AUSTIN, Texas, Aug. 18, 2005 (PRIMEZONE) -- Nano-Proprietary, Inc. (OTCBB:NNPP), through its subsidiary, Applied Nanotech, Inc. (ANI), today announced that it has successfully developed carbon nanotube (CNT) electron emission for the next generation of mercury-free flat lamps to be utilized as backlights for large area LCD TVs.

The lamp construction is suitable for mass production utilizing Applied Nanotech's proprietary CNT inks and printing techniques and differs radically from the usual triode structure used for CNT TVs. The backlight is comprised of two components: a front glass covered with the phosphor coating and a back glass functioning as a cathode that includes ANI's proprietary metallic and CNT inks. All processes involve printing only and can be produced at low cost to accommodate the needs of the large LCD TV consumer market.

ANI has developed a proof of concept that is 65mm x 65mm (3.6 inch diagonal) utilizing its proprietary functionalized CNTs that requires an electric field of less than 1 volt/micrometer and achieved 40,000 candela/square meter. Considering the high value of luminous efficiency of cathodo-luminescent materials and potential future improvements in the design structure of the lamp, a 32-inch LCD TV backlight consuming power as low as 50-60 watts is possible.

ANI will present the backlight at NanoEurope 2005 September 13-15, 2005 in the American Pavilion (the Swiss Fair Center of Olma Messen St.Gallen).

"Given the strength of our patent portfolio as it relates to carbon nanotubes that emit electrons and our growing relationships with certain manufacturers, we expect to be at the center of this burgeoning market," said Marc Eller, Chairman and CEO of Nano-Proprietary, Inc.

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.