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Yonex To Introduce Next Generation Golf Clubs And Racquets Using Applied Nanotech Holdings, Inc. Technology

The partnership between Applied Nanotech and Yonex grants Yonex the exclusive right to use Applied Nanotech's CNT composite technology in the manufacture and sale of its golf club shafts and racquets in Japan and Taiwan, and the nonexclusive rights to sell the product on a worldwide basis. Applied Nanotech has received upfront royalty and will receive ongoing royalties based on sales of Yonex's products using the technology.

ABOUT APPLIED NANOTECH HOLDINGS, INC. Applied Nanotech Holdings, Inc. (OTCBB:APNT) is a premier research and commercialization organization focused on solving problems at the molecular level. Its team of PhD level scientists and engineers work with companies and other organizations to solve technical impasses and create innovations that will create a competitive advantage. The business model is to license patents and technology to partners that will manufacture and distribute products using the technology. Applied Nanotech has over 250 patents or patents pending. Applied Nanotech's website is http://www.appliednanotech.net

About Yonex Co., Ltd.

Founded in 1946, Yonex Co., Ltd. is a world leader in sporting goods, headquartered in Tokyo, Japan. Yonex is the world's #1 manufacturer of badminton racquets and also has a strong position in tennis racquets, golf clubs, snowboards, and other sporting related products.

SAFE HARBOR STATEMENT This press release contains forward-looking statements that involve risks and uncertainties concerning our business, products, and financial results. Actual results may differ materially from the results predicted. More information about potential risk factors that could affect our business, products, and financial results are included in our annual report on Form 10-K for the fiscal year ended December 31, 2009, and in reports subsequently filed by us with the Securities and Exchange Commission ("SEC"). All documents are available through the SEC's Electronic Data Gathering Analysis and Retrieval System (EDGAR) at www.sec.gov or from our website listed above. We hereby disclaim any obligation to publicly update the information provided above, including forward-looking statements, to reflect subsequent events or circumstances.

CONTACT: Doug Baker
         Applied Nanotech Holdings, Inc.
         248.291.0612
         dbaker@appliednanotech.net

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