Advance Nanotech Discusses Vision for Nanotechnology Industry; Company Sees Bright Future for Evolution of Global Nanotechnology.

NEW YORK -- Advance Nanotech, Inc., (OTC BB:AVNA.OB), the premier provider of services, support and financing to drive the commercialization of nanotechnology discoveries, used the NSTI Conference as a backdrop for discussing its view of the near term potential of nanotechnology in the US and abroad. The company sees faster adoption of nanotechnology supported by business models like its own, which provide mission critical resources and support services to enable early stage nanotechnology discoveries to evolve from the university laboratory to the market.

Advance Nanotech currently has nearly twenty companies comprising its diversified portfolio, most of which are developing technologies within the university setting. The university provides a cost-effective environment with access to cutting edge infrastructure in which innovative solutions can be developed for existing problems and unmet business needs. The Advance Nanotech model, while having some similarities to the incubator made popular in the technology community of the late 1990s, is far more advanced and features precisely the kinds of resources nanotechnology companies demand. Specifically, Advance Nanotech 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 which successfully mature.

This model is much more relevant to nanotechnology companies which, unlike technology companies, do not have a strong existing infrastructure in place and are not widely understood by prospective customers, investors or the public. Nanotechnology companies require a great deal of nurturing to develop early stage ideas through to commercial success and often need help educating key audiences about their complex sciences. This is an expensive process, which could translate to higher investor risk and exposure. Investors and prospective customers for these technologies are rightly asking what distinguishes one nanotechnology company from another - which one will be successful? As a result, the Advance Nanotech model is enjoying an unprecedented level of success.

"Our model is extremely well accepted by early stage nanotechnology companies and academic institutions, which need the kind of critical services we provide," said Magnus Gittins, CEO of Advance Nanotech. "To meet that demand, it is vital that we continue to provide the highest level of human resources for existing projects and in those portfolio companies proving out their development milestones. This would also apply to any additional portfolio companies we consider."

Reviewing Advance Portfolio and Partners:

Advance Nanotech calculates the impact of nanotechnology in the sectors of materials, electronics, pharmaceuticals, chemicals, aerospace, tools, healthcare, and others to total in excess of $1 trillion over the next 15 years. Today, the company is currently funding 18 portfolio companies in the electronics, biopharma, and materials industries. Advance Nanotech sees providing the following as critical to supporting the nanotechnology sector's evolution:

--Equipment and Resource Enhancements: Advance Nanotech sees investment in equipment to extend the research and development resources as critical to supporting nanotechnology development in Europe, the US and Asia. For example, earlier this year, Advance Nanotech announced a key strategic investment in an electron beam lithography machine that will benefit the firm's portfolio companies based out of the University of Cambridge in the United Kingdom. Advance Nanotech supplements equipment at its partnership facilities, enhancing rather than duplicating pre-existing infrastructure.

--Human Resources: Advance Nanotech will continue to provide support to its portfolio companies as they successfully execute on their development plans. Specifically, Advance Nanotech will be helping the following companies add scientific and administrative resources:

--Owlstone, developing a button sized chemical sensor, an 'electronic nose' for numerous applications in defense, healthcare, domestic and industry.

--Bio-Nano Sensium, developing a platform technology for the next generation of medical diagnostic sensors. These may be wearable or implantable and are able to communicate their information wirelessly to a PDA, mobile phone or computer.

--NanoFED, developing a field emission display which combines the light, thin packaging of LCD displays with the quality of displays based on cathode ray tubes.

Moving forward, Advance Nanotech's growth strategy includes extending its already broad network of industry and academic partnerships. In 2005, Advance is continuing to focus on:

--Academic Partnerships: Advance Nanotech will continue to extend and diversify its academic partnerships. The company already maintains deep alliances with premier universities, including the University of Cambridge and Imperial College, which were independently rated as the number two and number three universities in the UK this year. In the US, Advance Nanotech will seek to build relationships with leading centers of nanotechnology excellence.

--Industry Partnerships: Advance Nanotech will continue to seek out leading industry partners with a common goal of funding and guiding early-stage nanotechnology companies. In 2005, the company partnered with industry leaders including Alps Electric Company Limited, Marconi plc and the Dow Corning Corporation in the Centre for Advanced Photonics and Electronics at the University of Cambridge, a strategic alliance of government, academia and industry to direct research to practical outcomes.

--Commercialization Partnerships: Advance Nanotech will seek out potential licensees, purchasers and joint-venture partners for its technologies as they mature within the Advance Nanotech development frame-work. Advance Nanotech will leverage its majority control of its technologies to select the most value-generating route for commercialization appropriate to each technology.

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 nearly 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.