NaturalNano Licenses Key Patent for Selective Wireless Access in RF Shielded Environments

Technology Complements Company's Unique Radio Frequency Shielding Technology Utilizing Halloysite Nanotubes

ROCHESTER, N.Y. -- Feb. 16, 2006 -- NaturalNano, Inc. (OTC Bulletin Board: NNAN) (FWB: N3N), a company whose primary business is discovering, refining, and marketing naturally occurring nanomaterials, announced today that it has exclusively licensed technology that allows for selectively turning on or off access to radio signals, such as those used by cell phones or wireless computer networking devices, in areas that otherwise are shielded from those signals. NaturalNano licensed U.S. Patent No. 6,885,845, entitled "Personal Communications Device Connectivity Arrangement" from AMBIT Corporation. This patent complements the Company's current research and development efforts in RF shielding. The license extends to all fixed, non-mobile applications of this technology.

Michael Riedlinger, President of NaturalNano, said, "Exclusive access to this patent for fixed installations allows NaturalNano to offer a RF shielding solution utilizing its pre-loaded natural halloysite nanotubes technology combined with the ability to selectively turn on and off the impact of such shielding. This in turn enables authorized users to log onto a private network in an area that is otherwise RF shielded. Depending on the specific user requirements, this technology provides the framework for a potential new revenue stream into a facility's networking solutions for prospective customers and visitors. This technology also allows the facility operator to potentially charge fees for wireless access within an otherwise RF shielded environment. In addition, many existing structures including concert and convention halls, movie theaters, and other buildings could benefit from enhanced control over outside radio frequency radiation with a passive, cost-effective solution."

Robert J. Crowley, President and Co-founder of AMBIT Corporation, was formerly the Director of R&D for Boston Scientific Corporation's Imaging and Sensing Lab, which developed the first human-rated IVUS system, and did the first-ever IVUS imaging in atherosclerotic arteries. His group also developed several other diagnostic and therapeutic technologies for Boston Scientific Corporation.

Mr. Crowley said, "We are pleased to have licensed this important technology to NaturalNano to complement their recent innovations in RF shielding technologies. We believe that there is a strong market need for intelligent cellular and WIFI control in fixed locations such as school buildings, offices, and in military applications and NaturalNano is the right company to bring these technologies to the marketplace."

Crowley continued, "Until now, there has not been a practical, profit generating cellular shielding system that can be turned on or off. Unlike illegal jamming, our system monitors and controls the flow of radio, cellular and WIFI signals into a building and has a built-in billing function, too. The license to NaturalNano includes AMBIT Corporation's technologies to direct and route revenue-generating information streams in a shielded environment."

The use of metalized halloysite nanotubes for RF shielding came about as a result of a NaturalNano research and development program. Experimental trials included creation of a spray coating embedded with copper-filled halloysite nanotubes. The resulting material demonstrated significant RF signal strength reduction capability.

NaturalNano's spray-on shielding formulation, when applied to the walls of a room, may provide a passive blocking agent for radio frequency (RF) energy. Creating RF shielded environments has typically involved extensive use of conductive wiring and construction materials, a labor and capital intensive undertaking. NaturalNano believes that this new approach to creating a shielded environment, using a spray-on formulation, may provide an effective application solution on a much more cost-effective basis. This technology is particularly applicable to existing and non-mobile rooms because of the high costs associated with retrofitting an existing room to make it a passively RF shielded environment using current RF shielding techniques.

NaturalNano has rights to multiple issued and pending patents that cover processes, compositions, and derivatives for the nanotubes found in halloysite clay. More than 200 different commercial applications have been identified to date. The Company is also developing proprietary, patent-pending extraction, separation, and classification technologies to enable production of more uniform nanotubes to meet the higher standards required for advanced applications of the naturally occurring nanotubes. These include precise, controlled, and extended release of application-specific additives for use with cosmetics, polymers and plastics and other areas.

To learn more about NaturalNano and to view a diagram of the RF shielding application, please visit http://www.naturalnano.com .

About AMBIT Corporation

AMBIT Corporation, founded in 1993, is a technology and intellectual property development firm active in cellular, computer, and nanotechnology fields. The company researches, designs and invents new platform technologies relating to wireless information distribution systems, human-machine interface sensors, computer keyboarding apparatus, carbon nanotube based electronics, nanotube antenna arrays, and optical devices. AMBIT Corp. conducts its Research and Development at universities and at laboratories located in Massachusetts. Website: http://www.AMBITcorp.com .

About NaturalNano, Inc.

NaturalNano, Inc. (OTC Bulletin Board: NNAN)(FWB: N3N) is a materials science company developing unique and proprietary processes for refining naturally occurring nanotubes and other nanomaterials that add competitive properties to a range of applications. These include additives to cosmetics and personal care products, and absorbent materials, as well as: electromagnetic interference shielding, specialty coatings, and material additives for industrial polymers, plastics and composites. NaturalNano possesses broad intellectual property rights and proprietary know-how for extraction and separation processes, compositions, and derivatives of halloysite and other nanotubes. For more information, please visit http://www.naturalnano.com .