California Nanotechnologies receives order from large aerospace customer in Southern California

CNO-TSX VENTURE

LOS ANGELES, May 25 /CNW/ - California Nanotechnologies Inc ("CNO") is pleased to announce that it has received a development contract from a large aerospace customer in Southern California. This order is for the preparation and initial evaluation of several aluminum based nanocrystalline composite materials. "This program comes from one of the leaders in the field of light-weight, high strength, nanocrystalline materials," stated Dr. Patrick Berbon, President of CNO. "This contract reinforces CNO's position as one of the established leaders in the processing of these materials."

A commercial order requiring the use of CNO's state-of-the-art thermal field emission scanning electron microscope (FESEM) has been completed for a large Sports and Recreation customer in Los Angeles. A combination of high-level capabilities including sample preparation, imaging, and chemical analysis were demonstrated during the program. Several other potential customers have utilized the Company's microscopy capabilities to evaluate their future needs in FESEM imagery and analysis. CNO is also utilizing the system to support its internal development activities in advanced nanocrystalline powders, coatings and the E-FORM material. "Without these capabilities, the work that the Company is conducting in nanostructured materials would be much more difficult and lead times in the development of products would be much longer," stated Steven Schroeder, Manager of Technical Services.

CNO is also continuing the expansion of its powder processing and handling capabilities. This includes a second high-energy cryogenic mill and additional degassing capabilities. A new internally developed system allows the Company to reduce certain impurity levels in processed aluminum powders. This has the effect of increasing the ductility and the toughness of the resulting material. A wear testing apparatus has also been built to allow for timely wear-resistance measurements of the new materials processed at CNO. Several of these capabilities and processes are being utilized in the development of products for the 2008 Olympic Games in Beijing.

To further focus the commercialization efforts within the Company, ongoing product development and research activities have been grouped into three divisions. These divisions include: the Powder Processing Division, the Thermal Coatings Division, and the E-FORM Division. To lead the developments in the Thermal Coatings Division, Dr. Robert Gansert has joined the Company as a consultant. "Dr. Gansert has many years of experience in the development and application of thermal coatings and is thus well qualified to lead CNO's efforts in the thermal spray area," stated David F. Grant, CNO's Chairman and CEO. "CNO is now actively exploring the potential of utilizing the company's nanocrystalline powders as feed-stock materials in the Thermal Spray Industry."

Except for historical information contained herein this document contains forward-looking statements. These statements contain known and unknown risks and uncertainties that may cause the company's actual results or outcomes to be materially different from those anticipated and discussed herein.

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