June 8, 2006

PRESS RELEASE

NANOPARTICLE, NANOPOWDER AND NANOSCALE ULTRA THIN FOIL DIVISIONS OF AMERICAN ELEMENTS TO BE CONSOLIDATED INTO NANOMETAL™ PRODUCT GROUP

[June 8, 2006, Los Angeles , CA] American Elements announced plans today to merge four production divisions into a single product group under its tradename Nanometal™. The four effected operations include trademarked Nanometal™ foils and ultra thin foils; branded nanopowders currently marketed under the tradename Z-Mite™, C-Mite™ and T-Mite™; Carbon and Silicon Nanotubes production; and Product Catalogue oxide, carbide and nitride nanopowders and nanoparticles of the following element product groups:

Aluminum, Antimony, Arsenic, Beryllium, Bismuth, Boron, Cadmium, Calcium, Cerium, Cesium, Chromium, Cobalt, Copper, Dysprosium, Erbium, Europium, Gadolinium, Gallium, Germanium, Gold, Hafnium, Holmium, Indium, Iridium, Iron, Lanthanum, Lead, Lithium, Lutetium, Magnesium, Manganese, Molybdenum, Neodymium, Nickel, Niobium, Palladium, Platinum, Praseodymium, Rhenium, Rhodium, Rubidium, Ruthenium, Samarium, Scandium, Selenium, Silicon, Silver, Sodium, Strontium, Tantalum, Tellurium, Terbium, Thallium, Thulium, Tin, Titanium, Tungsten, Vanadium, Ytterbium, Yttrium, Zinc, Zirconium

The consolidation is intended to streamline sales and customer support of nanoscale materials and combine production capabilities where possible for better efficiency. The consolidation will not result in any worker or staffing reductions.

For further technical and pricing information on Nanometal™ products, please contact your local American Elements distributor or American Elements U.S. corporate headquarters. American Elements is a Los Angeles based global manufacturer and developer of engineered and advanced materials with the world's largest industrial catalogue of rare earth materials accessible electronically at www.americanelements.com. For further information on the new Chinese rare earth tax rates, please contact your local American Elements distributor or American Elements U.S. corporate headquarters at (1)310-208-0551, FAX (1)310-208-0351 or customerservice@americanelements.com.