Press Contact: Michele Kinman 408-218-8815 Email

SANTA ANA, CA, U.S.A. – April 4, 2006 – QuantumSphere, a leading manufacturer of nanoscale metals and alloys for applications in energy, electronics, aerospace and other markets demanding advanced materials, announced a business and scientific breakthrough that will fully impact OEM manufacturers in the consumer electronics industry and the users of a wide variety of devices requiring portable power on a global scale. The fuel cell industry and OEMs are confronted with a fundamental problem. Direct Methanol Fuel Cells (DMFCs) require an excessive amount of platinum to produce energy required to power consumer electronics and other devices that require portable power. “For example, DMFCs can require up to 16-times more platinum to produce the power needed to operate consumer electronics devices,” said Kevin Maloney, CEO, QuantumSphere, Inc. “It is well known that DMFCs should offer a clear replacement advantage for traditional battery technology. DMFCs have more energy density. They operate for far longer periods of time. However, given the prohibitively expensive price of platinum, it precludes the consumer electronics, and portable power markets, from fully opening up and adopting DMFCs on a wide-scale basis. Prior to our proprietary nano-cobalt (QSI-Nano™ Cobalt) product, the business case for a DMFC replacement solution, on a cost-per watt basis, just wasn’t there,” Maloney added.

Today, QSI-Nano™ Cobalt shifts the cost of DMFC catalyst materials down by at least 30%. As a result, QuantumSphere offers a disruptive product solution that can be manufactured, shipped and seamlessly integrated into current customer applications on a commercial scale. This will provide OEMs, and a wide variety of markets, with a cost-effective solution, as QuantumSphere continues to research, develop, produce and ship alternative catalyst products on a mass scale at a fraction of the cost. “QuantumSphere’s ongoing scientific and business breakthroughs will liberate companies from their dependence on platinum, lower the cost of production and increase profit margins, thereby enabling firms to offer new products at a price point that will be accepted in the market,” said Kimberly McGrath, Ph.D., Director of Fuel Cell Research, QuantumSphere, Inc. Dr. McGrath’s recent whitepaper, “Performance Enhancement of the Direct Methanol Fuel Cell: Improved Electrocatalytic Activity of Oxygen Reduction on Platinum using nano-Cobalt” further discusses and validates QuantumSphere’s progress using QSI-Nano™ cobalt. The paper can be viewed by clicking here.

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.