NEWS RELEASE

For Release Tuesday, January 14, 2003

ISTN ANNOUNCES EXCLUSIVE MANUFACTURING PARTNERSHIP WITH TAIWAN SURFACTANT CORPORATION

YORK, PA, USA and TAIPEI, TAIWAN, ROC - Industrial Science & Technology Network, Inc. ("ISTN") and Taiwan Surfactant Corporation ("Taiwan Surfactant") have agreed to a strategic partnership that will integrate ISTN's innovative nanotechnology research and Taiwan Surfactant's high-quality, scalable manufacturing capabilities.

Under the terms of the agreement, Taiwan Surfactant will serve as the exclusive manufacturer for ISTN's chemically-surface modified gel (CSMG) products, which are designed to selectively adsorb toxic heavy metal ions from waste water using a novel nanopore structure that has extremely high surface area and customized functional groups which optimize adsorption. Taiwan Surfactant has also agreed to re-invest a percentage of its manufacturing profits into ISTN's continued product development efforts.

"We feel that Taiwan Surfactant is an ideal long-term manufacturing partner for our CSMG product line," said Dr. Arthur J. Yang, ISTN's President. "Because of their manufacturing expertise in the surfactants field, they have an exceptional understanding of how to stabilize the surface properties of extremely small particles during the manufacturing process, an area of expertise which is very valuable for nanoscale applications. We are also excited because the deal further establishes our global presence."

ISTN received Phase I and and Phase II Small Business Innovation Research (SBIR) grants from the Department of Energy to develop CSMG and has conducted customer trials in the United States. It expects to begin manufacturing the product in the first half of 2003. Unlike many existing methods of waste stream remediation, CSMG can effectively reduce ion concentrations to the parts per billion level, meeting even the strictest municipal discharge standards.

"We are extremely excited that our product fulfills a clear societal need- a cleaner environment," said Dr. Yang.

About Taiwan Surfactant:

Founded in 1977, Taiwan Surfactant is a leading manufacturer of surface active agents, textile auxiliaries, personal care ingredients and other specialty chemicals. The Company presently operates two plants in Taiwan, including one located in the Kwang-Inn Industrial Area. The Kwang-Inn plant is equipped with efficient, large-scale, high-temperature/pressure glass-lining reactors and other modern equipment required in such unit processes as quaternization, amidation, phosphation, esterification, sulfonation and polymerization. The Company also retains an R&D staff that is dedicated to understanding the changing technological requirements of the industries it serves.

About ISTN:

ISTN is a materials research company specializing in the development and commercialization of nanotechnology products for industrial applications in three primary focus areas: traditional products, optical electronics and biotechnology. ISTN's Founder and President, Dr. Arthur J. Yang, has a wealth of nanotechnology-related research experience dating back to 1992, when he won an Advanced Technology Program (ATP) grant from the Department of Commerce to develop nanopore thermal insulation for Armstrong World Industries. Since its founding in 1996, ISTN has been dedicated to staying on the cutting edge of nanomaterials research. ISTN's R&D Center is currently located in York, PA; it is also pursuing expansion plans in both the U.S. and Asia. For more information on ISTN, please visit our web site at www.istninc.com.

For more information, please contact:

Frank Yang
Director of Business Development & Strategic Planning
ISTN, Inc.
fcyang@istninc.com