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Industrial Nanotech's Pipeline Project with Petrobas Expands by over 50%

Industrial Nanotech, Inc., an emerging global leader in nanotechnology, announced today that the size of the Company's pipeline project with Petrobras, the Brazilian oil and gas company, has been expanded by over 50% and the construction timeline revised. The changes will push the project start date to early in the 4th quarter of 2007 and will increase the projected value for Industrial Nanotech from 3.7 million dollars US to over 5.8 million dollars US.

"Change orders are a normal course of business for any construction project and change orders change timelines," stated Stuart Burchill, CEO of Industrial Nanotech. "The length of the pipeline has increased from 105 miles to 155 miles and 31 miles of the new section is a much larger pipe diameter, increasing the total surface area to be coated with our patented Nansulate thermally insulating and corrosion protection coating by 57 percent. This project involves a pipeline running through one of the largest cities in the world. We are excited to be part of the process and are ready and able to fulfill the updated requirements for the increased coverage area."

"The new numbers were provided to Industrial Nanotech very recently via conference call with our team and Petrobras' pipeline engineer in charge of the project, "continued Mr. Burchill. "Over the next 30 - 60 days, I will be meeting at Petrobras headquarters again in Rio de Janeiro with our technical team in Brazil and Petrobras' pipeline engineers to review the new specifications with them and subsequently their pipeline engineer will be visiting our facilities at Princeton Polymer Laboratories, Inc. for a seminar on the coating application specifications and instructions and to study additional technologies we have developed for them for other projects we are discussing. As an innovator and an inventor, I find Petrobras to be a smart and forward thinking company to work with, eager for new technologies. This is the beginning of a long and mutually beneficial relationship of significant value to Industrial Nanotech, Inc."

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