NaturalNano Shareholders to Receive Additional Shares

Company Increases Shares to Enhance Trading Liquidity

Jan 27, 2006, 00:00 ET from NaturalNano, Inc.

    ROCHESTER, N.Y., Jan. 27 /PRNewswire-FirstCall/ -- NaturalNano, Inc.
 (OTC Bulletin Board:   NNAN) (FWB: N3N), a company whose primary business is
 discovering, refining, and marketing naturally occurring nanomaterials,
 announced today that all existing shareholders of record at the close of
 business on February 8, 2006 will receive one additional common share for
 every common share held.  Stock certificates for the newly issued shares will
 be delivered to the shareholders of record and will not require the exchange
 of their existing certificates.
     NaturalNano President Michael Riedlinger said, "The Company's board of
 directors has undertaken this initiative and approved the increase in the
 number of shares authorized in order to enhance trading liquidity and to
 further broaden NaturalNano's shareholder base. In addition, this undertaking
 reinforces the Company's strong commitment to building shareholder value."
     Riedlinger continued, "We believe NaturalNano is poised for substantive
 growth. The Company has the expertise needed to further develop our patent
 portfolio and apply our nanotechnology developments to broad applications
 across numerous industries. We are currently focused on the commercialization
 of our proprietary nanotechnologies related to naturally occurring halloysite
 nanotubes. Key initiatives for the year include: expanding the Company's
 patent portfolio, increasing our visibility in the scientific and investment
 communities, and building strategic alliances with major companies that are
 seeking competitive advantages through the use of our technologies in their
 market areas. These are vital to reaching our goals for 2006 and for
 delivering growth to our shareholders."
     NaturalNano has rights to multiple issued and pending patents that cover
 processes, compositions, and derivatives for the nanotubes found in halloysite
 clay. More than 200 different commercial applications have been identified to
 date. The Company is also developing proprietary, patent-pending extraction,
 separation, and classification technologies to enable production of more
 uniform nanotubes to meet the higher standards required for advanced
 applications of the naturally occurring nanotubes. These include precise,
 controlled, and extended release of application-specific additives for use
 with cosmetics, polymers and plastics and other areas.
     To learn more about NaturalNano, please visit
     About NaturalNano, Inc.
     NaturalNano, Inc. (OTC Bulletin Board:   NNAN) is a materials science
 company developing unique and proprietary processes for refining naturally
 occurring nanotubes and other nanomaterials that add competitive properties to
 a range of applications. These include additives to cosmetics and personal
 care products, and absorbent materials, as well as: electromagnetic
 interference shielding, specialty coatings, and material additives for
 industrial polymers, plastics and composites. NaturalNano possesses broad
 intellectual property rights and proprietary know-how for extraction and
 separation processes, compositions, and derivatives of halloysite and other
 nanotubes. For more information, please visit
     Cautionary Statement Regarding Forward-Looking Statements
     Certain statements included in this press release may constitute forward-
 looking statements within the meaning of applicable securities laws. These
 statements reflect what NaturalNano anticipates, expects, or believes may
 happen in the future. NaturalNano's actual results could differ materially
 from the outcome or circumstance expressed or implied by such forward-looking
 statements as a result of a variety of factors including, but not limited to:
 NaturalNano's ability to develop its technologies; the approval of
 NaturalNano's patent applications; the successful implementation of
 NaturalNano's research and development programs; the ability of NaturalNano to
 demonstrate the effectiveness of its technology; the acceptance by the market
 of NaturalNano's technology and products incorporating such technology, the
 ability of NaturalNano to effectively negotiate and enter into contracts with
 third parties for the licensing of NaturalNano's technology; competition; the
 ability of NaturalNano to raise capital to fund its operating and research and
 development activities until it generates revenues sufficient to do so; and
 the timing of projects and trends in future operating performance, as well as
 other factors expressed from time to time in NaturalNano's periodic filings
 with the Securities and Exchange Commission (the "SEC"). As a result, this
 press release should be read in conjunction with NaturalNano's periodic
 filings with the SEC which are incorporated herein by reference. The forward-
 looking statements contained herein are made only as of the date of this press
 release, and NaturalNano undertakes no obligation to publicly update such
 forward-looking statements to reflect subsequent events or circumstances.
      Media Contacts:
      NaturalNano Inc. Bobbi Drew
      Jennifer Gould

SOURCE NaturalNano, Inc.