New Nanowire Fabrication Technologies From NanoDynamics To Displace Traditional Manufacturing Methods; Strategic Partnership With Nano Cluster Devices Ltd. Drives Faster, More Precise Semiconductor Manufacturing.

BUFFALO, N.Y. -- In a move that will disrupt traditional semiconductor manufacturing methods, NanoDynamics, Inc.(TM) today announced it will commercialize new nanowire fabrication technologies developed by its New Zealand-based partner, Nano Cluster Devices Ltd.(TM). Commercialization will be driven by US-based Nano Cluster Devices Inc.(TM), controlled by NanoDynamics Inc., which has been granted a license to the unique nanowire technology developed in New Zealand. This will enable a number of patent-pending technologies to be brought to market and provide a platform for the commercialization of nanoscale electronic devices and semiconductors.

Though the "top-down" method has traditionally been the basis for semiconductor manufacturing, it cannot achieve the precision and scale that next-generation electronics demand. The "bottom-up" approach of manufacturing at the atomic level enables that desired resolution, but it suffers from a range of obstacles including complexity, expense, and lengthy build cycles required to assemble nanoscale components. By combining the positive aspects of both techniques, Nano Cluster Devices' technology enables new highly controllable, self-assembled atomic clusters to achieve faster, more precise semiconductor fabrication.

"Atomic clusters exhibit a range of useful electrical, chemical and magnetic properties, demonstrating great potential as the building blocks of nanoscale electronic and complex semiconductor devices," said Dr. Simon Brown, chief scientist at Nano Cluster Devices. "This nanotechnology enables the electronics industry to make advanced devices and components, products that are already technologically proven but have yet to be brought to market because of manufacturing difficulties."

"The reality is that in order to make nanotechnology commercially viable, it's necessary to develop practical means of application that fits within the existing infrastructure of the semiconductor manufacturing industry," said Keith Blakely, CEO of NanoDynamics. "Through our strategic partnership with Nano Cluster Devices, we are able to meet that demand for practicality and provide the efficiency and technological boost that it will take to encourage the semiconductor industry to implement new processes."

NCD's platform technology has already been demonstrated in a number of key devices, applications and processes, and received widespread recognition by the semiconductor industry. Some of the key developments in the past year have been:

--A hydrogen sensor prototype that is more sensitive and more economic than any current product on the market.

--A technology to produce highly precise conductive wire patterns while eliminating the "lift-off" process step previously needed in the semiconductor industry's lithography processes. This translates to technological and economic benefits for integrated circuit manufacturers.

--A process for causing atomic clusters of conductive material to fall into a V-groove and then self-weld to create a conductive wire. This enables extremely narrow wires to be produced and precisely placed in a simple and cost-effective manner.

--A cluster assembly process based on stenciling or "shadow mask" techniques for manufacturing, a common practice in semiconductor fabrication, but one that suffers from clogging problems when the material is applied through the stencil. Nano Cluster Devices is now able to deliver a stenciling technology whereby nanoclusters are used to build narrow wires without agglomerating or clogging the stencil.

About NanoDynamics

NanoDynamics is a diversified technology and manufacturing company utilizing nanoscale engineering to address some of the world's biggest challenges. With nano-enabled solutions in the fields of energy, water processing, life sciences, electronics, advanced materials and consumer products, NanoDynamics is committed to delivering the power of nanotechnology to the global marketplace. For more information, visit the company's website at www.nanodynamics.com.

About Nano Cluster Devices Ltd.

Nano Cluster Devices Ltd. has been formed in early 2003 to commercialize a unique combination of top down and bottom up approaches to nano-technology. The key aspect of the technology is that nano-wires can be self-assembled between electrical contacts without the time consuming and expensive manipulation that typically hinders the production of nano-devices. Nano Cluster Devices Ltd. has developed a comprehensive portfolio of intellectual property covering many techniques, processes and applications for cluster assembly and nanowire-based devices. For additional information about Nano Cluster Devices Ltd., visit its website at www.nanoclusterdevices.com.