NanoPowers Raises CHF 5 Million ($4.5 Million) in Series A Financing to Support Development of Breakthrough Urinary Incontinence Device

LAUSANNE, Switzerland, June 1, 2010 - NanoPowers SA, a medical device company that leverages its unique
artificial muscle technology to restore or improve muscle function, today
announced the closing of a CHF 5 million ($4.5 million) series A financing.
The financing round was led by Novartis Venture Funds (NVF). Also
participating in the financing were Initiative Capital Romandie (ICR) and
Gran Plasa SA. Novartis Venture Funds were also seed investors in the
company.

Martin Horst, PhD, chief executive officer, said: "We are very pleased
with the ongoing support of the Novartis Venture Funds, and welcome ICR and
Gran Plasa to our investor base. We will use the proceeds from the financing
to finalize the development of our lead product ARTUS, a breakthrough
artificial urinary sphincter, and initiate the first clinical studies. ARTUS
addresses a huge unmet medical need, and is the first device of its kind that
also lends itself to be easily implanted in women, who are by far the most
affected by severe incontinences. Incontinence constitutes a devastating
disability, affecting self-confidence and self image, and often leads to
social isolation."

Florent Gros, Managing Director of the Novartis Venture Funds, said: "We
are excited to support NanoPowers' development of their breakthrough
technology applied to artificial sphincters. Incontinence is one of the
largest untapped markets in the medical device industry, while demographic
changes in western countries are significantly increasing the incidence of
incontinences. We believe that ARTUS has the potential to significantly
improve patients' quality of live, while substantially reducing treatment
costs."

NanoPowers & technology platform

NanoPowers was founded by Piergiorgio Tozzi, MD, of the University
Hospital of Lausanne (CHUV), and Professor Daniel Hayoz, of the Cantonal
Hospital of Fribourg and the CHUV. Capitalizing on their long experience in
surgery, vascular medicine, and innovative device development, they have
since 2004 developed a unique artificial muscle technology. NanoPowers'
initial focus is on the application of this proprietary technology in the
development of artificial muscles for the treatment of severe incontinences.
NanoPowers was selected in 2009 by the Swiss Commission for Technology and
Innovation (CTI) as one of the best innovative medical technology companies,
and won the prize for best abstract at the European Association of Urology
congress in Barcelona in 2010. Dr. Tozzi is chairman of the company's board
of directors; Dr. Hayoz is a director.

About Novartis Venture Funds

Novartis Venture Funds, established in 1996, have currently over $750
million under management and is invested in more than 60 private companies.
The Novartis Venture Funds invest in companies that have the potential to
lead the next innovation wave in core therapeutic fields or explore new
business areas that will be critical to patient care. The NVF team of eight
investment professionals located in Basel, Switzerland and Cambridge, MA
brings together extensive experience in R&D and venture capital.
(www.venturefund.novartis.com)

About Initiative Capital Romandie (ICR)

ICR is a Swiss venture capital fund, managed by DEFI Gestion SA, a
Lausanne based private equity fund advisor. ICR was founded in 2006 by
Retraites Populaires Vie, Banque Cantonale Vaudoise, Centre Patronal, and
Etablissement Cantonal d'Assurance. ICR supports high-tech starts-ups based
in the French part of Switzerland. (www.defigestion.ch). In connection
with the investment in NanoPowers, Claude Suard, partner at DEFI Gestion,
will join the NanoPowers' board of directors as an observer.

About Gran Plasa

Gran Plasa SA, a private fund based in Fribourg, Switzerland, invests in
high-tech, construction, and real-estate companies in Switzerland and across
Europe.

CONTACT: Martin Horst, PhD, Chief Executive Officer, Martin.Horst at nanopowers.com, +41-41-3420058