Attention Former Preferred Stockholders Of Nanophase Technologies Corporation Whose Shares Were Converted Into Common Stock -NASDAQ: NANX-

Business Wire, Nov 24, 1998

NEW YORK--(BUSINESS WIRE)--Nov. 24, 1998--On November 20, 1998, Wolf Haldenstein Adler Freeman & Herz LLP filed a class action lawsuit in the United States District Court for the Northern District of Illinois on behalf of persons who owned Nanophase Technologies Corporation's ("Nanophase" or the "Company") (NASDAQ:NANX) Preferred Stock and whose Preferred Stock was converted into shares of the Company's Common Stock on or about November 26, 1997, in connection with the Company's Initial Public Offering of Common Stock If you wish to discuss this action please contact Wolf Haldenstein Adler Freeman & Herz LLP (David A. P. Brower, Esq., Gregory Mark Nespole, Esq., or Michael Miske) at (800) 575-0735 or classmember@whafh.com, nespole@whafh.com, gnespole@aol.com, or visit our website at www.whafh.com

The complaint charges Nanophase and certain of its officers and directors with violations of the Securities and Exchange Act of 1934.

Nanophase is a Delaware corporation with its headquarters located in Burr Ridge, Illinois. The Company's primary business is the development and marketing of nanocrystalline materials which are used as ingredients in a wide range of commercial applications.

The complaint alleges, in part, that the Company and the defendants issued a series of false and misleading statements in an effort to induce the Company's Preferred Stockholders to consent to the conversion of their Preferred Stock into Common Stock on the Company's Initial Public Offering on or about November 26, 1997.

Plaintiffs seek to recover damages on behalf of class members and is represented by the law firm of Wolf Haldenstein Adler Freeman & Herz LLP (www.whafh.com). The Wolf Haldenstein firm has a full service commercial practice consisting of more than 35 attorneys based in New York City and San Diego. The firm's litigation department has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities laws, class actions and shareholder litigation. The firm's qualifications have repeatedly received favorable judicial recognition. Additionally, the firm has achieved substantial recoveries for defrauded investors and shareholders.

If you are a member of the class described above, you may, not later than sixty days from November 20, 1998, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575-0735 (Gregory Mark Nespole, Esq. or Michael Miske) or via e-mail at classmember@whafh.com or visit our website at www.whafh.com

All e-mail correspondence should make reference to Nanophase.