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September 28th, 2006

Nano-Proprietary and SME Agreement

Nano-Proprietary, Inc. (OTCBB: NNPP) today announced that its subsidiary, Applied Nanotech, Inc. ("ANI") entered into a license agreement with Shimane Masuda Electronics, Co., Ltd. ("SME"). Under the terms of the license agreement, SME has the non-exclusive right to manufacture carbon cold cathode products in Japan and to sell those products in Asia.


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