August 7, 2007 — ApNano Materials Inc., a provider of nanotechnology-based products, has established a subsidiary to develop and manufacture the company’s new NanoArmor line of nanotechnology-based bullet-proof products. The new subsidiary will start with products that enhance the performance of personal safety items such as bullet proof vests and helmets, and will continue with protection products for vehicles and aircraft.

“The company has already started negotiations with investors,” said Aharon Feuerstein, ApNano Materials’ Chairman and CFO. “In addition, NanoArmor potential products have already attracted huge interest from military, law enforcement and homeland security organizations and agencies in various countries.”

The Nano Armor products will be based on ApNano’s proprietary nanospheres and nanotubes, which, the company says, are excellent shock absorbing materials and among the most impact resistant substances known in the world today.

The Nano Armor products will be made of tungsten disulfide (WS2) nanoparticles. In addition, the subsidiary will develop multi-walled titanium-based nanoparticles which will enable it to produce over 50% lighter weight armor products.

NanoArmor promises multi-hit protection as well as enhanced ballistic and blast resistance. It also promises to enable the development of special trauma layers behind the armor, reducing the level of blunt force trauma injuries.