Advance Nanotech Subsidiary Receives Incremental $3.7 Million Contract From an Agency of the United States Department of Defense

    NEW YORK, Oct. 31 /PRNewswire-FirstCall/ -- Advance Nanotech, Inc.,
 (OTC Bulletin Board: AVNA), announced today that its Owlstone Nanotech
 Inc., subsidiary has been awarded an incremental $3.7 million contract by
 an agency of the U.S. Department of Defense to provide micro-miniature
 products and related services for detection of chemical warfare agents,
 toxic industrial chemicals and trace explosive vapors. The three-year
 contract begins current fourth quarter 2007.
     Owlstone will develop, design and fabricate a customized variant of its
 miniaturized chemical detector using Field Asymmetric Ion Mobility
 Spectrometry ("FAIMS"). This customized version of the sensor will be
 designed to detect substances at exceptionally low levels while
 dramatically reducing false alarms that are typically associated with
 competing technologies. Initially, Owlstone will conduct live agent testing
 and develop enhanced algorithms to take advantage of the increased data
 stream provided by the Owlstone sensor. Additionally, efforts will include
 the development of micro- miniature elements which will enable the sensor
 to operate without the need for complex, power hungry ancillary systems
 (pneumatics and electronics). The final stage of the contract will be the
 delivery of a sensor module capable of being integrated into existing
 sensor packages in order to augment their capabilities.
     Owlstone's proprietary FAIMS technology offers the flexibility to
 provide rapid alerts and detailed sample analysis with reduced flow and
 improved ion drive over current conventional technology. The performances
 of existing systems, which largely use conventional Ion Mobility
 Spectrometry, worsen dramatically as they are reduced in size. By contrast,
 the Owlstone FAIMS solution has improved sensitivity, improved selectivity
 at reduced power as it is miniaturized. It is not only a sensor, but a
 highly integrated system with the necessary electronic and mechanical
 components squeezed into a compact footprint. Micro and nano-fabrication
 techniques enable the detector to be manufactured in a massively parallel
 fashion, achieving small form factor, economy of scale and reduced unit
 cost. Unlike alternate miniature detectors, Owlstone's technology does not
 rely on exotic materials, custom engineered for each application, which
 often degrade over time. It is easily customized to each application
 through software updates and can be dynamically reprogrammed for new
 chemicals even after deployment. Use of chemically inert materials ensures
 a long operational and storage life.
     About Owlstone Nanotech, Inc.
     Owlstone Nanotech is majority owned subsidiary of Advance Nanotech and
 is a pioneer in the commercialization of nanotechnology-based chemical
 detection products. Its initial commercial product, The Owlstone Detector,
 is a revolutionary dime-sized device that can be programmed to detect a
 wide range of chemical agents that may be present in extremely small
 quantities. Using leading-edge micro- and nano-fabrication techniques,
 Owlstone has created a complete chemical detection system a hundred times
 smaller and a thousand times cheaper than existing technology. There are
 numerous applications -- across industries from security and defense to
 automotive and healthcare -- that depend on the rapid, accurate detection
 and measurement of chemical compounds. Owlstone works with market leaders
 within these applications to integrate the detector into next generation
 chemical sensing products and solutions. Owlstone's technology offers a
 unique combination of benefits, including: small size, low manufacturing
 costs, minimal power consumption, reduced false-positives, and a
 customizable platform.
     About Advance Nanotech, Inc.
     Advance Nanotech identifies patented, patent-pending and proprietary
 technologies at leading universities and funds the additional development
 of such technologies in exchange for the exclusive rights to commercialize
 any resulting products. Advance Nanotech has interests in over 20
 nanotechnologies, grouped into two operating subsidiaries: Advance Display
 Technologies PLC, which is listed on the PLUS-Quoted market in London
 (ADTP) and Advance Homeland Security PLC. By partnering with universities
 and leveraging the infrastructure and multi-disciplinary human resources of
 its university partners, Advance Nanotech reduces its cost base and
 mitigates risk. After prototypes are proven within the lab and the Company
 develops a product roadmap and business plan, it forms majority-owned
 subsidiaries around the specific technology. It seeks to return value to
 our shareholders through the sale or licensing of the technology, by
 securing additional financing for the subsidiary from either the venture
 capital community or the capital markets, or by successfully executing its
 business plan and consolidating its income as the majority shareholder.
     For more information on Advance Nanotech, please visit
 www.advancenanotech.com.
     Safe Harbor statement: This news release contains forward-looking
 statements within the meaning of the "safe harbor" provisions of the
 Private Securities Litigation Reform Act of 1995. These statements are
 based upon our current expectations and speak only as of the date hereof.
 Our actual results may differ materially and adversely from those expressed
 in any forward- looking statements as a result of various factors and
 uncertainties, including market acceptance of the OVG-4 product line, the
 recent economic slowdown affecting technology companies, the future success
 of our scientific studies, our ability to successfully develop products,
 rapid technological change in our markets, changes in demand for our future
 products, legislative, regulatory and competitive developments and general
 economic conditions. Our Annual Report on Form 10KSB, recent and
 forthcoming Quarterly Reports on Form 10QSB, recent Current Reports and
 other SEC filings discuss some of the important risk factors that may
 affect our business, results of operations and financial condition. We
 undertake no obligation to revise or update publicly any forward-looking
 statements for any reason.
     For more information, contact:
     Yvonne Zappulla
     Managing Director
     Grannus Financial Advisors, Inc.
     212-681-4108
     Yvonne@grannusfinancial.com
 
     Investor Relations International
     Zachary Bryant, 818-382-9718
     Vice President and Account Group Manager
     zbryant@irintl.com
 
 

SOURCE Advance Nanotech, Inc.