Applied Nanoscience Formulation Tests Successfully Against MRSA and Announces Scale-Up Progress With Successful Round of Testing Against Avian Influenza, Confirming Previous Testing

HAUPPAUGE, NY--(Marketwire - November 02, 2007) - Applied Nanoscience Inc. (ANI) (PINKSHEETS: APNN) today announced that it has achieved highly successful test results for its proprietary silver nanoparticle formulation against methicillin resistant Staphylococcus aureus, or MRSA. The challenge produced a >99.99% reduction (4+log) in two minutes when coated on filter media and directly introducing the challenge organism. Testing was conducted at an independent, nationally recognized BSL-3 laboratory.