Quantum Technologies Closes $12.5 Million in Private Placement of Common Stock With Institutional Investors

IRVINE, Calif., July 6 -- Quantum Technologies, Inc. , today announced that they have closed a $12.5 million private placement financing of common stock with several existing shareholders as well as several new institutional investors. Quantum sold a total of 4.4 million shares at $2.84 per share, representing a 10% discount from the June 29, 2006 closing price of $3.15. The investors also received warrants to purchase 880,000 shares of common stock at $3.94 per share. The financing was placed by Canaccord Adams.

Alan P. Niedzwiecki, President and CEO, stated, "This financing will bolster Quantum's balance sheet and provide us capital to pursue near-term strategic initiatives. We are grateful to the Canaccord Adams team for a quality placement."

About Quantum:

Quantum and its subsidiary, Tecstar Automotive Group, are leaders in powertrain engineering, system integration, and manufacturing of packaged fuel systems and accessories for specialty vehicles and applications including fuel cells, hybrids, alternative fuels, hydrogen refueling, new body styles, mid-cycle vehicle product enhancements and high performance engines and drive trains for OEMs and consumers of aftermarket parts and accessories. Quantum also designs and manufactures hybrid and fuel cell vehicles.

Quantum has product commercialization alliances with General Motors, AM General, and Sumitomo. Quantum's customer base includes General Motors, Toyota, Opel, Hyundai, Suzuki, Ford, DaimlerChrysler, AeroVironment, and the U.S. Army.

More information can be found about Quantum's products and services at www.qtww.com.