A method for preparing exfoliated clay nanocomposites by in-situ polymerization comprising the steps of (a) providing a mixture of at least one type of monomer and at least one type of organophilic clay; and (b) initiating an in-situ polymerization reaction in the mixture so as to cause the at least one type of monomer to polymerize thereby forming the exfoliated clay nanocomposite. The exfoliated clay nanocomposite produces an x-ray diffraction pattern that is substantially devoid of an intercalation peak. The exfoliated clay nanocomposite may then be used as a masterbatch.