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Nanotechnology-Based Filtration Development Company Reaches Joint Venture Agreement

Applied Nanoscience Inc. (ANI) (PINKSHEETS: APNN), a marketer and developer of innovative nanotechnology-based air filtration products specifically targeted to eradicate bacteria, virus and fungi, today announced it has reached a joint venture agreement to begin production on a disposable protective face mask with its Asia Pacific region partner. The protective mask will incorporate ANI's proprietary NanoFense™ technology, a U.S. patent pending antimicrobial nanoparticle formulation. When tested as a "coating" on disposable face masks, it has been validated to be effective against a broad spectrum of virus and bacteria by multiple independent BSL- 3 laboratories in the United States.

ANI will be testing the NanoFense formulation against H1N1 but with the mask already proven to eradicate three influenza strains to include avian influenza, the company expects to see similarly high efficacy.

The companies have clearly defined the commercial relationship required and to be implemented in the execution of a product launch to non-U.S. markets for the NanoFense Protective Face Mask. Initial production will be 30,000 masks/day with the capability of increasing up to 90,000 masks/day on newly installed automatic equipment which operates 7 days a week. ANI will supply the NanoFense formulation premixed under their label.

"We are very encouraged at the progress made with our new partner on this important project. They have requested anonymity until all formal product launch efforts are in place with customer support being our collective #1 priority. Their established customer base and solid reputation in the surgical/protective mask markets throughout the Asia Pacific region and Europe requires appropriate planning, especially at a time when people are in such need for a product to protect themselves and their families," stated Thomas K. Allen, President and CEO, ANI.

The NanoFense Protective Face Mask will be sold in many of the countries where ANI has issued patents protecting their broad NEFT™ IP platform encompassing "Filtering Devices Incorporating Nanoparticles." The growing technology platform combines any type of nanoparticle that is known or engineered to be capable of destroying viruses, bacteria, fungi or toxins with one or more hydrophobic or hydrophilic filters. The patent coverage includes three main methods of associating nanoparticles with filter media: (1) coating the filter media with a powder of nanoparticles, (2) impregnating the nanoparticles into the filter media, and (3) having pellets of nanoparticles located adjacent to the filter media.

Mr. Allen added, "Applied Nanoscience Inc. anticipates the reporting of commercial revenues as early as Q4 of 2009, a milestone for the efforts over the past 4+ years of technology development. In addition, we have significant interest in the technology from very established building filtration manufacturers which have had to be held to ensure the timely launch of the NanoFense Protective Face Mask."


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