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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13G
Under the Securities Exchange Act of 1934
(Amendment No. 1)*
Nanophase Technologies Corporation
- --------------------------------------------------------------------------------
(Name of Issuer)
Common Stock
- --------------------------------------------------------------------------------
(Title of Class of Securities)
630079101
- --------------------------------------------------------------------------------
(CUSIP Number)
December 31, 1998
- --------------------------------------------------------------------------------
(Date of Event Which Requires Filing of this Statement)
Check the appropriate box to designate the rule pursuant to which this Schedule
is filed:
[ ] Rule 13d - 1(b)
[ ] Rule 13d - 1(c)
[X] Rule 13d - 1(d)
*The remainder of this cover page shall be filled out for a reporting person's
initial filing on this form with respect to the subject class of securities, and
for any subsequent amendment containing information which would alter the
disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed
to be "filed" for the purpose of Section 18 of the Securities Exchange Act of
1934 ("Act") or otherwise subject to the liabilities of that section of the Act
but shall be subject to all other provisions of the Act (however, see the
Notes).
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 2 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | ARCH Venture Fund II, L.P. |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | Delaware |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | PN |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 3 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | ARCH Management Partners II, L.P. |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | Delaware |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | PN |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 4 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | ARCH Venture Partners, L.P. |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | Delaware |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | PN |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 5 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | ARCH Venture Corporation |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | Illinois |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | CO |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 6 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | ARCH Venture Fund, L.P. |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | Delaware |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | PN |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 7 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | ARCH Development Corporation |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | Illinois |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | CO |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 8 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | Steven Lazarus |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | USA |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | IN |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 9 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | Keith Crandell |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | USA |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | IN |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 10 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
|--------|---------------------------------------------------------------------|
| 1 | NAMES OF REPORTING PERSONS |
| | I.R.S. IDENTIFICATION NOS. OF ABOVE PERSONS (ENTITIES ONLY) |
| | |
| | Robert Nelsen |
|--------|---------------------------------------------------------------------|
| 2 | CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [ ] |
| | (b) [ ] |
| | |
|--------|---------------------------------------------------------------------|
| 3 | SEC USE ONLY |
| | |
|--------|---------------------------------------------------------------------|
| 4 | CITIZENSHIP OR PLACE OF ORGANIZATION |
| | |
| | USA |
|-----------------|--------|---------------------------------------------------|
| | 5 | SOLE VOTING POWER |
| | | 0 |
| NUMBER OF |--------|---------------------------------------------------|
| SHARES | 6 | SHARED VOTING POWER |
| BENEFICIALLY | | 0 |
| OWNED BY |--------|---------------------------------------------------|
| EACH | 7 | SOLE DISPOSITIVE POWER |
| REPORTING | | 0 |
| PERSON |--------|---------------------------------------------------|
| WITH | 8 | SHARED DISPOSITIVE POWER |
| | | 0 |
|------------------------------------------------------------------------------|
| 9 | AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON |
| | |
| | 0 |
|--------|---------------------------------------------------------------------|
| 10 | CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (9) EXCLUDES CERTAIN [ ] |
| | SHARES* |
| | |
|--------|---------------------------------------------------------------------|
| 11 | PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9) |
| | 0% |
|--------|---------------------------------------------------------------------|
| 12 | TYPE OF REPORTING PERSON* |
| | IN |
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 11 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
Item 1(a). Name of Issuer:
---------------
Nanophase Technologies Corporation (the "Issuer").
Item 1(b). Address of Issuer's Principal Executive Offices:
------------------------------------------------
453 Commerce Street, Burr Ridge, Illinois 60521.
Item 2(a). Names of Persons Filing:
------------------------
ARCH Venture Fund, L.P. ("ARCH Venture Fund"); ARCH Development
Corporation ("ARCH Development Corporation"); ARCH Venture Fund
II, L.P. ("ARCH Venture Fund II"); ARCH Management Partners II,
L.P. ("ARCH Management Partners II"); ARCH Venture Partners,
L.P. ("ARCH Venture Partners"); ARCH Venture Corporation ("ARCH
Venture Corporation"); Steven Lazarus, Keith Crandell and
Robert Nelsen (collectively, the "Managing Directors"). ARCH
Venture Fund, ARCH Development Corporation, ARCH Venture Fund
II, ARCH Management Partners II, ARCH Venture Partners, ARCH
Venture Corporation and the Managing Directors collectively are
referred to as the "Reporting Persons".
Item 2(b). Address of Principal Business Office:
-------------------------------------
8725 W. Higgins Road, Suite 290, Chicago, IL 60631.
Item 2(c). Citizenship:
------------
ARCH Venture Fund, ARCH Venture Fund II, ARCH Management
Partners II and ARCH Venture Partners are limited partnerships
organized under the laws of the State of Delaware. ARCH Venture
Corporation and ARCH Development Corporation are corporations
organized under the laws of the State of Illinois. Each
Managing Director is a US citizen.
Item 2(d). Title of Class of Securities:
-----------------------------
Common Stock, $.01 (the "Common Stock").
Item 2(e). CUSIP Number:
-------------
630079101
Item 3. If this statement is filed pursuant to Rules 13d-1(b), or
13d-2(b) or (c), check whether the person filing is a:
----------------------------------------------------------
Not Applicable.
Item 4. Ownership:
----------
(a) Amount Beneficially Owned:
--------------------------
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 12 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
As of December 31, 1998, no shares are beneficially
owned by any of the Reporting Persons.
(b) Percent of Class:
-----------------
ARCH Venture Fund, 0%; ARCH Development Corporation,
0%; ARCH Venture Fund II, 0%; ARCH Management Partners
II, 0%; ARCH Venture Partners, 0%; ARCH Venture
Corporation, 0%; Steven Lazarus, 0%; Keith Crandell,
0%; and Robert Nelsen, 0%. The foregoing percentages
are calculated based on the 12,564,638 shares of Common
Stock reported to be outstanding in the Issuer's
Quarterly Report Form 10-Q for the quarterly period
ending September 30, 1998.
(c) Number of Shares as to Which Such Person Has:
---------------------------------------------
(i) Sole power to vote or to direct the vote:
-----------------------------------------
Each of the Reporting Persons has 0 sole power to
direct the vote.
(ii) Shared power to vote or to direct the vote:
-------------------------------------------
Each of the Reporting Persons has 0 shared power to
direct the vote.
(iii) Sole power to dispose or to direct the
disposition of:
---------------------------------------------
Each of the Reporting Persons has 0 sole power to
dispose or to direct the disposition of.
(iv) Shared power to dispose or to direct the
disposition of:
----------------------------------------------
Each of the Reporting Persons has 0 shared power to
dispose or to direct the disposition of.
Item 5. Ownership of Five Percent or Less of a Class:
---------------------------------------------
Each of the Reporting Persons is the owner of less than 5% of a
class.
Item 6. Ownership of More than Five Percent on Behalf of Another
Person:
---------------------------------------------------------
Not Applicable.
Item 7. Identification and Classification of the Subsidiary Which
Acquired the Security Being Reported on By the Parent Holding
Company:
-------------------------------------------------------------
Not Applicable.
Item 8. Identification and Classification of Members of the Group:
----------------------------------------------------------
ARCH Venture Fund II, ARCH Management Partners II, ARCH Venture
Partners, ARCH Venture Corporation, the Managing Directors,
ARCH Venture Fund, and ARCH Development Corporation expressly
disclaim membership in a "group" as defined in Rule
13d-5(b)(1).
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 13 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
Item 9. Notice of Dissolution of Group:
-------------------------------
Not Applicable.
Item 10. Certification:
--------------
Not Applicable. This statement on Schedule 13G is not filed
pursuant to Rule 13d-1(b) or 13d-1(c).
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 14 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
SIGNATURE
---------
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in this statement is true, complete and
correct.
Dated: February 5, 1999 ARCH VENTURE FUND II, L.P.
By: ARCH Management Partners II, L.P.
its General Partner
By: ARCH Venture Partners, L.P.
its General Partner
By: ARCH Venture Corporation
its General Partner
By: /s/ Steven Lazarus
------------------
Managing Director
ARCH MANAGEMENT PARTNERS II, L.P.
By: ARCH Venture Partners, L.P.
its General Partner
By: ARCH Venture Corporation
its General Partner
By: /s/ Steven Lazarus
------------------
Managing Director
ARCH VENTURE PARTNERS, L.P.
By: ARCH Venture Corporation
its General Partner
By: /s/ Steven Lazarus
------------------
Managing Director
ARCH VENTURE CORPORATION
By: /s/ Steven Lazarus
------------------
Managing Director
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 15 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
ARCH VENTURE FUND, L.P.
By: ARCH Development Corporation
its General Partner
By: /s/ Steven Lazarus
------------------
Steven Lazarus
Its: Agent and Attorney In Fact
--------------------------
ARCH DEVELOPMENT CORPORATION
By: /s/ Steven Lazarus
------------------
Steven Lazarus
Its: Agent and Attorney In Fact
/s/ Steven Lazarus
--------------------------
Steven Lazarus
/s/ Keith Crandell
--------------------------
Keith Crandell
/s/ Robert Nelsen
--------------------------
Robert Nelsen
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 16 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
Exhibit 1
---------
AGREEMENT
---------
Pursuant to Rule 13d-1-(f)(1) under the Securities Exchange Act of
1934, the undersigned hereby agree that only one statement containing the
information required by Schedule 13G need be filed with respect to the ownership
by each of the undersigned of shares of stock of Nanophase Technologies
Corporation.
This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original.
Dated: February 5, 1999 ARCH VENTURE FUND II, L.P.
By: ARCH Management Partners II, L.P.
its General Partner
By: ARCH Venture Partners, L.P.
its General Partner
By: ARCH Venture Corporation
its General Partner
By: /s/ Steven Lazarus
-------------------
Managing Director
ARCH MANAGEMENT PARTNERS II, L.P.
By: ARCH Venture Partners, L.P.
its General Partner
By: ARCH Venture Corporation
its General Partner
By: /s/ Steven Lazarus
-------------------
Managing Director
ARCH VENTURE PARTNERS, L.P.
By: ARCH Venture Corporation
its General Partner
By: /s/ Steven Lazarus
--------------------
Managing Director
ARCH VENTURE CORPORATION
By: /s/ Steven Lazarus
----------------------
Managing Director
<PAGE>
- ---------------------------------- ---------------------------
|CUSIP NO. 630079101 | 13G | Page 17 of 17 Pages |
| ----------- | | --- --- |
- ---------------------------------- ---------------------------
ARCH VENTURE FUND, L.P.
By: ARCH Development Corporation
its General Partner
By: /s/ Steven Lazarus
----------------------
Steven Lazarus
Its: Agent and Attorney In Fact
---------------------------
ARCH DEVELOPMENT CORPORATION
By: /s/ Steven Lazarus
-----------------------
Steven Lazarus
Its: Agent and Attorney In Fact
---------------------------
/s/ Steven Lazarus
----------------------
Steven Lazarus
/s/ Keith Crandell
----------------------
Keith Crandell
/s/ Robert Nelsen
----------------------
Robert Nelsen
