About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with our strategic partners, Qteros expects to rapidly scale its highly efficient technology platform that enables the lowest cost conversion of non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

"The only way to free the American consumer from the vicious cycle of world oil price spikes is to give them a choice at the pump," said Matt Horton, CEO of Propel, a national leader in the effort to put alternative fuel pumps in the ground, "there are alternatives, but we need to unleash them."

Of particular concern to FuelChoiceNow supporters, comprised of advanced fuel companies and cleantech investors, is the lagging U.S. position in the global race to produce clean energy.

"If we do not take every reasonable step to enact forward-thinking, enduring policies that open the marketplace for these fuels, China, India or Brazil surely will," said John McCarthy Jr., President and CEO of Qteros. "We're already witnessing these and other countries beat us to the punch by enacting consistent energy policies, investing in infrastructure, and recognizing the value in the creation of renewable energy economies."

The coalition says that advanced fuel companies are developing commercial-ready alternatives to oil, but are inhibited by unnecessary vehicle and refueling constraints that choke demand and inhibit change in the marketplace. The coalition points to ethanol and natural gas as evidence of a marketplace that does not reward price-competitiveness and innovation. Both domestically-produced fuels are cheaper than gasoline, but have limited market access.

"Americans are paying almost $4 per gallon for gasoline while we export cheaper fuels to other countries," said Brooke Coleman, who will coordinate the campaign, while noting that vehicles could be made to run on any blend of gasoline, ethanol or methanol for less than $100 per vehicle.

FuelChoiceNow sees the effort as encompassing a wide range of fuels, including biofuels, natural gas, and electricity, but is asking Congress to focus on the marketplace instead of the fuels. "We need to shift the public discourse away from ethanol versus electricity versus natural gas and toward creating open markets that reward innovation," added Coleman, "that's the key to unleashing American ingenuity."

The coalition will release a set of policy priorities through their website www.FuelChoiceNow.com.

CONTACT:

Mariesa Kemble
+1-608-850-4745
KembleM@aol.com

The United States Patent and Trademark Office issued US Patent 7,943,363 B2 covering genetic constructs of Clostridium phytofermentans. This patent is significant as it provides intellectual property protection for genomic development and the use of gene combinations in Clostridium phytofermentans and other microorganisms to enhance an organism’s innate ability to hydrolyze biomass and improve the efficiency and yield of ethanol produced by an organism.

In a second but related advance, the Japanese Patent and Trademark Office allowed a patent titled, "Systems and Methods for Producing Biofuels and Related Materials."  The patent describes the novel creation of products through the fermentation of biomass by Clostridium phytofermentans. Patent allowance in Japan represents significant progress towards the broad, global protection of Clostridium phytofermentans bioprocessing outside of the United States. A patent has already been issued for this technology in the U.S.

Both patents are based on the discovery of Clostridium phytofermentans by microbiologists at the University of Massachusetts Amherst. Qteros is the exclusive licensee of the patent.

John A. McCarthy, Jr., Qteros' President and Chief Executive Officer, stated, "Each of these key patent achievements expands and further bolsters Qteros' already strong IP portfolio and represents the latest successes in our proactive and aggressive intellectual property strategy. Combined with the broad protection enabled by Qteros' current patent estate, these patents reinforce the uniqueness and the potential of our biological platform and enable Qteros to achieve an important milestone as we and our partners rapidly progress towards commercialization of our platform to produce lowest cost cellulosic ethanol at commercial scale."

Qteros' CBP Platform: Enabling Lowest Cost Production of Cellulosic Ethanol

The uniqueness of Qteros' CBP platform is centered on the Company's proprietary microorganism, the Q Microbe® (Clostridium phytofermentans) - a naturally occurring "biorefinery" that produces virtually all enzymes required for biomass degradation into pentose and hexose sugars, while simultaneously co-fermenting all these sugars into ethanol as its natural metabolic end product. The organism's innate biological ability to produce ethanol from biomass enables Qteros to focus its development efforts on optimizing the organism's effectiveness for industrial-scale production. This highly streamlined engineering solution therefore results in significantly lower operating and capital costs of production for producers versus other competitive technology solutions. Moreover, the Q Microbe® is feedstock flexible, producing high yields of cellulosic ethanol from a broad range of non-food biomass materials, including, among others, sugarcane bagasse, corn stover and cobs, and a broad variety of energy crops.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

About The University of Massachusetts

The University of Massachusetts Amherst is one of the nation's pre-eminent public research universities. More than 24,000 students from all 50 states and over 70 countries attend the university. Home to New England's premier honors college, UMass Amherst has more than 85 undergraduate majors, 68 master's and 48 doctoral degree programs– many the top programs in the nation and world. The faculty, dedicated teachers and world-renowned, recently received a record breaking $170 million in sponsored research. The student body is the most academically competitive in its history, and participates in over 240 co-curricular organizations. A recent facilities renaissance includes new buildings in the sciences, the arts, and recreation.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Susan Hager, Qteros' Vice President of Corporate Communications and Government Affairs, will present at the 2011 BIO International Convention at the Walter E. Washington Convention Center in Washington, DC. Ms. Hager will present on a panel titled, "Capitol Hill Trumps Wall Street? Finding the Harmony in Biorenewable R&D," taking place on June 28, 2011 at 2:00pm EDT.

John A. McCarthy, Jr., Qteros' President and Chief Executive Officer, will present as part of a plenary panel at the International Fuel Ethanol Workshop and Expo being held at the Indiana Convention Center in Indianapolis, Indiana. The panel titled, "Forming a Voice for the Next Generation of Ethanol Production" is scheduled for June 29, 2011 at 9:00am EDT.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

John A. McCarthy, Jr., President and CEO for Qteros, will present on a panel entitled, "Alternative Fuels" at the Barclays Capital Clean Solutions Conference. The panel will be held on Wednesday, May 18, 2011 at 4:15pm EDT at Barclays Capital in New York.

Kevin A. Gray, Ph.D., Senior Vice President and Chief Scientific Officer for Qteros, will participate in Metabolic Design 2011 at the Hilton Del Mar in San Diego, California. Dr. Gray will present as part of a panel discussion entitled, "Product Development for Fuels" on Tuesday, May 24, 2011 at 3:20pm PDT. Metabolic Design 2011 brings together industry leaders focused on the industrial reprogramming of microbe and plants and will provide insights into the key metabolic design innovations occurring across various industry sectors.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Kevin A. Gray, Ph.D., Senior Vice President and Chief Scientific Officer for Qteros, will deliver an oral presentation at the 33rd Symposium on Biotechnology for Fuels and Chemicals being held at the Sheraton Seattle, Washington. His presentation, "Technology Development and Scale-up of the Production of Lignocellulosic Ethanol using the Microbe Clostridium phytofermentans" will be presented during Session 9: Biofuels and Biorefinery Economics and Sustainability on Tuesday, May 3, 2011 at 1:00pm PDT.

Mick Sawka, Qteros' Senior Vice President of Commercial Development and Engineering, will also present on May 3, 2011 at Thomson Reuters' Open Innovation Seminar. The presentation is scheduled for 8:00am EDT and will be held at Thomson Reuters' offices in Boston, MA.

Dr. Gray will participate in the 2011 World Congress on Industrial Biotechnology & Bioprocessing in Toronto, Ontario, Canada. On Monday, May 9, 2011 at 8:45am EDT, Dr. Gray will deliver a presentation entitled, "Plant Cell Wall Degrading Micro-Organisms as Biocatalysts for Biofuels and Bio-Chemicals Production."  On Tuesday, May 10, 2011, at 9:00am EDT, Dr. Gray will moderate a panel entitled, "Engineering Low Cost Feedstocks to Value-Add Bio-chemicals." He will deliver a presentation during this panel discussion entitled, "Clostridium phytofermentans as an Inexpensive Sugar Platform for Biochemicals."

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

John A. McCarthy, Jr., Qteros' President and Chief Executive Officer, will participate in the Advanced Biofuels Leadership Conference on April 19, 2011 at the Capital Hilton in Washington, DC. Mr. McCarthy will deliver a corporate presentation at 3:15pm ET. Immediately following the corporate presentation, Mr. McCarthy will participate in a Cellulosic Ethanol Panel discussion that is scheduled to begin at 3:30pm ET.

On Friday, April 29, 2011, Susan T. Hager, Qteros' Vice President of Corporate Communications and Government Affairs, will participate in MassEcon's Renewable Energy Roundtable at the offices of DLA Piper in Boston, MA. The Roundtable is scheduled to begin at 12:00pm ET.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

John A. McCarthy, Jr., Qteros' President and Chief Executive Officer, will deliver a corporate overview presentation at the Jefferies 11th Global Clean Technology Conference being held at the New York Palace Hotel in New York, NY. The presentation is scheduled for Thursday, February 24, 2011 at 3:30pm EST.

On Tuesday, March 1, 2011, Mr. McCarthy will participate in a panel presentation at Pacific Crest's 2011 Emerging Technology Summit – 3rd Annual Clean Technology Day being held at the Westin Market Street in San Francisco, California. The panel entitled, "Renewable Fuels & Chemicals – Path to Production" will be on March 1st at 10:00am PST. Mr. McCarthy will also deliver a corporate overview presentation at the conference at 1:30pm PST.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

The AEC represents a wide range of advanced ethanol technologies utilizing feedstock from grasses and corn stalks to wood waste, municipal solid waste and algae to produce clean, renewable ethanol. The industry leaders founding the AEC include Abengoa Bioenergy, BlueFire Renewables, Coskata, Enerkem, Fulcrum BioEnergy, Inbicon, Iogen, Mascoma, Osage Bio Energy and Qteros.

"Advanced ethanol production and use is a critical component of America's strategy to become more energy self-reliant," said Mascoma Chief Executive Officer Bill Brady, who will serve as Chair of the AEC. "New ethanol technologies will dramatically increase transportation fuel security, create new jobs, and diversify the feedstocks that can be processed into transportation fuels. Together with existing biofuel production, advanced ethanol will dramatically reduce America's dependence on imported oil and provide Americans with more control over their energy future. As world events have demonstrated, the need for secure alternatives to imported oil is immediate. Members of the AEC are excited to join with the RFA and begin writing the next chapter in American ethanol."

"American ethanol production is one of the most dynamic industries anywhere in the world," said RFA President and Chief Executive Officer Bob Dinneen. "The innovative companies founding the AEC are leading the evolution of domestic ethanol production to include a vast array of feedstocks. The RFA is proud to join with the members of the AEC and continue its work building a bigger and broader American ethanol industry."

The AEC has elected Brooke Coleman as Executive Director. Coleman has been the driving force behind numerous advocacy efforts to protect and expand markets for biofuels, promote advanced biofuels and reduce America's dependence on foreign oil, while simultaneously addressing environmental concerns.

Joining Bill Brady as Vice Chairs of the AEC are Chris Standlee, Executive Vice President of Abengoa Bioenergy and John McCarthy, Chief Executive Officer of Qteros.

"Abengoa Bioenergy is excited to be a part of the Advanced Ethanol Council of the RFA," said Standlee. "This new partnership will focus and strengthen the voice of advanced biofuels, while expanding the broad base of the RFA to include new technologies and diverse feedstocks that make ethanol production viable in virtually every state in the country."

"Forward-looking polices, meaningful market expansion in the United States as a platform for worldwide growth, and access to capital are three critical elements to commercial production of ethanol from feedstocks other than corn starch," said McCarthy. "This will be the singular focus of this Council."

Now formed, the members of the AEC will focus on developing proactive and durable federal and state policies to accelerate advanced ethanol development, ensure proper accounting of greenhouse gas emissions and other environmental concerns, and expand the marketplace for ethanol fuels.

"It is time for all of the stake holders in ethanol to come together with a unified voice behind the call to arms to insure the energy security of the United States. This alliance with RFA will provide the platform to insure our country's energy future against the back drop of Middle East tensions," said Arnie Klann, President of BlueFire Renewables.

"The advanced and cellulosic ethanol industry has finally come together, but now is the time for the entire biofuels industry to speak with one voice," said Wes Bolsen, Coskata Chief Marketing Officer & Vice President of Government Affairs. "With enduring support, advanced biofuels will create jobs, help reduce our country's dependence on foreign oil, lower greenhouse gas emissions and help reduce the federal trade deficit."

"Working with AEC is further indication of Enerkem's commitment to creating jobs and economic opportunities through clean fuel projects, while reducing the environmental impacts and costs related to oil dependence," said Vincent Chornet, Enerkem's President and Chief Executive Officer. "By leading the first wave of commercial advanced ethanol plants, Enerkem and the other AEC members are making advanced biofuels a commercial reality."

"Fulcrum looks forward to working with members of the AEC to accelerate the deployment of low carbon fuel in the United States," said Fulcrum's President and C.E.O. E. James Macias. "Advanced biofuel projects will provide America with greater energy security and help communities achieve economic growth with thousands of green jobs."

"Our vision has always been global. But America is still the land of opportunity for Inbicon Biomass Refineries. Working through the council, we're eager to turn American biomass into The New Ethanol and put tens of thousands of Americans to work," said Niels Henricksen, Chief Executive Officer of Inbicon.

"This group will focus on addressing the fundamental commercialization challenges facing advanced and cellulosic ethanol. We look forward to working with RFA to develop common approaches for an integrated biofuels policy that will help America meet its energy security and environment objectives cost effectively," said Brian Foody, Chief Executive Officer of Iogen Corporation.

John Warren, Director of Government Relations for Osage noted, "we are excited to take our place among this group in spreading the message on the positive impact advanced biofuels can have on diversifying America's fuel mix, on revitalizing rural America, and on keeping U.S. energy dollars at home. Our one-of-a-kind winter barley ethanol plant offers a new crop opportunity that will help keep farmers in the VA-NC-MD region on the farm."

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Mick Sawka, Qteros' Senior Vice President, Commercial Development and Engineering, will present on a panel entitled, "Lessons Learned from Various Scaling Pathways," at the 2nd Annual Next Generation Bio-based Chemicals Summit in San Diego, CA. The panel presentation is scheduled for Wednesday, February 16, 2011 at 11:30am PST at the Hilton San Diego Resort.

John A. McCarthy, Jr., Qteros' President and Chief Executive Officer, will deliver a presentation entitled, "Driving Down the Cost of Cellulosic Ethanol to Accelerate Commercialization," at F.O. Lichts' Next Generation Biofuels Conference being held at the Grange City Hotel in London, England. The presentation is scheduled for February 17, 2011 at 12:15pm GMT.

On Monday, February 21, 2011, Mr. McCarthy will present on a panel at the National Ethanol Conference in Phoenix, AZ. The panel entitled, "Where Are We on the Road to Next Generation Biofuels Commercialization?" is scheduled for Monday, February 21, 2011 at 10:30am MST at the JW Marriott Desert Ridge.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

John A. McCarthy, Jr., Qteros President & CEO commented, "Chris Dale is an excellent addition to the senior management team as we rapidly advance our technology platform for commercial-scale introduction. The breadth of his scientific, manufacturing and corporate leadership experience makes him ideally suited to help us accelerate our commercial development plans. Chris' proven service-oriented approach to partnership management combined with his expertise managing bio-industrial technology project lifecycles from concept to commercialization will be invaluable as we embark upon our newly formed partnership with Praj and contemplate additional strategic partnering opportunities ahead."

Dr. Dale joins Qteros with a successful track record of managing research, development and manufacturing processes from concept and early-stage development to large-scale commercial readiness. During his career, Dr. Dale has contributed his expertise to more than 100 projects including six approved commercial products in the United States and Europe. A tenured bacterial microbiologist and expert in both bacterial- and yeast-based fermentation, Dr. Dale has spearheaded numerous global R&D initiatives including the design, scale-up and implementation of fermentation processes for cGMP material; developed microbial systems at commercial scales of operation; and, has led collaboration efforts with third-party organizations for technology transfer of proven manufacturing processes.

Most recently, Dr. Dale served as Head of Microbial Technology for Basel, Switzerland-based Lonza where he led U.S. R&D efforts with a specific focus on bioprocess design, scale-up and technology transfer. Dr. Dale also served as Vice President of Technology for Cambrex Biopharma (which was ultimately acquired by Lonza), where he directed the Company's process development team to produce new, high-value service offerings for Cambrex customers. Previously, Dr. Dale held senior positions in manufacturing and process development for leading organizations including Covance Biotechnology Services, SmithKline Beecham Biologicals and the Centre for Biochemical Engineering at the University of Birmingham.

Dr. Dale holds a Ph.D. in Biochemistry from the University of Birmingham and a B.Sc. in Microbiology from the University of Wales. An accomplished scientist and thought leader, he was awarded the prestigious Cambridge Prize for outstanding research achievement and has published more than 40 publications. Dr. Dale currently serves on the editorial team of the Journal of Applied Biochemistry and Biotechnology and holds an editorial board seat for Bioprocess International.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

"I'm pleased to have completed this first phase of financing for the Company which represents broad participation from both existing and new investors," said John A. McCarthy, Jr., President and CEO. "As we continue to accelerate our commercial plans, which now include our recently announced strategic partnership with Praj Industries, I would expect to continue discussions with a select group of strategic and financial investors who have expressed strong interest in supporting our efforts."

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP AE Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Qteros, Inc., the developer of a unique and highly efficient Consolidated Bioprocessing (CBP) platform for the lowest cost production of cellulosic ethanol, and Praj Industries Limited (BSE: 522205 | NSE: PRAJIND), a global leader in the development of innovative technology and engineering solutions for the production of biofuels and biochemicals, today announced a strategic partnership to accelerate commercialization efforts for industrial-scale cellulosic ethanol production. The agreement leverages both Qteros' broadly patent protected and highly flexible CBP platform with Praj's research capabilities and its technology, process design, engineering and construction expertise to deliver fully integrated engineering design packages for the lowest cost production of ethanol from a broad variety of non-food based feedstocks.

"Our partnership with Praj represents a transformational initiative for Qteros," stated John A. McCarthy, Jr., President and Chief Executive Officer of Qteros. "We and Praj share close strategic and philosophical alignment about the worldwide opportunities for large-scale cellulosic ethanol production and believe that commercial success can only be achieved with low-cost, highly scalable solutions made possible through creative and best-in-class partnerships such as that crafted between our two companies. Praj and Qteros bring together highly complementary skill sets and core competencies which we expect will catalyze our ability to develop the industry's low-cost solution – both from an operating and capital perspective – for large-scale cellulosic ethanol production. Achieving our combined objective will then provide the industry with a much-needed accelerant for worldwide growth and will also enable our two companies to establish leadership roles in this rapidly evolving global market. We look forward to making our shared vision with Praj a commercial reality within the next 18-24 months."

"An optimized and streamlined consolidated bioprocessing platform offers the potential to provide important production cost efficiencies and economic returns to global ethanol producers," stated Pramod Chaudhari, Founder and Executive Chairman, Praj Industries Ltd., and Chairman, Praj Group. "Praj has achieved significant milestones in second generation, cellulosic ethanol technology development. We have also evaluated the complete market landscape for cellulosic ethanol conversion technologies and we believe Qteros' CBP platform offers the most advanced technology solution to enable the lowest cost production of cellulosic ethanol across a broad array of important non-food based feedstocks. We believe this partnership will enhance the results of the developmental breakthroughs achieved by Praj Matrix, the Research and Development (R&D) division of Praj, which has worked with virtually all types of cellulosic biomass at its pilot plant. Building on its experience of installing ethanol plants in over 50 countries, Praj will bring an integrated approach to the partnership in the second generation bioethanol space."

Partnership Overview

Qteros and Praj will collaborate on a highly focused, multi-year development program with the objective of rapidly developing and commercializing Process Design Packages (PDPs) that enable cellulosic ethanol production using Qteros' Q Microbe®-enabled CBP platform and Praj's technology and expertise in the conversion of biomass to ethanol. This unique licensing model serves to provide both a highly efficient and low-cost solution to the market, while also allowing Qteros and Praj to deploy their capital in an efficient and leveraged manner. Importantly, the companies plan to retrofit Praj's existing pilot plant in Pune, India with Qteros' technology platform, which will then become the foundation for accelerated production scaling as part of its commercial planning.

Initially, the companies will focus their efforts on developing PDPs for feedstocks that include sugarcane, corn and wheat residuals with the goal of achieving commercial-readiness by the end of 2012. The companies believe that their initial commercial plans will focus on Praj's existing broad base of ethanol customers seeking to add co-located cellulosic ethanol facilities to their existing ethanol infrastructure. Based on the achievement of certain development and commercialization milestones, Qteros and Praj may elect to broaden the partnership to incorporate additional feedstocks, and potentially other biochemical products to be derived from Qteros' unique microorganism-based platform.

Qteros' CBP Platform: Enabling Lowest Cost Production of Cellulosic Ethanol

The uniqueness of Qteros' CBP platform is centered on the Company's proprietary microorganism, the Q Microbe® (Clostridium phytofermentans) - a naturally occurring "biorefinery" that produces virtually all enzymes required for biomass degradation into pentose and hexose sugars, while simultaneously co-fermenting all these sugars into ethanol as its natural metabolic end product. The organism's innate biological ability to produce ethanol from biomass enables Qteros to focus its development efforts on optimizing the organism's effectiveness for industrial-scale production. This highly streamlined engineering solution therefore results in significantly lower operating and capital costs of production for producers versus other competitive technology solutions. Moreover, the Q Microbe® is feedstock flexible, producing high yields of cellulosic ethanol from a broad range of non-food biomass materials, including, among others, sugarcane bagasse, corn stover and cobs, and a broad variety of energy crops.

Praj's Technology and Expertise in the Conversion of Biomass to Ethanol: Accelerating Process Development and Enabling Rapid Commercialization

For more than 25 years, Praj has developed extensive proprietary technology and gained significant experience and expertise in each of the unit operations required for the successful development of an integrated, commercial-scale bioethanol plant. Praj Matrix, the R & D division of Praj, has focused for more than five years on a unique and proprietary technology platform to pretreat a variety of lignocellulosic biomass to produce hemicellulosic and cellulosic derivatives in a highly efficient and cost-effective manner. Further, the laboratory and pilot plant facilities at Praj Matrix allow for the fully integrated development and demonstration of ethanol conversion technology. The full combination and integration of Praj's demonstrated technology, experience and expertise together with its R&D capabilities will accelerate process development and enable rapid commercialization of cellulosic ethanol conversion technology.

The Global Demand for Cellulosic Ethanol

The market demand for cellulosic ethanol is supported by mandates from governments around the world. Specifically in the United States, landmark legislation such as The Energy Independence and Security Act (EISA) of 2007 calls for the blending of 16 billion gallons of cellulosic ethanol into the annual fuel supply by 2022. Driven by numerous macro-economic trends including energy security and environmental preservation, many other nations are aggressively implementing renewable energy standards and driving demand for the use of advanced fuels from biomass-derived, renewable feedstocks. In 2009, the worldwide market for ethanol was estimated at approximately $40 billion.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

About Praj Industries Limited

Praj is a global Indian company that offers innovative solutions to add significant value to bio-ethanol facilities, brewery plants, water & wastewater treatment systems as well as process engineering, plant & equipment for customers worldwide. With over 450 references across five continents, Praj is a leading Ethanol Technology & Plant supplier with a strong focus on second-generation bioethanol process development. Praj Matrix - the innovation center, is the R & D Center of Praj Industries. Praj is a knowledge-based company with expertise and experience in bioprocesses and engineering. It delivers know-how, license, engineering design, plant & equipment, project management, commissioning and customer care, and turnkey projects. Led by an accomplished and caring leadership, Praj is a socially responsible corporate citizen. Praj is listed on the Bombay and National Stock Exchanges of India. For more information, visit www.praj.net.

Contact For Praj Industries:

Vinati Moghe
Vice President, Corporate
+ 91 20 398 06314; +91 98 224 30906
vinatimoghe@praj.net

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

John A. McCarthy, Jr., Qteros' President and Chief Executive Officer, will participate in a biofuels panel discussion on Wednesday, November 3, 2010 at 11:30am ET at the Sixth Annual Conference on Green Energy being held at the Hynes Convention Center in Boston, MA.

On Wednesday, November 10, 2010, Mr. McCarthy will present at the Advanced Biofuels Markets Conference being held at the Renaissance Stanford Court Hotel, in San Francisco, CA. His presentation entitled, "Patented Microbe and Consolidated Bioprocessing Systems" will be presented at 11:00am PT.

Mick Sawka, Senior Vice President of Commercial Development and Engineering for Qteros, will present at the Cellulosic Biofuels Summit 2010 being held at the Almas Temple Club in Washington, DC. Mr. Sawka will present on a panel entitled, "Building the Biorefineries of the Future - the DOE Perspective" on Wednesday, November 17, 2010 at 9:15am ET.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

John McCarthy, Qteros' President and Chief Executive Officer, will participate in a plenary panel discussion at the 2nd Massachusetts Clean Energy Industry Economic and Workforce Development Leadership Roundtable. The panel entitled, "Clean Energy Sector Perspectives on Economic and Workforce Development Needs in Massachusetts" will be held on Tuesday, September 28, 2010 at 9:45am ET at the Fairfield Inn and Suites by Marriott Conference Center in New Bedford, Massachusetts.

Kevin Gray, Ph.D., Senior Vice President and Chief Technology Officer for Qteros, will present at the bi-annual summit of Clostridium experts, Clostridium 11, at the Hilton San Diego Resort in San Diego, California. Dr. Gray will deliver his presentation entitled, "Development of a Low-cost Biomass Conversion Process Using the Micro-organism Clostridium phytofermentans" on Monday, October 4, 2010 at 11:00am PT.

Mick Sawka, Senior Vice President of Commercial Development and Engineering for Qteros, will present as part of a panel discussion at Platts' Next Generation Biofuels Conference: Drop-In Fuels and Cellulosic Biofuels Meeting the Demands of RFSII. The panel entitled, "Cellulosic Ethanol and Advanced Biofuels – State of the Industry and New Progress in Commercial Development" will be held on Monday, October 4, 2010 at 4:00pm CT at the Trump International Hotel and Tower in Chicago, Illinois.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, lowest-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with its strategic partners, Qteros expects to rapidly scale its highly efficient, lowest-cost Consolidated Bioprocessing (CBP) platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, please visit www.qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Dr. Gray's presentation entitled, "Development of a Low-cost Biomass Conversion Process using the Micro-organism Clostridium phytofermentans" will be delivered as part of the panel discussion, "Cutting-Edge Conversion Approaches: Breakthroughs in Biorefining." The panel discussion will occur on Thursday, August 5, 2010 at 1:30pm EST at Westin Copley Place in Boston, Massachusetts.

Dr. Gray leads research and development for Qteros and establishes technical standards for the Company's product development initiatives. Prior to joining Qteros, Dr. Gray was Senior Director of Biofuels Research and Development at Verenium Corporation in San Diego, California. Dr. Gray holds a Ph.D. in chemistry from Texas Tech University and a B.S. in zoology from Duke University. He has been a co-author on 40 peer-reviewed scientific articles and is a co-inventor on 22 patents and patent applications.

About Qteros, Inc.

Qteros' mission is to accelerate the global commercialization of large-scale, low-cost cellulosic ethanol production. Qteros has teamed with a core group of world-class strategic partners that complement and leverage our advanced microbiology and process engineering expertise. Working closely with strategic partners, Qteros expects to rapidly scale its highly-efficient, low-cost Consolidated Bioprocessing (CBP) Platform for converting non-food biomass into biofuels. Qteros is funded by leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

John McCarthy, President and Chief Executive Officer of Qteros, will provide a company overview at the Credit Suisse Future of Energy Conference on Thursday, June 3, 2010 at 3:15pm EST at the Mandarin Oriental Hotel in Washington, DC.

On June 9, 2010, Mr. McCarthy will present at Lazard Capital Markets 2nd Annual Alternative Energy Investor Summit at the Mandarin Oriental Hotel in New York, NY. Mr. McCarthy will present on the "Alternative Fuels" panel at 3:15 pm EST.

On Wednesday, June 16, 2010, at 3:30 pm CST Qteros Vice President of Commercial Development, Mick Sawka, will present and participate in a panel discussion at the Fuel Ethanol Workshop taking place at America's Center in St. Louis, MO. Mr. Sawka's presentation entitled, "Consolidated Bio-processing using Clostridium phytofermentans" will be delivered as part of the panel discussion, "Cellulosic Ethanol: Paving Pathways to Proficiency."

Kevin Gray, Ph.D., SVP& Chief Technology Officer for Qteros, will present at the BIO World Congress on Industrial Biotechnology and Bioprocessing. Dr. Gray will chair and present on a panel entitled, "Advances in Fermentation." The panel will be held on Tuesday, June 29, 2010 at 9:00 am EST at the Gaylord National Resort and Convention Center in Washington, DC.

About Qteros, Inc.

Qteros is committed to delivering innovative process technologies for clean transportation fuels that reduce greenhouse gas emissions at a price competitive with gasoline. The Company is currently in the process of scaling up a unique microbial solution for the highly-efficient and cost-effective conversion of non-food biomass into clean transportation fuel. The Company's patented Q Microbe® system converts a wide array of cellulosic biomass directly into ethanol in a single streamlined process, thereby consolidating enzymatic hydrolysis and fermentation, largely eliminating costly exogenous enzymes and associated pretreatments, and greatly simplifying the entire production process. This process is commonly referred to as consolidated bio-processing. Qteros' scientists and business team are dedicated to producing liquid fuels to achieve a sustainable solution to the world's growing energy needs. Qteros has been funded by some of the leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, visit www.Qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

The event will occur on Tuesday, May 4, 2010 from 2:00 &endash; 3:30p.m. CDT at McCormick Place, Chicago, IL, in the South Bldg., Room S402B, Level 4.

About Qteros, Inc.

Qteros is committed to delivering innovative process technologies for clean transportation fuels that reduce greenhouse gas emissions at a price competitive with gasoline. The Company is currently in the process of scaling up a unique microbial solution for the highly-efficient and cost-effective conversion of non-food biomass into clean transportation fuel. The Company's patented Q Microbe® system converts a wide array of cellulosic biomass directly into ethanol in a single streamlined process, thereby consolidating enzymatic hydrolysis and fermentation, largely eliminating costly exogenous enzymes and associated pretreatments, and greatly simplifying the entire production process. This process is commonly referred to as consolidated bio-processing. Qteros' scientists and business team are dedicated to producing liquid fuels to achieve a sustainable solution to the world's growing energy needs. Qteros has been funded by some of the leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Ms. Hager will be responsible for leading all communications and government-related initiatives for the Company, with an emphasis on building and enhancing Qteros' unique positioning and brand within the industry. Ms. Hager's career spans more than 16 years, and has focused on developing results-driven communications campaigns for a broad portfolio of unique life science companies within both the private and public sectors. Her expertise includes corporate communications, investor relations, and media relations in support of complex product marketing and commercialization initiatives. Ms. Hager has considerable experience in advocacy relations and government affairs, specifically in developing and implementing communications programs to align influential advocacy groups and rally government support for various agency approvals and funding.

Prior to joining Qteros, Ms. Hager served as a Director in the Corporate Communications and Investor Relations practice for WCG, a leading global communications agency, where she created and led the implementation and execution of integrated, strategic communications programs for the firm's healthcare-focused clients in the United States and Europe. Ms. Hager has served previously as Vice President, Corporate Communications and Investor Relations for Targanta Therapeutics (sold to The Medicines Company), as well as Vice President, Corporate Communications, Investor Relations and Corporate Development for Coley Pharmaceutical Group (sold to Pfizer Inc). She has also held global marketing and communications roles with Bayer HealthCare LLC. Ms. Hager received a BS in Biology and an MBA from Northeastern University.

"We are delighted to welcome Sue to the team," said John McCarthy, President and CEO of Qteros. "In a time of significant progress and corporate growth at Qteros, Sue brings an essential combination of entrepreneurialism, high energy and deep experience developing corporate communications programs that advance sophisticated business objectives and drive shareholder value."

Mr. McCarthy continued, "As Sue assumes her new role spearheading Qteros' communications and government affairs initiatives, we are pleased that Jef Sharp will continue in his role as a member of Qteros' Board of Directors. Since co-founding the Company in 2006, Jef has made numerous contributions to Qteros' growth and advancement. I look forward to continued collaboration with him as the team works together to accelerate the commercial availability of advanced, low-cost biofuels from Qteros' unique consolidated bio-processing platform."

About Qteros, Inc.

Qteros is committed to delivering innovative process technologies for clean transportation fuels that reduce greenhouse gas emissions at a price competitive with gasoline. The Company is currently in the process of scaling up a unique microbial solution for the highly-efficient and cost-effective conversion of non-food biomass into clean transportation fuel. The Company's patented Q Microbe® system converts a wide array of cellulosic biomass directly into ethanol in a single streamlined process, thereby consolidating enzymatic hydrolysis and fermentation, largely eliminating costly exogenous enzymes and associated pretreatments, and greatly simplifying the entire production process. This process is commonly referred to as consolidated bio-processing. Qteros' scientists and business team are dedicated to producing liquid fuels to achieve a sustainable solution to the world's growing energy needs. Qteros has been funded by some of the leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, visit www.Qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

The patent is based on the novel Q Microbe® (Clostridium phytofermentans), discovered by UMass Amherst microbiologists Professor Susan Leschine and Research Associate Thomas Warnick. Qteros, the exclusive licensee of the patent, has demonstrated that their Q Microbe technology offers ethanol producers significant cost reductions by streamlining the biomass-conversion process, commonly referred to as "consolidated bio-processing" (CBP).

"Integration of our unique Q Microbe technology into a cellulosic ethanol plant design allows producers the opportunity to dramatically reduce the capital and operating costs associated with a biomass-to-ethanol process," states Kevin A. Gray, PhD, Senior Vice President and Chief Technology Officer of Qteros. According to Gray, "While traditional cellulosic ethanol processes require numerous production steps, including the addition of costly exogenous enzymes, use of the Q Microbe™ lowers costs by simultaneously hydrolyzing polysaccharides into simple sugars and fermenting all of these sugars into desirable products in a single-tank operation."

"The Q Microbe technology offers numerous important advantages over other ethanol-producing microorganisms, which we believe provides the operational foundation for profitable, commercial-scale cellulosic ethanol production," states John A. McCarthy, Jr., President and CEO of Qteros. "This patent underscores the significance and the unique nature of our technology and represents an important milestone that will further our progress toward commercialization of a robust, low-cost CBP platform for cellulosic ethanol production."

Specific advantages of this patented technology include, the natural production of all enzymes required to digest biomass into its component sugars, the ability to ferment polymeric forms of sugar resulting in decreased pretreatment costs and more efficient ethanol production, the highly efficient fermentation of all major sugars present in biomass, and the production of ethanol as the primary product of the microorganism's metabolism. Qteros' CBP system not only enables the production of fuel-grade cellulosic ethanol in a uniquely streamlined production process, it also results in higher ethanol yields from a given amount of biomass material compared to other methods. To date, the Q Microbe has performed efficiently across a broad range of feedstocks that include, wheat straw, sugar cane bagasse, energy crops such as switchgrass, and agricultural residues such as corn stover, cob, and fiber.

All of these advantages improve the economics of ethanol production by reducing capital and operating costs, making this microorganism ideally suited for large-scale production of cellulosic ethanol from a wide variety of non-food plant materials. Additionally, Qteros scientists and engineers continue to improve the performance of the microorganism through genetic modification and process optimization.

Issuance of this patent and the evolving science that underlies it will enable the rapid acceleration and commercialization of Q Microbe technology. Qteros' work in its facilities, as well as ongoing work being done at UMass Amherst, will allow Qteros and its partners to deliver on the promise of low-cost cellulosic ethanol production across the worldwide market.

"We applaud Qteros' success in advancing the Q Microbe technology," says Nick DeCristofaro, Director of Commercial Ventures and Intellectual Property at UMass Amherst. "Dr. Susan Leschine has been a torch bearer for technology transfer on our campus. The relationship between Qteros and UMass is an excellent example of how industry and universities can work together to bring innovation to the marketplace."

About Qteros, Inc.

Qteros is committed to delivering innovative process technologies for clean transportation fuels that reduce greenhouse gas emissions at a price competitive with gasoline. The company is currently in the process of scaling up a unique microbial solution for the highly efficient and cost-effective conversion of non-food biomass into clean transportation fuel. The company's patented Q Microbe?® system converts a wide array of cellulosic biomass directly into ethanol in a single streamlined process, consolidating enzymatic hydrolysis and fermentation, largely eliminating costly exogenous enzymes and associated pretreatments, and greatly simplifying the entire production process. This process is commonly referred to as consolidated bioprocessing. Qteros' scientists and business team are dedicated to producing liquid fuels to achieve a sustainable solution to the world's growing energy needs. Qteros has been funded by some of the leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, visit www.Qteros.com.

About the University of Massachusetts Amherst

Founded in 1863, the University of Massachusetts Amherst is a top public research university and flagship of the five-campus state university system, enrolling more than 26,000 students annually. Sponsored research awards totaled $137.5 million in fiscal 2009, contributing to the campus's classification as a Research University with Very High research activity (RU/VH) by the Carnegie Foundation. With approximately 70 research centers and institutes and over 330 technologies available to license, the campus provides a major stimulus for the Massachusetts economy.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Mr. Sawka's 19-year experience in the specialty chemicals industry includes negotiating and leading numerous large-scale strategic partnerships, alliances, and acquisitions as well as complex product introductions throughout the world. Additionally, Sawka has been responsible for the development of numerous technology platforms and associated strategic business plans within both development-stage and large-scale specialty chemical organizations.

Mr. Sawka joins Qteros from Microbia, Inc. where he led business development efforts for this developer of unique bio-based specialty chemicals directed at large-scale industrial applications. Prior to Microbia, Mr. Sawka spent six years at Cabot Corporation, most recently serving as Director of New Business Development and R&D for Cabot's Performance Products Business Group. Prior to Cabot, Sawka spent 11 years at 3M in various senior level business and product development positions throughout the company. Mr. Sawka holds a BS in Chemical Engineering from Stanford University, an MS in Chemical Engineering from MIT (including assignments in Dr. Robert Langer's lab), and a Masters in International Management from The University of St. Thomas in St. Paul, Minnesota.

"Having worked closely with Mick at Microbia, I'm thrilled to have him join us to help at this important stage of our development and believe he brings the kind of energy, industry experience, and business creativity we need at Qteros to help catalyze our strategic corporate development efforts", stated John McCarthy, President and CEO of Qteros. "Mick's experience and success helping lead innovative product development within large-scale industrial chemicals companies will bring a great complement to our team as we accelerate the development of important industrial partnerships for Qteros."

"Qteros is a dynamic organization with a truly disruptive technology platform, and I am thrilled to have the opportunity to help build the partnerships that will transform Qteros' scientific achievements into commercial reality within the emerging worldwide biofuels industry," stated Sawka.

About Qteros, Inc.

Qteros is committed to delivering innovative process technologies for clean transportation fuels that reduce greenhouse gas emissions at a price competitive with gasoline. The company is currently in the process of scaling up a unique microbial solution for the highly efficient and cost-effective conversion of non-food biomass into clean transportation fuel. The company's patented Q Microbe® system converts a wide array of cellulosic biomass directly into ethanol in a single process, consolidating enzymatic hydrolysis and fermentation, largely eliminating costly exogenous enzymes and associated pretreatments, and greatly simplifying the entire production process. This process is commonly referred to as consolidated bioprocessing. Qteros' scientists and business team are dedicated to producing liquid fuels to achieve a sustainable solution to the world's growing energy needs. Qteros has been funded by some of the leading investors in the alternative energy industry including, among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC, and Valero Energy Corporation. For more information, visit www.Qteros.com.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339

Mr. McCarthy's 18-year experience includes managing the transformational growth of numerous leading life science and bio-based chemical companies into high-value commercial entities. He has raised over $1 billion of capital in the private and public markets, and developed and executed numerous complex and large-scale strategic corporate partnerships.

Mr. McCarthy joins Qteros from Microbia, Inc. where he served as Chief Business Officer of this developer of unique bio-based specialty chemicals for large-scale industrial applications. Prior to Microbia, Mr. McCarthy was Executive Vice President for publicly-traded Verenium Corporation, a pioneering leader in the development and commercialization of cellulosic ethanol and specialty enzymes. At Verenium, McCarthy served as the chief architect of the company's growth from a small privately-held business into a publicly-traded leader in the industry through the successful merger and integration of Celunol and Diversa and the subsequent creation and execution of the industry's precedent-setting strategic corporate partnership with BP plc.

"We are thrilled to have John join us at this important stage of Qteros' development to lead and accelerate our technical, commercial and organizational growth plans," stated Steve Goldby, Qteros board member and Partner at Venrock Associates. "John's experience building pioneering companies in the biofuels industry such as Verenium, together with his proven track record of developing and managing complex strategic corporate partnerships, make him uniquely qualified to lead and position Qteros for significant growth."

"I am very pleased and excited to be joining Qteros at this critical stage of its development, and look forward to accelerating our technical and commercial plans as we focus on making our Q-Microbe® platform a cellulosic ethanol industry standard," stated McCarthy.

"The broad alternative energy industry represents one of the most important and high-growth opportunities for this generation," McCarthy added. "I look forward to positioning Qteros and its partners as a leading technology solution to support the multi-billion gallon per year U.S. mandate and worldwide requirement for cellulosic ethanol production."

Mr. McCarthy's prior experience includes senior executive positions at Xanthus Pharmaceuticals, Synta Pharmaceuticals, Exact Sciences, Concentra Managed Care, and Morgan Stanley. Mr. McCarthy graduated with high honors from Lehigh University and received his MBA from the Harvard Business School.

About Qteros, Inc.

Qteros is a venture capital-backed company committed to delivering innovative process technologies for clean transportation fuels that reduce greenhouse gas emissions at a price competitive with gasoline. The company is currently in the process of scaling up a unique microbial solution for the highly efficient and cost effective conversion of non-food plants and waste into clean transportation fuel. The company's patented Q Microbe® system converts a wide array of cellulosic biomass directly into ethanol in a single step, consolidating enzymatic hydrolysis and fermentation, largely eliminating costly enzymes and associated pretreatments, and greatly simplifying the entire production process. Qteros' scientists and business team are dedicated to producing liquid fuels to achieve a sustainable solution to the world's growing energy needs. Qteros has been funded by some of the leading investors in the alternative energy industry, including among others, Venrock Associates, Battery Ventures, BP Technology Ventures, Soros Fund Management LLC and Valero Energy Corporation.

Contact for Qteros:

Sue Hager
Vice President, Corporate Communications & Government Affairs
shager@qteros.com
(508) 251-6339