NaturalNano, Inc. Releases Development and Commercialization Update for First Six Months of 2006

ROCHESTER, N.Y.--(BUSINESS WIRE)--Aug. 22, 2006--NaturalNano, Inc. (OTCBB:NNAN) (FWB:N3N) www.naturalnano.com, a nanotechnology and materials science company that develops processes for commercializing naturally occurring nanotubes, today announced year-to-date company highlights for the period ended June 30, 2006.

Motivated by early test results in polymers and plastics, NaturalNano product development focused on the use of halloysite nanotubes as additives for high performance plastics. The Society of the Plastics Industry estimates the plastics and polymers market at $300 billion annually in North America.

“These benefits have commercial application in aerospace, automotive, electronics, and in many other industries.”

"The benefits that the Company anticipates include strengthened plastics with improved thermal properties," stated Cathy Fleischer, Ph.D., NaturalNano CTO. "These benefits have commercial application in aerospace, automotive, electronics, and in many other industries." Dr. Fleischer has extensive experience in polymers, and was formerly the R&D Director at Eastman Kodak's polarizer films group.

As previously reported, tests performed at Cornell University indicated that adding halloysite nanotubes treated with NaturalNano's proprietary functionalization improves polymer performance.

"The halloysite nanotubes from NaturalNano, when added to two commercially available polymer resins, appeared to perform as well as the most advanced clay composite materials available on the market today with the added benefit that the nanotubes may be filled with various materials to add enhanced capabilities, but with minimal impact on other properties of the polymer," says Dr. Emmanuel Giannelis, the Walter R. Reed Professor of Engineering and Director of Materials Science and Engineering at Cornell University.

Highlights of NaturalNano's advancements in technology and product commercialization activities during this period include:

-- NaturalNano continued its research and development relationships with leading scientists at Cornell University and the YKI Institute in Stockholm, Sweden. The Company also established a relationship with the National Composite Center. This substantially expands and leverages NaturalNano's in-house capabilities.

-- The Company equipped its laboratory with capital investments in specialized analytical equipment, including an electron microscope.

-- NaturalNano's Scientific Advisory Board has been expanded by the recent addition of John Hickman, president of PlasTech Consulting and a renowned plastics industry expert.

The Company anticipates that the insights and connections from its scientific advisors will help accelerate commercialization of its technologies into industry and government markets.

NaturalNano has also been advancing its research in the use of halloysite nanotubes for delivery and extended release of active ingredients, such as perfumes and fragrances that may be used as additives in cosmetics, household cleaners and deodorants, fabric treatments and a multitude of other applications. These proprietary technologies also allow for filling nanotubes with other active ingredients, such as pharmaceutical compounds, anti-oxidants, and a wide range of chemical compounds including various metals.

Research and commercialization efforts targeted for the third quarter will include:

-- Further work related to polymer and plastics additives for strength improvements in nanocomposite applications

-- Additional patent application filings

-- Collaborations with other research organizations related to extended release technologies

-- Further additions to build on the analytical capabilities of NaturalNano's laboratory

"We are pleased with our progress and are enthusiastic about the many opportunities ahead," said Michael Riedlinger, president of NaturalNano. "Our plan is to develop compelling data and technology demonstrations of our capabilities that we anticipate will lead to establishing strategic alliances for commercialization of our technologies within the next year."

To set a context for the Company's development efforts, global government spending on nanotechnology in 2006 is expected to total $6 billion, according to Cientifica, a London-based consulting firm (www.cientifica.com). The National Science Foundation has forecasted the global market for nanotechnology enabled products and services to be $1 trillion by 2015. NaturalNano's focus within this market opportunity space is the development of proprietary, patentable technologies and products that take advantage of the unique characteristics of naturally occurring halloysite nanotubes for multiple applications across a broad range of industries.

ABOUT NATURALNANO, INC.

NaturalNano, Inc. (OTCBB:NNAN) (FWB:N3N) is a nanotechnology and materials science company developing proprietary technologies and processes for commercializing naturally occurring nanotubes and other nanomaterials that add competitive properties to a range of applications. These include additives to cosmetics and personal care products, electromagnetic interference shielding, and material additives for industrial polymers, plastics and composites. NaturalNano possesses broad intellectual property rights and proprietary know-how for extraction and separation processes, compositions, and derivatives of halloysite and other nanotubes. For more information, please visit http://www.naturalnano.com/.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements included in this press release may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect what NaturalNano anticipates, expects, or believes may happen in the future. NaturalNano's actual results could differ materially from the outcome or circumstance expressed or implied by such forward-looking statements as a result of a variety of factors including, but not limited to: NaturalNano's ability to develop its technologies; the approval of NaturalNano's patent applications; the successful implementation of NaturalNano's research and development programs; the ability of NaturalNano to demonstrate the effectiveness of its technology; the acceptance by the market of NaturalNano's technology and products incorporating such technology, the ability of NaturalNano to effectively negotiate and enter into contracts with third parties for the licensing of NaturalNano's technology; competition; the ability of NaturalNano to raise capital to fund its operating and research and development activities until it generates revenues sufficient to do so; and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in NaturalNano's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with NaturalNano's periodic filings with the SEC, which are incorporated herein by reference. The forward-looking statements contained herein are made only as of the date of this press release, and NaturalNano undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

Contacts

Media Contacts:
NaturalNano Inc.
Bobbi Drew, 585-214-8172
Bobbi@naturalnano.com
or
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Jennifer Gould, 212-843-8037
JGould@rubensteinpr.com
or
Investor Relations:
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Jim Blackman, 713-256-0369
Jim@prfmonline.com

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