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Dr. Thomas Hahn, Raytheon Distinguished Professor in Materials Science and Engineering, Mechanical and Aerospace Engineering, Selected to Receive Grant for Research Proposal on the use of QSI-Nano® Materials for Magnetic Devices

FOR IMMEDIATE RELEASE

Santa Ana, CA – November 21, 2006 – QuantumSphere, Inc., a leading manufacturer of nano metals and alloys for applications in renewable energy, electronics and other markets demanding advanced materials, has announced that Dr. Zhanhu Guo, a postdoctoral research associate from Prof. H. Thomas Hahn’s MCL-Multifunctional Composites Lab group in the Mechanical and Aerospace Engineering and Materials Science and Engineering Departments at the UCLA Henry Samueli School of Engineering and Applied Science, has been selected to receive a research grant from QuantumSphere to validate the use of magnetic nanoparticles for various commercial applications.

Applications for the potential use of magnetic nanoparticles include hard drive data storage, cell phones, remote sensing, biosensors and magnetic polymer composites. Initial data provided by Dr. Guo has demonstrated strong magnetic performance and these applications are of particular interest to QuantumSphere as having high commercial potential.

Earlier this year, QuantumSphere initiated a call for research grant proposals to partner with universities and sponsor individual or group research through prototype phase in an effort to accelerate validation and commercialization of these advanced materials in consumer and industrial applications. The call for proposals was open to graduate and postdoctoral students involved in full-time research within the University of California system, Caltech, Stanford and USC during the 2006/07 academic year.

“The response to the call for research proposals was tremendous and we are thrilled to be working with a world-class university like UCLA and Dr. Hahn’s team with vast knowledge in materials science, engineering, and magnetics,” stated Kevin Maloney, CEO, QuantumSphere, Inc. “Too many research projects focus on the development of abstract experiments in the laboratory with no short-term commercial potential. However, our goal is to partner with experts at leading universities and fund research that validates the use of our materials with strong commercial potential. Identifying current challenges in the market and providing viable solutions are critical; Dr. Hahn and his team clearly understand the market need and have demonstrated technical expertise in this area. Most importantly, the proposal outlined a solid path to the validation and development of products that can be manufactured and used in near-term consumer and industrial applications. We look forward to a fruitful collaboration with Dr. Hahn and UCLA Engineering over the next year and the potential to move this new technology out of the university lab and into commercial use.”

Dr. Hahn stated, “My research team and I are excited to explore magnetic nanoparticle research, and QuantumSphere’s grant will enable us to reach exciting breakthroughs in magnetic nanocomposites for high-value commercial applications.”

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.