Frankfurt / Buffalo, N.Y. – July 29, 2009 – Nanostart AG, the Frankfurt-based nanotechnology investment company, is writing off the remainder of its investment in NanoDynamics, Inc., a venture based in Buffalo, New York. NanoDynamics has filed for Chapter 7 of the U.S. Bankruptcy Code, as a result of which all assets of the company will be liquidated.

Nanostart held approx. 1.5 percent of the shares of NanoDynamics. Because this minimal shareholding provided Nanostart with so little influence on strategic decisions by the company, the decision was already made last year to proactively write down a part of the investment.

“Write-downs and write-offs are inherently just as much a part of our business model as successful exits. NanoDynamics was unfortunately not able to make it through these difficult economic times. This was one of the smallest investments in our portfolio, so it has no significant impact on our business,” explained Marco Beckmann, CEO of Nanostart AG. “We are pleased that some of our other portfolio companies are, in contrast, enjoying very positive developments which we should be able to report in the near future.”

Because Nanostart had only a 1.5 percent shareholding in NanoDynamics, the current write-off amounts to EUR 1.2 million, or 0.97 percent of the net asset value of Nanostart, which totaled approx. EUR 124 million as of July 28, 2009. This write-down thus falls within the normal daily volatility in Nanostart’s net asset value arising from day-to-day changes in the value of its exchange-traded portfolio holdings.

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
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