The Quantum Group Inc. Receives $3.6 Million Tire Reduction/Crumb Rubber Order

5 January 1999

The Quantum Group Inc. Receives $3.6 Million Tire Reduction/Crumb Rubber Order

    TUSTIN, Calif.--Jan. 5, 1999--The Quantum Group Inc. (OTC\BB:QTMG) has received a purchase order for German Marks 6,132,094, approximately $3.6 million (USD), for specialized tire recycling equipment that converts crumb rubber recovered from scrap tires into a wide range of value added after-market products.
    The Quantum Group (http://www.thequantumgroupinc.com) converts previously wasted rubber truck and automobile tires, without adding chemicals or additives, into valuable, marketable new products for industrial and commercial use.
    The Quantum Group uses a patented reactivation process, exclusively marketed by the company, that changes rubber scrap, previously burned or land filled, into REVULCON(R).
    REVULCON(R) becomes a partially devulcanized crumb rubber material, suitable for a vast number of product applications, including incorporation into new tire manufacture. This exclusive, patented process will also enable The Quantum Group to be a potential supplier to the worldwide tire manufacturing industry, which is presently worth in excess of $70 billion (USD) according to the European Rubber Journal London Vol. 179 Global Tyre Report 1997.
    The project, located near Magdeburg, Germany, is being underwritten by a German Investment Group on behalf of its German clients.

    The Quantum Group Inc.

    Quantum Group presently has contracts in the United States, Canada, Mexico and Brazil, Europe, and the Middle East.
    The Quantum Group Inc. has headquarters at Park Irvine Business Center, 14771 Myford Road, Building B, Tustin, Calif., 92780.
    For further information, contact Ehrenfried Liebich or Keith J. Fryer:

The Quantum Group Inc. Park Irvine Business Center 14771 Myford Road, Building "B" Tustin, Calif. 92780 Tel: 714/508-1470 or toll free 800/660-3734 Fax: 714/508-1475 E-mail: info@thequantumgroupinc.com

    The foregoing news release contains forward-looking statements. For this purpose, any statements contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may", "will", "expect", "believe", "anticipate", "estimate", or "continue" or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors.