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Facility and

QuantumSphere, Inc.
2905 Tech Center Drive
Santa Ana, CA 92705

714-545-NANO (6266)


Archived Press Releases
Press Contact:
Kevin Maloney, CEO
QuantumSphere, Inc.

QuantumSphere Announces Investment and Expanded Partnership with OM Group (NYSE: OMG)

Partnership Aims to Leverage Advanced Materials for Multiple Clean-Tech Applications

Santa Ana, CA – July 16, 2007 – QuantumSphere, Inc. (“QSI”) –, a leading manufacturer of nano metals and alloys for applications in renewable energy, portable power, defense and other markets, today announced that it has expanded its partnership agreement with OM Group (NYSE: OMG).

Effective immediately, the companies have agreed to co-develop new, proprietary applications for the high-growth, high-margin clean-energy and portable power sectors.  In addition, OMG will supply QSI with raw materials at large volume pricing in exchange for the right to market and distribute QSI-Nano® products to OMG’s existing global customer base.

As part of the agreement, OM Group has agreed to purchase $2,000,000 of common stock from QSI, and will receive warrants to purchase an additional $1,230,000 of common stock by 2012.

“For the past two years, we have enjoyed a positive and productive partnership with OMG,” said Kevin D. Maloney, president and chief executive officer of QuantumSphere.  “We believe OMG’s investment in QSI is further testimony to the strength of our unique technologies and market potential.  We look forward to working together to further penetrate portable power and electronics markets with existing and ‘next-generation’ solutions.”

According to Joseph M. Scaminace, chairman and chief executive officer of OM Group, the investment in QuantumSphere is a logical extension of the relationship between the two companies.  “We believe that this long-term partnership with QuantumSphere will be an important piece of our effort to leverage our portfolio of specialty material and clean technology products,” said Scaminace.  “Today’s announcement is in line with our stated goal to aggressively grow through new product innovation and strategic investments in companies and product lines that move OMG up further in the value chain.”

About QuantumSphere, Inc.
Privately-owned QuantumSphere (“QSI”) is a leading manufacturer of advanced materials for a wide array of clean-energy, defense, electronics and other high-value applications. Backed by a strong intellectual property portfolio, the company has demonstrated breakthrough results with high-performance nano catalysts for use in emerging multi-billion dollar markets such as batteries, fuel cells, and hydrogen generation. QSI has an automated, scalable, and patented process in place to produce ultrapure, high-surface area materials (less than 100 nanometers) in commercial volumes.

QSI also has collaborative agreements with industry experts, national labs, and leading universities to leverage QSI-Nano® catalyst materials in multiple additional applications and generate licensing rights to resulting intellectual property.  By enabling low-cost, portable power and efficient renewable energy production with high-performance nano catalysts, QSI is delivering on the promise to alleviate our Nation’s over dependency on conventional sources of energy today.

QSI is based in Santa Ana, California. For more information, visit the company’s Web site at http://www.qsinano.com

About OM Group, Inc. 

OM Group is a leading, vertically integrated international producer and marketer of value-added, metal-based specialty chemicals and related materials. Headquartered in Cleveland, Ohio, OM Group operates manufacturing facilities in the Americas, Europe, Asia and Africa. For more information, visit the company’s Web site at http://www.omgi.com/

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For more information, contact:

Kevin Maloney, president and CEO, QuantumSphere at [email protected] or +1-714-545-6266

Greg Griffith, vice president, strategic planning, development and investor relations, OM Group at +1-216-263-7455                       


The foregoing discussion may include forward-looking statements for purposes of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based upon specific assumptions and are subject to uncertainties and factors relating to the company’s operations and business environment, all of which are difficult to predict and many of which are beyond the control of the company. These uncertainties and factors could cause actual results of the company to differ materially from those expressed or implied in the forward-looking statements contained in the foregoing discussion. Such uncertainties and factors include: the direction and pace of our strategic transformation, including our use of proceeds from the sale of our Nickel business on March 1, 2007 and identification of potential acquisitions; the speed and sustainability of price changes in cobalt; the potential for lower of cost or market write-downs of the carrying value of inventory necessitated by decreases in the market price of cobalt or the selling prices of the Company’s finished products; the availability of competitively priced supplies of raw materials, particularly cobalt; the risk that new or modified internal controls, implemented in response to the 2004 investigation by the audit committee of the Company’s board of directors and the Company’s examination of its internal control over financial reporting pursuant to Section 404 of the Sarbanes-Oxley Act, are not effective and need to be improved; the demand for metal-based specialty chemicals and products in the Company’s markets; the effect of fluctuations in currency exchange rates on the Company’s international operations; the effect of non-currency risks of investing and conducting operations in foreign countries, including political, social, economic and regulatory factors; the effect of changes in domestic or international tax laws; the outcome of the previously announced SEC Division of Enforcement review of the investigation conducted by the Company’s audit committee; and the general level of global economic activity and demand for the Company’s products.