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Austin, TX - January 10, 2013 - Applied Nanotech Holdings, Inc. (OTC BB: APNT), a global leader in nanotechnology, is pleased to announce that it has received a contract in the amount of $388,715 from NYSEARCH - Northeast Gas Association to develop a new generation of medium and high density polyethylene pipe with self-healing properties for the natural gas industry. This development project will last 12 months.

Today, more than 90% of the pipe installed in the US is made of plastic with more than 99% of that being polyethylene. The material itself has evolved since its first introduction, with present generation materials offering superior performance from a structural integrity, crack growth, chemical resistance, and abrasion resistance point of view. Still, the most common mode of failure in polyethylene pipe is crack growth resulting from impact. When polyethylene pipe is damaged, it must be replaced. Replacement typically requires either shutting down service to the affected customers or the construction of costly by-pass systems which allow the replacement of the damaged pipe segment without shutting down service. There are also cases where polyethylene pipe is damaged without the operator's knowledge. In the absence of a leak, the damaged pipe may continue operating without incident until conditions mature, resulting in an uncontrolled failure of the pipe, which can potentially result in loss of property or life. By integrating Applied Nanotech's proprietary self-healing technology in the polyethylene pipe the crack can be repaired or even healed after the damage has occurred.

NYSEARCH has established multiple phases for the program. This contract is the 1st phase which focuses on a proof of concept of polyethylene pipe with self-healing properties incorporated. Based on the success of this initial phase, it is expected that the project will move into additional phases which involve establishing the ability to manufacture the self-healing pipe technology in a realistic manufacturing environment and commercialization of the technology through collaboration with resin and fitting manufacturers. This work is expected to result in a new generation of plastic pipe that will revolutionize the way that the gas industry builds, operates, maintains, and manages its gas distribution systems.

"We were the only applicant to be awarded a contract from a pool of strong applicants. Our nanocomposite expertise, R&D capability, responsibility, and proven skills in commercializing technologies made this happen," said Dr. Dongsheng Mao, Vice President of Engineering of Applied Nanotech, Inc., a subsidiary of APNT. "We are very confident that this will be a successful program."

"Nanocomposite materials are a very important part of our business. We are focusing on commercializing our nanocomposite technology in fields with significant market potential. We've licensed our technology to Yonex Corporation for ultra lightweight badminton racquets and golf club shafts; we launched CNTstix, a super strong structural adhesive; and we are focusing our R&D and commercialization efforts on renewable energy and defense industry applications, such as fuel tanks, ballistic composite panels, and body armors," said Dr. Zvi Yaniv, CEO of Applied Nanotech, Inc.  "Today, with total shipments of polyethylene pipe accounting for more than one billion pounds per year, the success of this program can make a huge impact in this and other industries."

About Applied Nanotech Holdings, Inc.

Applied Nanotech Holdings, Inc. is a global nanotechnology leader, focused on solving problems at the molecular level, and commercializing the results of its research. Its team of PhD-level scientists and engineers work with companies and other organizations to solve technical impasses and create innovations that will create a competitive advantage. The business model is to sell products and license patents and technology to partners that will manufacture and distribute products using the technology. Applied Nanotech has over 300 patents or patents pending. Applied Nanotech's website is http://www.appliednanotech.net

About NYSEARCH - Northeast Gas Association

The Northeast Gas Association (NGA) is the association of the publicly owned gas utilities in the Northeastern United States.  NYSEARCH is a national sub-organization within NGA, that includes some of the largest gas utilities both inside and outside the Northeast region, that manages research projects for gas industry consortia.  These research projects are focused on improving operational efficiency, safety and environmental impact.  All projects are constructed according to need and based on a high degree of input by utility user groups. 

Safe Harbor Statement

This press release contains forward-looking statements that involve risks and uncertainties concerning our business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect our business, products, and financial results are included in our annual report on Form 10-K for the fiscal year ended December 31, 2011, and in reports subsequently filed by us with the Securities and Exchange Commission ("SEC"). All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) at www.sec.gov or from our website listed above. We hereby disclaim any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.

Company Contact:
Applied Nanotech Holdings, Inc.
sales@appliednanotech.net

Investor Relations Contact:
Mercom Capital Group
512-215-4452
apnt@mercomcapital.com

Copyright © 2013 Applied Nanotech Holdings, Inc. All Rights Reserved

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