NANOSTELLAR ANNOUNCES JOINT VENTURE MANUFACTURING FACILITY

Nanostellar Partners with Hypercat to Launch Production
 

Menlo Park, CA. – September 12, 2006 - Nanostellar, Inc, an application-specific nano-materials company, today announced the start of regular production of Nanostellar’s highly efficient emissions control catalyst materials by its joint venture with Hypercat Coating, LLC.

The joint venture combines Nanostellar’s extensive development expertise and Hypercat’s experience manufacturing advanced catalyst materials. “This exciting joint venture allows for the production of better performing and more cost effective emission control devices. Partnering with Nanostellar is a win-win solution for our customers”, said Gerry Smith, President of Hypercat.

“This is a key step in the implementation of Nanostellar’s business model whereby Nanostellar focuses on material development while partnering with manufacturing companies for large-scale production of our products,” said Pankaj Dhingra, President and CEO of Nanostellar, Inc.

The plant currently has the capacity to produce 250 kg per week of Nanostellar’s advanced catalyst materials. The joint venture will sell the output to Nanostellar which, in turn, will sell the material to Hypercat as well as other catalyst coaters. While the initial focus is for after-market, retrofit diesel vehicle market and niche emissions control markets such as small engines and stationary applications, this facility will serve as the foundation to help OEM’s and coaters meet first-fit emissions challenges.

“The start of regular manufacturing is an important milestone in Nanostellar’s development,” said Robert McDowell, Nanostellar Vice President of Manufacturing,“ and highlights the significant advance in Nanostellar’s manufacturing scale-up. Two years ago, we were able to produce only 1g batches in the laboratory, but today, through our joint venture with Hypercat, we can produce in commercial quantities.”

For more information please contact:
Bulent Yavuz, Nanostellar VP Sales and Marketing
908-654-1365
byavuz@nanostellar
www.nanostellar.com

About Nanostellar
Nanostellar, Inc., is a Redwood City-based Application Specific Nano Materials company that has 40 man-years of experience combining the use of advanced computational methods and proprietary synthesis techniques for the Rational Design and production of various nano-alloys with tailored properties for emissions control. These alloys use non-hazardous materials that are considered to be environmentally safe for emissions control purposes. The company plans to broaden the scope of their activities to include work on clean energy technologies such as catalyst materials for fuel-cells and Gas-to-Liquid/Coal-to-Liquid applications, and energy efficiency technologies in the field of display materials such as transparent conductors, phosphors, and color filters. Nanostellar is privately held, backed by premier investors including 3i, Monitor Ventures, Firelake Capital Management LLC and AsiaTech Management. www.nanostellar.com

About Hypercat
Hypercat Coating LLC, located in West Chester, PA, is a manufacturer of high quality catalyst devices. Hypercat is a wholly owned subsidiary of Totalcat Group, Inc., a privately held, New Jersey-based emissions control company that recycles and manufactures catalytic devices providing its customers complete life cycle management of their emissions control systems. Totalcat’s synergistic divisions include Hypercat Coating™, Federal Autocat Recycling™ and Recycalytics™. For more information please visit the Totalcat website presently located at www.federalautocat.com.

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