Altair Nanotechnologies Reports Third Quarter 2009 Financial Results

Altair Nanotechnologies, Inc. (Altairnano) (NASDAQ: ALTI), a provider of energy storage systems for clean, efficient power and energy management, today reported financial results for the third quarter ended September 30, 2009.

For the quarter ended September 30, 2009, the Company reported revenues of $1.7 million, down from $1.8 million for the same period in 2008. The net loss was $3.3 million, or three cents per share, compared to a net loss of $9.1 million, or 11 cents per share, for the third quarter of 2008. The basic and diluted weighted average shares outstanding for the quarter were 105.1 million, compared to 84.6 million reported in the third quarter of 2008.

Operating expenses of $5.9 million for the third quarter of 2009 were $5.2 million less than the operating expenses of $11.1 million for the third quarter of 2008. The third quarter of 2008 contained the one-time settlement expense of $3.6 million with Al Yousuf LLC. and higher research and development costs associated with the number of grants being worked on in 2008 compared to 2009. Additionally, we had reduced spending associated with the former Life Sciences and Performance Materials groups in 2009 than we did in 2008.

The Company's cash and cash equivalents decreased by $4.1 million, from $28.1 million at December 31, 2008 to $23.9 million at September 30, 2009. This is due primarily to net cash used in operations of approximately $18.1 million, $4.8 million of which was for increased product inventories; investing activities primarily consisting of purchases of fixed assets of approximately $0.6 million offset by $2.0 million received from the sale of our Spectrum common stock; and financing activities that include payment of notes payable of $0.6 million offset by $12.8 million of proceeds relating to the issuance of common shares in May 2009.

The Company's cash burn rate has been higher throughout the first three quarters of 2009 than it was in the second half of 2008 as the Company has been building up inventory of component parts with three to six month lead times in anticipation of sales later this year and in early 2010. We expect our cash burn rate to slow in the fourth quarter of 2009 as the Company believes it now has adequate levels of components in inventory. Product inventories are higher by $3.6 million and prepaid expenses by $1.2 million from their respective December 31, 2008 balances. The increase in prepaid expenses results almost entirely from a partial payment on the purchase of battery cells from the Company's Korean cell manufacturer.

"We have experienced an increased level of customer requests for quotes in the past couple of months," said Dr. Terry Copeland, Altairnano's president and CEO. "In addition, we anticipate that potential order activity will begin to gain traction as we enter into 2010. Given the importance of establishing this revenue stream and having referenceable customers for other prospects to speak with, we need to be able to move expeditiously once we have these initial firm orders."

During the third quarter Altairnano received the final signed contracts for both the $3.8 million Office of Naval Research phase 2 development program, and the Department of Defense supported $1.8 million nanosensor project. The Company will perform work on both of these contracts during the fourth quarter and into the first half of 2010.

As payment for Spectrum Pharmaceuticals achieving certain past milestones as specified in its contract with the Company, Altairnano was carrying shares of Spectrum stock with a cost basis of $1.1 million on its balance sheet. As a result of the increasing share price for this stock during the third quarter of 2009, the Company sold these shares for $2.0 million realizing a gain of $900,000. Altairnano also reached agreement with Spectrum to modify its existing contract to assign ownership of all patent rights associated with Renazorb™ and Renalan™ compounds to Spectrum. Under the terms of the agreement, the Company received $750,000 in Spectrum restricted common stock and a right to future royalties and milestone payments upon completion of certain specified events.

Third Quarter 2009 Conference Call

Altairnano will hold a conference call to discuss its third quarter 2009 results on Thursday, November 5, 2009 at 11:00 a.m. Eastern Standard Time (EST). Shareholders and members of the investment community are invited to participate in the conference call. The dial-in number for both U.S. and international callers is +1 719-325-2117. Please dial in to the conference five minutes before the call is scheduled to begin. Ask the operator for the Altair Nanotechnologies call.

An audio replay of the conference call will be available from 12:00 p.m. EST, Thursday, November 5, until Midnight EST, November 12, 2009. It can be accessed by dialing +1 719-457-0820 and entering conference number 1046971.

Additionally, the conference call and replay will be available online, and can be accessed by visiting Altairnano's web site, www.altairnano.com.

About Altair Nanotechnologies, Inc.

Headquartered in Reno, Nevada with manufacturing in Anderson, Indiana, Altairnano is a leading provider of energy storage systems for clean, efficient power and energy management. Going beyond lithium ion, Altairnano's Lithium-Titanate based battery systems are among the highest performing and most scalable, with applications that include battery cells for military artillery, battery packs for hybrid vehicles and energy storage systems for large-scale stationary power services. For more information please visit Altairnano at www.altairnano.com.

Forward-Looking Statements

This release may contain forward-looking statements as well as historical information. Forward-looking statements, which are included in accordance with the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, may involve risks, uncertainties and other factors that may cause Altairnano's actual results and performance in future periods to be materially different from any future results or performance suggested by the forward-looking statements in this release. These risks and uncertainties include, without limitation, the risks that development of any the early-stage products of the Company will not be completed for technical, business or other reasons; that any products under development or in the early commercial stages will not perform as expected in future testing or commercial applications; that customers or prospective customers will not use or purchase products as represented to us or otherwise expected for various reasons, including a buyer's purchasing of a competing product, absence of agreement over pricing or a buyer's absence of capital to purchase products; that one or more of the joint development partners or customers may proceed slowly with, or abandon, development or commercialization efforts for any of various reasons, including concerns with the feasibility of the product or the financial viability of continuing with our products or their product; that sales of commercialized Altairnano products may not reach expected levels for one or more reasons, including the failure of end products to perform as expected or the introduction of a superior product; that costs associated with the proposed products may exceed revenues; and that, due to unexpected expenses not accompanied by offsetting revenue, the Company's use of cash in its operations may exceed budgeted levels. In general, Altairnano is, and expects to be in the immediate future, dependent upon funds generated from sales of securities, grants, testing agreements, and licensing agreements to fund its testing, development and ongoing operations. In addition, other risks are identified in the Company's most recent Annual Report on Form 10-K filed with the SEC. Such forward-looking statements speak only as of the date of this release. The Company expressly disclaims any obligation to update or revise any forward-looking statements found herein to reflect any changes in Company expectations or results or any change in events.

                               Tables Follow


              ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
                  CONDENSED CONSOLIDATED BALANCE SHEETS
  (Expressed in thousands of United States Dollars, except shares and per
                              share amounts)
                                (Unaudited)

                                              September 30,   December 31,
                                                  2009           2008
                                              -------------  -------------
                    ASSETS
Current assets
  Cash and cash equivalents                   $      23,939  $      28,088
  Restricted cash                                         1              -
  Investment in available for sale securities           766              -
  Accounts receivable, net                              620            955
  Product inventories                                 3,715             98
  Prepaid expenses and other current assets           1,838            572
                                              -------------  -------------
    Total current assets                             30,879         29,713

Investment in available for sale securities           3,277          3,174

Property, plant and equipment, net held and
 used                                                10,729         11,637

Property, plant and equipment, net held and
 not used                                             1,823          2,377

Patents, net                                            572            636

Other assets                                            500            534
                                              -------------  -------------

               Total Assets                   $      47,780  $      48,071
                                              =============  =============

       LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
  Trade accounts payable                      $       1,625  $         749
  Accrued salaries and benefits                       1,789          1,361
  Accrued warranty                                       33             36
  Accrued liabilities                                   763            765
  Current portion of long-term debt                     925            736
                                              -------------  -------------
    Total current liabilities                         5,135          3,647
                                              -------------  -------------

Long-term debt, less current portion                     41            608

Stockholders' equity
  Common stock, no par value, unlimited shares
   authorized; 105,519,855 and 93,143,271 shares
   issued and outstanding at September 30, 2009
   and December 31, 2008                            188,525        180,105
  Additional paid in capital                         10,735          5,378
  Accumulated deficit                              (156,987)      (140,892)
  Accumulated other comprehensive loss                 (611)        (1,873)
                                              -------------  -------------
    Total Altair Nanotechnologies, Inc's
     stockholders' equity                            41,662         42,718
  Noncontrolling interest in subsidiary                 942          1,098
                                              -------------  -------------
          Total stockholders' equity                 42,604         43,816
                                              -------------  -------------

  Total liabilities and stockholders' equity  $      47,780  $      48,071
                                              =============  =============




              ALTAIR NANOTECHNOLOGIES INC. AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
  (Expressed in thousands of United States Dollars, except share and per
                              share amounts)
                                (Unaudited)

                           Three Months Ended         Nine Months Ended
                              September 30,             September 30,
                        ------------------------  ------------------------
                            2009         2008         2009         2008
                        -----------  -----------  -----------  -----------
Revenues
  License fees          $       750  $         -  $       750  $         -
  Product sales                 409          166          662          555
  Less sales returns              -            -         (183)           -
  Commercial
   collaborations               122          129          888        1,642
  Contracts and grants          386        1,507          449        2,577
                        -----------  -----------  -----------  -----------
    Total net revenues        1,667        1,802        2,566        4,774
                        -----------  -----------  -----------  -----------
Operating expenses
  Cost of sales - product       171           59          519          138
  Cost of sales - warranty
   and inventory reserves        68            -           68       (2,865)
  Research and development    2,219        3,320        7,516       13,690
  Sales and marketing           761          661        1,969        2,096
  Notes receivable
   extinguishment                 -            -            -        1,722
  Settlement and release          -        3,605            -        3,605
  General and
   administrative             2,001        2,756        7,598        8,459
  Depreciation and
   amortization                 686          724        2,093        1,937
                        -----------  -----------  -----------  -----------
    Total operating
     expenses                 5,906       11,125       19,763       28,782
                        -----------  -----------  -----------  -----------
Loss from operations         (4,239)      (9,323)     (17,197)     (24,008)
                        -----------  -----------  -----------  -----------
Other income (expense)
  Interest expense              (61)         (23)         (92)         (73)
  Interest income                38          180          157          810
  Realized gain on
   investment                   868            -          850            -
  Gain/(Loss) on
   foreign exchange               -           (1)          (2)          (5)
                        -----------  -----------  -----------  -----------
    Total other
     income, net                845          156          913          732
                        -----------  -----------  -----------  -----------

Net loss                     (3,394)      (9,167)     (16,284)     (23,276)

Less: Noncontrolling
 interests' share                78           56          189          216
                        -----------  -----------  -----------  -----------

Net loss attributable
 to Altair
 Nanotechnologies, Inc. $    (3,316) $    (9,111) $   (16,095) $   (23,060)
                        ===========  ===========  ===========  ===========

Loss per common share -
 basic and diluted      $     (0.03) $     (0.11) $     (0.16) $     (0.27)
                        ===========  ===========  ===========  ===========

Weighted average shares
 - basic and diluted    105,089,234   84,635,878   98,521,157   84,448,743
                        ===========  ===========  ===========  ===========