Nano-Proprietary, Inc. Receives Contract for Biological and Chemical Air Purification System

November 13, 2006 – Austin, Texas-based Nano-Proprietary, Inc. (OTC BB: NNPP), through its subsidiary, Applied Nanotech, Inc. (ANI), today announced that the U.S. Army has awarded a contract to the firm for further development of PhotoScrubTM . Work on the 12-month, $949,483 contract will begin immediately.

The PhotoScrub™ concept is based on an air-purification technology originally developed by one of Nano-Proprietary’s strategic partners, Andes Electric, Co. Ltd., and currently uses nano-structured photocatalyst materials that decompose air contaminants and pollutants at the molecular level in solid, liquid and gaseous samples. The technology works by applying a thin film coating on a flexible fiberglass cloth that decomposes pollutants. The contract announced today funds further development of the concept to improve efficiency of application and explore other air purification concepts for potential use by the U.S. Army. Initial approval of the funding for this contract was included in the 2006 Defense Appropriations Bill signed by the President in December 2005 (Nano-Proprietary news release, January 26, 2006).

“Our goal with this contract is to develop technology that is more effective and reliable in fighting airborne biological and chemical contaminants, while at the same time being more affordable than existing methods,” said Dan Burck, Chief Executive Officer of Nano-Proprietary, Inc. “We’re enthusiastic about working under this new contract to meet demands of our national security. We believe that this contract will provide us opportunities for further work on new applications for the PhotoScrub™ concept and additional commercialization of this promising technology,” Burck said.

This contract brings the total amount of government contracts awarded to Nano-Proprietary to almost $2.8 million in 2006.

Acknowledgement of Sponsorship

Applied Nanotech Inc acknowledges that the Photoscrub project is sponsored by the U.S. Army Research Office. The content of the information does not necessarily reflect the position or policy of the Government and no official endorsement should be implied.

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 positions in the fields of electron emission applications from carbon film/nanotubes, sensors, functionalized nanomaterials, and nanoelectronics . Electronic Billboard Technology, Inc. (EBT) has a financial interest in technology related to electronic digitized sign technology. Nano-Proprietary's website is www.nano-proprietary.com.