SI Diamond Technology, Inc. Announces That It Developed A New High-Volume Low-Cost Production Method For Carbon Nanotubes Utilizing A Catalyst Of Nanoparticles

Austin, Texas – September 20, 2001 – SI Diamond Technology, Inc. (OTC BB: SIDT) through its subsidiary, Field Emission Picture Element Technology, Inc. (FEPET) announced today that it developed and implemented a very high-yield process suitable for volume manufacturing of carbon nanotubes for flat panel display and other electron field emission applications. Carbon nanotubes, resembling nanowires, are grown selectively with excellent field emission quality using special catalysts that are in the form of nanoparticles with sizes between 50 and 100 nanometer. FEPET demonstrated a very low cost process for the first time achieving successful triode structures using printing and spraying techniques. Excellent current densities at electric fields lower than 3 Volts/micrometer were demonstrated. The results will be presented in October 2001 at Asia Display in Nagoya, Japan.

"Finally we believe that our research and development efforts resulted in a valid manufacturing approach to low-cost high-quality carbon nanotubes for electron field emission applications. It is not coincidental, in the new world of nanotechnology, that carbon nanotubes are growing very well on other nanoparticles," said Dr. Zvi Yaniv, President and COO.

The nanoparticle catalysts produced by FEPET will be available soon for selected strategic partners.

Safe Harbor Statement

This press release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, and Section 21E of the Securities Act of 1934, and is subject to the safe harbor created by those sections. The Company's actual results could differ materially from those projected in the forward-looking information. Future results may be impacted by risk factors listed from time to time in SIDT's SEC reports. SI Diamond Technology, Inc. disclaims any intent or obligation to update forward-looking information.

SI Diamond Technology is a holding company consisting of three operating subsidiaries. The wholly owned Field Emission Picture Element Technology, Inc. (FEPET) subsidiary is developing products for applications utilizing SIDT's proprietary field emission technology. The wholly owned Electronic Billboard Technology, Inc. (EBT) subsidiary is geared toward the commercialization of electronic digitized sign technology. Sign Builders of America, Inc. (SBOA), a wholly owned subsidiary of EBT is a manufacturer of high quality signage. SI Diamond Technology's website is www.sidiamond.com and www.carbontech.net.

Company Contact:
Doug Baker
Applied Nanotech Holdings, Inc.
248.391.0612
dbaker(at)appliednanotech.net

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