BUFFALO , N.Y. —29 August 2005—The Air Force has awarded a Phase II SBIR to NanoDynamics™, a leading nanotechnology organization and manufacturer of superior nanomaterials, to further develop its nanostructured tantalum and high velocity deformation (HVD) technology for use by the military.

Explosively Formed Penetrators (EFPs) are an important component of today's military since they are capable of penetrating even the thickest of armor. Needless to say, the material performance requirements are extremely demanding and can be prohibitively expensive. Nanostructured materials offer the potential to provide the right performance characteristics but widespread use of these materials has been hindered by high production costs. NanoDynamics™ has changed that with High Velocity Deformation (HVD), a radically new, yet simple, approach to produce nanocrystalline tantalum that the Company believes is greatly superior and cost effective when compared to competing technologies. As such, these materials can be processed with standard consolidation equipment and processes and thereby avoid the expensive equipment and procedures often required for handling nano-sized particles. The Phase II contract will focus on optimizing and scale-up of production, exploring consolidation approaches, as well as producing tantalum plate for testing by the USAF.

Because the HVD production process that produces nanocrystalline tantalum is low-cost, commercially scalable and generic, the technology is applicable to a broad number of near-term industrial products and markets using other metals. Tantalum is a highly specialized material that is ideal for producing specialty shape charges for applications such as blasting of petrochemical wells and has properties that make it useful for components in high-temperature and/or corrosive chemical processing environments, but metals such as steel, aluminum and titanium that are critical to the transportation and construction industries can also be enhanced via HVD.

The US Department of Defense SBIR Program (Small Business Innovation Research) provides up to $850,000 in early-stage R&D funding directly to small technology companies. Under an earlier Phase I SBIR, NanoDynamics™ demonstrated the feasibility of using HVD to produce of micron-sized particles composed entirely of nanocrystalline tantalum, using commercially available machining equipment. NanoDynamics™ has an exclusive license to the HVD technology through a strategic partnership with Purdue University .

About NanoDynamics

NanoDynamics, Inc. is a leading nanotechnology company offering nanomaterials, nano-enabled products and cutting edge technologies to our customers and partners around the world. NanoDynamics' has successfully developed proprietary technologies and commercialized a range of nanomaterials that are already improving the form, function and performance of a wide range of industrial and consumer products and industries, including electronics, semiconductors, fuel cells, transportation, energy and biotechnology.