FST.L Regulatory News (FST)

9 Jun 2005 10:00

Nanoscience Inc09 June 2005 9 June 2005 Nanoscience Inc. ("Nanoscience" or the "Company") Nanoscience, the investment company whose primary objective is to build aportfolio of investments in the nanotechnology sector, is pleased to announce ithas invested SEK 2,887,947 (approximately £215,000) in AppliedSensor Sweden AB("AppliedSensor"), a Swedish/German group and technology leader in developingand producing advanced gas sensing solutions to OEMs (Original EquipmentManufacturers). AppliedSensor's products are micro-machined sensor components, directly embeddedon silicon chips and modules (including electronics and software) targetingmass-market applications. AppliedSensor's principal market is the automotiveindustry where its first commercial products are air quality sensors, anexpanding market. In addition, AppliedSensor is at an advanced stage indeveloping hydrogen detection and diesel emission sensors. Today's focus on thereduction of emissions and alternative energy sources suggests that these twotechnologies represent promising areas for growth. Other target markets includevarious applications of carbon dioxide detection. AppliedSensor has an exclusive development and supply agreement with TexasInstruments for the supply of air quality sensors to the automotive industry andis progressing business opportunities for other applications of its platformtechnology with various industry leaders. AppliedSensor's innovative technology is based on metal-oxide and field-effecttechnologies initially developed at the University of Tubringen, Germany, andthe University of Linkoping, Sweden. The sensors combine semiconductor andnanotechnologies resulting in low cost, miniature gas sensing components andmodules. The production process includes nano-scale preparation and applicationof the gas sensing material. Following this investment, Nanoscience is interested in approximately three percent. of the issued share capital of AppliedSensor. The Company's investment was arranged by Partner Capital, of which PatrickStephansen, an Executive Director of Nanoscience, is an employee. AccordinglyPatrick has taken no part in the Board's deliberation regarding this investment.Partner Capital has entered into an agreement with Nanoscience pursuant to whichthe Company has, as a term of the investment, undertaken to pay Partner Capitalan introductory and arrangement fee (covering due diligence and other associatedexpenses) of £6,540 and a success fee on exit of 20 per cent. of any profitreceived by the company net of the initial investment amount and any subsequentamounts, the arrangement fee and six per cent. per annum of the total investmentamount. Placing commitment At the time of the Company's admission to AIM on 30 March 2005, Nanoscienceeffected the placing of 10,000,000 ordinary shares at the placing price of 5pper share ("Original Placing"). It was a term of the Original Placing that eachplacee was obliged to subscribe for one further ordinary share at an issue priceof 20p per share for every four ordinary shares subscribed by them in theOriginal Placing, conditional on the completion by the Company of, inter alia,an investment in a business and / or corporate entity whose characteristics meetthe Company's investment strategy (the "Commitment"). The Commitment will result in the Company raising £500,000 through the issue of2,500,000 new ordinary shares at an issue price of 20p per share ("New Shares").Application will be made for the New Shares to be admitted to trading on AIM,and admission is expected to be effective from 27 June 2005. Serge Grisard, Executive Director of Nanoscience, commented: "We believe thatAppliedSensor's technology has the potential to substantially contribute totoday's race to reduce emissions, exposure to them and promote safe alternativeenergy sources. These topical issues are already building momentum technicallyand commercially. AppliedSensor's products will come to the market at the righttime with the right partners. With companies like AppliedSensor, nanotechnologyproves again its commercial applicability and its potential to generateimmediate, life-changing applications. We are delighted to support AppliedSensorin its further development and are looking forward to participating in othernanotechnology initiatives of such high quality." END Enquiries: Serge Grisard, Nanoscience Inc.0041 79 400 37 33 This information is provided by RNS The company news service from the London Stock Exchange