Applied Nanotech Awarded $500,000 for Tin Whiskers

Applied Nanotech Holdings, Inc. (OTC BB: APNT) announced that it has been selected by the U.S. Missile Defense Agency ("MDA") to receive an award of approximately $500,000 for the development of non-contact methods for mitigation of tin whiskers from electronic devices. ANI will partner with the University of Maryland's Center for Advanced Life Cycle Engineering on this project.

Tin whiskers are long hair like structures that commonly grow perpendicular to a metal surface, most commonly on the soldered surfaces and electroplated finishes used in nearly every electronic device made. These whiskers grow over time, causing electrical shorts and arcing that damages the equipment. The damage is most prevalent after several years of use, particularly in the case of lead free solder, which is becoming much more prevalent in the electronics industry.

During this eighteen month Phase II Small Business Innovation Research program, which results from successful completion of a Phase I award, Applied Nanotech will focus on optimizing its patented (pending) process for the mitigation of tin whiskers. Both the MDA and NASA have reported that tin whiskers have been the cause of more than $1 billion in catastrophic damage to satellites, missiles, and other electronic equipment.

Current recognized mitigation techniques add cost and complexity to the manufacturing process and have had mixed success. Our unique ability to perform tin whisker remediation with a pulse of energy, while simultaneously preventing new whiskers from growing, provides a distinct advantage over competitive methods.

"As the world is moving toward lead free solder, the tin whiskers issue will become very problematic, not only for defense and aerospace applications, but for all electronic products," said Dr. Zvi Yaniv, CEO of Applied Nanotech, Inc.

"This improved method of remediation of tin whiskers is a direct outgrowth of our activity in technical inks and pastes," said Doug Baker, CEO of Applied Nanotech Holdings, Inc. "We continue to broaden the applicability of our technology to generate increased revenues."

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