Dow Jones 11021.59 -3.92 5:42 am PST, March 5, 2006  NASDAQ 2302.60 -8.51 For info, visit access.smallcapnetwork.com S & P 500 1287.23 -1.91 Change your subscription status here Russell 2000 738.44 -1.72 VOLUME 06: ISSUE 19  Biophan: Planets Aligned for Share Price Rise. Biophan (OTCBB: BIPH) announced Friday (release below) that it has secured a collaboration with material sciences company NaturalNano (OTCBB: NNAN) regarding the use of ultra-tiny, hollow Halloysite nanotubes for the enhancement of several critical biomedical applications. And, as a result, BIPH has filed a broad patent application that will likely further grow its already impressive Intellectual Property (IP) portfolio. Read on, because this nanotube technology is truly amazing. Make no mistake: we believe that this relationship with NNAN will prove extremely rewarding to Biophan shareholders. Biophan also announced the addition of two more major MRI-compatibility patents to its growing IP portfolio. Details follow. We feel that both traders and long-term investors, for the growth potential and technical reasons outlined below, should accumulate the shares of Biophan at current levels. Investors can wait a long time for a technical picture that looks this good. This weekly chart appears to have completed the cleanup of the selling from the previous rise. Our favorite place to buy a stock is a .618 retracement on a weekly chart and you are looking at a prime example. Since October 2005, the shares have been stuck in a range between $1.50 and $2.00. Volume activity tells us that investors waiting for the next run-up have been accumulating the shares, which have been trading at the lower end of that range for a few months. Given the technical picture, it appears that rise may well be at hand. Really tiny tubes... Naturally occurring and extracted from Halloysite clay, these microscopic nanotubes' unique geometry enables them to be used for storing and delivering various chemicals, materials or drugs and controlling their release-- making possible a wide range of potential biomedical and commercial applications. Couple these naturally occurring, miniature delivery systems with Biophan's proprietary coatings and you have multiple potential applications. Not the least of which would be a new system of customizable, long-lasting and controlled delivery of drugs and other therapeutic agents. As well, nanotubes can be used not only, for example, with BIPH's MRI-friendly cardiac stents etc, but also for improved efficacy and drug delivery in high margin, everyday products such as bandages, skin patches, and all manner of wound-healing applications. The best part? Biophan has filed a broad patent application, which covers the above technologies. BIPH also holds the worldwide exclusive rights to NaturalNano's nanotube technologies for the medical and pharmaceutical markets. Investors, new and old, have good reason to be impressed. Over the years that we have discussed Biophan, the technologies and intellectual portfolio (IP) the Company has amassed since we first introduced it are beyond impressive.  With two new major patents issued--announced Friday-- regarding MRI safety and compatibility, BIPH's proprietary IP now numbers 50 US patents issued, 106 pending and 57 more pending internationally. Each one is eventual money in the bank for the Company (and its shareholders) as the big medical device companies will ultimately have less and less choice than to license technology from BIPH--not to mention the potential associated with the Company eventually commercializing its own products. And this amazing biotech R&D will just keep on coming for the benefit of shareholders.  We like Biophan. Mainly because instead of having complicated drugs or therapies, it has simple--relatively speaking--proprietary or complimentary technologies that can ease the costs of healthcare as well as delivering real world solutions to address serious medical issues.  Using technology to make medical processes more efficient, more cost effective and more available to a much broader range of patients is clearly laudable. Just as important, however, is that this type of technology/opportunity represents, in our opinion, an extremely worthwhile investment. Any one of BIPH's many impressive technologies--MRI compatible coatings for a myriad of medical devices, customizable drug delivery systems, the MYO-VAD device for the treatment of heart failure or its recent nanotube initiatives, could easily stand on their own.  However, BIPH investors receive the benefit and profit potential of all of these technologies, which have been acquired, developed or improved over the last year while the stock price has idled--not to mention the future potential of an ongoing and robust R&D program.  Markets will soon wake up to the potential of BIPH to the benefit of those investors who take a core position, now, in this unique and growing medical technology company.   PRESS RELEASE Biophan Files Broad Patent on Use of Halloysite Nanotubes for New Drug Delivery Applications Mar 3, 2006 4:01:00 PM Copyright Business Wire 2006 ROCHESTER, N.Y.--(BUSINESS WIRE)--March 3, 2006--Collaboration with NaturalNano Focuses on Development of Technologies for Controlled Release of Drugs in Variety of Medical Uses Biophan Technologies, Inc. (OTCBB: BIPH)(FWB: BTN), a developer of next-generation medical technology, announced today that it has filed a broad patent as part of its collaboration with strategic partner NaturalNano (OTCBB: NNAN) on novel drug delivery technologies involving applications of naturally occurring nanotubes found in halloysite clay. Biophan and NaturalNano are collaborating to develop products using the nanotubes as advanced drug delivery systems in a number of proprietary biomedical applications. Biophan's newly filed patent application covers biomedical uses of the nanotubes for a range of products, including bandages, wound healing applications, and other uses. Other advanced drug delivery technologies that Biophan will focus on involve using electromagnetic fields for active elution. Under a previously reached agreement between the companies, Biophan holds the worldwide exclusive rights to NaturalNano's nanotube technologies for the medical and pharmaceutical markets. NaturalNano is working with Biophan's drug delivery division, Nanolution, to develop and market the nanotube-based technologies. NaturalNano develops products and technologies based on naturally occurring nanotubes found in halloysite clay, whose unique properties present a range of potentially valuable commercial applications. Scientists at NaturalNano are developing proprietary methods and hold or have licensed in multiple pending and issued patents for separating the nanotubes and processing them for use in a variety of commercial applications, such as additives in polymers and plastics, electronic components, cosmetics, and absorbent materials. Prototypes in development include nanotube-enriched paint that can block radio frequency signals, such as cell phone signals, and other technology that allows radio frequency signals to enter an otherwise shielded environment. "NaturalNano's halloysite-derived nanotubes have unique properties that make them extremely promising for development in biomedical applications," said John Lanzafame, President of Biophan's Nanolution division "We believe this partnership with NaturalNano will lead to a new class of long lasting controlled release agents for drugs and other materials, in medical device coatings and for pharmaceutical compounds." In related news, Biophan announced it has achieved a new corporate milestone with the recent issuance of two major U.S. Patents related to MRI safety and compatibility, bringing the Company portfolio's total to 50 issued U.S. patents. Biophan's two newly announced patents come in addition to the Company's 106 pending patent applications, and 57 additional international patent applications at various stages of prosecution, for a total of 213 pending and issued patents. About NaturalNano Inc. NaturalNano, Inc. (OTC Bulletin Board: NNAN) (FWB: N3N) is a materials science company developing unique and proprietary processes for refining naturally occurring nanotubes and other nanomaterials that add competitive properties to a range of applications. These include additives to cosmetics and personal care products, and absorbent materials, as well as: electromagnetic interference shielding, specialty coatings, and material additives for industrial polymers, plastics and composites. NaturalNano possesses broad intellectual property rights and proprietary know-how for extraction and separation processes, compositions, and derivatives of halloysite and other nanotubes. For more information, please visit www.naturalnano.com. About Biophan Technologies Biophan develops and markets cutting-edge technologies designed to make biomedical devices safe and image compatible with the magnetic resonance imaging (MRI) environment. The Company develops technologies that enable medical systems such as pacemakers, interventional surgical devices such as catheters and guidewires, and implants such as stents to be safely and/or effectively imaged under MRI. Biophan is developing these same technologies to provide new MRI contrast agents. Other applications include drug delivery and power systems which derive energy from body heat. Biophan also has a minority interest in MYOTECH, LLC to help develop and commercialize the MYO-VAD(TM), a novel, MRI- compatible ventricular assist device which has significant potential for improving the treatment of many forms of heart failure. Committed to growth through innovation and developmental leadership, Biophan and its licensors now hold a total of 156 U.S. patents, licenses, or applications, plus international applications. This total includes 50 issued U.S. patents, 8 recently-allowed applications that will issue as patents in the near future, and 98 pending applications at various stages of examination at the U.S. Patent and Trademark Office. The patents cover areas including nanotechnology (nanomagnetic particle coatings), medical device designs, radio frequency filters, polymer composites, thermoelectric materials, and photonics. Biophan has joint development and licensing agreements with Boston Scientific and NASA's Ames Center for Nanotechnology. Biophan's goal is to make all biomedical devices capable of safely and successfully working with MRI, and delivering other technologies which will improve the delivery of healthcare. Biophan is also listed on the Frankfurt Stock Exchange under the ticker symbol BTN. For more information, please visit www.biophan.com. Cautionary Statement Regarding Forward-Looking Statements Certain statements included in this press release may constitute forward-looking statements within the meaning of applicable securities laws. These statements reflect what Biophan anticipates, expects, or believes may happen in the future. Biophan's actual results could differ materially from the outcome or circumstance expressed or implied by such forward-looking statements as a result of a variety of factors including, but not limited to: Biophan's ability to develop its technologies; the approval of Biophan's patent applications; the successful implementation of Biophan's research and development programs; the ability of Biophan to demonstrate the effectiveness of its technology; the acceptance by the market of Biophan's technology and products incorporating such technology, the ability of Biophan to effectively negotiate and enter into contracts with medical device manufacturers for the licensing of Biophan's technology; competition; the ability of Biophan to raise capital to fund its operating and research and development activities until it generates revenues sufficient to do so; and the timing of projects and trends in future operating performance, as well as other factors expressed from time to time in Biophan's periodic filings with the Securities and Exchange Commission (the "SEC"). As a result, this press release should be read in conjunction with Biophan's periodic filings with the SEC which are incorporated herein by reference. The forward-looking statements contained herein are made only as of the date of this press release, and Biophan undertakes no obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances. Source: Biophan Technologies, Inc.   We Value Your Feedback Got comments, questions or suggestions? Send 'em on over: Editor@smallcapnetwork.com If you wish to send a written request or inquiry, please send it to our physical address: TGR Group, LLC 4653 Carmel Mtn Rd Suite 308 #402  San Diego, CA 92130 Russell Rockin' Every year, right around now, we are told that the smallcap market is finally dead. Or will be for the year. Au contraire. The Russell 2000 has already moved up 10 percent year to date for what looks an excellent start to an eighth good year for small and microcaps. Why does there need to be a bad year? Why the rivalry? Not sure the point of the argument. The facts are the facts and stocks are stocks. The process is straightforward: do your due diligence pick good stocks, whether big cap or small, be patient and have the discipline to set stops and targets. Did I miss anything?   Someone Likes Biotech Novelos. A Lot. Biotech fave Novelos (OTCBB: NVLT) announced a $15 million private placement with a group of quality institutional investors, which will undoubtedly go a very long way to execute the Company's Phase 3 NOV-002 lung cancer trial as well as other clinical development programs. There will be those who will be concerned about dilution, but I have to wonder; how are these companies expected to move forward without these types of deals? I would submit that as the Company progresses, this amount will fade as small potatoes as the Phase 3 trial and other initiatives bite. The stock looks constructive from a technical perspective as well. At the $1.90-$2 level, the shares have completed the coveted double repo and appear to have limited resistance until $2.65, which represents the 3/8 retracement from the all time high and a 5/8 retracement from the winter high. All in all, given the tech picture and the ongoing growing volumes, snagging some shares at these levels will likely be profitable over the next 6-12 months--especially as the Phase 3 NOV-002 trial gets underway later in 2006. To see the chart we're referring to, click here.   Xtreme'ly Good. Looks like security/leisure boater Xtreme Cos. (OTCBB: XTME) grew some decent legs as it moved from 11 cents Thursday to hit 16 cents (closed just north of 15 cents) Friday on Thursday's Challenger acquisition announcement. Again, the technical picture looked skookum as the previous action denoted a pop off the bottom, which apparently just needed a news catalyst to move it. We see some resistance at 23 cents, traders might want to take a bit out now after an almost 50 percent move in a day. We see more to come, but ya can't lose money taking a profit. A core holding in XTME is warranted and we suggest risk-oriented investors accumulate more on any pullback. 2006 looks a great year for the company. We'll continue to report, both here and on the SCBLOG as events warrant. Here's our piece from Thursday. Thoughts on XTME or anything else? Email me. I'm around. Subscribe Information is power and timely information is profitable. Become informed and profit from SmallCapDigest Profiles and Trading Alerts by becoming a Preferred Member today. There is no cost associated with your email subscription. Add your email address below and make sure to check your email inbox and confirm your opt-in request to start receiving the SmallCapDigest Email Newsletter on a regular basis. 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All companies are chosen on the basis of certain financial analysis and other pertinent criteria with a view toward  maximizing the upside potential for investors while minimizing the downside risk, whenever possible.  Moreover, as detailed below, this publication accepts compensation from third party consultants and/or companies which it features for the publication and circulation of the SmallCap Digest or representation on SmallCapNetwork.net.  Likewise, this newsletter is owned by TGR Group, LLC.  To the degrees enumerated herein,  this newsletter should not be regarded as an independent publication. Visit Here to view our compensation on every company we have ever covered, or visit the following web address:  http://access.smallcapnetwork.com/compensation_disclosure.html for our full compensation disclosure and http://access.smallcapnetwork.com/short_term_alerts.html for Trading Alerts compensation and disclosure. TGR Group LLC has been paid a fee of $25,000 and 100,000 shares of newly issued restricted stock by Novelos for coverage of the Company. TGR Group LLC has been paid a fee of $25,000 cash and 500,000 shares of newly issued restricted stock directly by Xtreme Companies for coverage. TGR Group LLC has been paid fees of $85,000 in total directly by Biophan Technologies, Inc. for reporting on the Company. Additionally, TGR Group LLC was paid a fee of $25,000 by Trilogy Capital for reporting on the Company in August of 2004. All statements and expressions are the sole  opinions of the editors and are subject to change without notice. A profile, description, or other mention of a company in the newsletter is neither an offer nor solicitation to buy or sell any securities  mentioned. While we believe all sources of information to be factual and reliable, in no way do we represent or guarantee the accuracy thereof, nor the statements made herein. 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