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Nano-Proprietary Awarded Homeland Security Contract for Human Cargo Detection

Nano-Proprietary, Inc. announced that its subsidiary, Applied Nanotech, Inc. (ANI), has been awarded an SBIR Phase II contract for the continued development of a "Dual Sensor Module for Human Detection" from the Homeland Security Advanced Research Project Agency (HSARPA). This two-year contract is for approximately $750,000 and results from the successful completion of the Phase I contract for the same project (see press release of September 12, 2006). Applied Nanotech will design, develop and demonstrate a high reliability, low cost, low power chemical sensor with the ability to operate in the harsh shipping environment that is able to detect humans hiding in cargo shipping containers.

Humans hiding in shipping containers can be a serious threat to homeland security. A reliable detection system to identify the presence of individuals in cargo shipping containers will reduce this threat. Under this contract, ANI will continue development of a sensor system that will monitor and detect human presence in a shipping container in real time. The sensor detection system will continually monitor for the presence of individuals from the moment that the container is sealed until it is released at its final destination. It is estimated that 9 to 11 million shipping containers enter the U.S. each year, and that in excess of 40 million cargo shipping containers are in use worldwide. Additionally, the ANI developed sensor technology will be adaptable to multiple modes of transportation such as trucking, air cargo and rail shipping.

"We are extremely pleased with this additional contract which validates our sensor technology platforms and our expanding sensor line of business," said Tom Bijou, Chief Executive Officer of Nano-Proprietary. "This contract also adds to our ever increasing revenue backlog, which stood at $2.1 million as of June 30, 2007, prior to the receipt of this contract."

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