Since Milnor’s discovery of exotic spheres [Mi], one of the most intriguing problems in Riemannian geometry has been whether there are exotic spheres with positive curvature. It is well known that there are exotic spheres that do not even admit metrics with positive scalar curvature [Hi]. On the other hand, there are many examples of exotic spheres with positive Ricci curvature (cf. [Ch1], [He], [Po], and [Na]) and this work recently culminated in [Wr] where it is shown that every exotic sphere that bounds a parallelizable manifold has a metric of positive Ricci curvature. This includes all exotic spheres in dimension 7. So far, however, no example of an exotic sphere with positive sectional curvature has been found. In fact, until now, only one example of an exotic sphere with nonnegative sectional curvature was known, the so-called Gromoll-Meyer sphere [GM] in dimension 7. As one of our main results we prove: