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QuantumSphere, Inc.
2905 Tech Center Drive
Santa Ana, CA 92705

2005 Metallic Nanopowder Technologies Technology Innovation of the Year Award
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Michele Kinman

Nobel Laureate, World-Renowned Scientific Leader, and Pioneer of the Methanol Economy, Dr. George Olah, Joins QuantumSphere, Inc.

SANTA ANA, CA, U.S.A. – January 11, 2006 – QuantumSphere, Inc., the leading manufacturer of metallic nanopowders for applications in aerospace, defense, energy, electronics and other markets demanding advanced material applications, announced Professor George A.Olah, recipient of the 1994 Nobel Prize in Chemistry, has joined QuantumSphere’s Scientific Advisory Board. This news follows QuantumSphere’s previous announcement that it received Frost & Sullivan’s Technology Innovation of the Year Award for 2005. QuantumSphere is the only supplier of the world’s highest quality magnetic, conductive and catalytic metallic nanopowders, including QSI-nano™ nickel, silver, copper, cobalt and other proprietary nanoscale alloys. QSI-nano™ metals and nanometal alloys are now replacing a significant portion of platinum, currently the main catalyst in a variety of fuel cells. These materials will also be used in high performance batteries. Dr. Olah is the Director of the University of Southern California’s Loker Hydrocarbon Research Institute and Distinguished Professor in Organic Chemistry. Dr. Olah joined QuantumSphere’s Scientific Board of Advisors based on the following criteria: market need, technological excellence and management leadership. “QuantumSphere combines unique, proprietary technology, management team excellence and an ability to execute that will squarely place them in a position to serve a global market opportunity,” said Prof. Olah.

Nobel Prize Winning Researcher’s Work Intersects With QuantumSphere’s Business Strategy and Execution
Dr. Olah’s discoveries led to the development of a new kind of fuel cell, called the direct methanol fuel cell (DMFC), that is a highly efficient and convenient source of electricity. “We find that Dr. Olah’s pioneering fuel cell work is complimentary to what we’re doing at QuantumSphere and the way our company is reshaping the marketplace,” said Kevin Maloney, CEO, QuantumSphere, Inc. “Platinum was widely considered to be the best catalyst for proton exchange membrane fuel cells, such as hydrogen and direct methanol cell in terms of electrical efficiency. However, platinum is about 500% more expensive per gram than QuantumSphere’s solution. A shift from finely divided platinum to QSI- nano™ metals and alloys results in a reduction in the cost of fuel cell and battery catalysts. That said, Dr. Olah’s research to provide a highly efficient and convenient source of electricity, fits well with QuantumSphere’s business, as we continue to commercialize products that are invaluable for the production of high-power density fuel cells that will provide performance advantages in cell phones, cameras and other portable electronics,” Maloney added.

Dr. Olah has published over 1,300 scientific papers, 15 books and has been issued 120 patents. In 2003, he was awarded the Grand Cordon of the Order of the Rising Sun of Japan for his continued work promoting chemistry in Japan. In addition he was awarded the Priestly Medal in 2005 from the American Chemical Society. His most recent research centers on the conversion of two greenhouse gases, carbon dioxide and methane, into useful fuels and products, investigations driven by his long-standing interest in energy and environmental issues. To find new solutions to these pressing issues, Olah is working to develop new, cleaner and renewable energy technologies, based on methanol, to replace diminishing oil reserves while reducing levels of greenhouse gases. Olah has made significant research contributions to the practical development of improved lead-free gasoline, cleaner high-octane gas and other promising nonpolluting fuels, as well as many chemical processes now used in pharmaceutical and industrial chemistry.

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