Frankfurt – June 29, 2009 – Nanostart AG, the Frankfurt-based nanotechnology investment company, has reported net income for fiscal year 2008 which is the highest since the company was founded. The company’s annual net income according to German statutory accounting (HGB) was EUR 2.1 million, an increase of approx. 40 percent over the prior year (2007: EUR 1.4m).

The particularly strong second half year enabled Nanostart to significantly boost its profits for the year. With these latest results, Nanostart AG continues to be profitable in every fiscal year since it began its operating activities. These figures are all the more impressive in view of the fact that the company is currently in a cost-intensive phase of building out its global nanotechnology portfolio and is quickly pushing forward with its international expansion strategy. Toward this objective, a new 100%-owned subsidiary was established in Singapore, Nanostart Asia Pte Ltd, which will take responsibility for the Nanostart investment business throughout Asia. With an investment by the government of Singapore in the Nanostart Singapore Early Stage Venture Fund I amounting to SGD 10 million, the new Nanostart subsidiary has already been able to announce a remarkable first success.

The positive performance during the fiscal year must also be seen in the context of the global recession of historic proportions. Nanostart CEO Marco Beckmann views this as proof of the company’s performance potential and its convincing business model, which focuses entirely on nanotechnology as a major growth driver. The annual net income was for the most part attributable to the successful sale of investment holdings, resulting in a gain of approx. EUR 6 million (prior year: EUR 3.9m).

Contrary to the general trend within the venture capital industry, Nanostart took advantage of its favorable position during 2008 to further expand its business activities. Over the past fiscal year, Nanostart made investments in three new portfolio companies: Holmenkol AG, based in Heimerdingen, Germany; Namos GmbH, based in Dresden, Germany; and Curiox Pte Ltd, based in Singapore. The investment agreements with Holmenkol and Curiox were completed at the end of 2007.

For the current fiscal year, company management plans to continue the targeted expansion of the investment portfolio, while also anticipating a further growth in the value potential of the existing portfolio. In particular, the company’s expansion within Asia opens the door to additional growth opportunities. Furthermore, the management of MagForce Nanotechnologies AG, a portfolio company majority owned by Nanostart, anticipates the successful completion of phase II clinical trials of its Nano-Cancer® therapy before the end of this year. The successful completion of these trials, awaited with excitement throughout the industry, will enable the company to apply for European regulatory approval, thus serving as a key value driver.

The 2008 financial statements will be available starting June 30, 2009, on the Nanostart website within the investor relations section. The annual report for 2008 (in German) will be published in August 2009.


About Nanostart:
Nanostart AG is the world’s leading nanotechnology investment company. The Frankfurt-based company provides venture capital financing for nanotechnology companies in various growth phases. It also provides the benefits of its experience and expertise to developers of financial instruments and to investors in the nanotechnology sector. For further information about the company, please visit www.nanostart.de.

Disclaimer:
This notice constitutes neither an offer to sell nor a solicitation of offers to purchase or subscribe to securities. There will be no public offering of securities of Nanostart AG in conjunction with the existing listing of its shares in the “Entry Standard” segment of the regulated unofficial market (Freiverkehr) on the Frankfurt Stock Exchange. This notice does not constitute a securities prospectus. Neither this notice nor the information contained within is intended for direct or indirect distribution within the United States of America, Canada, Australia or Japan.

Media contact:
Nanostart AG
Public Relations
Dr. Hans Joachim Dürr
Goethestrasse 26-28
D-60313 Frankfurt
Germany
phone: +49 (0)69-21 93 96 111
fax: +49 (0)69-21 93 96 122
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