Press Contact: Michele Kinman 408-218-8815 Email

COSTA MESA, CA, U.S.A. – July 19, 2005 – QuantumSphere, Inc., the leading manufacturer of metallic nanopowders for applications in aerospace, defense, energy, biomedical and other markets demanding advanced material applications, announced the appointment of Kimberly McGrath, Ph.D., to the position of Director of Fuel Cell Research. In this position, Dr. McGrath will leverage her experience in the research and commercialization of fuel cell technology to drive the company’s strong track record as a manufacturer and provider of products to a global customer base. QuantumSphere is the only supplier of the world’s highest quality metallic nanomaterials including QSI-nano™ nickel (n-Ni), QSI-nano™ silver, QSI-nano™ copper, QSI- nano™ Ni/Co and other proprietary alloys. These materials will replace platinum as the main catalyst in hydrogen fuel cells and other electrode assemblies and provide a renewable source of power to supply the world’s energy needs. Dr. McGrath will work with QuantumSphere’s world-class research team to synthesize and characterize a highly optimized catalyst composition for PEM and DMFC fuel cell anode and cathode electrodes using the company’s highly catalytic metallic nanopowders. As Director of Fuel Cell Research, Dr. McGrath will also tailor catalysts for various cell types and operating temperature regimes and design new fuel cell systems for small, portable applications that will be efficient at room temperature with minimal catalyst loading.

“Dr. McGrath has years of experience designing catalysts, membranes and components for direct oxidation fuel cells and her energy, enthusiasm and ability to execute is unsurpassed,” said Kevin Maloney, CEO, QuantumSphere, Inc. “She has extensive knowledge of fuel cell performance evaluation and electrochemical characterization of anode and cathode catalysts. As a result, Dr. McGrath’s addition will augment a powerful research team as QuantumSphere continues to experience strong customer demand for the company’s products that serve the fuel cell market and other areas that leverage our nanopowders for advanced material applications,” Maloney added.

Prior to QuantumSphere, platinum was widely considered to be the best catalyst for proton exchange membrane fuel cells, such as hydrogen and direct methanol cell (DMFC) in terms of electrical efficiency. However, platinum is about 1,400% more expensive per gram than QuantumSphere’s solution. As a result, the company believes its QSI-nano™ materials will replace platinum as the main catalyst in hydrogen fuel cells and other electrode assemblies. As QuantumSphere announces additional customer wins in 2005, the market will realize a decades-long hurdle has been overcome as QuantumSphere, with Dr. McGrath, continues to research, develop, produce and ship alternative catalyst products on a mass scale at a fraction of the cost.

“I am delighted to join QuantumSphere’s highly motivated and seasoned business and technical team,” said Kimberly McGrath, Ph.D., Director of Fuel Cell Research, QuantumSphere, Inc. “It is a pivotal time in the catalysis industry, especially as it relates to renewable energy sources QuantumSphere will continue to play a pivotal role in providing orders-of-magnitude improvements in catalysts for PEM fuel cells via QuantumSphere’s superior development and production process. QuantumSphere is a dynamic company with a very tight-knit team of engineers and chemists who come from a variety of backgrounds. This diversity and community environment promotes novel thinking and synergistic concepts not limited to a single facet of science. It is this type free-thinking that is most conducive to major scientific breakthroughs,” McGrath added.

About QuantumSphere, Inc

QuantumSphere is a manufacturer of nanoscale metals and alloys for applications in portable power, renewable energy, electronics, aerospace, defense and other markets demanding advanced materials. QuantumSphere’s proprietary technology enables the production of ultra-pure, highly uniform nanometals and alloys under 50 nanometers in high volume at commercial prices with the potential to be utilized in a large number of new applications. QuantumSphere has also created an extensive intellectual property portfolio around its process capabilities and end-use commercial applications. QuantumSphere seeks to leverage its market position to manufacture and ship high-performance catalyst materials and electrode devices for clean-energy applications such as batteries and micro fuel cells for portable power and hydrogen generation through electrolysis, among others.

QuantumSphere also works closely with leading universities by funding research to validate QuantumSphere-Nano materials and generate licensing rights to intellectual property for disruptive high-value commercial applications. For more information, please visit www.qsinano.com.