Nano-Proprietary comments on SED patent litigation

“Restructuring of Canon’s ownership position does not resolve the pending litigation which goes to trial in a few weeks,” said Tom Bijou, Chief Executive Officer of Nano-Proprietary, Inc. “We have terminated Canon’s license as a result of breach of contract. Moreover, our complaint against Canon includes other counts, including fraud unrelated to the ownership of SED.” Nano-Proprietary, however, was willing to enter into a new license agreement with Canon on reasonable terms,“ Bijou pointed out.