vision to create lasting value for our shareholders, clients, customers, and employees. We believe that this partnership will help us drive recurring revenues and increase royalties for our clients from this rapidly expanding area of technology.”

Nanophase Technologies Corporation (NANX), www.nanophase.com , is a leader in nanomaterials technologies and provides nanoengineered solutions for multiple industrial product applications. Using a platform of patented and proprietary integrated nanomaterial technologies, the Company creates products with unique performance attributes from two ISO 9001:2000 and ISO 14001 facilities. Nanophase delivers commercial quantity and quality nanoparticles, coated nanoparticles, and nanoparticle dispersions in a variety of media.  The Company owns or licenses 22 United States and 50 foreign patents and patent applications. Information about Nanophase may be found in the Company's public filings or on its website.

Competitive Technologies, established in 1968, is a full service technology transfer and licensing provider focused on the technology needs of its customers and transforming those requirements into commercially viable solutions. CTT is a global leader in identifying, developing and commercializing innovative technologies in life and physical sciences, electronics, and nanotechnologies developed by universities, companies and inventors. CTT maximizes the value of intellectual assets for the benefit of its customers, clients and shareholders. Information about Competitive Technologies may be found in the Company's public filings or on its website at www.competitivetech.net .