Funds to Help Create EV Batteries with 300 Mile Range at Less Than $250/kWh

Palo Alto, Calif., August 11, 2011 – Nanosys, Inc., an advanced materials architect, today announced that the U.S. Department of Energy (DOE) has awarded it funds to refine and bring to scale its SiNANOdeTM materials for the automotive market. These innovations will enable Electric Vehicles (EVs) to travel 300 miles on a single charge. In addition to the primary DOE award of $4.8 million, approximately $6 million will be spent, through sub-awards and matches by the DOE and Nanosys, in the development and commercialization of advanced material technologies and manufacturing in the United States.

“We are honored the DOE has selected Nanosys for this grant,” said Jason Hartlove, president and CEO of Nanosys. “The future of a clean energy economy depends on increased adoption of electric and hybrid electric (PHEV) vehicles. Until such vehicles are able to achieve substantial operating range on a single charge with the economics of combustion vehicles, acceptance will be limited to early adopters. The commercialization of architected material solutions like SiNANOde provide the breakthroughs needed to progress on the path to achieving those goals.”

The grant is a part of the DOE’s larger mission to accelerate the development and deployment of advanced vehicle technologies through targeted programs aimed at increasing vehicle efficiency. DOE’s comprehensive approach is aimed at creating new innovations throughout the vehicle, including high capacity electric vehicle batteries and components that should significantly exceed existing state-of-the-art technologies in terms of performance and/or cost. The agency has set a target for bringing the cost of lithium-ion batteries down to $250/kWh and increasing capacity to 300 miles per charge for the next generation of EVs.

In recent tests, Nanosys’ SiNANOdeTM anode material has doubled capacity while providing breakthrough charge/discharge cycle life improvements. Nanosys will use the DOE funds to accelerate development through purchases of additional equipment and the hiring of additional staff.

“The Department of Energy is investing in new advanced technologies that will significantly improve vehicle fuel economy, save consumers money, and create skilled jobs for Americans,” said U.S. Energy Secretary Steven Chu in a DOE press release. “Investments in the next generation of autos will strengthen our economy and lead to a more fuel-efficient, clean energy future.”

In addition to EVs, Nanosys is currently working with domestic and international battery manufacturers to improve lithium-ion battery capacity using SiNANOdeTM in batteries for laptops & tablets, smart phones and other electronic devices.

About Nanosys, Inc.

Nanosys, Inc. is an advanced material architect, harnessing the fundamental properties of inorganic materials into process ready systems that can integrate into existing manufacturing to produce vastly superior products in lighting, electronic displays and energy storage. For more information, visit www.nanosysinc.com.