Altair Nanotechnologies Inks Second Titanium Dioxide Pigment Agreement in 60 Days; Altair's Patented Process For Producing Titanium Dioxide Pigment Evaluated by Vietnam Company.

Business Editors

RENO, Nev.--(BUSINESS WIRE)--Nov. 6, 2002

Altair Nanotechnologies (Nasdaq:ALTI) today announced that it has entered into an evaluation agreement with Avireco USA, LLC.

Under the terms of the agreement, Altair will determine the suitability of Avireco's feedstock to produce titanium dioxide pigment using Altair's patented process. A concentrate of Avireco's feedstock will be provided from locations within Vietnam. Altair will be paid approximately a quarter of a million dollars for the first phase of the project.

With the success of the project, as outlined in the agreement, Avireco will enter into a licensing agreement with Altair under which Avireco will have an exclusive license to manufacture and market titanium dioxide pigment throughout Vietnam. Altair will receive royalties on all pigment sold by Avireco and its affiliates.

"The agreement represents the second feedstock evaluation agreement since September 16, 2002," commented Kenneth E. Lyon, president of Altair Nanomaterials, a division of Altair Nanotechnologies.

"Phase one of the development program will take place over a five-month period. The remaining phases of the project are dependent on the outcome of the first phase and the availability of project financing in Vietnam."

The overall project is scheduled to be completed in mid-2005. Under the agreement, Altair Nanomaterials and the Stanford Research Institute International, formerly Stanford Research Institute (SRI), will advise and assist Avireco to obtain international financing for its pigment project.

Avireco Co., LTD, a Vietnamese company, currently mines ilmenite ore and exports the concentrates to titanium dioxide pigment manufacturers in Asia.

Under the current project plan, at the completion of phase one, Altair, in conjunction with Avireco, will select an engineering/construction management contractor to design and manage the construction of operational modular facilities for the manufacturing of titanium dioxide pigment using Altair's patented process.

Altair will use part of its existing plant for the demonstration phase to establish design data and project development information. This data will be provided to the general contractor to facilitate the engineering design and building process.

The new facilities are planned to initially produce 5,000 tons of pigment per year with the capability to expand to 10,000 tons of pigment per year. Once the modular facilities are built and connected, the units will be operated temporarily to ensure operability, conformity of standards and provide training of Avireco supervisors. The facilities will then be disconnected and the modules will be shipped via barge to a location in Vietnam.

Altair and its personnel will work closely with Avireco representatives and contractors during all phases of the project.

Altair's patented technology is the first new comprehensive patent for producing white titanium dioxide pigment from ilmenite since the DuPont patents for a chloride process were awarded approximately 50 years ago.

The process is expected to significantly lower operating costs for pigment manufacturers, minimize environmental impact and provide the ability to recycle most of the chemical additives used in the process. This minimizes hazardous waste disposal issues that currently plague existing processes.

Titanium dioxide is the most widely used white pigment in the world. Coatings, plastics, ceramics, inks and fibers all depend on white pigments to impart color and opacity. This is accomplished either as part of a surface coating such as in paints or by incorporation into the materials themselves such as in plastics or fibers.

The total market for titanium dioxide pigment is more than 3,500,000 metric tons per year with an annual market value of approximately $9 billion.

Altair Nanotechnologies Inc.

In addition to supplying a unique titanium dioxide pigment process technology to pigment manufacturers, Altair Nanotechnologies is positioning itself through product innovation within the emerging nanotechnology industry. Altair owns a proprietary technology for making nanocrystalline materials of unique quality both economically and in large quantities.

The company is currently developing special nanomaterials with potential applications in pharmaceuticals, fuel cells, solar cells, advanced energy storage devices, thermal spray coatings, catalysts, cosmetics, paints and environmental remediation. For additional information on Altair's nanoparticle materials, visit www.altairnano.com.

Forward-Looking Statements

This release may contain forward-looking statements, as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause the company's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the possibilities that the company may be unable to attract additional customers, funded research opportunities, product development opportunities or ventures through its sales and branding campaign, that the company may never earn sufficient revenues to be profitable and that the company's nanoparticle products may not be integrated into any major market groups and products, in addition to other risks identified in the company's most recent annual report on Form 10-K, as filed with the SEC. Such forward-looking statements speak only as of the date of this release. The company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in company expectations or results or any change in events.