Gigatronik and iQ Power Sign Agreement on Joint Development and Marketing of Automobile Energy-Management Systems

STUTTGART, Germany, and MUNICH, Germany, March 11 -- The Stuttgart-based company Gigatronik, Gesellschaft fuer Automobilelektronik-Entwicklung mbH and iQ Battery Research and Development GmbH, the German engineering unit of iQ Power Technology Inc. (OTC Bulletin Board: IQPR; Frankfurt: IQP), will be working much closer together in the future. Both companies have just signed a master agreement on jointly developing and marketing systems used to manage energy within the electrical systems of automobiles. Gigatronik is a highly regarded development services provider specializing in automotive electronics, instrumentation and electrical-wiring and power systems. iQ Power's expertise covers the field of smart electrical- energy-storage and energy-management systems.

The objective of this strategic partnership is to generate synergies from the two organization's core competencies. The agreement calls for both companies to develop for the automotive industry project-specific solutions and systems in the revolutionary field of power-system energy management. Existing iQ technologies and components are to be integrated and the know-how gained in the course of the cooperation will be marketed together. The first joint projects are already underway.

The agreement between the two companies is not exclusive. Rather, it assures both partners the independence to acquire client projects on their own and enter into other partnerships as they see fit.

Both companies had already intensified their collaboration leading up to the current accord. The agreement they signed now formally regulates their association with an eye toward the shared projects that lie ahead.

"Innovations in automaking require a new form of partnering together with networking among the individual companies," explained Peter E. Braun, CEO of iQ Power. "The specialized fields of these two companies complement one other superbly, not to mention their great dedication and agility."

Dr. Edwin Tscheschlok, president and chief executive of Gigatronik, gave as one of the reasons for the partnership iQ Power's "technological innovation and remarkable competence" in the field of smart batteries and intelligent energy- management systems. "Uniting bold new battery technologies with an end-to-end approach to on-board electrical systems, a core business of Gigatronik, is the only way to create the decisive breakthrough in building an effective energy- management system."

   iQ Power Technology Inc.
   /s/ Peter Braun
   Peter Braun, President

Gigatronik specializes in developing automobile electronics and has some 170 employees at facilities in Stuttgart, Ingolstadt and Munich. Gigatronik's services include the development of components, functions and simulations; systems integration and networking; vehicle integration, as well as diagnostic, information and testing systems. Additional information about Gigatronik is available at www.gigatronik.de

The Munich technology company iQ Battery Research & Development GmbH specializes in designing and developing intelligent systems solutions for electrical-energy management (Smart Energy Management, SEM(TM)) in the electrical and power systems of automobiles and other means of transportation. This young high-tech company is a wholly owned subsidiary of the North American iQ POWER Technology Inc. Among the company's innovations is the world's first software-managed intelligent automobile battery. -- You can find out more by visiting www.iqpower.com