Frankfurt am Main, April 3, 2006 - Nanostart AG has made an investment in the company NanoDynamics, Inc. from Buffalo, New York. The company that was founded in March 2002 is a leading supplier of nanomaterials and of nanotechnology-enabled products. The participation represents a major success for Nanostart AG as the company was still given the chance to invest although the financing round was already completed.

NanoDynamics has developed platform synthesis technologies for nanosized metal and ceramic powders, as well as a novel process for affordable production of multiwall carbon nanotubes (CNT). The processes have already been scaled to commercial volumes for several products including nanosized silver which is of particular interest as an antimicrobial additive for paints, plastics, construction materials, and surfaces. It is also finding increasing use in the electronics industry for ink-jet printing of circuits and electromagnetic interference shielding. NanoDynamics holds altogether over 60 patents and patent applications protecting its proprietary processes, materials, and end-products.

To successfully promote the commercialization of its technology, NanoDynamics has divided up its business into three areas "Materials", "Products" and "Innovations". The Materials division focuses on the production of nanoscale materials and structures, the Products division goes on to convert these materials and structures into marketable applications for a broad range of industries, including the semiconductor and electronics industry, medical technology as well as the energy industry. For example, NanoDynamics produces portable fuel cells with a power capacity of between 50 and 250 watts. All the activities from the research and patents area have been pooled together by the management in the Innovations division. Through a combination of strategic partnering, custom product development, and out-licensing activities, the company is able to tap further earnings sources and increase the overall value of its investment in intellectual property.

"By making this investment in NanoDynamics, Nanostart AG will again be strengthening its presence in the USA and at the same time will be proving that it has access to the Top Names in the nanotechnology area", states Marco Beckmann, CEO of Nanostart AG. Keith Blakely, NanoDynamics CEO, particularly stresses the strategic significance of Nanostart AG for his company: "As Europe’s leading nanotechnology investment company, Nanostart AG offers us an international perspective. Besides this, we will also be able to profit from its contacts and experience in both industry and the financial sector. Although our current financing round had been oversubscribed and was already completed, we saw significant strategic value in having Nanostart AG as one of our investors. We did all we could to make this possible and are now naturally very pleased to have Nanostart AG on our side as a very important European investor."

About NanoDynamics, Inc.:
NanoDynamics, Inc. is a leading nanotechnology company offering nanomaterials, nano-enabled products and cutting edge technologies to its customers and partners around the world. NanoDynamics' has successfully developed proprietary technologies and commercialized a range of nanomaterials that are already improving the form, function and performance of a wide range of industrial and consumer products and industries, including electronics, semiconductors, fuel cells, transportation, energy and biotechnology. For more information please visit: www.nanodynamics.com

About Nanostart AG:
Nanostart AG is a listed nanotechnology investment company whose activities are divided into two areas: one of its focuses is investing in fast-growing nanotechnology companies; its other key area of activity is advising companies in the financial industry on investments in the nanotechnology sector.

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