For more information, contact:

Marlene Bourne, Principal Analyst
Phone:   480-695-0521

Bourne Research Releases Mid-Year Update Assessing the
Status of MEMS and Nanotech in the First Half of 2006;
Identifies Companies to Watch Through 2007

SCOTTSDALE, Ariz., August 7, 2006 – The amount of money venture capital firms provided to MEMS and Nanotech companies combined in the first half of 2006 was down 15.4% compared to the first half of 2005, according to Bourne Research. The market research firm reports that funding of nanotech start-ups alone was down 38.7% for the same period, while funding of MEMS start-ups was up 23.6%.

In looking at commercial progress made by companies offering MEMS and Nanotech-based solutions during the first half of 2006, Bourne Research also found that while product development continues to focus on Consumer Electronics and Medical applications, various Energy and Industrial sectors will benefit more in the near term from actual product sales.

“There is a strong disconnect right now between what makes headlines and where real traction is taking place,” says Marlene Bourne, President and Principal Analyst of Bourne Research. “Along these lines, bubbles have clearly emerged in several segments that do offer great future potential, but they are not where the core growth will be over the next 18 months.”

Bourne Research has also identified:

• Six products to watch – including silver nanoparticles, chemical sensors, tri-axis accelerometers, and more, each of which have found important niches addressing identifiable needs.

• Six sectors to watch – all areas where real near-term growth lies, notably oil & gas, food/beverage and renewable energy (excluding solar, whose market impact is still several years out).

• Companies to watch – some public, most private, all of whom made big steps forward in terms of customer shipments in the first half of 2006.

• Important trends – including the three products expected to move from development to commercialization in 2007, and how China is emerging as an important driver of growth in automation.

The Mid-Year Update, which takes a look at gains made by companies offering MEMS and Nanotech-based solutions during the first half of 2006, and identifies key sectors and companies to watch through 2007, is available now in The Bourne Report – August 2006. The Bourne Report offers the most insightful market analysis available on emerging technologies, with a focus on MEMS and Nanotechnology. To subscribe to The Bourne Report, or for more information about Bourne Research, please visit: www.bourneresearch.com or contact Marlene Bourne at 480-695-0521 or marlene@bourneresearch.com.

About Bourne Research

Bourne Research is a trusted source of market intelligence, with a specialized focus on MEMS (MicroElectroMechanical Systems), Nanotechnology, and the convergence of both. Its founder, Marlene Bourne, is a highly respected industry analyst with more than a decade of experience following the development of emerging technologies, and is internationally recognized as one of the leading experts on MEMS.