NANO-PROPRIETARY, INC. ANNOUNCES FINANCIAL RESULTS

Austin, Texas - November 1, 2007 – Nano-Proprietary, Inc. (OTC BB: NNPP), today reported third quarter 2007 results that continue to show progress towards achieving financial stability.

Revenue for the third quarter ended September 30, 2007 was $1,049,749, a 490% improvement over the same quarter of 2006, and a 15% increase over the second quarter of 2007. Year to date revenues for the nine months ended on the same date were $2,922,654, a 595% increase over the same period last year. Losses for the nine month period, although still negatively influenced by litigation expense, were $3,335,584 or $.03 per share, a substantial decrease from the loss of $5,110,787 during the same period in 2006.

The Company’s cash position, which was in excess of $5.6 million, remained strong and its equity is in excess of $3.8 million.

Tom Bijou, CEO said, "I am encouraged by the steady progress that we are making towards our goal. Beyond the $2.9 million of revenue recognized year to date, we have a firm backlog of $3.4 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. We expect a strong fourth quarter and an even larger backlog at December 31, 2007."

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.

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 .

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