Albuquerque, New Mexico July 9, 2008: Applied Nanotech Holdings, Inc. (OTC BB: APNT) announced that its subsidiary, Applied Nanotech, Inc. (“ANI”), established a strategic development program with Optomec, Inc. a global leader in the emerging field of printed electronics for solar, display, electronic packaging and flexible electronics applications.

As a part of the commitment, ANI will install a dedicated Optomec M3D Aerosol Jet printer at its facilities in order to adapt its revolutionary copper ink to Optomec’s patented ultra high resolution printing technology. By utilizing ANI’s copper ink, the Optomec printer will offer the solar, display, flexible circuit and PCB manufacturers contact-free deposition of high quality, low cost metal lines.

The Optomec printing solution is able to produce much finer lines than is currently possible with traditional screen printing and inkjet printing equipment. The combined ANI/Optomec copper ink printing solution will provide an alternative to silver inks facilitating lower cost, coupled with the promise of higher reliability. Furthermore, ANI’s copper inks do not require expensive vacuum installation or inert gas environment lowering the cost of the capital for manufacturing equipment.

David Ramahi, President and CEO of Optomec, stated: “We are very pleased that ANI has committed to optimize its Copper for use with our M3D Aerosol Jet printing technology. Our customers have a rapidly growing appetite for Aerosol Jet proven materials as they deploy their systems in production applications for solar cells, displays, and printed electronics manufacturing. ANI’s copper ink offers significant cost benefits to our mutual customers and we look forward to facilitating its adoption as an Aerosol Jet standard for next generation electronic products.”

Dr. Yaniv, President and CEO of Applied Nanotech, stated: “Today the metallic conductive ink technology is based on expensive silver inks. The electronic printing industry is actively looking to replace silver inks with copper inks that can be deposited at low temperature in air. These proprietary copper inks based on copper nanoparticles are available today at Applied Nanotech and the collaboration with Optomec will provide an excellent total solution to the flexible electronics industry needs.”

Applied Nanotech Holdings, Inc. is a holding company consisting of two wholly owned operating subsidiaries. Applied Nanotech, Inc. is a premier research and commercialization organization dedicated to developing applications for nanotechnology with an extremely strong position in the fields of electron emission applications from carbon film/nanotubes, sensors, functionalized nanomaterials, and nanoelectronics. Electronic Billboard Technology, Inc. (EBT) possesses technology related to electronic digitized sign technology. The Companies have over 250 patents or patents pending. Applied Nanotech Holdings’ business model is to license its technology to partners that will manufacture and distribute products using the technology. Applied Nanotech Holdings’ website is

Optomec is a world-leading provider of additive manufacturing systems for high-performance applications in the Electronics, Photovoltaics, Life Sciences and Aerospace markets. Optomec’s M3D Aerosol Jet Deposition System is a breakthrough printable electronics solution that produces much finer feature sizes than traditional screen printing and ink-jetting processes. The M3D system utilizes an innovative aerodynamic focusing technology that prints electronic and physical structures with feature sizes down to 5 microns. Optomec has more than 50 M3D customers in 10 countries, as its sales of M3D products to industry have been doubling each year.

This press release contains forward-looking statements that involve risks and uncertainties concerning Applied Nanotech’s 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 Applied Nanotech’s annual report on Form 10-K for the fiscal year ended December 31, 2007, and in reports subsequently filed by Nano-Proprietary with the Securities and Exchange Commission (“SEC”). All documents are available through the SEC’s Electronic Data Gathering Analysis and Retrieval System (EDGAR) at or from Applied Nanotech’s website listed below. Applied Nanotech hereby disclaims any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.