Nanophase announces Commercial Availability of new Nanomaterial

Romeoville, IL, January 16, 2004 – Nanophase Technologies Corporation (Nasdaq: NANX), a technology leader in nanomaterials and nanoengineered products, announced commercial availability of a new nanomaterial from the Company’s patented PVS technology. The new nanomaterial, tin oxide, is approximately 30 nanometers with tight particle size distribution and is targeted for electronic applications and transparent conductive coatings.

“Nanophase is on a fast-track to introduce several new nanomaterials for specific market applications based on market research and end-user feedback,” stated Joseph Cross, Nanophase’s president and CEO. “During 2003, we significantly improved the new nanomaterial introduction cycle and expect to introduce several new nanomaterials in response to specific market applications during 2004.”

Nanophase has annual full-scale commercial production capability for these materials in the metric ton(s) range manufactured under its ISO-9001:2000 quality system. Nanophase’s nanomaterial products are typically available as nanoparticles, coated nanoparticles, and nanoparticle dispersions in a variety of media. For additional information, contact Dr. Ed Ludwig, Nanophase’s vice president of business development at 630-771-6729, or email eludwig@nanophase.com.

Nanophase Technologies (NANX), www.nanophase.com, provides nanoengineered solutions of nanostructured materials for a variety of industrial product applications. Using patented and proprietary integrated nanotechnologies, the Company creates products with unique performance attributes. Nanophase Technologies currently owns or licenses 23 United States patents and patent applications, consisting of 9 owned United States patents, 8 owned United States patent applications, and 6 licensed United States patents. The Company also has 27 foreign patents and patent applications, consisting of 9 owned foreign patents and 18 owned foreign patent applications, all of which are counterparts to domestic filings covering its platform of nanotechnologies.