Nano-Proprietary, Inc. Introduces Carbon Monoxide Sensor

February 15, 2006 – Austin, Texas-based Nano-Proprietary, Inc. (OTC BB: NNPP), announced that its subsidiary, Applied Nanotech, Inc. (ANI) has developed a "Gated" metal oxide sensor for carbon monoxide (CO) detection and measurement. The gated approach allows the sensor to operate without heating, as compared with most sensors which require heating the sensor to greater than 250 degrees Celsius.

The sensor is specific to carbon monoxide with no cross sensitivity to other gases and elements and can operate in extreme environments ranging from negative sixty degrees Celsius to one hundred and sixty degrees Celsius. The sensor also operates at low power, is easily portable, highly sensitive, and has a fast response/recovery time with instant-on operation.

The features and low cost of this sensor will allow it to operate in a wide range of industrial and commercial applications such as monitoring home safety, vehicles, aircraft, and in office and industrial buildings.

"This represents a major break-through in sensor technology," said Dr. Zvi Yaniv, President and CEO of ANI. "We are extremely pleased with this addition to our ever expanding sensor line of business."

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 are included in Nano-Proprietary's annual report on Form 10-K/A for the fiscal year ended December 31, 2004, 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 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 website is www.nano-proprietary.com.

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

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