Nano-Proprietary, Inc. Completes 25-Inch Color Proof of Concept

| Source: Nano-Proprietary Inc.

AUSTIN, Texas, Sept. 7, 2005 (PRIMEZONE) -- Applied Nanotech, Inc. ("ANI"), a subsidiary of Nano-Proprietary (OTCBB:NNPP), today announced that in conjunction with its consortium of six prominent Japanese display component manufacturers (see press release of September 30, 2003), it has completed its proof of concept of a high resolution, full color, 25-inch diagonal carbon nanotube (CNT) TV (280 x 200 color lines or pixels).

A demonstration video of the proof of concept in operation is available to view on the Company's website,, under the ANI tab by selecting Demonstrations. The video clip clearly shows that, as with the 14-inch, the video image does not suffer from the "ghost images" that can be observed in large LCD and plasma TVs as a tail of the image moving across the screen. As expected, the image and its characteristics are similar to the cathode ray tube, since CNT TVs are a flat and thin extension of the CRT technology.

The proof of concept has a 25-inch diagonal glass substrate with a 22-inch diagonal viewing area and operates at a voltage that is fully compatible with low cost CMOS drivers. The distance between subpixels, which is a little larger than .5mm, was selected so that the printing techniques utilized are compatible with 60-inch diagonal Advanced TV format and 80-inch diagonal High Definition TV.

"This proof of concept is a critical achievement in that the processes, including printing-like processes, used in creating the display will allow manufacturers to dramatically reduce the capital investment needed to produce CNT TVs," said Dr. Zvi Yaniv, Chief Executive Officer of Applied Nanotech.

As the industry moves from ATV format to HDTV format (720 x 1280 lines), the 25-inch diagonal concept proves that ANI CNT technology is fully capable of HDTV format on 80-inch diagonal TVs (defined by the Japanese National Broadcasting Corporation NHK as the main target for consumer TVs).

"Although we are obviously not television manufacturers, I am extremely proud of our team's accomplishment of perfecting the processes necessary for the production of CNT TVs," said Marc Eller, Chief Executive Officer of Nano-Proprietary, Inc. "This greatly improves the chances of getting a partner to initiate pilot production."

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 is 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 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 with two operating subsidiaries. Applied Nanotech Inc. is a premier research and development 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

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