[QuantumSphere - Energetics and Power for Advanced Applications] February 2006

QuantumSphere Celebrates new Industry Milestones, Marks Third Year of Business and Technology Success, Adds Seasoned Operations and Business Executive to Company

QuantumSphere, Inc. is excited to announce it has appointed Patrick Deane to the position of Chief Financial Officer and Chief Operations Officer. Deane’s addition will establish a solid platform on which we 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.

Additionally QuantumSphere has achieved several business and technology milestones for the third consecutive year. The cornerstone of our 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.
Continues to Scale, Meet Customer Demand
To better accommodate product demand, we built three new reactors that will go online in Q2, 2006. These dedicated systems will allow us 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.

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