Nano-Proprietary Files Declaratory Judgment Action Against Canon

Apr 12, 2005, 01:00 ET from Nano-Proprietary, Inc.

    AUSTIN, Texas, April 12 /PRNewswire-FirstCall/ -- Nano-Proprietary, Inc.
 (OTC Bulletin Board:   NNPP) announced today that it has filed suit against
 Canon, Inc. (NYSE:   CAJ) in U.S. District Court for the Western District of
 Texas, Austin Division.  Nano-Proprietary is seeking a declaratory judgment
 that new SED color television products, scheduled to be manufactured by Canon
 and/or Toshiba beginning in August 2005, are not covered under a 1999 patent
 license agreement between Canon and Nano-Proprietary.  Nano-Proprietary
 alleges that Canon is improperly using Nano-Proprietary's patented technology
 to produce surface conductor electron emitter display screens (SED) for a new
 generation of flat screen color televisions.
     Nano-Proprietary also asserts that a joint venture formed by Canon and
 Toshiba Corporation to produce the SED display screens, SED, Inc., is not a
 licensed subsidiary under the 1999 agreement and that Canon is improperly
 transferring its license rights under Nano-Proprietary's patents to the joint
 venture and Toshiba.  Nano-Proprietary also alleges that Canon's
 representation to the industry that it is licensed violates federal false
 advertising statutes.
     In January 2005, Canon announced the imminent launch of SED flat screen
 televisions at the Consumer Electronics Show in Las Vegas, Nevada.  According
 to the suit, Nano-Proprietary asserts that the new SED televisions fall
 squarely within the definition of excluded products under the 1999 agreement.
 Nano-Proprietary's suit asks the federal court to adjudicate the parties
 rights' under the 1999 license and to stop Canon from representing that they
 have a license and that others in the industry can join them under the
     "We have a very strong and pervasive patent portfolio that applies to
 several multibillion dollar industries, of which this is one," said Marc
 Eller, Chairman and CEO of Nano-Proprietary.  "We will aggressively protect
 our rights against any and all violations of our intellectual property,"
 continued Eller.
     Nano-Proprietary is represented by Collier Shannon Scott, PLLC, a
 Washington D.C.-based firm serving domestic and international clients through
 combined expertise in regulation, litigation, and government relations.
 Collier Shannon Scott has successfully represented U.S. companies and
 industries in many unfair trade practice cases, including cases involving
 Japanese and Chinese televisions and flat panel displays from Japan.
     Given the content of this press release, the CNBC Interview scheduled for
 today has been postponed and will likely be rescheduled at a later date.
     Safe Harbor Statement
     This press release contains forward-looking statements that involve risks
 and uncertainties concerning Nano-Proprietary's business, products, and
 financial results.  Actual results may differ materially from the results
 predicted.  More information about potential risk factors that could affect
 our business, products, and financial results are included in Nano-
 Proprietary's annual report on Form 10-K for the fiscal year ended
 December 31, 2004, and in reports subsequently filed by Nano-Proprietary with
 the Securities and Exchange Commission ("SEC").  All documents are available
 through the SEC's Electronic Data Gathering Analysis and Retrieval System
 (EDGAR) at or from Nano-Proprietary's web site listed
 below.  Nano-Proprietary hereby disclaims any obligation to publicly update
 the information provided above, including forward-looking statements, to
 reflect subsequent events or circumstances.
     About Nano-Proprietary, Inc.
     Nano-Proprietary, Inc. is a holding company consisting of two wholly-owned
 operating subsidiaries.  Applied Nanotech Inc. is a premier research and
 commercialization organization dedicated to developing applications for
 nanotechnology with an extremely strong position in the field of electron
 emission applications from carbon film/nanotubes.  Electronic Billboard
 Technology, Inc. (EBT) possesses technology related to electronic digitized
 sign technology.  Nano-Proprietary's website is .
      Doug Baker                    Patti D. Hill
      Chief Financial Officer       BlabberMouth Public Relations
      Nano-Proprietary, Inc.        512.218.0401
      Laura Templeton
      Rep. for Collier Shannon Scott
      Sightline Marketing

SOURCE Nano-Proprietary, Inc.