Advance Nanotech Announces Funding for Low Power FED and LED Lighting Research; New Display and Backlighting Technology Promises Substantial Increases in Efficiency Over Existing Technologies.

NEW YORK -- Advance Nanotech, Inc., (OTC BB:AVNA.OB), the premier provider of financing and support services to drive the commercialization of nanotechnology discoveries, in partnership with The University of Bristol, today announced funding for a new program to develop enhanced high-efficiency, low voltage Field Emission Displays (FED). The Nanolight program led by Professor David Cherns, head of the microstructures group at the University of Bristol, will begin immediately.

"With the rising costs of energy around the globe and increased concern over the environmental impact of battery disposal, there is an immediate need for high-efficiency, low cost sources for displays, backlights and architectural lighting," said Peter Gammel, senior vice president, electronics, at Advance Nanotech. "Phosphor screens are a key element in such devices, but conventional phosphors lack the necessary efficiency when operated at low voltage. The enhanced phosphor coatings we are developing are environmentally friendly and will lead to displays that consume 90 percent less energy critical for the widespread deployment of mobile video and interactive gaming."

The first phase of the Nanolight program will evaluate the feasibility of generating new low voltage phosphor coatings for FEDs already being developed by Advance Nanotech's NanoFED subsidiary. In the second stage of the program, researchers will explore the potential of low cost backlighting or large panel white light sources suitable for domestic applications based on these technologies.

Advance Nanotech is currently funding 20 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.

The investment in the Nanolight program was made in partnership with The University of Bristol. In late 2004, Advance Nanotech committed $2 million to a two-year multidisciplinary development program combining the University's nanotechnology expertise in the fields of chemistry and physics. The University of Bristol's nanotechnology team comprises lead scientist Dr. Neil Fox, Professor Mike Ashfold, head of physical and theoretical chemistry, and Professor David Cherns, head of the microstructures group in physics.

About The University of Bristol

The University of Bristol is a thriving international community dedicated to learning, discovery and enterprise with around 60 departments covering the arts and sciences including medicine, engineering and law. Research is at the heart of the University's mission and accounts for its international reputation. In the latest independent Research Assessment Exercise (2001), 78 per cent of Bristol's departments were judged to be world-class or internationally excellent. Combining our excellence in research and innovation with a vibrant entrepreneurial culture, the University is working with government, industry and other partner organisations and stakeholders to make Bristol a key player in the knowledge-driven economy and produce tangible benefits for the community at large. We encourage a number of activities as a route to commercialisation, primarily collaborative projects, licensing technologies or ideas, and the creation of start-up, or 'spin-out', companies.

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 20 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.