Los Angeles, CA - August 3, 2007 --Material Technologies Inc., (OTCBB: MTTG.OB - News),a developer of advanced technology to monitor and measure metal fatigue, today reported that its European institutional investors have committed more capital by exercising warrants from a round of equity financing arranged earlier this year through Continental Advisors SA of Luxembourg.

The investors include leading firms Julius Baer Asset Management of Zurich, Switzerland, and Anima Funds of Milan, Italy. Fund managers cited the potential of Material Technologies' EFS technology to detect cracks in aging bridges and infrastructure in the U.S. and Europe. EFS best utilizes bridge and rail maintenance funds by finding cracks early on, so that they can be repaired quickly and inexpensively before a failure is imminent.

"Once a competitive advantage, the U.S. infrastructure from roads and bridges to pipelines and sewage is becoming a growing liability and a new focus for the government. Material Technologies is favorably positioned to benefit from this renewed spending cycle," said Alexander Shalash, Executive Director and fund manager for Julius Baer Asset Management.

Materials Technologies now has the necessary capital to continue its expansion and marketing campaign to further add municipalities, states and countries in need of disaster-averting EFS technology to the list of its clients.

"This decision by high-profile money managers to commit significant new equity capital is a strong vote of confidence for the future of this company and of its technology," said Material Technologies CEO Robert M. Bernstein. "It enables us to meet our capital needs for the foreseeable future, and it recognizes the potential demand for EFS technology, especially amid safety concerns that have been heightened by this week's bridge collapse in Minnesota."

About Material Technologies

Material Technologies Inc., also known as MATECH, is an engineering, research and development company specializing in technologies to measure microscopic fractures and flaws in metal structures and monitor metal fatigue in real time. The company's leading-edge metal fatigue detection, measurement and monitoring solutions can accurately test the integrity of metal structures and equipment including bridges, railroads, airplanes, ships, cranes, power plants, mining equipment, piping systems and heavy iron.

Forward-Looking Statements: Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Such statements are indicated by words or phrases such as "believe," "will," "breakthrough," "significant," "indicated," "feel," "revolutionary," "should," "ideal," "extremely" and "excited." These statements are made under "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See the Company's filings with the Securities and Exchange Commission including, without limitation, the Company's recent Form 10-K and Form 10-Qs, which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

Contact:

Robert M. Bernstein
Material Technologies, Inc.
1.310.208.5589
matech@matechcorp.com or
or
Investor or Media Relations
Omar Tajyar, 818-382-9704
Cell: 818-201-7455
otajyar@irintl.com