NanoPierce Card Technologies GmbH Announces State Aid for Research Co-operation With Elcos AG in LED Assembly.

Business Editors

MUNICH, Germany--(BUSINESS WIRE)--Feb. 6, 2002

NanoPierce Card Technologies GmbH, a subsidiary of NanoPierce Technologies, Inc. (OTCBB: NPCT), today announced that the German ministry of business and technology is supporting its research into the assembly and bonding of LED (Light Emitting Diode) arrays. The research is being carried out in close co-operation with Elcos AG of Pfaffenhofen, Germany.

The LED market represents a key future market for the application of the NCS(TM) (NanoPierce Connection System) technology. The aim of the co-operation with Elcos AG, started at the end of 2000 and set to last into 2003, is to adapt and further develop NCS technology for use in the LED field. In doing so, the primary focus is not on the individual components, but rather on area arrays comprising 100 or more LED dies on one substrate. These area arrays are distinguished by their enormous luminous power coupled with substantially lower power consumption (as high as a factor of 10). Under the auspices of this co-operation, diverse components are being manufactured using the new technology and subsequently evaluated and tested under real conditions.

Over the next few years, the use of LEDs is expected to experience substantial growth rates averaging from 10 up to 50% (Power LED) per year, depending on the application. The uses of LEDs range from niche applications, such as special miniaturized displays in cameras and planes, all the way to mass applications such as automobile taillights, traffic signs, and the replacement of conventional means of lighting in the home. In addition to their extremely low power requirements, LEDs require virtually no maintenance, another definite advantage for applications using this new lighting technology. Moreover, the market has experienced considerable momentum due to developments that now allow all three additive primary colors as well as white light to be produced. Hence one of the most serious limitations for many applications has been eliminated.

The German ministry of business and technology (Bundesministerium fur Wirtschaft und Technologie) through the working group for industrial research (AiF, Arbeitsgemeinschaft industrieller Forschungsvereinigugen "Otto von Guericke" e.V.) will support the ongoing research of NanoPierce Card Technologies GmbH with EUR 100,000.

Michael Kober, Chief Technology Officer of NanoPierce Card Technologies GmbH, commented: "While the sum of money may be small, we consider it a considerable honour to receive this significant recognition from an eminent organization for the quality and commercial potential of our research. We are also optimistic that it may lead to additional state aid for our subsequent investments."

"We consider this support a recognition of the potential of our approach in partnership with Elcos," explained Dr. Michael E. Wernle, President & CEO of NanoPierce Card Technologies GmbH. "In Elcos AG and especially in its chairman, Mr. Joachim Sieg, we have found an experienced partner who is both internationally acknowledged and highly regarded in the LED field. As a technological leader, Elcos has demonstrated its ability to achieve ambitious solutions, technologically as well as economically, before anyone else in the business. That's why Elcos AG is the ideal partner for us in this area."

With its headquarters in Pfaffenhofen, approx. 30 miles north of Munich, Elcos AG (www.elcos.de) is an internationally successful manufacturer of special components, particularly in the LED field. Elcos components are not only used in display systems for SLR cameras (Leica) and switch lighting in the cockpit of the European Airbus, but they are also used in Power LED industrial lighting fixtures inside the Agfa-Minilab. Throughout its over 20-year company history, Elcos has repeatedly been able to prevail technologically over much larger competitive companies.

About NanoPierce Technologies, Inc.

NanoPierce Card Technologies GmbH is a 100% subsidiary of NanoPierce Technologies, Inc., of Denver, Colorado, USA, which is traded on the Nasdaq stock market (OTCBB: NPCT) as well as on the Frankfurt and Hamburg exchanges (OTC: NPI). In addition to the 12 patents it owns, NanoPierce has numerous applications pending, others in preparation, and various other intellectual properties related to NanoPierce's proprietary NCS(TM) (NanoPierce Connection System). This advanced system is designed to provide significant improvement over conventional electrical and mechanical interconnection methods for high-density circuit boards, components, sockets, connectors, semiconductor packaging and electronic systems.

For more information about NanoPierce Technologies, Inc., log on to the Company's website at http://www.nanopierce.com.

This announcement contains forward-looking statements about NanoPierce Technologies, Inc., and its subsidiaries, that may involve risks and uncertainties. Important factors relating to the Company's operations could cause actual results to differ materially from those in forward-looking statements and are further detailed in filings with the Securities and Exchange Commission (SEC) available at the SEC's website (http://www.sec.gov). All forward-looking statements are based on information available to NanoPierce Technologies, Inc., on the date hereof, and NanoPierce Technologies, Inc., assumes no obligation to update such statements.