SOLESENCE, INC. — Director's Dealing 2006

Jul 26, 2006

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: NANOPHASE TECHNOLOGIES CORPORATION (NANX)
CIK: 0000883107
Period of Report: 2006-07-24

Reporting Person: BROTZMAN RICHARD W (VP - Research & Development)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2006-07-24	Common Stock	M	7580	$1.75	Acquired	7580	Direct
2006-07-24	Common Stock	S	7580	$5.719	Disposed	0	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2006-07-24	Common Stock (right to buy)	$1.75	M	7580	Disposed	2009-07-27	Common Stock (15000)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	3000	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Common Stock (right to buy)	$3.886	2006-11-07	Common Stock (21580)	21580	Direct
Common Stock (right to buy)	$3.8125	2008-07-31	Common Stock (40600)	40600	Direct
Common Stock (right to buy)	$7.6875	2010-05-24	Common Stock (22500)	22500	Direct
Common Stock (right to buy)	$10.875	2011-01-26	Common Stock (20000)	20000	Direct
Common Stock (right to buy)	$7.0625	2011-02-28	Common Stock (20000)	20000	Direct
Common Stock (right to buy)	$6.65	2012-01-03	Common Stock (20000)	20000	Direct
Common Stock (right to buy)	$3.66	2013-03-24	Common Stock (20000)	20000	Direct
Common Stock (right to buy)	$5.55	2014-10-11	Common Stock (11000)	11000	Direct
Common Stock (right to buy)	$6.03	2015-09-27	Common Stock (10000)	10000	Direct

Footnotes

F1: Subject to certain restrictions, 51,485 of this original option grant of 69,480 shares vested 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 five equal installments.

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