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Abstract:
Natural Carbon will provide seasoned business development expertise

QuantumSphere, Inc. Further Accelerates Company's Position as top Manufacturer of Pure Metallic Nanopowders for Wide Spectrum of Markets Demanding Advanced Material Applications -- Taps Industry Business Development Expert

Costa Mesa, CA | June 29, 2005

QuantumSphere, Inc. announced it has retained Natural Carbon, LLC to accelerate QuantumSphere's business development initiatives. The retention of Natural Carbon will provide QuantumSphere with seasoned business development expertise that will aggressively drive QuantumSphere's growth, commercialization of new products and market expansion via sales of the company's current product lines that are experiencing unprecedented demand around the world. QuantumSphere is the leading manufacturer of metallic nanopowders for applications in aerospace, defense, energy and other markets demanding advanced material applications. QuantumSphere is the only supplier of the world's highest quality nanonickel (n-Ni), and other products including QSI-nano™ silver, QSI-nano™ copper and nano-Ni/Co alloy. QSI-nano™ nickel 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. QuantumSphere is leveraging its leadership position in the company's current markets to expand into applications for water hydrolysis, biomedical and renewable energy.

Natural Carbon is a San Jose, CA business development firm founded by John Barratt to provide market development assistance to technology companies. "John Barratt's proven business development expertise will ultimately assist QuantumSphere to penetrate new growth areas, accelerate revenues and increase profitability," said Kevin Maloney, CEO, QuantumSphere, Inc. "Natural Carbon's exceptional business development track record will further compliment our outstanding management team as we continue our growth path as a global manufacturer and provider of products in a wide variety of industries," said Kevin Maloney, CEO, QuantumSphere, Inc.

Mr. Barratt has over twenty years of senior management and technical expertise in the energy industry. He was a Senior Vice President at an independent power company where he oversaw business development, finance and marketing operations. He has worked closely with Wall Street investment banks including Donaldson, Lufkin & Jenrette, Goldman Sachs and Rothschilds to successfully complete multiple rounds of corporate financing. Previously, he held finance, corporate development and technical positions in the petroleum industry with Unocal, Union Pacific Resources and Bass Enterprises Production Company, one of the largest privately-held petroleum companies in the U.S. As an invited speaker, he has delivered presentations at industry conferences and he has authored articles for leading industry publications. Mr. Barratt holds a B.S. from Oregon State University, an M.A. from the University of Texas at Austin and an M.B.A. from Southern Methodist University.

"I am extremely pleased to work with QuantumSphere's diverse, accomplished management team to help establish new markets for the company's products in; catalysis, coatings, sealants, electrodes, filtration, medical, water hydrolysis and a number of other applications," said John Barratt. "Natural Carbon's business experience will help establish QuantumSphere as a leader in these multi-billion dollar markets," he 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, cosmetics 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 commitments to the environment and community. No other company offers these performance advantages. QuantumSphere is the only supplier of the world's highest quality nanonickel (n-Ni). This 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 nanonickel (n-Ni) 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

About Natural Carbon, LLC:
Natural Carbon, LLC is a business development firm dedicated to accelerating the adoption of new technologies in the energy industry. Working on behalf of technology companies, Natural Carbon develops strategic partnerships, marketing relationships and related business structures with larger, established enterprises in the energy industry. Natural Carbon also offers advisory services to venture funds, private equity funds and corporate clients seeking opportunities in the energy technology sector.

For more information, please visit www.naturalcarbon.com

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

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