Advance Nanotech Announces Significant Progress in Flexible Display Research; New Flexible Display Technology Could Change the Shape of Folding PDAs, Laptops and Electronic Paper.

NEW YORK -- Advance Nanotech, Inc., (OTCBB:AVNA), the premier provider of financing and support services to expedite the commercialization of nanotechnology discoveries, today announced significant findings in a research project exploring new techniques for powering flexible displays. The project, a collaboration with the Center for Advanced Photonics and Electronics (CAPE) at the University of Cambridge, UK, aims to meet the critical need for the coming generations of flexible displays in folding PDAs, laptops and electronic paper by employing nano structured materials incorporating carbon nanotubes.

The recent growth in the portable display industry has been dominated by liquid crystal (LCD) and organic light emitting (OLED) displays. Critical to migrating these technologies to a flexible platform is the development of flexible transparent conductors. Our scientists are exploiting the unique properties exhibited by carbon nanotube composites, adding robustness and conductivity to flexible and transparent materials.

"In today's display industry, indium tin oxide is almost exclusively used as a transparent conductor. However, this material has three serious drawbacks for the next generation of display technology - it has risen in cost by over an order of magnitude in the past five years, it is not compatible with the need for flexible displays and it is difficult to recycle," said Dr. Robert Murphy, a CAPE researcher working on the project. "The AVNA technology represents a new way of approaching flexible displays. Our findings are the result of months of careful manipulation of selected polymers and the detailed study of chemical treatments and carbon nanotube characteristics."

Nanostructured materials offer a unique opportunity to simultaneously optimize traditionally contradictory materials properties. For example, nanowire and nanotube composite materials can result in electrical conductors that are also transparent and flexible, a critical need for the coming generations of flexible displays in folding PDAs, laptops and electronic paper.

"With the evolving design of PDAs and laptops requiring flexible screens, and the rising cost of energy around the globe, there is an immediate need for high-efficiency, low cost flexible display technology," said Peter Gammel, Senior Vice President, Electronics, at Advance Nanotech. "The carbon nanotube flexible display technology that we are developing with CAPE is environmentally friendly and will lead to displays that are more efficient to manufacture."

The investment in flexible display technology 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 that began in the Electrical Division within Cambridge's Department of Engineering.

Advance Nanotech is currently funding 27 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 is dedicated to the successful commercialization of disruptive nanotechnologies to produce nano-enabled products. Advance provides financing and support services including commercialization guidance, project and infrastructure management, leadership assets, and counsel on intellectual property, licensing and regulatory issues to ensure maximum market potential. Advance Nanotech's diversified portfolio of 27 nanotechnologies, of which the company holds a majority stake in 23, impacts a range of applications including, but not limited to, sensors, medical therapeutics and composites. Advance is forging partnerships with leading manufacturers and universities in Europe, Asia and North America to transform innovative nanotechnology concepts into practical solutions.

About the Department of Engineering, University of Cambridge

The Department of Engineering is the largest department in the University of Cambridge, representing approximately ten percent of the University's activities by the majority of common metrics, and is one of Europe's largest integrated engineering departments. It achieves the highest standards in both research and teaching. Its international reputation attracts the best students, academics, sponsors and partners from around the world. More details about the Department and the latest news can be found on its website at www.eng.cam.ac.uk.

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.