EANS-Adhoc: ItN Nanovation AG / ItN Nanovation enters into joint venture in Saudi Arabia

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ad-hoc disclosure pursuant to section 15 of the WpHG transmitted by euro
adhoc with the aim of a Europe-wide distribution. The issuer is solely
responsible for the content of this announcement.
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26.10.2010

• Term sheet for establishing joint venture for the production and sale of
nanoceramic filter systems and accessories in Saudi Arabia signed with investor
group
• ItN Nanovation will hold 17.5% share, rising to 40% at a later date
• ItN Nanovation will receive USD 2,350,000 for usage rights (recognised
directly in income)
• Joint venture has model character for international expansion

Saarbrücken, 26 October 2010 - ItN Nanovation AG (ISIN DE000A0JL461)
has set a milestone in its international expansion of the product
range "ceramic flat filters membrane", CFM Systems®. The company has
now agreed the terms and conditions for establishing a joint venture
in Saudi Arabia with a Saudi Arabian investor from Jeddah and a
consortium of German industrial investors. ItN Nanovation will
initially hold a 17.5% share in the joint venture, which will later
be increased to 40%. This rise has already been stipulated in the
term sheet and must be implemented by 2014.

The parties are likely to sign binding agreements regarding the joint
venture by the end of November.

According to the signed term sheet, ItN Nanovation will receive
around USD 2.35 million (approximately EUR 1.75 million) up front for
providing a limited amount of locally delimited usage rights for the
patented CFM nanotechnology systems. ItN Nanovation will use around
two thirds of this sum for acquiring its share in the joint venture.
The company is likely to recognise this amount as other operating
income for the current financial year. Apart from this one-off
payment, ItN Nanovation will also receive additional royalties that
will be recognised in income. Due to the company´s share in the joint
venture, it will also participate in the profits and losses as well
as value creation of the joint venture on a pro-rata basis.

The joint venture will operate under the name of Saudi Water
Nanovation and produce and sell CFM systems and accessories for flat
filter membrane solutions at its own premises in Saudi Arabia. Plans
are for the joint venture to construct a plant that will have three
times the capacity available to ItN Nanovation AG at present once it
reaches the last construction phase (probably in 2013). The joint
venture may be able to start up production as early as 2011.

ItN Nanovation´s ceramic flat filter membranes are a brand new
solution for filtering systems in the water recycling, drinking water
supply and surface water processing sectors. The need for such
solutions is particularly high in Saudi Arabia and neighbouring
Arabian countries.

Apart from the positive effect on group income, the joint venture has
model character for ItN Nanovation in terms of developing the
company´s international business in conjunction with local partners,
and other joint ventures are already in the pipeline.

The ItN Nanovation management board will be holding a telephone
conference for investors, analysts and media representatives on
Thursday, 28 October 2010 at 10:00 a.m. CET. They will explain this
cooperation in detail and provide information on the company´s
outlook for the coming quarters. If you wish to participate in the
telephone conference, please contact Diane Selge, edicto GmbH on +49
69 905505-53 or at dselge@edicto.de for the log-in data.

end of announcement euro adhoc
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ots Originaltext: ItN Nanovation AG
Im Internet recherchierbar: http://www.presseportal.de

Further inquiry note:

Contact:

ItN Nanovation AG

Untertürkheimer Strasse 25

66117 Saarbrücken, Germany

Phone: +49 (0) 681/50 01-460

Fax: +49 (0) 681/50 01-499

E-mail: ir@itn-nanovation.com

www.itn-nanovation.com

IR contact:

edicto GmbH

Axel Mühlhaus

Eschersheimer Landstrasse 42

60322 Frankfurt/Main, Germany

Phone: 069-90 55 05-52

Fax.: 069-90 55 05-77

E-mail: amuehlhaus@edicto.de

Branche: Technology
ISIN: DE000A0JL461
WKN: A0JL46
Index: CDAX, General All Share
Börsen: Berlin / free trade
Stuttgart / free trade
Düsseldorf / free trade
München / free trade
Frankfurt / regulated dealing/general standard