DENVER--(BUSINESS WIRE)--June 15, 2004--NanoPierce Technologies, Inc., (OTCBB: NPCT - News) today announced that it signed an exclusive marketing agreement with ExypnoTech, GmbH and TagStar Systems, GmbH of Sauerlach, Germany. NanoPierce plans to create a new wholly owned subsidiary, EXYPNOTECH, LLC to market and sell RFID (radio frequency identification) components manufactured by ExypnoTech and marketed by TagStar. The exclusive marketing rights were obtained for all companies and their subsidiaries organized or based in both the United States and in any other countries on the North and South American continents. In addition, EXYPNOTECH, LLC has the non-exclusive right to develop customers anywhere else in the world should it choose to expand it sales and marketing efforts. EXYPNOTECH, LLC can maintain the exclusivity provided that by September 30, 2005 and thereafter it achieves annual gross sales of 250,000 Euros from the sale of ExypnoTech/TagStar RFID products. G. William Pfeiffer has been tasked with the responsibility for the Company's sales and marketing activities in this developing market.

NanoPierce stated that the marketing agreement was prompted by recent favorable developments relating to applications of SmartPaper (TM) which appears to present significant high volume market opportunities. SmartPaper is a converted RFID product of ExypnoTech. SmartPaper(TM) is a plain sheet of paper which contains an embedded transponder (a chip connected to an antenna). Customers using modified conventional laser or inkjet printers or a smart printer prepared by ExypnoTech GmbH can create customized smart labels by simultaneously printing on the paper and using standard read/write devices transmit data to program the RFID chip. SmartPaper can be used in very high volume applications but is particularly ideal for producing small quantities of RFID labels, used and created on demand. SmartPaper(TM) was developed by ExpynoTech, when it was a wholly owned subsidiary of NanoPierce. NanoPierce currently owns a 49% interest in ExypnoTech.

Paul H. Metzinger, President and Chief Executive Officer of NanoPierce said: "NanoPierce has been actively but quietly exploring market applications for RFID products and recent developments have revealed some very strong opportunities which we fully intend to exploit. The Company feels that with the recent developments in the RFID industry, i.e. the Wal-Mart mandate of the use of RFID starting in January 2005 and the recent announcement of the Department of Defense to require certain suppliers to start to use RFID that the RFID industry and market has begun to generate traction in the United States."

NanoPierce Technologies, Inc. of Denver Colorado, USA, is traded on the NASDAQ stock market (OTC:BB:NPCT) as well as on the Frankfurt and Hamburg (OTC:NPI - News). In addition to the 12 patents it owns, NanoPierce Technologies has numerous applications pending, others in preparation, and various intellectual properties related to NanoPierce Technologies' NCS (NanoPierce Connection System). This advanced system is designed to provide significant improvement over conventional electrical and mechanical interconnection methods for high-density circuit boards, components, sockets, connectors, semiconductor packaging and electronic systems.

For more information regarding NanoPierce Technologies, Inc., visit the Company's website: www.nanopierce.com.

TagStar Systems, GmbH develops, produces and markets RFID components such as smart inlays (transponders). TagStar's product portfolio is supplemented by read/write devices from selected partner firms. TagStar aims to be an all-service, single-source supplier for customers requiring RFID services and solutions.

For more information regarding TagStar Systems, GmbH, visit the Company's website: www.tagstar-systems.com.

This announcement contains forward-looking statements about NanoPierce Technologies, Inc., that may involve risks and uncertainties. Important factors relating to the Company's operations could cause results to differ materially from those in forward-looking statements and further detailed in filings with the Securities and Exchange Commission available at the SEC website (http://www.sec.gov). All forward-looking statements are based on information available to NanoPierce Technologies, Inc. on the date hereof and NanoPierce Technologies, Inc., assumes no obligation to update such statements.

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Contact:
NanoPierce Technologies, Inc.
Paul H. Metzinger, 303-592-1010
Fax: 303-592-1054
paul@nanopierce.com
or
TagStar Systems, GmbH
Media Relations, 011-49-8104-64-95-10
Fax: 011-49-8104-64-95-11

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Source: NanoPierce Technologies, Inc.