"As we reported in our press release of June 17, 2008, ANI has achieved improvements of over 40% in flexural strength and over 30% in compression strength for epoxy/carbon nanotube composites. The properties of these new composites were successfully transferred to the process of manufacturing fiber reinforced plastics (FRP) where ANI achieved a promising 23% improvement in the flexural strength and improvements in the compression strength of the final RFP, which will allow the research and development results to be transferred to manufacturing," said Dr. Zvi Yaniv, CEO of Applied Nanotech, Inc.

"We are pleased that our efforts in the composites area have led to this license agreement," said Tom Bijou, Chairman and CEO of Applied Nanotech Holdings, Inc. "Although the total size of the exclusive markets for the targeted racquet products is limited, estimated at less than $150 million annually in the exclusive region, our success with this project has opened the door to opportunities with other companies and for other applications. We expect composites to be an increasingly important area of our business allowing lighter weight products with equal strength or stronger products of the same weight."