Press Contact: Michele Kinman 408-218-8815 Email

Third-Party Validation Confirms 320% Increase in Power for Zinc-Air Battery Cathodes

FOR IMMEDIATE RELEASE

Santa Ana, CA – October 18, 2006 – QuantumSphere, Inc. (QSI), a leading manufacturer of nanoscale metals and alloys for applications in portable power, renewable energy and other markets demanding advanced materials, has announced the filing of two groundbreaking patents covering composition of matter and a paper-thin electrode device responsible for achieving a 320% increase in power and efficiency for zinc-air battery cathodes. These filings follow the company’s recently published summary results for low-cost, efficient hydrogen production and complement a consistent stream of recent technology innovations and intellectual property as the company continues its development focus on disruptive solutions for portable power and other clean-energy applications.

"In order to accelerate the adoption of these highly-active nano catalyst materials in disruptive solutions for portable power and clean-energy applications, it is critical that significant strides be made in the performance, cost effectiveness and environmental benefits of these devices and 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 portable power and other clean, renewable energy sources. We are actively working with some of the world’s largest corporations to collaborate on achieving those goals, and these filings are the latest step in that ongoing process."

With these latest patent applications, QuantumSphere is tapping into a potential multi-billion dollar battery market with the goal of delivering significant performance enhancement to disposable zinc-air batteries. Primary zinc-air batteries offer 3-6 times the energy of equivalent size alkaline and rechargeable batteries. Expert electrochemist and lead scientist on the air electrode project, Robert Dopp of DoppStein Enterprises, Inc. (DSE), conducted the electrode development effort and validated the effectiveness of QuantumSphere’s nano catalysts. “These improvements unlock higher power applications previously viewed as impractical for this class of battery," commented Robert Dopp. "QSI and DSE collaborated to find the most effective catalyst and several successful ways to implement it into gas-diffusion electrodes. The resulting performance improvement is unambiguous.” Moreover, this dramatic improvement can be achieved with little increase in cost. In addition, this innovation further supports the elimination of mercury and is a direct reflection of the Company’s commitment to the development of environmentally-friendly, portable power solutions. The European Union has recently mandated that all batteries must remove this toxic substance, and the EPA is expected to follow shortly.

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

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.