November 21, 2007 — Nanophase Technologies, developer of nanomaterials and nanoengineered products, announced a $1.44 million order from one of its significant market partners in the polishing market. The order increases current order rates for the Q4 2007 and provides an annual order for 2008 with quarterly quantities.

“The order for 2008 represents more than two times volume and revenue growth over 2007. We continue to believe that the polishing market represents a significant long-term growth opportunity for Nanophase’s novel nanomaterial dispersions,” said Nanophase’s president and CEO, Joseph Cross.

Nanophase also noted receipt of a six-figure order from an existing customer for nanomaterials used in a DNA/RNA bioseparator application for 2008 delivery. Cross noted that the customer’s volume for 2008 would be an increase of approximately 50% over the current year. The company anticipates order shipment in the first quarter of 2008.

Cross said the company’s long-term prospects remain positive across its product lines. “Even with the recent revenue slowdown in our architectural coatings business, which . . . we believe is due to the current softness in the housing and home improvement markets, revenue in our product categories has increased significantly compared with 2006,” explained Cross. “Even architectural coating market sales should end 2007 growing approximately about 50% over 2006. We anticipate the trend of year-over-year revenue growth will continue. I’m sure that general investor uncertainty is one reason Nanophase’s shares have been hard-hit in recent weeks. Management believes recent price levels do not reflect our current performance, the company’s value, or our long-term prospects.”

Cross notes that since 2004, Nanophase has grown revenues over 30% annually year-over-year and over 40% through the first three quarters of 2007. In the same time period, the company has grown gross margins from 1.4% of revenue to 29% of revenue year-to-date in 2007, he said.