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NANOSYS AND IN-Q-TEL EXPANDS ITS MACROELECTRONICS COLLABORATION TO DEVELOP HIGH PERFORMANCE ELECTRONICS

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August 22, 2007

Nanosys Inc. today announced that it has entered into an agreement to further expand its collaboration with In-Q-Tel, the independent strategic investment firm that identifies innovative technologies to support the mission of the Central Intelligence Agency (CIA) and the broader Intelligence Community. Under the collaboration, Nanosys will apply its novel electronics technology for innovative uses in the area of high-performance communications. The terms of the agreement include development funding to Nanosys, with specific financial details undisclosed.

Nanosys' proprietary Macroelectronics utilizes a unique film of nanostructures to form arbitrarily large area high-performance electronic circuits, without the need for many of the complex and costly processing steps common in traditional thin-film transistor manufacturing. The technology is compatible with flexible or rigid substrates such as plastic or glass, and enables electronic integration of multiple functions directly onto a single substrate material. Macroelectronics can be applied to numerous application areas, including flexible or flat panel displays, RFID (radio frequency identification) tags, and antennas.

"Nanosys continues to deliver impressive technology capabilities," said Troy M. Pearsall, In-Q-Tel's Executive Vice President of Technology Transfer. "Nanosys' proprietary technology offers great promise for leading edge applications for customers in both the government and commercial markets."

"In-Q-Tel has been very instrumental in helping us identify high value nanotechnology-based product opportunities to address important government needs," said Calvin Chow, Chief Executive Officer of Nanosys. "We look forward to the exciting new products that can emerge from this next stage of our collaboration."

About Nanosys

Nanosys, Inc. is a leader in the development of nanotechnology enabled products utilizing high performance inorganic nanostructures. Nanosys has built one of the broadest technology platforms in the industry with over 500 patents and patent applications covering fundamental areas of nanotechnology. Based in Palo Alto, California and privately held, Nanosys collaborates with industry leaders to develop revolutionary high-value, high-performance products for computing, optoelectronics, communications, renewable energy, defense and the life sciences. Additional information on Nanosys can be found at www.nanosysinc.com.

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