Press Contact: Michele Kinman 408-218-8815 Email

Technology Leverages QSI-Nano®-Catalysts for Clean, Renewable Energy Applications

FOR IMMEDIATE RELEASE

Santa Ana, CA – September 19, 2006 – QuantumSphere, Inc. a leading manufacturer of nano metals and alloys for applications in renewable energy and other markets demanding advanced materials, has announced the recent filing of a significant patent relating to clean hydrogen production. This patent compliments the Company’s renewable energy focus and enables highly efficient, low-cost hydrogen generation by electrolysis of water. QSI is well ahead of the Hydrogen Economy 2010 technical targets set by the U.S. Dept. of Energy. A summary of QuantumSphere’s hydrogen generation technology and recent performance results have been posted to the company website (http://www.qsinano.com/tech_white_papers.php). This filing continues a consistent stream of technology innovations and intellectual property as the company develops disruptive solutions for clean, renewable energy applications.

“In order to accelerate the adoption of these highly active nano catalyst materials in disruptive solutions for clean-energy applications, it is critical that significant strides be made in the cost, efficiency, and environmental benefits of these processes,” stated Kevin Maloney, CEO, QuantumSphere, Inc. “These are the fundamental requirements that will enable all participants throughout the value chain to gain tangible advantages from the commercialization of clean, renewable energy sources. We are working actively with some of the world’s largest corporations to collaborate on achieving those goals, and these patents are the latest step in that ongoing process.”

Hydrogen Generation
With its new patent filing and recent published results for low-cost, efficient hydrogen generation, QuantumSphere has surpassed the U.S. Dept. of Energy target for 2010 by producing hydrogen with greater than 75% efficiency using its new porous electrode employing nanometals. The company’s goal is to reach even higher efficiencies under more demanding operating conditions. With this increase in efficiency and decrease in cost, the Company believes it has enabled electrolysis to more easily compete with hydrogen generation by steam reformation. Enabled by high surface area metal particles and a novel structure, this innovation has not only surpassed pertinent technical targets, but also generates hydrogen without the production of greenhouse gasses (a leading cause of global warming) using water as a clean, reliable source of energy. The technology is a critical step in working toward a “hydrogen on demand” system for direct feed into fuel cells which would eliminate the need for storing hydrogen in pressurized systems, which have cost, logistical and safety issues.

Expert electrochemist and lead scientist on the project, Robert Dopp of DoppStein Enterprises, Inc., conducted the electrolysis experiments and provided independent scientific data to validate and optimize QuantumSphere’s electrodes. "We need to find a way to use hydrogen stored within water molecules to satisfy humanity’s ever-growing thirst for clean-energy" commented Robert Dopp of DSE. "QSI and DSE are on the forefront of solving this challenge. Together, we are not only finding new, unexpected and highly active combinations of nano catalysts, but in the process are also developing the test methods for evaluation of the electrodes. This allows us to determine the next round of improvements, and has catapulted us beyond the literature into uncharted territory. These devices, made to test the electrodes, are also the embryonic hydrogen generating machines of the future. The collaboration is very exciting and productive.”

“With this recent breakthrough, we are one step closer to realizing the hydrogen economy where we can expect to fill our car fuel tanks with water instead of gasoline. This technology will not only help alleviate concerns about the air we breathe, but also reduce our nation’s dependence on unstable foreign oil supplies,” stated Mr. Maloney.

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.

About DSE
DoppStein Enterprises Inc. (DSE) is an R&D laboratory located in Marietta, Georgia, working in renewable energy related fields including metal-air fuel cells, direct methanol fuel cells, and hydrogen production through water electrolysis. The President and Chief Scientist is Robert Dopp who is one of the foremost authorities on Zinc Air technology with 36 related patents bearing his name. As consultants to the fuel cell and battery industries, DSE offers a wide range of expertise and depth of knowledge in commercial systems. As an independent third party expert, DSE has validated and optimized electrodes for hydrogen, fuel cell and battery applications using cutting edge catalysts based on QSI-Nano™ metals and alloys. This joint project of DSE/QSI encompasses hydrogen generation through more efficient water electrolysis using QSI’s advanced nano catalysts.

For more information, visit www.qsinano.com or contact Dave Holscher, Vice President, KCOMM at 949-295-5515 or [email protected].