Welcome to the August 2008 edition of the QuantumSphere enewsletter. This publication is distributed each month to more than 11,500 subscribers and we appreciate your continued interest and support!

We are excited to be moving forward with our initiative to validate and commercialize QSI-Nano® catalysts for various clean energy and electronics applications. Through our recent acquisition of Energetics, Inc. in June of this year, Suber Iyer, Principal Technologist, and his team are working on three promising technologies; a novel anode structure designed to increase capacity up to five times in lithium ion batteries, mini-channel hydrogen membrane reformers for high-rate, on-board production of hydrogen for use in fuel cell vehicles, and a low-cost, high throughput process for seawater desalination.

In addition, Dr. Fabrizio Rinaldi, an emissions and catalysts expert and Director of Automotive Applications, is working with the OM Group, Inc. (NYSE:OMG) to validate QSI catalysts for emissions reduction systems. Glenn Rambach, Director of Engineering and Applied Science, is working with a large industrial partner to validate QSI’s Nano-NiFe™ coated plates in a new high-rate electrolysis system. Finally, Dr. Kimberly McGath, Director of Fuel Cell Applications, has developed a new nano cobalt dispersion being tested by a large partner in the electronics industry. We have many opportunities in the pipeline and anticipate that several of these important technologies will be validated over the next 12 months. We will keep you posted as things progress.

As always, thank you for your continued support and feedback.

Kevin D. Maloney, CEO
QuantumSphere, Inc.