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QuantumSphere
Manufacturing
Facility and
Headquarters




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




2005 Metallic Nanopowder Technologies Technology Innovation of the Year Award
Press Contact:
Michele Kinman
408-218-8815
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QuantumSphere Celebrates new Industry Milestones, Marks Third Year of Business and Technology Success, Adds Seasoned Operations and Business Executive to Company

SANTA ANA, CA, U.S.A. – February 7, 2006 – QuantumSphere, Inc., the leading manufacturer of metallic nanopowders and alloys for applications in energy, electronics, aerospace and other markets demanding advanced materials, announced it has appointed Patrick Deane to the position of Chief Financial Officer and Chief Operations Officer for QuantumSphere, Inc. Deane’s addition will establish a solid platform on which QuantumSphere will manage steady, organic growth and exceed customer expectations by delivering the world’s most reliable, high-performance and quality nanopowder products on the market today. This news follows QuantumSphere’s previous announcement that Nobel Laureate and pioneer of the methanol economy, Dr. George Olah, joined QuantumSphere, Inc. as the firm continues to attract customer validation and grow in the marketplace.

QuantumSphere Achieves Business and Technology Milestones for Third Consecutive Year

The cornerstone of QuantumSphere’s growth is based on its ability to manufacture, scale, deliver quality products and build long-term customer relationships, pointing the way for future success. Milestones achieved include:

Dramatic Sales and Revenue Growth
Revenues in the first quarter of this year alone are up almost 300% compared to all of 2005, while the number of orders and product inquiries continue to increase.

QuantumSphere Continues to Scale, Meet Customer Demand
To better accommodate product demand, QuantumSphere built three new reactors that will go online in Q2, 2006. These dedicated systems will allow QuantumSphere to provide greater production capacity of high quality Nickel, Silver and Cobalt nanometals and alloys with the world’s highest purity levels, uniform distribution and low oxide content.

Focused Approach, Flexible Products Drive new Revenue Streams
QuantumSphere continues to successfully execute its business strategy and achieve exceptional results in the areas of low-cost, high performance catalysts for DMFC and other types of fuel cells and high performance batteries. QuantumSphere has also experienced significant customer traction and increased revenues from nano-copper, nano-silver and nano-iron/cobalt sales for RFID, conductive ink, anti-microbial and magnetic coating applications.

“Deane’s addition will immeasurably benefit our firm, as his track record of being flexible and responsive to customer needs, setting metrics and achieving measurable results, maintaining a focused approach, while managing the company’s cash and resources prudently, are squarely aligned with QuantumSphere’s goals,” said Kevin Maloney, CEO, QuantumSphere, Inc. “As a result, Deane provides the rigors of financial and operational public-company management expertise that will enable QuantumSphere to keep costs in check, ramp profitability and establish a firm built on real people, science, products and customers- a first when compared to other companies in the nanotechnology space,” Maloney added.

“QuantumSphere has an impressive combination of market leadership, blue-chip customers and it is the best positioned company on the market to commercialize products that are invaluable for the production of batteries, as well as high-power density fuel cells that will provide performance advantages in a wide variety of applications,” said Patrick Deane, Chief Financial Officer and Chief Operations Officer, QuantumSphere, Inc. “I am pleased to join QuantumSphere’s highly motivated team and provide them with insight that will help the firm penetrate new growth areas, gain new partners, customers, accelerate revenues and increase profitability,” Deane added.

Deane’s strong operations and financial leadership are evidenced in his over twelve years of senior executive experience. Deane has established a reputation not only as a dynamic team builder, but also as an implementer of processes that revolutionize organizational effectiveness. Prior to joining the team at QuantumSphere, Deane was VP of Finance, and later VP of Operations, of the number two Internet content distribution firm, VitalStream Holdings, Inc (OTC: VSTH). He also served as Controller of ITB, a Beneventure Capitol Portfolio Company. Deane holds a B.A. in Business Administration from California State University at Fullerton and an M.B.A. from the Pepperdine University Graziadio School of Business and Management.

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.