Nanophase Technologies Announces Exclusive Partnership With and $10 Million Investment by Altana Chemie AG

Nanophase Technologies Announces Exclusive Partnership With and $10 Million
Investment by Altana Chemie AG 


ROMEOVILLE, Ill., March 25  /PRNewswire-FirstCall/ -- Nanophase Technologies
Corporation , a technology leader in nanomaterials and nanoengineered products,
announced that Nanophase and Altana Chemie AG, the specialty chemicals business
of ALTANA AG (NYSE: AAA; FSE: ALT), have formed an exclusive global partnership
(the "Partnership") to supply certain nanomaterials for use in paints, coatings,
and plastics.  The Partnership will collaborate in developing innovative
materials for specialty market areas such as general industrial coatings,
architectural coatings, coil coatings, automotive OEM and refinish coatings,
printing inks, duroplasticsand thermoplastics, consumer goods packaging, and
electrical insulation applications.

(Logo:  http://www.newscom.com/cgi-bin/prnh/20030422/NANXLOGO )

Designed to enhance growth prospects and competitive advantages for Nanophase,
Altana Chemie, and their customers in these markets, the Partnership anticipates
jointly developing advanced nanomaterial applications for these markets.  The
companies plan to start product co-development immediately and expect initial
market product introductions during late 2004.

In view of the exclusivity and the Partnership's objectives, Altana has
purchased 1,256,281 shares of Nanophase common stock at a purchase price of
$7.96 per share, or an aggregate of $10 million in cash.  These shares will be
restricted and not registered for a period of two years.  After this purchase,
Nanophase has 17,371,814 shares of common stock outstanding, approximately 7% of
which is now owned by Altana.

"This is a highly significant partnership for Nanophase," stated Dan Bilicki,
Nanophase's vice president of sales and marketing. "We believe that there are
immediate and long-term market opportunities that this Partnership can
successfully address.  Nanophase looks forward to working closely with Altana
and expects that this relationship will drive profitable revenue growth for both
companies."

"We are delighted to become a development and market partner with a company of
Altana's caliber," commented Joseph Cross, Nanophase's president and CEO. "Based
on market studies, the demand for nanocomposites in coatings is expected to be a
significant growth market. Nanophase's technologies, coupled with Altana's
expertise and market access, are a solid combination in this area. Nanophase is
excited to partner with Altana in anticipated multiple market product
developments."

"With this strategic investment ALTANA Chemie is taking a significant step into
the field of nanotechnology. Nanocomposites will be a key driver in the future
for innovative products in coatings, plastics or electrical insulation
applications and will help to safeguard the leading competitive positions of our
business units," said Dr. Matthias L. Wolfgruber, Member of the Management Board
of ALTANA and CEO of ALTANA Chemie.

First Analysis Securities Corp. (Chicago, IL) acted as Nanophase's exclusive
financial advisor.

Nanophase Technologies (NANX), http://www.nanophase.com/ , provides innovative
nanoengineered solutions for multiple industrial product applications. Using a
platform of patented and proprietary integrated nanomaterial technologies, the
Company creates products with unique performance attributes from two ISO
9001:2000 facilities. Nanophase delivers commercial quantity and quality
nanoparticles, coated nanoparticles, and nanoparticle dispersions in a variety
of media.  The Company has 23 United States patents and patent applications and
32 foreign patents and patent applications.  Full details on Nanophase may be
found in the Company's public filings or on its website.

ALTANA Chemie develops and produces high-quality, innovative products in the
specialty chemicals sector. ALTANA Chemie AG with its headquarters in Wesel,
Germany, is the holding company for the three business units Additives &
Instruments, Coatings & Sealants, and Electrical Insulation. ALTANA Chemie
provides innovative and environmentally compatible solutions, along with the
appropriate specialty products, for coatings manufacturers, paint and plastics
processors, and the electronics industry. Its range of products includes
additives, specialty coatings, sealing and compounds, impregnating agents, and
testing and measuring instruments. In its target markets the company is market
leader in terms of quality, innovation and service. In 2003 ALTANA Chemie with
more than 2,600 employees achieved sales of euro 755m, making ALTANA Chemie one
of the most innovative, fast-developing and profitable chemical corporations in
the world.

First Analysis offers investment banking and strategic advisory services to
clients in the sectors researched by our investment professionals, including
specialty chemicals and advanced materials, life science tools, filtration,
plastics processing, outsourced business services, and information technology
products and services.  Founded in1981, First Analysis has participated in
investment banking transactions valued at more than $5 billion.

This press release contains words such as "expects," "anticipates," "plans,"
"forecasts" and similar expressions that are intended to identify
forward-looking statements within the meaning of the Safe Harbor Provisions of
the Private Securities Litigation Reform Act of 1995.  Such statements in this
announcement are made based on the Company's current beliefs, known events and
circumstances at the time of publication, and as such, are subject in the future
to unforeseen risks and uncertainties. It is possible that the Company's future
performance may differ materially from current expectations expressed in these
forward-looking statements due to a variety of important factors such as: a
customer's decision to defer, cancel or otherwise modify a purchase order or
supply agreement; demand for, and acceptance of, the Company's nanocrystalline
materials; changes in our development, supply and distribution relationships;
increasing price and product/service competition by foreign and domestic
competitors, including new entrants; technological developments and changes; the
ability to continue to introduce competitive new products and services on a
timely, cost effective basis; the Company's mix of products/services; increases
in raw material costs which cannot be recovered in product pricing; domestic and
foreign governmental and public policy changes including environmental
regulations; disruption of commercial activities and threats associated with
terrorism and efforts to combat it; protection and validity of patent and other
intellectual property rights; the cyclical nature of the Company's business; the
outcome of pending and future litigation and governmental proceedings; and other
risks described in the Company's filings with the Securities and Exchange
Commission.  In addition, the Company's forward-looking statements could be
affected by general industry and market conditions and growth rates.  The
Company undertakes no obligation to update or revise these forward-looking
statements to reflect new events, uncertainties or other contingencies. 

http://www.newscom.com/cgi-bin/prnh/20030422/NANXLOGO

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DATASOURCE: Nanophase Technologies Corporation



CONTACT:  Joseph Cross, President, CEO, [phone], Jess Jankowski,

VP, and Controller, [phone], or Nancy Baldwin, Investor Relations,

[phone], all of Nanophase Technologies Corporation



Web site:  http://www.nanophase.com/ 

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