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Nano-Proprietary, Inc. Receives Unqualified Audit Opinion  


AUSTIN, Texas, Mar 10, 2004 (PRIMEZONE via COMTEX) -- Nano-Proprietary, Inc.
(OTCBB: NNPP) today announced that its independent auditors, Sprouse & Anderson,
L.L.P., have issued an unqualified opinion on its financial statements for its
fiscal year ended December 31, 2003.

The previous year's audit opinion from Sprouse & Anderson, L.L.P. was a
qualified opinion that expressed doubt about the Company's ability to continue
as a going concern. The Company had received similar qualified opinions related
to its ability to continue as a going concern from its independent auditors for
each year from 1995 through 2002. The 2003 unqualified opinion and the related
financial statements are included in the Company's annual report on Form 10-KSB,
which was filed yesterday, March 9, 2004.

"We are pleased that our improved financial condition enabled our independent
auditors to remove their qualification related to potential uncertainty about
our ability to continue operations," said Marc Eller, CEO of Nano-Proprietary,
Inc. "We believe this unqualified opinion will be a significant positive as we
negotiate development and license agreements."

Nano-Proprietary, Inc. is a holding company consisting of two wholly owned
operating subsidiaries: Applied Nanotech Inc. is a premier research and
development organization dedicated to developing applications for nanotechnology
with an extremely strong position in the field of electron emission applications
from carbon film/nanotubes; and Electronic Billboard Technology, Inc. (EBT) is
geared toward licensing its electronic digitized sign technology.