SOLESENCE, INC. — Director's Dealing 2006

Sep 18, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: NANOPHASE TECHNOLOGIES CORPORATION (NANX)
CIK: 0000883107
Period of Report: 2006-09-15

Reporting Person: SIEGEL RICHARD W (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-09-15	Common Stock	M	23160	$3.886	Acquired	23160	Direct
2006-09-15	Common Stock	S	23160	$6.4923	Disposed	0	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-09-15	Stock Option (right to buy)	$3.886	M	23160	Disposed	2006-11-07	Common Stock (23160)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	232372	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Stock Option (right to buy)	$5.25	2008-06-10	Common Stock (2000)	2000	Direct
Stock Option (right to buy)	$3.8125	2008-07-31	Common Stock (11600)	11600	Direct
Stock Option (right to buy)	$9.92	2011-06-05	Common Stock (2000)	2000	Direct
Stock Option (right to buy)	$3.78	2012-11-25	Common Stock (2000)	2000	Direct
Stock Option (right to buy)	$5.07	2013-06-26	Common Stock (2000)	2000	Direct
Deferred Common Stock	$		Common Stock (2747)	2747	Direct

Footnotes

F1: Subject to certain restrictions, 19,177 of these options vest in five equal annual installments beginning on 11/07/1997, with the remainder vesting on 11/07/2004.

F2: Subject to certain restrictions, beginning on this date, options vest in three equal annual installments.

F3: Subject to certain restrictions, beginning on this date, options vest in five equal installments.

F4: Each share of deferred common stock represents a right to receive one share of common stock.

F5: The deferred common stock becomes payable upon the reporting person's termination of service as a director of the Company.