PRESS CONTACT:
Joe Romano – Partner
HighGround, Inc.
781-279-1320 x 208
[email protected]

QuantumSphere Celebrates new Industry Milestones, Marks Third Year of Business and Technology Success, Adds Seasoned Operations and Business Executive to Company

SANTA ANA, CA, U.S.A. – February 7, 2006 – QuantumSphere, Inc., the leading manufacturer of metallic nanopowders and alloys for applications in energy, electronics, aerospace and other markets demanding advanced materials, announced it has appointed Patrick Deane to the position of Chief Financial Officer and Chief Operations Officer for QuantumSphere, Inc. Deane’s addition will establish a solid platform on which QuantumSphere will manage steady, organic growth and exceed customer expectations by delivering the world’s most reliable, high-performance and quality nanopowder products on the market today. This news follows QuantumSphere’s previous announcement that Nobel Laureate and pioneer of the methanol economy, Dr. George Olah, joined QuantumSphere, Inc. as the firm continues to attract customer validation and grow in the marketplace.

QuantumSphere Achieves Business and Technology Milestones for Third Consecutive Year
The cornerstone of QuantumSphere’s growth is based on its ability to manufacture, scale, deliver quality products and build long-term customer relationships, pointing the way for future success. Milestones achieved include:

Dramatic Sales and Revenue Growth
Revenues in the first quarter of this year alone are up almost 300% compared to all of 2005, while the number of orders and product inquiries continue to increase.

QuantumSphere Continues to Scale, Meet Customer Demand
To better accommodate product demand, QuantumSphere built three new reactors that will go online in Q2, 2006. These dedicated systems will allow QuantumSphere to provide greater production capacity of high quality Nickel, Silver and Cobalt nanometals and alloys with the world’s highest purity levels, uniform distribution and low oxide content.

Focused Approach, Flexible Products Drive new Revenue Streams
QuantumSphere continues to successfully execute its business strategy and achieve exceptional results in the areas of low-cost, high performance catalysts for DMFC and other types of fuel cells and high performance batteries. QuantumSphere has also experienced significant customer traction and increased revenues from nano-copper, nano-silver and nano-iron/cobalt sales for RFID, conductive ink, anti-microbial and magnetic coating applications.

“Deane’s addition will immeasurably benefit our firm, as his track record of being flexible and responsive to customer needs, setting metrics and achieving measurable results, maintaining a focused approach, while managing the company’s cash and resources prudently, are squarely aligned with QuantumSphere’s goals,” said Kevin Maloney, CEO, QuantumSphere, Inc. “As a result, Deane provides the rigors of financial and operational public-company management expertise that will enable QuantumSphere to keep costs in check, ramp profitability and establish a firm built on real people, science, products and customers– a first when compared to other companies in the nanotechnology space,” Maloney added.

“QuantumSphere has an impressive combination of market leadership, blue-chip customers and it is the best positioned company on the market to commercialize products that are invaluable for the production of batteries, as well as high-power density fuel cells that will provide performance advantages in a wide variety of applications,” said Patrick Deane, Chief Financial Officer and Chief Operations Officer, QuantumSphere, Inc. “I am pleased to join QuantumSphere’s highly motivated team and provide them with insight that will help the firm penetrate new growth areas, gain new partners, customers, accelerate revenues and increase profitability,” Deane added.

Deane’s strong operations and financial leadership are evidenced in his over twelve years of senior executive experience. Deane has established a reputation not only as a dynamic team builder, but also as an implementer of processes that revolutionize organizational effectiveness. Prior to joining the team at QuantumSphere, Deane was VP of Finance, and later VP of Operations, of the number two Internet content distribution firm, VitalStream Holdings, Inc (OTC: VSTH). He also served as Controller of ITB, a Beneventure Capitol Portfolio Company. Deane holds a B.A. in Business Administration from California State University at Fullerton and an M.B.A. from the Pepperdine University Graziadio School of Business and Management.

About QuantumSphere, Inc.
QuantumSphere is the leading manufacturer of metallic nanopowders and alloys for applications in energy, electronics, aerospace and other markets demanding advanced materials. QuantumSphere’s exclusive manufacturing process provides consistent and narrow particle size distribution, low levels of agglomeration and impurities, a custom-tailored oxide shell thickness, and the highest purity metallic nanopowders on the market that are easier to transport and handle. The company accomplishes this without compromising its commitment to the environment and the community. No other company offers these performance advantages.

QuantumSphere is the only supplier of the world’s highest quality magnetic, conductive and catalytic metallic nanopowders, including QSI-nano™ nickel, silver, copper, cobalt and other proprietary nanoscale alloys. QSI-nano™ metals and nanometal alloys are now replacing a significant portion of platinum, currently the main catalyst in a variety of fuel cells providing a renewable source of power to supply the world’s energy needs. These materials will also be used in high performance batteries. The company is leveraging its leading market position in metallic powders to manufacture and ship materials and devices for applications in batteries, fuel cells, conductive inks, magnetic coatings and membrane filtration devices. For more information, visit www.qsinano.com or contact Joe Romano, Partner, HighGround, Inc. at 781-279-1320 x 208 or [email protected]