National Patent Development Corporation Sells 1,423,886 Shares of its Common Stock for $2.50 Per Share Pursuant to Exercise of Gabelli Warrants

Business Wire, August 15, 2008

NEW YORK -- National Patent Development Corporation (OTC Bulletin Board: NPDV.OB - News) announced that on August 13, 2008, pursuant to the exercise of a series of warrants (the "Warrants") by The Gabelli Small Cap Growth Fund, The Gabelli Equity Income Fund, The Gabelli ABC Fund, and The Gabelli Convertible and Income Securities Fund Inc. (the "Gabelli Funds") it has issued and sold 1,423,886 shares of its common stock (the "Issued Shares") to the Gabelli Funds for cash consideration of $2.50 per share, or an aggregate of $3,559,715. After giving effect to this transaction, National Patent has 17,576,190 shares of its Common Stock issued and outstanding.

Previously, on August 11, 2008, National Patent had entered into a letter agreement with the Gabelli Funds amending the Warrants to extend the termination date from August 14, 2008 to August 15, 2008, 5:00 p.m. Eastern Time and to reduce the exercise price of the Warrants from $3.57 per share to $2.50 per share.

In accordance with the terms of a Registration Rights Agreement dated April 14, 2003 between National Patent and the Gabelli Funds (the "Agreement"), the Gabelli Funds are entitled to exercise certain registration rights with respect to the Issued Shares. Subject to standard exceptions and limitations, the Agreement provides that the Gabelli Funds have the right to demand National Patent to file up to two registration statements with the SEC in order to register the Issued Shares under the Securities Act of 1933, as well as the ability to include such Issued Shares in certain registration statements filed with the SEC from time-to-time by National Patent. The Agreement terminates at the time that all of the Issued Shares are eligible to be sold by the Gabelli Funds under SEC Rule 144 during any ninety day period.

Harvey Eisen, Chairman and CEO of National Patent, commented, "Mario Gabelli, through his funds, has been a long time investor in the Company, and we welcome this new investment from the Gabelli funds. National Patent's already strong cash position, enhanced by the Gabelli investment, helps position us to take advantage of opportunities that may arise out of the current troubled economic climate."

About National Patent Development Corporation

National Patent Development Corporation (OTC Bulletin Board: NPDV.OB - News), is the majority owner of Five Star Products, Inc. a distributor of paint sundry and hardware products in the Northeast and Middle-Atlantic states. In addition, National Patent owns certain other non-core assets including real estate.

Safe Harbor Statement

This press release contains certain "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934 and the U.S. Private Securities Litigation Reform Act of 1995, including statements relating to, among other things, future business plans, strategies and financial position, working capital and capital expenditure needs, growth opportunities, and any statements of belief and any statements of assumptions underlying any of the foregoing. Neither the Company nor Five Star Products, Inc. have any material third party commitments with respect to growth plans. There is no assurance that specific plans can be executed or, if executed, will be successful from an operational or financial standpoint. These plans could require capital beyond the funds presently available to the Company.

These forward-looking statements reflect the current view of the management of National Patent Development Corporation with respect to future events and financial performance and are subject to certain risks, uncertainties, assumptions and changes in condition that could cause actual results to differ materially from those in the forward-looking statements, all of which are difficult to predict and many of which are beyond the control of National Patent Development Corporation, including, but not limited to the risks, uncertainties, assumptions and changes in condition detailed National Patents' periodic reports and registration statements filed with the Securities and Exchange Commission.

National Patent Development Corporation does not intend to, and disclaims any duty or obligation to, update or revise any forward-looking statements or industry information set forth in this press release to reflect new information, future events or otherwise.