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(November 23, 2009 Austin, TX — Applied Nanotech Holdings Inc. (OTC BB: APNT) was selected by the U.S. Missile Defense Agency (MDA) to receive an award of approximately $500,000 for the development of non-contact methods for mitigation of tin whiskers from electronic devices. ANI will partner with the University of Maryland’s Center for Advanced Life Cycle Engineering (CALCE) on this project. Tin whiskers are long, hair-like structures that commonly grow perpendicular to a metal surface, most commonly on the soldered surfaces and electroplated finishes present in nearly every electronic device. These whiskers grow over time, causing electrical shorts and arcing that damages the equipment. The damage is most prevalent after several years of use, particularly in the case of lead-free solder. During this 18-month Phase II Small Business Innovation Research program, which results from successful completion of a Phase I award, Applied Nanotech will focus on optimizing its proprietary process for tin whisker mitigation. Both the MDA and NASA have reported that tin whiskers have been the cause of more than $1 billion in catastrophic damage to satellites, missiles, and other electronic equipment. Current recognized mitigation techniques add cost and complexity to the manufacturing process and have had mixed success. Applied Nanotech performs tin whisker remediation with a pulse of energy, which reportedly simultaneously prevents new whiskers from growing. The method was developed as a “direct outgrowth” of the company’s work in technical inks and pastes, said Doug Baker, CEO of Applied Nanotech Holdings Inc. For more information, visit www.appliednanotech.net.