AUSTIN, Texas, July 20, 2005 (PRIMEZONE) -- Austin, Texas-based Nano-Proprietary, Inc. (OTCBB:NNPP), through its subsidiary, Applied Nanotech, Inc. ("ANI") and Funai Electric Advanced Applied Technology Research Institute, a subsidiary of Funai Electric, Ltd., today announced the companies are collaborating on a research program to develop biosensors using ANI's proprietary technology involving the use of enzyme coated carbon nanotubes.

The ultimate goal of this program, which will take place in phases, is to develop nanobiosensor products for use in the health care field to perform testing procedures using electronic semiconductor chips. These applications are commonly referred to as lab-on-chip applications. The first phase, which will generate nominal revenue for ANI, will span approximately four months, beginning August 1, 2005.

"We are pleased that Funai Technology Research Institute has recognized the importance of our enzyme coated carbon nanotubes for a new family of sensor devices," said Dr. Zvi Yaniv, Chief Executive Officer of Applied Nanotech, Inc. "Enzyme coated carbon nanotubes allow for enhanced sensitivity and selectivity and have the potential to eliminate false positives."

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 position in the field of electron emission applications from carbon film/nanotubes. Electronic Billboard Technology, Inc. (EBT) possesses technology related to electronic digitized sign technology. Nano-Proprietary's website is www.nano-proprietary.com.

About Funai Electric Advanced Technology Research Institute

Funai Electric Advanced Technology Research Institute was established in April 2004 by Funai Electric Ltd. for the purpose of production technology research and development through the use of advanced materials and basic theory, like nanotechnology, for the development of industrial infrastructure. Funai Electric Ltd. is headquartered in Osaka, Japan and manufactures consumer products under the brand names, Sylvania, Symphonic, Funai, and Emerson, as well as others.