Nano-Tex Expands Into Home Textiles; JCPenney and Nano-Tex Announce Sheets Made with Nano-Tex's Coolest Comfort Fabric Will Be Sold in JCPenney Stores Nationwide

Business Wire, August 21, 2006

EMERYVILLE, Calif. -- Nano-Tex, a leading fabric innovation company providing nanotechnology-based textile enhancements to the apparel and commercial interiors markets, announced today plans to move into the home textiles market beginning with an expansive roll out of wrinkle-free performance sheets made with Nano-Tex's Coolest Comfort fabric to JCPenney stores nationwide. The 100% cotton, 350-thread count sateen sheet sets are being sold under the JCPenney Studio brand and will be available in nearly 700 JCPenney stores throughout the country by the end of July.

Already a significant source of growth in the apparel industry, Nano-Tex enhanced textiles allow designers to utilize the latest technology to incorporate superior performance characteristics into fashion at a time when manufacturers and consumers want more, in terms of style, function and durability, from clothing. Nano-Tex's enhanced textiles are also ideally suited for the home because they give consumers the opportunity to decorate their homes the way they want, without compromising beauty, comfort or design.

A recent study conducted by Nano-Tex confirmed consumer interest in enhanced textiles for the home. The survey, which queried consumers on textile enhancements for bedding, bath, tabletop and other home furnishings, reports consumers are very interested in having enhancements built in to their favorite household textiles provided the enhancements would increase their function, comfort and/or durability. The study also found an overwhelming majority of consumers who already own clothing with fabric enhancements were interested in having these features cross over from their wardrobe into their home.

JCPenney's wrinkle-free performance sheets made with Nano-Tex Coolest Comfort fabric provide breakthrough moisture wicking properties that draw moisture away from the skin to help balance body temperature. Transparent to the eye and indistinguishable to the touch, Nano-Tex's enhanced fabrics, such as JCPenney's sheet sets made with Nano-Tex's Coolest Comfort fabric, offer consumers added performance features to enhance comfort without sacrificing beauty.

"The migration of enhanced textiles from apparel into the home is a natural evolution for Nano-Tex because both of these industries share a design and fashion sensibility," said Renee DeLack Hultin, executive vice president of global sales. "With Nano-Tex enhanced textiles, consumers have a wider variety of options when decorating their homes because they do not have to sacrifice beauty for comfort, durability and easy care."

"We are delighted to work with JCPenney in our first foray into home textiles," DeLack Hultin added. "Through this expansive roll out, we look forward to introducing Nano-Tex Coolest Comfort fabric to the millions of consumers who shop JCPenney to furnish their home."

Nano-Tex is the first company to bring nanotechnology to the textile industry. Nano-Tex utilizes nanotechnology to: 1) design molecules with specific performance attributes; 2) engineer the molecules to assemble on the surface of textile fibers with extreme precision, and 3) ensure that they permanently attach to the fibers through patented binding technology. This patented binding technology, exclusive to Nano-Tex treatments, allows Nano-Tex to offer the most sophisticated enhanced textiles on the market today. Additional Nano-Tex treatments include Resists Spills, a spill and stain resistant fabric enhancement; Resists Static, a permanent anti-static fabric enhancement; and Repels & Releases, a stain resistant and stain release fabric enhancement.

About JCPenney

J. C. Penney Corporation, Inc., the wholly owned operating subsidiary of J. C. Penney Company, Inc., is one of America's largest department store, catalog, and e-commerce retailers, employing approximately 151,000 associates. As of April 29, 2006, J. C. Penney Corporation, Inc. operated 1,021 JCPenney department stores throughout the United States and Puerto Rico. JCPenney is the nation's largest catalog merchant of general merchandise, and jcp.com is one of the largest apparel and home furnishings sites on the Internet.

About Nano-Tex

Nano-Tex is a leading fabric innovation company providing nanotechnology-based textile enhancements to the apparel and commercial interiors markets. Nano-Tex is headquartered in Emeryville, Calif., with operations across the United States, Asia and Europe. To date, more than 80 textile mills worldwide are utilizing Nano-Tex treatments in products sold by more than 100 leading apparel and commercial interior brands. Products with Nano-Tex enhancements are sold throughout North America, Asia and Europe. www.nano-tex.com