Advance Nanotech Announces Consummation of Exchange Agreement to Acquire Owlstone...

Advance Nanotech Announces Consummation of Exchange Agreement to Acquire
Owlstone Nanotech Shares
- Advance Nanotech completes $1.2 million private placement

NEW YORK, Sept. 5 /PRNewswire-FirstCall/ -- Advance Nanotech, Inc.,
(OTC Bulletin Board: AVNA), today announced that it has consummated an
exchange of shares between Advance Nanotech and the founding members and
management of its majority owned subsidiary, Owlstone Nanotech ("Owlstone").
The Company is now in the process of completing execution of the post closing
conditions required as part of the Exchange Agreement, which have been
previously disclosed. Concurrent with the transaction, the Company also
announced that it has completed a private placement of $1.2 million of Senior
Secured Convertible Notes bringing the total amount raised from that offering
since it commenced to approximately $7.9 million.
"The completion of the Exchange Agreement between Advance Nanotech and
Owlstone management and founders is a milestone event for our company,"
commented Bret Bader, CEO of Advance Nanotech, Inc. "While working on closing
the Exchange Agreement, we have implemented operating efficiencies, which
resulted in cost reductions at the corporate level, and an organizational
infrastructure that is better suited to achieve our business objectives and
benefit our shareholders. The closing of $1.2 million will enable us to
better pursue near term business opportunities and forward our corporate
initiatives."
"The restructuring of Advance Nanotech is now substantially complete from
an operational perspective. We have moved our corporate offices from
Manhattan to a more economical facility in Montebello, New York, and aligned
the organization to focus solely on the development of Owlstone," Mr. Bader
continued. "It is our intention to quickly revamp our Board of Directors with
active, high-level members that can immediately add value to our business."
Upon closing of the exchange agreement, Bret Bader was appointed chief
executive officer of the Company, replacing Lee Cole who was serving as acting
principal executive officer.
About Owlstone Nanotech, Inc.
Owlstone Nanotech, Inc. ("Owlstone") is majority owned subsidiary of
Advance Nanotech and is a pioneer in the commercialization of
nanotechnology-based chemical detection products. The Owlstone Detector is a
revolutionary dime-sized sensor that can be programmed to detect a wide range
of chemical agents that may be present in extremely small quantities. Using
leading-edge micro- and nano-fabrication techniques, Owlstone has created a
complete chemical detection system capable of superior performance,
significantly smaller and can be produced materially more cost than existing
technology. There are numerous applications -- across industries from
security and defense to industrial process, air quality control and healthcare
-- that depend on the rapid, accurate detection and measurement of chemical
compounds. Owlstone works with market leaders within these applications to
integrate the detector into next generation chemical sensing products and
solutions. Owlstone's technology offers a unique combination of benefits,
including: small size, low manufacturing costs, minimal power consumption,
reduced false-positives, and a customizable platform. For more information on
Owlstone, please visit www.owlstonenanotech.com.
About Advance Nanotech
Advance Nanotech, through its majority owned subsidiary Owlstone Nanotech,
Inc., is an operating company focused on chemical and biological next
generation detection. Its proprietary technologies, developed at Cambridge
University, are uniquely silicon based thus offering miniaturization and
network capability with wireless opportunities. The advantages of this
protocol permits for real-time precision analytics leading to potential
prevention of ensuing issues, concerns and dangers. Through Owlstone, Advance
Nanotech has 1 recently awarded patent and 18 patent pending applications.
The information contained in this news release, other than historical
information, consists of forward-looking statements within the meaning of
Section 27A of the Securities Act and Section 21E of the Exchange Act. These
statements may involve risks and uncertainties that could cause actual results
to differ materially from those described in such statements. Although the
Company believes that the expectations reflected in such forward-looking
statements are reasonable, it can give no assurance that such expectations
will prove to have been correct. Important factors, including general
economic conditions, spending levels, market acceptance of product lines, the
recent economic slowdown affecting technology companies, the future success of
scientific studies, ability to successfully develop products, rapid
technological change, changes in demand for future products, legislative,
regulatory and competitive developments and other factors could cause actual
results to differ materially from the Company's expectations. Advance
Nanotech's Annual Report on Form 10KSB, recent and forthcoming Quarterly
Reports on Form 10QSB, recent Current Reports and other SEC filings discuss
some of the important risk factors that may affect Advance Nanotech's
business, results of operations and financial condition. The Company
undertakes no obligation to revise or update publicly any forward-looking
statements for any reason.
For more information, contact:

Yvonne Zappulla
Managing Director
Grannus Financial Advisors, Inc.
212-681-4108
Yvonne@grannusfinancial.com

SOURCE Advance Nanotech, Inc.

Yvonne Zappulla, Managing Director of Grannus Financial Advisors, Inc. for
Advance Nanotech, Inc., +1-212-681-4108, Yvonne@grannusfinancial.com