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 .