NANO-PROPRIETARY, INC. ANNOUNCES FINANCIAL RESULTS

Austin, Texas - August 1, 2007, – Nano-Proprietary, Inc. (OTC BB: NNPP), today reported second quarter 2007 results that continue to show quarter to quarter progress towards achieving financial stability. As of June 30, 2007, shareholder’s equity increased to over $4.6 million and the cash balance was in excess of $6.5 million.

Revenue for the second quarter ended June 30, 2007 was $916,038, a 696% improvement over the same quarter of 2006. Year to date revenues for the six months ended on the same date were $1,872,905, a 575% increase over the same period last year. Losses for the six month period continued to be negatively influenced by litigation expense and were $2,575,674 or $.02 per share, a substantial decrease from the loss of $3,179,749 during the same period in 2006.

Tom Bijou, CEO said, "I hope shareholders understand how hard we are working to grow NPI. Anytime you have year to date revenue that equals 90+% of the prior 3 years, it can only be through hard work. Beyond the almost $1.9 million recognized year to date, we have a firm backlog of $2.1 million in signed research agreements, many opportunities in process, and we are making steady progress toward the goals of recurring revenue from royalties and cash flow breakeven."

The complete financial results can be found in the Company’s Quarterly Report on Form 10-Q, as filed with the SEC at either www.sec.gov, or the Company’s website listed below.

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) possesses technology related to electronic digitized sign technology. The Companies have over 200 patents or patents pending. Nano-Proprietary's business model is to license its technology to partners that will manufacture and distribute products using the technology. Nano-Proprietary's website is www.nano-proprietary.com .

Safe Harbor Statement

Download Acrobat Version