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September 13th, 2004

Nano-Proprietary, Inc. Working with Israel’s Ben Gurion University

Abstract:
Nano-Proprietary, Inc., through its subsidiary Applied Nanotech Inc. (ANI), today announced that it is working with researchers from Ben Gurion University in Israel to develop and offer liquid suspensions of highly dispersed carbon nanotubes for applications involving electron emission, high strength materials, heat transfer materials, polymeric materials, ink materials for electronic devices, etc.

Story:

Nano-Proprietary, Inc. Working with Israel’s Ben Gurion University to Offer Highly Dispersed CNT Suspensions

Austin, TX, U.S.A. September 13, 2004

Nano-Proprietary, Inc. (OTC BB: NNPP), through its subsidiary, Applied Nanotech, Inc. (ANI), today announced that it is working with researchers from Ben Gurion University in Israel to develop and offer liquid suspensions of highly dispersed carbon nanotubes for applications involving electron emission, high strength materials, heat transfer materials, polymeric materials, ink materials for electronic devices, etc.

These suspensions are unique in that the carbon nanotubes (CNTs) are highly dispersed without the usual agglomerations associated with other methods of making liquid suspensions of CNTs. A unique advantage of these dispersions is the ability to obtain dry functionalized carbon nanotubes and re-suspend them when needed. These carbon nanotube suspensions were successfully utilized by ANI researchers to improve the uniformity and brightness of CNT TVs, increase the efficiency of carbon nanotubes based fuel cell catalysts and achieve higher sensitivity of enzyme coated carbon nanotubes for sensor applications. ANI believes that supplying these CNT suspensions worldwide would accelerate the commercialization of its proprietary technologies.

ANI's dispersions are available with up to 1% weight of either single walled carbon nanotubes (SWNTs) or multi-wall carbon nanotubes (MWNTs). These dispersions are available utilizing aqueous, polar organic or non-polar organic solvents and can be custom tailored for seamless integration with customer's desired application.

Examples of products include:

1% SWNT in 1-5% Aqueous Gum Arabic
0.5% SWNT in up to 4% of aqueous block co-polymer.
0.5% SWNT in up to 4% ethanolic block co-polymer
0.5% SWNT in up to 2% heptane solution of block co-polymer

This, along with other recent developments will be discussed in the Company’s presentation at the Roth Capital Partners New York Conference on Tuesday September 14, 2004 at 4:30 pm Eastern time. This presentation is also available via webcast at http://www.wsw.com/webcast/roth4/nnpp.ob.

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties concerning Nano-Proprietary’s business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect our business, products, and financial results is included in Nano-Proprietary’s annual report on Form 10-KSB for the fiscal year ended December 31, 2003, and in reports subsequently filed by Nano-Proprietary with the Securities and Exchange Commission ("SEC"). All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) at www.sec.gov or from Nano-Proprietary’s web site listed below. Nano-Proprietary hereby disclaims any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.

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 www.nano-proprietary.com .

Media Contact:
Patti D. Hill
BlabberMouth Public Relations
ofc. 512.218.0401
cel. 512.635.7335
patti@blabbermouthpr.com

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