June 21, 2004 –AUSTIN, TX & NORMAN, OK – Austin, Texas based Applied Nanotech, Inc.(“ANI”), a subsidiary of Nano-Proprietary (OTC BB: NNPP), and SouthWest NanoTechnologies, Inc.(“SWeNT”) a technology spin-off of from the University of Oklahoma and ConocoPhillips based in Norman, Oklahoma, today announced that they have entered into a strategic partnership. Through the
partnership, ANI is authorized to use the high quality single wall carbon nanotubes (CNT) produced bySWeNT and is also authorized to represent SWeNT on a non-exclusive basis in Asia. This representation comes as a natural extension of the relationships that ANI has established with majormanufacturers in Japan.

In addition, as a continuation of their successful Phase I SBIR, the companies will jointly apply for aPhase II SBIR grant to produce a high quality, high resolution color CNT TV using the unique andproprietary single wall carbon nanotubes developed by SouthWest NanoTechnologies and the patentedCNT field emission technology developed by Applied Nanotech.

"We are very pleased to be working with ANI," said Howard G. Barnett, Jr., CEO of Southwest NanoTechnologies. "This productive alliance represents an important stride in the CNT flat panel display market. With ANI’s ability to create TV applications with our single wall carbon nanotubes, we will be able to capitalize on the lagging HDTV market."


About SouthWest NanoTechnologies, Inc.

SouthWest NanoTechnologies, Inc. (SWeNT™) is commercializing a horizontal patented technology to supply Single-Wall Carbon Nanotubes for high-volume high value applications as well as developing enhanced functionality for its nanotubes for specialty applications. This enabling technology has application in a variety of industries and materials. The company was incorporated in April 2001 to
spin off nanotube technology developed by the University of Oklahoma and ConocoPhillips.

For more information, please visit http://www.swnano.com.

About Nano-Proprietary, Inc.

Nano-Proprietary, Inc. is a holding company with two operating subsidiaries. Applied Nanotech Inc. is apremier research and development organization dedicated to developing applications fornanotechnology 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 www.nano-proprietary.com.

Media Contacts:
For SouthWest NanoTechnologies, Inc.
Julie Davis, Marketing Manager
405-217-8388, ext. 12
www.swnano.com

For Applied Nanotech, Inc. Investor Contact:
Patti D. Hill Douglas P. Baker
BlabberMouth PR (248) 391 - 0612
512.218.0401 dbaker@ameritech.net
patti@blabbermouthPR.com