BUFFALO, N.Y., July 1 -- Nanotechnology company NanoDynamics Inc. has unveiled expansion plans for its Buffalo and Pittsburgh operations and is receiving incentives from New York state and Pennsylvania to support those efforts. In Buffalo, where the the nanomaterials manufacturer is based, the company will receive about $1.6 million in grants, tax breaks and Empire Zone credits from Empire State Development Corp. The capital investment and job creation incentives are tied to the company creating 400 jobs in the next five to seven years at its site on the waterfront on Fuhrmann Boulevard. The company will receive a $2 million federal appropriation through a congressional energy and water bill to develop a fuel cell system for water treatment facilities that will operate through the use of methane gas. In Pittsburgh, the company will receive $1.1 million from the Pennsylvania Department of Community and Economic Development to create a new division in the Pittsburgh Life Sciences Greenhouse with up to 50 employees over five years. The unit will explore the uses of NanoDynamics' nanotechnology and nanomaterials in the life sciences area for applications such as antimicrobial or biocidal surfaces. NanoDynamics currently has about 60 employees locally focusing on nanometal powders, fuel cell technology and other research. Plans call for adding another 20 to 25 by the end of the year, said Keith Blakely, CEO. Founded in 2002, the company also has about 10 employees at a facility in Columbus, Ohio. Nanodynamics announced last week that F. Mark Modzelewski is joining the firm as vice president of strategic opportunities. Modzelewski founded and is executive chairman of The NanoBusiness Alliance. He also co-founded and was managing director of Lux Research, a research and advisory firm focusing on the business and economic impact of nanotechnology and related technologies. This spring, he was a visiting professor at Rensselaer Polytechnic Institute's Lally School of Business, where he taught technology entrepreneurship. In 2003, Modzelewski launched the Benet Group, a private equity firm focused on bionanotechnology companies, that builds startups working with university and government researchers. Modzelewski is a member of the Nanotechnology Technical Advisory Group to The President's Council of Advisors on Science and Technology (PCAST). He was recently recognized by Forbes as one of nanotech's top "powerbrokers." For more information, visit: www.nanodynamics.com