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QuantumSphere, Inc. Leverages Strong Business Fundamentals, Funds Research Programs With High Commercial Potential to Enable New Markets, Sources of Revenue for OEMs



Santa Ana, CA, U.S.A. –April 24, 2006 – QuantumSphere, a leading manufacturer of nanoscale metals and alloys for applications in energy, electronics, aerospace and other markets demanding advanced materials, announced it has launched a major program to fund innovative research that will provide breakthrough capabilities for QuantumSphere and its global base of customers and partners. QuantumSphere posted a Call for QSI-Nano™ Research Grant Proposals to facilitate partnerships with universities and to sponsor individual and group research through prototype phase using QSI-Nano™ metals. The end-result of this research will further accelerate validation and commercialization of QuantumSphere's advanced materials in consumer and industrial applications.

“QuantumSphere's Call for QSI-Nano™ Research Grant Proposals and funding of new research initiatives takes a fresh approach on traditional research methodologies,” said Kevin Maloney, CEO, QuantumSphere, Inc. “Many research projects focus on the development of abstract experiments in the laboratory. However, QuantumSphere will only fund research that demonstrates commercial potential and a clear path to the validation and development of products that can be manufactured and used in consumer and industrial applications,” Maloney added.

QSI-Nano™ Research Grant Proposals Program Guidelines and Requirements

 

--Funding is open to all graduate students and postdoctoral students involved in full-time research within the University of California system, Caltech, Stanford, and USC during the 2006-2007 academic year;

--Proposed research will investigate catalytic, conductive, magnetic or anti-microbial applications for QSI-Nano™ Iron, Copper, Silver, Nickel, Colbalt, Manganese metals and alloys;

--Proposal must contain an explanation of the capability to execute a research plan beginning from dry, unfunctionalized metal/metal-oxide particles to prototype product, which encompasses:

----an introduction of the proposed research initiative and how the use of QuantumSphere's nanometals should improve performance of the product/device

----a definition of the current challenges/issues in the marketplace, and how these challenges/issues can potentially be resolved with the use of QSI-Nano™ metals

----a summary of the research plan's timeline that shows a clear path for validation and potential commercialization beginning with QSI-Nano™ metals to final prototype device and its relevance to an end-use in a commercially viable application

----a thorough discussion that explains the potential commercial impact of a successful prototype.

QuantumSphere will fund research initiatives up to $50,000 over a nine month period. Deadline for submissions will be August 1, 2006 and award recipients will be notified by October 1, 2006. More information about the QSI-Nano™ Research Grant Proposals Program Guidelines and Requirements can be found at:

http://www.qsinano.com/partners_guidelines.php

About QuantumSphere, Inc.

QuantumSphere is a leading manufacturer of nanoscale metals and alloys for applications in energy, electronics, aerospace, defense and other markets demanding advanced materials. The Company's proprietary technology enables the production of ultra-pure, highly uniform nanometals and alloys under 100nm in high volume at commercial prices to unlock a large number of new applications and sources of revenue for firms around the world.  QuantumSphere has created a fully automated, highly scalable process to supply these advanced materials in mass quantity. The Company has also created an extensive intellectual property portfolio around its process capabilities and end-use commercial applications. 

QuantumSphere leverages its capabilities to manufacture and ship high performance catalyst materials. The current global catalyst market is in excess of $20B, annually. The Company is providing catalyst materials and electrode devices for applications such as batteries, micro fuel cells, and hydrogen generation and storage. QuantumSphere accomplishes this without compromising its commitment to the environment and the community. No other known company offers these performance advantages.

For more information, visit www.qsinano.com or contact Joe Romano, Partner, HighGround, Inc. at 781-279-1320 x 208 or jromano@highgroundinc.com

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