FST.L Regulatory News (FST)

23 Aug 2006 07:00

Embargoed Release: 07:00hrs Wednesday 23 August 2006 Nanoscience Inc. (`Nanoscience' or the `Group') Strategic Investment Nanoscience, the specialist nanotechnology investment holding company, ispleased to announce that it has completed its fourth strategic technologyinvestment since listing on AIM in March of last year. Nanoscience has investeda further SEK 927,996 (approximately ‚£68,000) in consideration for the issue of154,666 ordinary shares in AppliedSensor Sweden AB (`AppliedSensor' or `thecompany'). AppliedSensor is a Swedish/German technology leader in thedevelopment and production of advanced gas sensing solutions to OEMs (OriginalEquipment Manufacturers). The investment values AppliedSensor at approximatelySEK164m (c.‚£12m) and following the closing of this latest fundraising round,Nanoscience will have an interest in the company of approximately 2.91 percent.As previously announced, the Group made its first strategic investment ofapproximately ‚£215,000 in AppliedSensor in June of last year as part of afunding round intended to progress a number of ongoing commercial projects thathad been undertaken by AppliedSensor. Since that time, the company hasdemonstrated to Nanoscience a significant level of continuing technical andcommercial progress which has led to the Board's decision to increase theGroup's investment in the company. The Board is also further encouraged by thecompany's ability to attract new investors at a price c. 33% higher than theprevious investment round completed only one year ago. This progress includes asignificant number of customer commitments to purchase AppliedSensor's productsfor a range of gas sensing solutions within the automotive and otherindustries.In addition, AppliedSensor has an exclusive development and supply agreementwith a leading manufacturer of sensing modules for the supply of air qualitysensors to the automotive industry and is progressing business opportunitiesfor other applications of its platform technology with various industry OEMs.The innovative technology is based on metal-oxide and field-effect technologiesinitially developed at the University of Tubringen, Germany, and the Universityof Linkoping, Sweden. The sensors combine semiconductor and nanotechnologiesresulting in low cost, miniature gas sensing components and modules. Theproduction process includes nano-scale preparation and application of the gassensing material.Richard Rose, Non-Executive Chairman, commented:"Since making our initial investment in AppliedSensor in June of last year wehave closely monitored the progress made by the company and are very happy tohave the opportunity to increase our level of investment.To date, AppliedSensor has made a very satisfying level of commercial progresswhich we believe will take the business to a cash flow positive position in thefourth quarter of next year. The management of the company have been verysuccessful in progressing their commercial relationships with a number ofautomotive OEMs and I look forward to reporting on the progress of the companyas it begins to materialise the value of these relationships over the comingyear. " -Ends- Further Information:Richard Rose Nanoscience Inc. 07836 250 474 Andrew Tan Hansard Communications 020 7245 1100 ENDNANOSCIENCE INC