NANO-PROPRIETARY, INC. ANNOUNCES PARTIAL SETTLEMENT IN KEESMANN LITIGATION

March 5, 2008 – Austin, Texas-based Nano-Proprietary, Inc. (OTC BB: NNPP) today announced that it has entered into a settlement agreement in connection with its litigation in the U.S. District Court for the Northern District of Illinois. The agreement covers all defendants except the primary defendant, Till Keesmann. Details of the settlement remain confidential under the terms of the agreement. This settlement significantly simplifies the issues in the case, which should reduce the cost and time required to bring the litigation to an ultimate resolution.

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