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    Nanophase Technologies Provides Second Quarter 2003 Guidance

    Wednesday, June 11, 2003 16:15 ET
    ROMEOVILLE, Ill., Jun 11, 2003 /PRNewswire-FirstCall via COMTEX/ -- Nanophase Technologies Corporation (Nasdaq: NANX), a technology leader in nanomaterials and nanoengineered products, announced second quarter and first half 2003 revenue guidance. The Company currently expects second quarter revenues of approximately $1.3 million and first half 2003 revenues of approximately $3.0 million.

    (Logo: http://www.newscom.com/cgi-bin/prnh/20030422/NANXLOGO )

    "As we have stated previously in announcements and conference calls, we continue to expect that revenues will increase during the second half of 2003 and continue ramping through 2004 as several development efforts materialize into revenue," stated Joseph Cross, Nanophase's president and CEO. "Second quarter and first half revenues have been unexpectedly impacted by order softness for abrasion-resistant materials for flooring and catalytic converters compared to the same period in 2002, but we expect revenues from these areas to return to more normal levels during the second half."

    "Our market introduction of chemical-mechanical polishing (CMP) materials into the semiconductor market through our partnership with Rodel, part of the Rohm and Haas Electronics Materials Group, specifically for STI/SON applications, continues to demonstrate superior results, both in the US and in Europe. We continue to plan for significant revenue growth in this segment during the last part of 2003 and through 2004. Nanophase is also developing two further nanomaterial dispersions for additional technology nodes in semiconductor polishing and expects to begin market introduction of these materials later this year and early in 2004. Once this effort is complete, the Company believes it should have superior CMP products into semiconductor areas that are estimated to have annual CMP slurry market revenues over $200 million by 2005. The Company further expects to leverage this technology into CMP applications for additional semiconductor technologies, glass disk drives and read/write heads, as well as optical polishing.

    "As we have also noted, through Nanophase's new NanoArc(TM) Synthesis technology, the Company is introducing innovative, single-crystal mixed nanomaterials with unique surface chemistry and performance properties for target market applications that are currently under evaluation and testing by potential customers. We believe that this is the first commercial nanoscale availability of mixed metal oxides in a single crystal that is produced in discrete nanoparticle sizes from the 7 to 35 nanometer range and available either as a nanoparticle powder, or as a dispersion in either aqueous or organic systems. Nanophase is targeting these new generation nanomaterials for a wide variety of applications, including fuel cells, chemical-mechanical polishing (CMP), ultrafine polishing, catalytic converters, and catalysts.

    "We plan to introduce new NanoArc(TM) nanomaterials for specific applications and target markets throughout 2003. Additionally, the Company has significant development efforts in antimicrobial applications for personal care and textiles, abrasion resistant coatings for plastics and electronics, and other significant markets. The Company's business development initiatives and pipeline remains robust and is expected to drive revenues that meet its financial targets."
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