On August 16, 2004 The Wall Street Journal ("Journal") published an article titled "Global Investment in Nanotechnology by Nations to Rise" that cites bullish forecasts of investments in nanotechnology expected by an as yet unreleased report. The article, that did not contain a "by" line, clearly maintains the Journal's modus operandi of supporting Wall Street's nanotech promotions such as Forbes' nanotech newsletter and Merrill Lynch & Co., Inc.'s well-publicized and equally controversial Nanotech Index and Nanosys Inc. IPO attempts.

The article focused on the nanotech investment forecasts from the untitled, unreleased report written by "Lux Research, Inc. of New York." The article did not disclose potential conflicts of interest including that Josh Wolfe, co-founder of Lux Capital and the Forbes/Wolfe Nanotech Report, is a Director and Advisor of Lux Research. And that Lux Research is run by employees of Lux Capital and one of Wolfe's other affiliations, the NanoBusiness Alliance. Or that Lux Research was incorporated just six months ago on January 21, 2004.

The facts in the two concluding paragraphs of the article show that venture capital investment in nanotech companies is down 75% this year versus 2003 and that Punk Ziegel & Co.'s nanotechnology stock index has declined 35% since its inception in January 2004. These facts completely contradict the article's title and the rosy forecasts presented from the unreleased report.

There is no explanation of how or why the Journal was able to review the data in the report before it was made available to the public. Compare the Journal's inappropriate nurturing of Wall Street's promotions to the writings from The New York Times ("Times"). On August 5, 2004 the Times published a story written by Barnaby Feder titled "Nanosys Calls Off Initial Public Offering" that reported many facts of consequence to investors including that the nanotech company's chief executive founded a company whose stock price has plummeted more than 97%. As well as that Merrill Lynch was one of Nanosys' bankers and had created a publicly listed Nanotech Index, which has been the subject of a series of controversies.