NanoPierce Technologies Plans Joint Venture with Xact Resources International.

DENVER -- NanoPierce Technologies (OTCBB: NPCT) today announced that it has entered into a Letter Agreement with Xact Resources International, Inc. to form a joint venture to produce, market and sell a biotech yeast beta glucan product known as YBG-2000. E[acute accent]YBG-2000, which has been developed by Xact Resources, is a natural beta glucan immune system feed supplement refined from bakers' yeast. It is used to replace the antibiotic fast growth additives that are currently used in feeds used by swine, poultry and shrimp producers. E[acute accent]The joint venture will build and operate a new processing plant to initially manufacture YBG-2000 for poultry producers. The plant is to be located near Savannah, Georgia. Once the joint venture is formed, construction of the new processing plant will begin and is expected to be completed within 75 days. Initial output of the plant is intended for poultry producers. Many of the largest poultry producers are located in Georgia. The poultry industry in Georgia alone is in excess of $12 billion annually. These producers, along with others within the United States, are expected to become the principal customers of YBG-2000. E[acute accent]NanoPierce will own 50% of the joint venture and will have equal management representation on the Management Board of the joint venture. NanoPierce will contribute $1.5 million to the joint venture for its equity interest. NanoPierce is expecting to arrange the $1.5 million financing through the exercise of a portion of its outstanding warrants and from other sources. The financing must be completed within 30 days, unless an extension is given, in order for NanoPierce to participate in the joint venture. Mr. Neal Bartoletta will be the President and Chief Executive Officer of the joint venture and responsible for its daily business activities. E[acute accent]Mr. Neal Bartoletta, President and Chief Executive Officer of Xact, said: "We have firm purchase orders in hand from Lowenkamp International of Dallas, Texas, and several other sources which have already spoken for volumes of product in excess of the capacity of the new processing plant. The plant is designed to produce between 10,000 and 15,000 kilos per month." He further stated that YBG-2000 will replace chemicals used in poultry production and addresses the increasing and insistent demand both here and abroad for chemical-free meats. E[acute accent]At this time, the EU and several other foreign countries have banned the usage of antibiotic fast growth additives. E[acute accent]In addition, YBG-2000 has shown improved results in the aquaculture business where it has been successfully tested and used in raising shrimp. "Shrimp producers could present another big commercial opportunity for the joint venture," noted Mr. Bartoletta.

E[acute accent]About NanoPierce Technologies, Inc.

E[acute accent]NanoPierce Technologies, Inc., of Denver, Colorado, USA, 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 Technologies has numerous applications pending, others in preparation, and various intellectual properties related to NanoPierce Technologies' 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. E[acute accent]For more information on NanoPierce Technologies, Inc., please visit its website: www.nanopierce.com.

E[acute accent]This announcement contains forward-looking statements about NanoPierce Technologies, Inc. that may involve risks and uncertainties. Important factors relating to the Company's operations could cause results to differ materially from those in forward-looking statements and further detailed in filings with the Securities and Exchange Commission available at the SEC 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.