HUBBARD, Ohio, July 11 /PRNewswire-FirstCall/ -- NanoLogix, Inc. (OTC:NNLX) provides an update on Hydrogen Bioreactor activities and additional operations and administrative updates. Harry R. Diz, Ph.D., PE, Associate Dean, and Chair, Dept of Environmental Science & Engineering at Gannon University, Erie, PA who manages NanoLogix's Bioreactor stated: "We continue to operate the Welch's experimental system and are producing hydrogen daily. Our research objective is to maximize hydrogen production through finding the optimal temperature and investigating the use of photobacteria for secondary treatment for both waste streams like Welch's and sewer sludge to convert organic acids which are generated in the Bioreactor during primary treatment. Theoretically, this could triple the hydrogen yield compared to what is being produced now at Welch's. To this end we have constructed several "photobioreactors" for growing the photobacteria. We also project installation of a prototype Bioreactor at the Erie Wastewater Treatment Plant in Spring 2008." This work is the result of collaboration among the Department of Environmental Science and Engineering at Gannon University, Biofuel Engineering Science, Ltd, an Erie, PA,-based engineering research company, and NanoLogix, Inc., and is funded solely by NanoLogix, Inc." Personnel updates: Sergey Gazenko, Ph.D. has renewed his contract with NanoLogix and taken the position of Vice President for Research and Development. Dr. Gazenko is the sole inventor of the BioNanoChannel(TM) device and directs research at NanoLogix's newly-expanded laboratory in the BioStart facility in Cincinnati. Thomas A. Kelly, Ph.D. has rejoined NanoLogix as a consultant and will conduct research related to his original discovery and authorship of NanoLogix's patented process for Apoptosis. Dr. Kelly stated: "I am happy to be able to resume my research on apoptosis that I started in 1997 for Infectech (now NanoLogix). With the backing of NanoLogix I am confident we can develop multiple applications of this technology. My immediate thrust will focus on applying apoptosis technology to the treatment and elimination of certain topical skin growths, which will significantly impact the method of treating a specific range of dermatological conditions". Financial news: NanoLogix has recently applied for a grant for funding of Bioreactor research from the United States Department of Agriculture. The Company is progressing with the process of preparing their financials for applying for SEC approval to become fully reporting. Approximately 200 hours of CPA and accounting time has been expended since May specifically related to this process. The company would also like to announce to their shareholders that Bret T. Barnhizer and Dana Allen, upon taking office in March, 2006 elected to accept no salaries for their services to the Company and are receiving as compensation 250,000 shares of restricted (non-trading) stock per quarter. This stock compensation is 50% of the amount that was traditionally granted to Company officers and directors each quarter prior to March 2006. This reduction in stock compensation was the first action by the CEO and the Board of Directors taken upon the change in Company management in March --- an action taken in the interest of reducing dilution of shareholder equity. Our goal is to reduce stock compensation by an additional 50% this year. In addition, Mr. Barnhizer and Mr. Allen wish to announce that they have and continue to hold shares purchased on the open market over time in the following amounts: Mr. Barnhizer, 2,030,000 shares since 09/2005; and Mr. Allen, 632,000 shares since 07/2006. Bret T. Barnhizer, Chairman, CEO and President, stated: "We welcome Dr. Kelly back to NanoLogix, and congratulate Dr. Gazenko on his promotion to Vice President for Research and Development, and thank Dr. Diz for his increased involvement and continued efforts at Welch's and Erie Wastewater treatment. As for the financial update, we are providing this information to the public in order to demonstrate our dedication to the future of NanoLogix and our goal of growing the Company to provide increased value to all shareholders." About NanoLogix, Inc. NanoLogix is an industry innovator in the research, development, and commercialization of nano-biotechnologies, applications and processes. The Company has developed and owns or has rights to 31 patents related to various medical technologies, 5 of which also have hydrogen-generation aspects. In the past year the Company has filed an additional 28 patent applications for discoveries related to hydrogen bioreactors, medical testing, and innovative medical treatments potentially related to leukemia and sepsis. NanoLogix is presently operating a hydrogen bioreactor at Welch's Food. NanoLogix-developed patents are used to design and market diagnostic test kits for use in early detection of the bacteria present in infectious and noninfectious human diseases such as tuberculosis, pneumonia, HIV/AIDS, cancer, and cystic fibrosis. The company also owns a patent for the non-toxic induction of apoptosis ('cell suicide') for the treatment of cancer. BioNanoChannel is a Trademark of NanoLogix, Inc. For more information on the Company, visit http://www.nanologixinc.com/. This press release contains statements, which may constitute "forward- looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of NanoLogix, Inc., and members of its management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. The Company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results. Contact: Investor Relations Bret Barnhizer, CEO Telephone: 330-534-0800 E-mail: DATASOURCE: NanoLogix, Inc. CONTACT: Bret Barnhizer, CEO of NanoLogix, Inc., +1-330-534-0800, Web site: http://www.nanologixinc.com/

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