Nanosys Raises $30 Million in First Closing of Second Round

Palo Alto, CA - (April 24, 2003). Nanosys, Inc., the leader in nanotechnology-enabled systems, today announced the first closing of $30 Million in a second round of financing. All of the six top-tier venture investors that participated in the last financing round – ARCH Venture Partners, CW Group, Polaris Venture Partners, Venrock Associates, Prospect Venture Partners and Alexandria Real Estate Equities – participated in this first closing of Nanosys’ second round. They are joined by equally high-caliber new investors including CDIB BioScience Ventures (CBV), Chiao Tung Bank, China Development Industrial Bank (CDIB), Harris & Harris, Lux Capital, Quanta Computer and SAIC Venture Capital Corporation.

Even in this challenging funding environment, Nanosys generated a high-level of interest among top-tier investors. “We will hold the round open for a second closing due to exceptionally strong interest from high quality investors,” commented Nanosys President and CEO, Larry Bock. “The new investment will significantly enhance Nanosys’ development and marketing efforts for its portfolio of pioneering nanotechnology-enabled products in chemical and biological sensing, photovoltaic and high-performance macroelectronics. We are extremely pleased by the quality and statue of our new investors. Having CDIB BioScience Ventures lead this closing and having top nanotechnology-focused funds like Harris & Harris and Lux Capital as well as corporate strategic investors is a validation of our leadership position in the nanotechnology space.”

“It is clear to us that Nanosys is one of the most advanced true nanotechnology companies in the market today and we are very pleased to lead this closing,” commented Dr. Tai-Sen Soong of CDIB Bioscience Ventures, a prominent bioscience fund with strong presence in both United States and Asia. “Nanosys has built a world-class IP portfolio of the most promising nanotechnologies, formed strong partnership with leading academic institutions and corporations, and built a management team that has successfully launched leading platform technologies in the past. These are all factors that will contribute to Nanosys’ success in converting the promises of nanotechnology into reality, in the life science sector and beyond. By leveraging on our Asian network, we look forward to working with Nanosys in accelerating the commercialization of its platform technology.”

Charles Harris, CEO of Harris & Harris Group, shares the enthusiasm: “Harris & Harris Group invest exclusively in ‘tiny technologies’. We believe that there is enormous commercial potential in these enabling technologies, and specifically, in exploring unique properties realized at the nanoscale. We identify Nanosys as a clear-cut leader in commercializing nanotechnologies based on the exclusivity and breadth of its IP, the excellence of its team, and the quality of its platform of nanotechnology-enabled systems.”

Josh Wolfe, Managing Partner at Lux Capital, is equally upbeat: "We are extremely pleased to join other top-tier investors in this financing round. Nanosys has cornered the market for patents in inorganic nanomaterials and has built a tremendous framework to target a host of large and growing markets. Its multidisciplinary scientists, experienced management team and advisory boards have the track record to execute and are of the highest quality in the emerging nanotechnology sector."

Kevin Werner, President and Managing Director of SAIC Venture Corporation, commented on its first investment in the nanotechnology field: “SAIC Venture Corporation makes investments in early-stage, high potential companies to promote leading edge technologies and to develop strategic alliances for SAIC, the largest research and engineering company in the US. Nanosys is one of the leading nanotechnology companies in the market today, its core technologies in the rational design and flexible assembly of inorganic semiconductor nanomodules have near-term high-value commercialization potential as well as impact on many fields of SAIC’s long-term interest. This investment can strengthen the SAIC and Nanosys relationship and create win-win situations for both companies.”

About Nanosys
Nanosys, Inc, is a rapidly growing advanced technology company, leading the burgeoning nanotechnology industry, through the development of nano-enabled systems. These systems incorporate novel and patent-protected nanostructures that integrate functional complexity directly into each individual nanoparticle, enabling the low-cost fabrication of revolutionary high-value, high-performance applications in a broad range of industries from life and physical sciences to information technology and communications to renewable energy and defense. These nanostructures include nanowires, nanorods, nanotetrapods and nanodots formed from all of the industrially important semiconductor materials (Group II-VI, III-V and IV) as their principal active elements. These systems exploit the fundamentally new and unique electronic, optical, magnetic, interface and integration properties associated with materials on the nanometer-scale. The initial applications include exquisitely sensitive chemical and biological sensors, high performance large area macroelectronics and lightweight high efficiency conformal photovoltaics.

About CDIB BioScience Venture (CBV)
Formed in January 2002, CDIB BioScience Ventures (CBV) is the largest healthcare dedicated venture fund in Taiwan. CBV is managed by CDIB BioScience Venture Management (CBVM), a life science venture management company with operations in both United States and Taiwan. CBVM was organized in December 2001 and spun out from China Development Industrial Bank (CDIB), the largest direct investment bank in Taiwan. The team, which came mostly from the Life Science Investment Team in Overseas Business Department of CDIB, has been actively involved in global life science venture investment, with 20 investment made in 2 years. Besides financial resources, CBVM offers valuable business and operating insight to the growing life science opportunities in Asia, especially in Greater China. CBVM’s unique Asian value-add proposition include establishment of joint ventures in Asia and syndication of investment from Asian institutions. More information can be found at www.cdibbiosciencevc.com.

About China Development Industrial Bank (CDIB)
China Development Industrial Bank (CDIB) is the largest investment firm in Taiwan. Since its founding in 1959, CDIB has actively played a visionary and pioneering role to contribute to the advancement of Taiwan's economic and industrial progress. CDIB has operations in Corporate Banking, Underwriting, Project Finance, Direct Investment and Overseas Investment. At the end of 2001, CDIB’s Overseas Business Department has outstanding investment of over NT $28.1 Billion in nearly 125 companies located throughout US, Korea, Japan, Australia, England, Thailand, Indonesia, Malaysia, Hong Kong and Israel. Core investment sectors include biotechnology, computers and communications, electronic components, semiconductors, financial services, internet and software. CDIB aims to nurture promising next-generation industries and companies by constantly expanding its overseas investment opportunity, setting up international marketing and financial service network, and establishing strategic partnerships through investments in high-tech venture capital funds. For more information on CDIB, please visit www.cdibank.com.

About Chiao Tung Bank
Established in 1907, Chiao Tung Bank is now Taiwan’s second largest investment bank. Chiao Tung Bank has played a significant role in developing industry, transportation, mining and other strategic public-use enterprises in Taiwan. Chiao Tung bank also has significant and expanding businesses in pioneer investments and venture capital investment. For more information, please visit www.ctnbank.com.tw.

About Harris & Harris Group
Harris & Harris Group is a publicly traded venture capital company making initial investments exclusively in tiny-technology enabled companies. It’s most recent investments in nanotechnology-related companies include NanoGram Devices, Optiva and Agile Materials. Detailed information about Harris & Harris Group, Inc. and it’s holdings can be found at www.TinyTechVC.com.

About Lux Capital
Lux Capital is a venture capital firm focused on making early-stage investments in nanotechnology and related growth sectors emerging from leading academic centers of excellence. Lux Capital's managing partners, investors, advisors and extended network are leveraged to provide unparalleled access, expertise and market intelligence to its portfolio companies. The firm's principals are recognized internationally as thought-leaders in the field of nanotechnology. Forbes and Lux Capital publish their monthly investment insights through the Forbes/Wolfe Nanotech Report. Established in 2000, the firm is headquartered in New York. More information is available at www.luxcapital.com.

About Quanta Computer
Quanta Computer is the fourth largest non-government manufacturer in Taiwan, and the number one notebook manufacturer in the world. Quanta computer aims to become one of the world’s top ten information technology giants by building upon its existing strengths in product design, efficient production and high quality customer service and by developing new products and technologies that have high potential in the future, including GSM cellular phones, mobile digital data devices etc. More information can be found at www.quantatw.com.

About SAIC Venture Capital Corporation
SAIC Venture Capital Corporation is the venture arm of Science Applications International Corporation (SAIC). SAIC Venture Capital Corporation makes investments in early-stage, high potential companies to promote leading edge technologies and develop strategic partnerships. SAIC Venture Capital Corporation has made investments in bioinformatics, enterprise software, networking infrastructure, security, telecom software and wireless companies. SAIC is one of the world's leading providers of outsourcing and IT services, and the largest employee-owned research and engineering company in the United States. SAIC has more than three decades of experience making new technologies succeed in real-world, real-time business. SAIC engineers and scientists work to solve complex technical problems in national security, homeland defense, energy, space, the environment, telecommunications, health care, transportation and logistics. With annual revenues of $5.9 billion, SAIC and its subsidiaries, including Telcordia Technologies, have more than 38,000 employees at offices in more than 150 cities worldwide. For more information about SAIC Venture Capital Corporation, visit www.saic-vcc.com. For more information about SAIC, visit www.saic.com.

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