RENO, NV -- (MARKET WIRE) -- 06/22/2004 -- Altair Nanotechnologies, Inc. (NASDAQ: ALTI), a company engaged in developing high performance materials and life sciences products using its pigment and nanomaterials technology platforms, today announced that it was awarded a grant from the National Science Foundation (NSF), effective July 1, 2004. Under terms of the grant award, Altair will initially receive $100,000 for work to be completed within six months of the July 1, 2004, effective date. The grant is in support of a project entitled "SBIR Phase I: Carbon-Coated Nano-Structured Electrodes for Next-Generation Lithium-Ion Ultra Capacitors."

"We are pleased to announce Altair's first stand-alone grant, spearheaded by our new board member, Dr. David King," said Dr. Rudi E. Moerck, president of Altair. "The NSF's peer review process is consistently recognized as the gold standard among government agencies and private foundations in terms of setting the bar for quality proposals and funding awards, making this grant further validation of our nanotechnology expertise and uniqueness of our technology platform. This grant builds upon the progress Altair has made in bringing nanotechnology to super capacitor and battery applications."

Under terms of the Small Business Innovation Research (SBIR) Phase I grant award, Altair will use the proceeds to fund joint development work with Hosokawa Micron's Nano Particle Technology Center and Rutgers University's Energy Storage Research Group. According to Dr. Moerck, Altair's nano-sized cathode and anode materials are perfect complements to Hosokawa's unique powder coating technology and equipment and Rutgers' existing hybrid battery patents, advanced battery design and testing expertise, all of which should provide for the successful design and development of high-capacity, next generation lithium ion power sources.

Third-party studies have shown that Altair's nano-sized lithium titanate spinel battery material exhibited charge and discharge rates up to 100 times higher than materials used in current commercially available batteries. In the third quarter of 2003, Altair announced that Telcordia Technologies (now Rutgers Energy Storage Research Group) developed a non-aqueous asymmetric hybrid prototype battery incorporating Altair's nano-lithium titanate spinel. The Rutgers prototype battery, using Altair's nanomaterials, met the 'car of the future' power assist battery requirement as published in The Journal of Power Sources, 113 (2003) 62-71 and 115 (2003) 171-178. The Rutgers' battery is the only prototype reported, to date, to meet these Department of Energy (DOE) standards. Altair is currently in discussions with Rutgers regarding commercialization and is providing the group with additional nanomaterials samples for further development work.

Nanomaterials are expected to provide an improvement in lithium ion battery and super capacitor performance, making it possible to use these systems in applications where immediate high power delivery is necessary. Such applications include automobile batteries, electric and hybrid vehicles. In addition to use in hybrid automobiles, nano-lithium titanate spinel-based batteries may also be incorporated into uninterrupted power supplies, military applications and specialized uses, such as notebook computers, mobile phones, and a variety of portable devices. Rapid charge/discharge times are important in all these applications.

Altair Nanotechnologies, Inc.

Nanotechnology is rapidly emerging as a unique industry sector. Altair Nanotechnologies is positioning itself through product innovation within this emerging industry to become a leading supplier of nanomaterial technology and nanomaterials worldwide. Altair owns a proprietary technology for making nanocrystalline materials of unique quality both economically and in large quantities. The company is currently developing special materials with potential applications in pharmaceuticals, titanium pigment and metal, batteries, fuel cells, solar cells, advanced energy storage devices, thermal spray coatings, catalysts, cosmetics and environmental remediation. For additional information on Altair and its nanoparticle materials, visit www.altairnano.com.