iQ Power Delivers Production Batteries for Customer Testing

MUNICH, Germany and VANCOUVER, British Columbia, Feb. 25 -- iQ Power Technology Inc. (IQP: Frankfurt; IQPR.OB: OTC US Bulletin Board) is pleased to announce that it has now delivered additional production MagiQ 100 batteries to various customers for field testing. Delivery of the batteries follows the successful testing of the batteries at iQ's research and development facilities in Chemnitz, Germany, and represents a significant milestone in the development and marketing of iQ's first generation smart battery.

Working closely with its OEM customers, iQ has integrated the next evolutionary step into its latest production run of batteries: These batteries contain separate electronics for data storage and diagnosis. Using proprietary software and a standard data interface, iQ's OEM customers are able to connect the batteries to a diagnostic tool developed by iQ, that can be installed on a regular laptop computer and obtain real time analysis of the batteries' condition and performance. By using the MagiQ-Technology, they will for the first time ever be able to monitor data directly from the battery. This will allow them to benchmark and tremendously optimize modern vehicles power net architectures. Each OEM customer has selected particular vehicles for these tests, mostly within their high end lines.

Comments received concerning these latest developments have been very favourable. "We have waited a long time for the opportunity to test iQ's finished products in the stringent conditions of our winter tests in Scandinavia," says one OEM representative. "The intelligent system approach of the MagiQ 100 battery offers not only the ability to independently verify the performance of the battery but also the thermo-management-functionality required for increased performance in the winter conditions."

Among the customers is also the AGCO Group, a leading manufacturer of tractors. They are testing the iQ technology in their FENDT-vehicles, a brand generally recognized as the technology leader in this field. "We positioned our tractors as high-tech and quality products with many innovations. A new technology leap in our electrics is in the offing," states Max Huber, responsible for conducting the tests at Fendt. "Life tests in our vehicles have now begun and we eagerly await the results of MagiQ, the first battery capable of self-diagnosis."

In light of this recent advance, iQ Power is now intensifying its marketing efforts, establishing testing protocols with car manufacturers, distributors and tier one suppliers. Some customers have already expressed their intent to equip certain models or platforms with iQ products after their tests are successfully completed.

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

For information about iQ Power, please visit our website at: www.iqpower.com or contact iQ Power Technology Inc., Corporate Relations, Attn: Russell French (604) 669-3132, e-mail: iqpt@aebc.com

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.