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QuantumSphere, Inc. Accelerates Commercialization, Nanomaterials Product Delivery Capabilities, Appoints Kimberly McGrath, Ph.D. to Director of Fuel Cell Research

Costa Mesa, CA | July 20, 2005

QuantumSphere, Inc., the leading manufacturer of metallic nanopowders for applications in aerospace, defense, energy, biomedical and other markets demanding advanced material applications, announced the appointment of Kimberly McGrath, Ph.D., to the position of Director of Fuel Cell Research. In this position, Dr. McGrath will leverage her experience in the research and commercialization of fuel cell technology to drive the company's strong track record as a manufacturer and provider of products to a global customer base. QuantumSphere is the only supplier of the world's highest quality metallic nanomaterials including QSI-nano™ nickel (n-Ni), QSI-nano™ silver, QSI-nano™ copper, QSI- nano™ Ni/Co and other proprietary alloys. These materials will replace platinum as the main catalyst in hydrogen fuel cells and other electrode assemblies and provide a renewable source of power to supply the world's energy needs. Dr. McGrath will work with QuantumSphere's world-class research team to synthesize and characterize a highly optimized catalyst composition for PEM and DMFC fuel cell anode and cathode electrodes using the company's highly catalytic metallic nanopowders. As Director of Fuel Cell Research, Dr. McGrath will also tailor catalysts for various cell types and operating temperature regimes and design new fuel cell systems for small, portable applications that will be efficient at room temperature with minimal catalyst loading.

"Dr. McGrath has years of experience designing catalysts, membranes and components for direct oxidation fuel cells and her energy, enthusiasm and ability to execute is unsurpassed," said Kevin Maloney, CEO, QuantumSphere, Inc. "She has extensive knowledge of fuel cell performance evaluation and electrochemical characterization of anode and cathode catalysts. As a result, Dr. McGrath's addition will augment a powerful research team as QuantumSphere continues to experience strong customer demand for the company's products that serve the fuel cell market and other areas that leverage our nanopowders for advanced material applications," Maloney added. Prior to QuantumSphere, platinum was widely considered to be the best catalyst for proton exchange membrane fuel cells, such as hydrogen and direct methanol cell (DMFC) in terms of electrical efficiency. However, platinum is about 1,400% more expensive per gram than QuantumSphere's solution. As a result, the company believes its QSI-nano™ materials will replace platinum as the main catalyst in hydrogen fuel cells and other electrode assemblies. As QuantumSphere announces additional customer wins in 2005, the market will realize a decades-long hurdle has been overcome as QuantumSphere, with Dr. McGrath, continues to research, develop, produce and ship alternative catalyst products on a mass scale at a fraction of the cost.

"I am delighted to join QuantumSphere's highly motivated and seasoned business and technical team," said Kimberly McGrath, Ph.D., Director of Fuel Cell Research, QuantumSphere, Inc. "It is a pivotal time in the catalysis industry, especially as it relates to renewable energy sources QuantumSphere will continue to play a pivotal role in providing orders-of-magnitude improvements in catalysts for PEM fuel cells via QuantumSphere's superior development and production process. QuantumSphere is a dynamic company with a very tight-knit team of engineers and chemists who come from a variety of backgrounds. This diversity and community environment promotes novel thinking and synergistic concepts not limited to a single facet of science. It is this type free-thinking that is most conducive to major scientific breakthroughs," McGrath added.

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About QuantumSphere, Inc.:
QuantumSphere is the leading manufacturer of metallic nanopowders for a broad range of applications in industries such as aerospace, defense, energy, biomedical, and other markets demanding advanced material applications. QuantumSphere's exclusive manufacturing process provides: consistent, narrow particle size distribution; low level of agglomeration and impurities; 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. These advanced materials will replace platinum as the main catalyst in hydrogen fuel cells and various electrode assemblies and provide a renewable source of power to supply the world's energy needs. The company is leveraging its leading market position in metallic powders to manufacture and ship product for applications in fuel cells, magnetic medical products, bio-sensors, filtration devices and other applications including additives for plastics and electromagnetic frequency shielding.

For more information, please visit www.qsinano.com

Media Contact:
Joe Romano
Partner, HighGround, Inc.
781-279-1320 x 208 or
jromano@highgroundinc.com

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