iQ Power Acquisition of Gel Electric on Track
MUNICH, Germany and VANCOUVER, British Columbia, Feb. 3 -- iQ Power Technology Inc. (IQP: Frankfurt; OTC Bulletin Board: IQPR) is pleased to provide the following updated information concerning its proposed acquisition of Gel Electronic Technologies of Los Angeles, California, USA. iQ Power has completed its initial due diligence studies on Gel Electronic Technologies' including both a phase 1 and a phase 2 environmental assessment report of the manufacturing site. The final report concluded that the test results met established regulatory levels and, therefore, no additional assessment was recommended. At this time, counsels for the parties are completing the formal agreements and iQ management is completing initial budget and financial projections for the Gel division. The acquisition of Gel Electric will give iQ immediate revenue as well as expand its product base. It will also bring other benefits to iQ Power such as battery manufacturing expertise, in-house proto-typing capability, immediate access to the US market, and new applications for the iQ technology. iQ views this as a unique opportunity and strategic fit with its existing research and development strengths. Closing of the Gel acquisition remains subject to the conclusion of the formal acquisition and employment agreements and is currently targeted for the first quarter of fiscal 2003. iQ Power Technology Inc. /s/ Peter Braun Peter Braun, President The following is a "safe harbor" statement under the private Securities Litigation Reform Act of 1995: Information published by iQ Power contains forward-looking statements regarding anticipated developments and agreements. These forward-looking statements address future events and conditions and involve inherent risks and uncertainties that may cause actual results to differ materially from anticipated results. Such risks and uncertainties include, but are not limited to, risks associated with iQ Power's ability to achieve the objectives of its business strategy, iQ's ability to raise additional financing on acceptable terms to fund its strategic plan, the accuracy and sufficiency of iQ's anticipated operating budget to implement its strategic plan, risks related to the production and commercialization of the MagiQ 100 battery, potential fluctuations in operating and research and development expenses, iQ closing the acquisition of Gel Technologies, and iQ's ability to generate revenue from the sale of its battery products and licensing its technologies. The reader is cautioned not to place undue reliance on forward-looking statements. For information about iQ Power, please visit our website at: http://www.iqpower.com .