Applied Nanotech Announces Filing of Preliminary Proxy for Proposed Combination with Nanofilm, Ltd.

Applied Nanotech Holdings, Inc., a global leader in nanotechnology research and development, and NanoHolding Inc., the parent company of Nanofilm, Ltd., a private company with a leading market position for specialty optical coatings, cleaners and nano-composite products, jointly announced that Applied Nanotech filed on May 30, preliminary proxy material with the Securities and Exchange Commission to effect the combination of their operations under a new publicly traded company called PEN Inc.

The primary purpose of the proxy material, when final and sent to all Applied Nanotech shareholders, is to solicit the affirmative vote to approve the combination. The exact timing of the mailing of the final proxy material is dependent upon SEC review. Once the proxy material is mailed, it is expected that the shareholder meeting to approve the combination will occur within 45 days.