FORM 4 Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940

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1. Name and Address of Reporting Person * SIEGEL RICHARD W   2. Issuer Name and Ticker or Trading Symbol NANOPHASE TECHNOLOGIES CORPORATION [NANX] 5. Relationship of Reporting Person(s) to Issuer (Check all applicable) __X__ Director _____ 10% Owner _____ Officer (give title below) _____ Other (specify below) (Last) (First) (Middle) 1319 MARQUETTE DRIVE 3. Date of Earliest Transaction (Month/Day/Year) 02/01/2006 (Street) ROMEOVILLE 60446 4. If Amendment, Date Original Filed(Month/Day/Year) 6. Individual or Joint/Group Filing(Check Applicable Line) _X_ Form filed by One Reporting Person ___ Form filed by More than One Reporting Person (City) (State) (Zip) Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.Title of Security (Instr. 3) 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code (Instr. 8) 4. Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5) 5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4) 6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4) 7. Nature of Indirect Beneficial Ownership (Instr. 4) Code V Amount (A) or (D) Price Common Stock               232,372 D   Common Stock 02/01/2006   M   13,896 A $ 1.727 13,896 D   Common Stock 02/01/2006   S   13,896 D $ 7.76 0 D

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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)

1. Title of Derivative Security (Instr. 3)

2. Conversion or Exercise Price of Derivative Security

3. Transaction Date (Month/Day/Year)

3A. Deemed Execution Date, if any (Month/Day/Year)

4. Transaction Code (Instr. 8)

5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4, and 5)

6. Date Exercisable and Expiration Date (Month/Day/Year)

7. Title and Amount of Underlying Securities (Instr. 3 and 4)

8. Price of Derivative Security (Instr. 5)

9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)

10. Ownership Form of Derivative Security: Direct (D) or Indirect (I) (Instr. 4)

11. Nature of Indirect Beneficial Ownership (Instr. 4)

Code

V

(A)

(D)

Date Exercisable

Expiration Date

Title

Amount or Number of Shares

Common Stock (right to buy)

$ 1.727

02/01/2006

M

13,896

03/01/1997(1)

03/01/2006

Common Stock

13,896

$ 1.727

0

D

Common Stock (right to buy)

$ 3.886

11/07/1997(2)

11/07/2006

Common Stock

23,160

23,160

D

Common Stock (right to buy)

$ 5.25

06/10/1999(3)

06/10/2008

Common Stock

2,000

2,000

D

Common Stock (right to buy)

$ 3.8125

07/31/1999(1)

07/31/2008

Common Stock

11,600

11,600

D

Common Stock (right to buy)

$ 9.92

06/05/2002(3)

06/05/2011

Common Stock

2,000

2,000

D

Common Stock (right to buy)

$ 3.78

11/25/2003(3)

11/25/2012

Common Stock

2,000

2,000

D

Common Stock (right to buy)

$ 5.07

06/26/2004(3)

06/26/2013

Common Stock

2,000

2,000

D

Deferred Common Stock

(4) (6)

(5)

(5)

Common Stock

1,081

1,081

D

Reporting Owners

Reporting Owner Name / Address	Relationships
	Director	10% Owner	Officer	Other
SIEGEL RICHARD W 1319 MARQUETTE DRIVE ROMEOVILLE 60446	X

Signatures

By Jess Jankowski, under UPA, for Richard W. Siegel		02/03/2006
**Signature of Reporting Person		Date

Explanation of Responses:

*	If the form is filed by more than one reporting person, see Instruction 4(b)(v).
**	Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1)	Subject to certain restrictions, beginning on this date, the options vest in five equal annual installments.
(2)	Subject to certain restrictions, 19,177 of these options vest in five equal annual installments beginning on 11/7/97, with the remainder vesting on 11/7/04.
(3)	Subject to certain restrictions, beginning on this date, the options vest in three equal annual installments.
(4)	1,081 shares of common stock were to be granted under the Company's 2005 Non-Employee Director Restricted Stock Plan. Such shares are vested immediately but subject to certain transfer restrictions. Pursuant to such plan, the reporting person elected to defer receipt of such shares and receive instead 1,081 shares of deferred common stock which will be accounted for under the Company's Non-Employee Director Deferred Compensation Plan.
(5)	The deferred common stock becomes payable upon the reporting person's termination of service as a director of the Company.
(6)	Each share of deferred common stock represents a right to receive one share of common stock.
Remarks: Had these options not been exercised they would have expired on 3/1/2006.

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