November 13, 2008: Nanogate AG, an international nanotechnology enabler, is significantly expanding its market position in the sport/leisure segment and restructuring its activities in this sector.

The segment is being transferred to newly founded subsidiary FNP GmbH, where these activities will be concentrated. At the same time, Nanogate AG is acquiring the rights to the Feldten heritage brand for its newly founded, wholly owned subsidiary, and is exercising its majority option at Holmenkol AG, which in future is also to provide industrial solutions for sports equipment manufacturers. By means of these moves, the company aims to further professionalize and accelerate its growth in the high-volume market for innovative coatings in the sports and leisure sector.

The nanotechnology company expects this to lead to substantial benefits in product development and production alongside better international distribution opportunities. New products featuring Nanogate-Technologie are likely to make their market debut next year, while the new Feldten brand is expected to contribute toward Nanogate AG sales growth by 2010.

Holmenkol AG, with over 85 years of brand tradition in the sports sector, is to be established in the medium term as a leading international provider of sports surfaces. Holmenkol will continue to concentrate on high-margin, high-performance applications and in the near future will provide industrial solutions in the sports sector in addition to its existing range. In the past it has been successful in a wide range of areas with its strategy, and since Nanogate acquired a stake in the company its sales and enterprise value have grown significantly.

“In the future, the further development of our sport/leisure segment will make an attractive contribution towards growth and margins,” stated Nanogate CEO Ralf Zastrau. “Nanogate anticipates a marked sales boost from 2010 at the latest when many new products hit the market and high-powered distribution partners have been gained. Nanogate will make use of its ability to develop established companies or brands by means of technology transfer and tap additional sources of revenue. Our new company is expected to reach profitable seven-figure sales as early as next year.”