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QuantumSphere Announces Expanded Partnership with OM Group

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

QuantumSphere, Inc., a leading manufacturer of nano metals and alloys for applications in renewable energy, portable power, defense and other markets, 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.”

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

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