QuantumSphere, Inc. Announces Enhanced Fuel Cell Performance with Low-Cost Nano Catalyst - Portable Power Commercialization Accelerated by Reducing Dependency on Expensive Platinum

Business Wire, Feb 7, 2007

45% Increase in Power Achieved Incorporating QSI-Nano([R]) Cobalt in Direct Methanol Fuel Cells

SANTA ANA, Calif. -- QuantumSphere, Inc., a leading manufacturer of nano metals and alloys for applications in portable power, renewable energy, electronics and other markets demanding advanced materials, has announced the achievement of a 45% enhancement in power for a direct methanol fuel cell (DMFC). The addition of QSI-Nano([R]) Cobalt into the membrane electrode assembly (MEA) provides almost a 50% reduction in cost by minimizing use of the expensive precious metal platinum. Most importantly, the cells operate with enhanced power under practical conditions at near-room temperature.

QuantumSphere offers a disruptive product solution that can be manufactured, shipped and seamlessly integrated into current customer applications on a commercial scale. This will provide OEMs, and a wide variety of markets, with a cost-effective solution as QuantumSphere continues to research, develop, produce and ship alternative catalyst products on a mass scale at a fraction of the cost. "Direct Methanol Fuel Cells offer the portable electronics consumer more power and longer operating times than current battery technology," said Kimberly McGrath, Ph.D., Director of Fuel Cell Research, QuantumSphere, Inc. "However, significant price barriers must be overcome for the technology to reach widespread commercialization. Use of cost-effective catalysts is one of the most critical steps for fuel cells to be competitive with batteries." QuantumSphere's recently published whitepaper, "Increased Power in Low Platinum Loading Direct Methanol Fuel Cells," further discusses and validates QuantumSphere's low-cost nano catalyst for DMFCs and can be viewed at http://qsinano.com/tech_white_papers.php.> For more information, visit www.qsinano.com or contact Dave Holscher, Vice President, KCOMM, at 949-295-5515 or dave@kanatsiz.com.

About QuantumSphere, Inc.

QuantumSphere is a manufacturer of nanoscale metals and alloys for applications in portable power, renewable energy, electronics, aerospace, defense and other markets demanding advanced materials. QuantumSphere's proprietary technology enables the production of ultra-pure, highly uniform nanometals and alloys under 50 nanometers in high volume at commercial prices with the potential to be utilized in a large number of new applications. QuantumSphere has also created an extensive intellectual property portfolio around its process capabilities and end-use commercial applications. QuantumSphere seeks to leverage its market position to manufacture and ship high-performance catalyst materials and electrode devices for clean-energy applications such as batteries and micro fuel cells for portable power and hydrogen generation through electrolysis, among others.

QuantumSphere also works closely with leading universities by funding research to validate QuantumSphere-Nano materials and generate licensing rights to intellectual property for disruptive high-value commercial applications. For more information, please visit www.qsinano.com.