Press Contact: Michele Kinman 408-218-8815 Email

FOR IMMEDIATE RELEASE

Santa Ana, CA, U.S.A. – April 24, 2006 – QuantumSphere, a leading manufacturer of nanoscale metals and alloys for applications in energy, electronics, aerospace and other markets demanding advanced materials, announced it has launched a major program to fund innovative research that will provide breakthrough capabilities for QuantumSphere and its global base of customers and partners. QuantumSphere posted a Call for QSI-Nano™ Research Grant Proposals to facilitate partnerships with universities and to sponsor individual and group research through prototype phase using QSI-Nano™ metals. The end-result of this research will further accelerate validation and commercialization of QuantumSphere’s advanced materials in consumer and industrial applications.

“QuantumSphere’s Call for QSI-Nano™ Research Grant Proposals and funding of new research initiatives takes a fresh approach on traditional research methodologies,” said Kevin Maloney, CEO, QuantumSphere, Inc. “Many research projects focus on the development of abstract experiments in the laboratory. However, QuantumSphere will only fund research that demonstrates commercial potential and a clear path to the validation and development of products that can be manufactured and used in consumer and industrial applications,” Maloney added.

QSI-Nano™ Research Grant Proposals Program Guidelines and Requirements

• Funding is open to all graduate students and postdoctoral students involved in full-time research within the University of California system, Caltech, Stanford, and USC during the 2006-2007 academic year;
  
  
• Proposed research will investigate catalytic, conductive, magnetic or anti-microbial applications for QSI-Nano™ Iron, Copper, Silver, Nickel, Colbalt, Manganese metals and alloys;
  
  
• Proposal must contain an explanation of the capability to execute a research plan beginning from dry, unfunctionalized metal/metal-oxide particles to prototype product, which encompasses:
  • an introduction of the proposed research initiative and how the use of QuantumSphere’s nanometals should improve performance of the product/device
  • a definition of the current challenges/issues in the marketplace, and how these challenges/issues can potentially be resolved with the use of QSI-Nano™ metals
  • a summary of the research plan’s timeline that shows a clear path for validation and potential commercialization beginning with QSI-Nano™ metals to final prototype device and its relevance to an end-use in a commercially viable application
  • a thorough discussion that explains the potential commercial impact of a successful prototype

QuantumSphere will fund research initiatives up to $100,000 over a nine month period. Deadline for submissions will be August 1, 2006 and award recipients will be notified by October 1, 2006. More information about the QSI-Nano™ Research Grant Proposals Program Guidelines and Requirements can be found at: http://www.qsinano.com/partners_guidelines.php

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.