Applied Nanotech and Yonex Develop New Nano-Based Carbon Composite Material

Applied Nanotech Holdings, Inc. (OTCBB:APNT) is pleased to announce that it has developed a new nanotechnology carbon composite material in partnership with Japanese sporting goods giant, Yonex.

The new material, called Nanopreme™ by Yonex, has been shown to dramatically improve the performance of racquets and golf clubs and will be used in the next generation of golf clubs and badminton racquets to be introduced by Yonex in the first quarter of 2011.

Nanopreme™, the carbon nanotube (CNT) enhanced epoxy resin results in improved performance of golf clubs and racquets. During product testing, Nanopreme scored improvements of 14 percent, 21 percent, and 24 percent, in flexural strength (bending strength), flexural modulus (stiffness) and impact strength (addressing external shock) respectively compared to conventional carbon materials. This results in products that are lighter, stronger, and more resilient than existing racquets and golf club shafts. In the case of golf clubs, this results in greater distance giving golfers the edge they are constantly seeking.

Golf clubs with Nanopreme™ shafts will be unveiled at the PGA Merchandise Show, being held in Orlando, FL from January 27-29, 2011. These clubs will be available for sale in February 2011 and Badminton racquets will be introduced in early March 2011. Yonex plans to release additional products using Nanopreme™ in the future.

"We have surpassed a major milestone today with the commercialization of products utilizing our technology and the endorsement of a highly respected sporting goods leader such as Yonex. We have always led in the field of nanotechnology R&D and we are excited to begin taking the same leadership position in the commercialization of products using our technologies," commented Doug Baker, CEO of Applied Nanotech Holdings.

"The applications of these CNTs are, we believe, truly innovative and will serve as a catalyst to other similar products that can be greatly improved using our carbon composite material. We have a great working partnership with Yonex and look forward to the long-term commercial success of the many product lines using Nanopreme™," stated Dr. Zvi Yaniv, CEO of Applied Nanotech, Inc.

The partnership between Applied Nanotech and Yonex grants Yonex the exclusive right to use Applied Nanotech's CNT composite technology in the manufacture and sale of its golf club shafts and racquets in Japan and Taiwan, and the nonexclusive rights to sell the product on a worldwide basis. Applied Nanotech has received upfront royalty and will receive ongoing royalties based on sales of Yonex's products using the technology.

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