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Nano-Proprietary Receives Key Patent Grants

AUSTIN, Texas, Aug. 26, 2004 -- Austin, Texas-based Nano-Proprietary, Inc. (OTC BB:NNPP.OB - News), through its subsidiary, Applied Nanotech, Inc. (ANI), have announced that its U.S. Patent claiming two-dimensional carbon nanostructures (dubbed by ANI ``carbon flakes''), with the priority date of August 21, 2000, was allowed by the U.S. Patent Office. These two-dimensional carbon nanotube structures, which may also be referred to as carbon nanowalls, may have attractive electron emission properties due to their sharp edges. The large surface area of this newly identified carbon phase may also make them particularly useful in applications for chemical and bio-sensors. Professor Yihong Wu of Kyoto University in Japan recently announced that he had succeeded in growing and observing a similar two-dimensional nano-structure (dubbed ``Carbon nanowalls''

Separately, ANI announced that its U.S. Patent No. 5,869,922 claiming specific UV Raman spectrum signatures for all carbon films that have superior electron emission properties was granted in South Korea as Patent No. 422244, with an effective date of February 22, 2004. This intellectual property correlates superior electron emission properties of carbon film in any form and certain UV Raman Spectrum measurements.

The UV Raman spectrum analysis can be performed on very small quantities of material and the patented signature can be identified immediately. All carbon films, including carbon nanotube films, used by ANI for electron emission applications fall within the UV Raman spectrum signatures claimed in the above mentioned patents.

``These new patent developments, when combined with our existing portfolio, further our dominance of any applications where carbon is used as an electron emission source,'' said Dr. Zvi Yaniv, Chief Executive Officer of Applied Nanotech, Inc.

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
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