Advance Nanotech Announces Financing for Revolutionary Carbon Nanotechnology Project; Partnership with Cambridge University's CAPE Center Could Yield Faster, More Effective Process for Growing Carbon Nanotubes.

NEW YORK -- Advance Nanotech, Inc., (OTC BB:AVNA.OB - News), the premier provider of financing and support services to drive the commercialization of nanotechnology discoveries, today announced financing for epi-CNT, a new research project based out of the Center for Advanced Photonics and Electronics (CAPE) at the University of Cambridge, UK. The epi-CNT project (short for epitaxial growth of carbon nanotubes) will explore the development of a new inexpensive and precise method for the controlled growth of single wall carbon nanotubes.

Carbon nanotubes are vital to the advancement of nanotechnology due to their extreme electronic, optical and mechanical properties; nanotubes play a key role in a variety of materials-based research projects ranging from space elevators to artificial muscles to ultrahigh-speed flywheels. Single walled carbon nanotubes can be insulating, semiconducting or metallic depending on growth conditions. This wide range of physical properties enables a plethora of electronic, optical and material applications, including transistors, interconnects in integrated circuits, and components for optical networks. Successful commercialization of carbon nanotube applications requires robust, manufacturable and inexpensive control of the properties of the nanotubes.

"Carbon nanotubes hold great promise for the advancement of technology across several industries ranging from optics to electronics to advanced composite materials. However it has been very difficult to grow nanotubes tailored for specific applications," said Dr. Peter Gammel, senior vice president, electronics, for Advance Nanotech. "The epi-CNT project will provide a controlled, robust and inexpensive method for manufacturing nanotubes for use in optical and electronic applications. This is a critical step toward allowing engineers to successfully develop applications based on their unique properties."

Single-walled carbon nanotubes can be either semi-conducting or metallic, depending on their twist angle or 'chirality'. However, most electronic and optical applications (transistors, interconnects, etc.) need either semi-conducting or metallic tubes - not both. Current growth methods produce a mixture of both semi-conducting and metallic tubes. As a result, scientists must separate the different types of nanotubes before they can be used; this is a costly and time-consuming process. The epi-CNT project will develop catalysts that will try to control the chirality during the growth process, resulting in the growth of a single type of nanotube (either semi-conducting or metallic).

The investment in epi-CNT was made in partnership with CAPE, the Center for Advanced Photonics and Electronics at the University of Cambridge. CAPE is an integrated Research Facility for Electrical Engineering with a staff of 20 academics, 70 post-doctoral researchers and 170 research students. CAPE is funded by Advance Nanotech, Alps Electric Company Limited, Dow Corning Corporation and Marconi Corporation plc, and is designed to encourage research activities to proceed to development and exploitation in close collaboration with industry. The program enables designers and engineers within academia and industry to benefit from the burgeoning developments in advanced photonics and electronics. In the past five years, numerous patents have been filed and ten spin-out companies have been formed from projects which began in the Electrical Division within Cambridge's Department of Engineering.

Advance Nanotech is currently funding 21 portfolio companies in the electronics, biopharma, and materials industries. The firm provides services ranging from funding, to human capital and research equipment essential to ensuring that the most promising companies can accelerate the path to rapid commercialization. In this way, investor exposure to any particular technology is mitigated with Advance Nanotech retaining the option to increase investment in those technologies that successfully mature.

About Advance Nanotech, Inc.

Advance Nanotech Inc. is dedicated to ensuring nanotechnology discoveries reach maximum market potential through successful commercialization. Advance is the trusted guide to commercial success for nanotech entrepreneurs spanning the globe, partnering with leading universities to provide scientists and researchers with mission critical infrastructure support to transform their discoveries to marketable solutions. The organization provides a range of services and support including financing, leadership assets and counsel on intellectual property, licensing and regulatory issues. With a portfolio of 21 companies developing technologies which offer potentially breakthrough nanotechnology discoveries in the electronics, biopharma and materials sectors, Advance's goal is to transform the potential for nanotechnology discoveries into innovative products that further evolve existing industries and enable new markets.

This document contains forward-looking statements by Advance Nanotech regarding its expectations as to its business, and involves risks and uncertainties and may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

Such statements are based on management's current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those addressed in the forward-looking statements.

Factors that may cause such a difference include, but are not limited to, problems and risks associated with developments in the nanotechnology industry in general and in Advance Nanotech's products under development in particular; the potential failure of Advance Nanotech's products under development to prove safe and effective in application; uncertainties inherent in the early stage of Advance Nanotech's products under development; failure to successfully implement or complete research programmes; failure to receive marketing clearance from regulatory agencies for our products under development; acquisitions, divestitures, mergers, licenses or strategic initiatives that change Advance Nanotech's business, structure or projections; the development of competing products; uncertainties related to Advance Nanotech's dependence on third parties and partners; and those risks described Advance Nanotech's filings with the SEC. Advance Nanotech disclaims any obligation to update these forward-looking statements.

Further information about these and other relevant risks and uncertainties may be found in the Advance Nanotech's findings with the Securities and Exchange Commission, all of which are available from the Commission as well as other sources.