Altair Nanotechnologies, Western Michigan University, and University of Nevada Receive Second Award From U.S. Department of Energy

Market Wire, September, 2004

Altair Nanotechnologies, Inc. (NASDAQ: ALTI), in collaboration with Western Michigan University (WMU) and the University of Nevada, Reno, today announced the consortium has received a Notice of Financial Assistance Award from the U.S. Department of Energy (DOE) for the joint development of nanosensors for detecting chemical and biological weapons. Under terms of the Stage 2, two-year contract, Altair will receive $672,000 for collaborative research and development efforts through its subcontractor agreement with WMU.

"Altair is pleased to receive additional support and funds from the Department of Energy," said Altair chief executive officer Dr. Alan J. Gotcher. "This new contract builds upon the Stage 1 grant funding that Altair announced in 2003 and the progress our company has made thus far in developing nanosensors and related nanotechnology applications for the DOE. We look forward to working closely with these leading educational centers to advance nanotechnology solutions for our homeland security."

"This kind of private/public collaboration is paramount to society's ability to tackle emerging global threats to public health and safety," said Tom Bell, professor of chemistry at the University of Nevada, Reno. Professor Bell and a team of fellow researchers are spearheading the project to develop methods that detect potential agents of terrorism, including radioactive materials that can be released into the air by a "dirty bomb" or the deadly nerve toxins such as sarin and tabun.

Under terms of the award agreement, the project comprises joint development work for the design, synthesis and characterization of nanosensors for chemical, biological and radiological agents. The resulting nanosensors will be designed to detect chemical, nuclear and biological agents, and for related national defense applications and homeland security programs. Altair received $356,000 for subcontract work, which has one year remaining on the initial research and development effort. Both of these ongoing awards were the result of the teaming agreement between Altair and WMU announced in January 2003.

"We would also like to extend our thanks to Senator Reid and Representative Upton for their continued support of Altair and our research efforts," added Dr. Gotcher.

UNIVERSITY OF NEVADA, RENO

Founded in 1864 as Nevada's land-grant institution, the University of Nevada, Reno is a component of the University and Community College System of Nevada. The Carnegie Classification of Institutions of Higher Education lists Nevada as a "Doctoral / Research Universities-Extensive" institution, its highest rating. UNR offers more than 65 undergraduate degree programs, 60 master's degree programs, and 30 doctoral degree programs. For more information, visit www.unr.edu.

WESTERN MICHIGAN UNIVERSITY

WMU is a Carnegie-designated Doctoral/Research-Extensive university and one of only 102 public research universities to be included in this top classification. WMU is a national leader in nanobioenvironmental chemistry research and has established the Nanotechnology Research and Computation Center to further this research. For more information, visit www.wmich.edu.

ALTAIR NANOTECHNOLOGIES, INC.

Altair Nanotechnologies pioneers the discovery and development of nano-materials of unique structure, performance, quality and cost. The company is positioning itself through product innovation to become a leading supplier of nano-materials technology and nano-materials worldwide. Altair owns robust proprietary technology platforms for manufacturing a variety of crystalline and non-crystalline nano-materials of unique structure, performance, quality and cost. Altair has installed semi-works capability with a capacity to produce hundreds of tons of nano-materials.

The company is organized into two divisions: Life Sciences and Performance Materials. The Life Sciences Division is pursuing market applications in pharmaceuticals, drug delivery, dental materials, cosmetics and other medical markets. The Performance Materials Division is pursuing market applications in Advanced Materials for Paints and Coatings (titanium pigments and thermal spray coatings), Advanced Materials for Improving Industrial Process Technologies (titanium metal manufacturing, catalysts and water treatment), Advanced Materials for Alternative Energy (high performance batteries, fuel cell and photovoltaics) and other high performance material applications. For additional information on Altair and its nano-materials, visit www.altairnano.com.

Forward-Looking Statements

This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the risks that Altair expenses will rise during the following quarters as a result of unexpected cash or non-cash expenses; Altair's numerous development stage products will not be developed to the point of commercialization or that, even if commercialized, no market will exist for such products or Altair will fail to effectively market to customers in a market, the risks that Altair will be unable to enter into license agreements regarding its pigment process (AHPP), RenaZorb, its TiNano Sphere or other developing products, that even if Altair enters into such license agreements, short term revenues from such agreements will not be sufficient to fund Altair's operations in the long run, and that animal testing or future testing of RenaZorb or other products of the company will not be successful and that development will need to be terminated. These risks and uncertainties also include, without limitation Altair, UNR, and WMU's ability to receive DOE funding for the projects and the commercial success of these projects. In general, Altair is, and expects to be in the immediate future, dependent upon funds generated from sales of securities, grants, testing agreements, and licensing agreements to fund its testing, development and ongoing operations. In addition, other risks are identified in the company's most recent Annual Report on Form 10-K, as filed with the SEC. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.