NanoDynamics Signs Joint Venture to Commercialize New Zealand Company's Technology Platform; Novel Cluster Assembly Methodology Produces Self-Assembled Nanowires Extending Fabrication Technology of Semiconductors and Electronic Components.

BUFFALO, N.Y. -- NanoDynamics, a leading nanotechnology organization and manufacturer of superior nanomaterials, announced today that it has signed a joint venture agreement with New Zealand-based technology company, Nano Cluster Devices Ltd (NCD). NanoDynamics will be working to commercialize NCD's technology process for self-assembly of nanowires in production of semiconductors and electronic components. Under the agreement, NanoDynamics will be responsible for sales and application development, as the Company targets semiconductor companies, consumer applications, aerospace, biotech and industrial manufacturers. NCD will be responsible for the further advancement of the technology platform.

"Over the past two years, NanoDynamics has successfully identified a number of exciting nanotechnologies, each possessing significant commercial potential," said, Keith Blakely, CEO of NanoDynamics. "As part of our corporate strategy, NanoDynamics is building an intellectual property portfolio able to provide significant product and technology value to a wide range of customers and partners. Through our own discovery and invention process, along with technology acquisitions and partnerships, we are expanding our technology and product offerings to the electronics, semiconductor, energy, biomedical, transportation, and other markets. Our management team has a long and successful track record launching commercial products from new technologies, particularly in the area of advanced materials, and we anticipate the Company will achieve significant market penetration in 2005."

NCD, in conjunction with the University of Canterbury, has developed a novel technology platform to produce electrically conducting nanowires through the deposition of atomic clusters onto lithographically prepared templates. The NCD technology produces small, well-controlled linear structures with different functionalities on a range of substrates. The key feature of NCD's technology is that it is essentially a self-assembly process, which means that slow manipulation of nano-sized building blocks, which is often unavoidable in many other nanotechnologies, is completely avoided. The nanowires produced are smaller in size, and more economical to apply due to their controlled placement and use of existing semiconductor processes. The methodology can be utilized across a wide range of applications including:

--Hydrogen and other chemical sensors for power distribution and other industries;

--Elements for smaller, faster magnetic read heads for computer hard drives that are now found in music players and TV set top boxes; also,

--Discrete transistors and interconnects for various semiconductor and electronic devices.

Dr. Simon Brown, the key inventor of NCD's technology, and an Executive Director of the company says, "The partnership with NanoDynamics is a major step forward in our strategic plan to introduce our enabling technology to a broad range of industrial partners. As a leading supplier of nanomaterials, NanoDynamics already offers advanced material solutions to the semiconductor, microelectronic, and technology markets. Our nanowire deposition technology is an important new tool for creating high value products in these segments. There is an excellent fit between the companies and we expect a long and constructive partnership."

To further advance this technology platform, NanoDynamics has named Peter Hauser Director of Business Development for this product line. Peter has extensive experience in photolithography and other semiconductor related technologies that are key to the success of this project. Peter will work closely with Dr. Alan Rae, Vice President of Market and Business Development who also has extensive electronics experience.

About NanoCluster Devices Ltd.

Nano Cluster Devices Ltd, formed in early 2003, has developed novel methods for taking clusters of atoms and forming them into electrically conducting wire and has established a comprehensive Patent Portfolio based on these methods. The Company, funded by prominent New Zealand investors, raised $NZ2.75 million in its initial round and is strategically located in Christchurch, the Silicon Valley of the South. As a result, Nano Cluster Devices has access to top researchers, facilities and qualified employee base through its affiliation with local universities and a comprehensive nanotechnology research and development culture that has some of the best available equipment (funded by the MacDiarmid Institute Centre of Research Excellence). More information is available on the Company's website at www.nanoclusterdevices.com.

About NanoDynamics

NanoDynamics, Inc. is a leading company in the field of nanotechnology and manufacturer of superior nanomaterials that will dramatically improve the form, function and performance of a wide range of both industrial and consumer products. The Company is uniquely positioned, utilizing proprietary and protected technologies, to commercially manufacture economical, high quality nanomaterials that will enable revolutionary advancements in industries including electronics, semiconductors, consumer products, fuel cells, transportation, energy and biotechnology. For further information, please visit the Company's website at www.nanodynamics.com.