Hello,

We’re excited to share with you the latest QuantumSphere developments and industry news happening this summer. We recently closed a significant institutional equity round of funding lead by strategic partner and global specialty materials provider, OM Group (NYSE:OMG), a Southern California based hedge fund, and existing shareholders. The capital will be used to expand manufacturing capability, product development, business operations and sales and marketing support. We continue to make excellent progress on important research and development initiatives involving QSI-Nano® catalysts for multiple clean-energy applications including highly efficient on-demand hydrogen generation. We hope you enjoy the latest installment of the QuantumSphere newsletter where we also cover recent news including: CARB mandates cut for diesel emissions, Ford’s hydrogen fuel cell vehicle sets land speed record, among other renewable energy news!

As always, we thank you for your continued support.


Kevin D. Maloney, CEO
QuantumSphere, Inc.

IN THIS ISSUE…

Breaking News: Video
• QuantumSphere’s High Rate Nano-Enabled Electrolyzer Demonstration Video
  
  Industry News:
  • Nanotechnology Could Clean Up The Hydrogen Car’s Dirty Little Secret
    By Michael Berger, Nanowerk LLC, July 19, 2007
    
    
  • Air Board Cracks Down On Diesel
    By Margot Roosevelt, Los Angeles Times, July 27, 2007
    
    
  • US House Shifts US$16 Bln Toward Renewable Energy
    By Chris Baltimore, CleanEdge, August 6, 2007
    
    
  • Hydrogen Fuel Cell Fusion Sets Land Speed Record
    Dearborn, August 15, 2007
    Click here for additional race car photos