Nano-Proprietary, Inc. Is Granted Preliminary Injunction in License Agreement Dispute

Market Wire, February, 2007

Nano-Proprietary, Inc. (OTCBB: NNPP) today announced that it has received preliminary injunction against Till Keesmann, the patent holder and defendant in the litigation. Nano-Proprietary licensed patents involving carbon nanotubes from Keesmann on exclusive basis in 2000, but Keesmann attempted to terminate that license last year. Judge Wayne Andersen's order enjoins Keesmann from terminating the license pending a final outcome in the litigation. The order granting the injunction finds that Nano-Proprietary is likely to prevail on its claims that Keesmann had no right to terminate the license and that it performed its duties under the contract.

Judge Andersen's order takes effect when Nano-Proprietary posts a bond. The purpose of the bond, which is required by law when an injunction is granted, is to cover potential damages that Keesmann could incur as a result of the injunction, if he were to ultimately prevail at trial. Tuesday, in an order resulting from a hearing on February 8, 2007, Judge Andersen set the amount of the bond at $100,000. Nano-Proprietary will post the bond as soon as the details are worked out with Court.

"We are pleased that the court agreed with us on this matter," said Tom Bijou, Chief Executive Officer of Nano-Proprietary, Inc. "We expected this result and we are confident that we will prevail if Keesmann continues to pursue this matter through trial. We will continue to aggressively protect our patent rights in this and other situations."

Nano-Proprietary is represented by intellectual property litigators at Kelley Drye & Warren, a premier litigation firm with offices in New York, Washington, D.C., and Chicago.

ABOUT NANO-PROPRIETARY, INC.

Nano-Proprietary, Inc. is a holding company consisting of two wholly owned operating subsidiaries. Applied Nanotech Inc. is a premier research and commercialization organization dedicated to developing applications for nanotechnology with an extremely strong position in the field of electron emission applications from carbon film/nanotubes, sensors, functionalized nanomaterials, and nanoelectronics. Electronic Billboard Technology, Inc. (EBT) has investments related to electronic digitized sign technology. The Companies have over 200 patents or patent applications pending. Nano-Proprietary's business model is to license its technology to partners that will manufacture and distribute products using the technology. Nano-Proprietary's website is www.nano-proprietary.com .

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties concerning Nano-Proprietary's business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect our business, products, and financial results are included in Nano-Proprietary's annual report on Form 10-K for the fiscal year ended December 31, 2005, and in reports subsequently filed by Nano-Proprietary with the Securities and Exchange Commission ("SEC"). All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) at www.sec.gov or from Nano-Proprietary's website www.nano-proprietary.com . Nano-Proprietary hereby disclaims any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.

COMPANY CONTACT Doug Baker Chief Financial Officer Nano-Proprietary, Inc. 248.391.0612 Email Contact MEDIA CONTACT William J. Spina 781.378.2000 Email Contact