iQ POWER and German Battery Manufacturer Sign Cooperation Agreement

March 31, 2003 -- iQ Power Technology Inc. (OTC Bulletin Board: IQPR; Frankfurt: IQP) and the Bavarian battery manufacturer F. X. Mittermaier und Sohne GmbH (Bayern Battery) are pleased to announce that they have signed a Letter of Intent providing for their joint cooperation in the field of intelligent batteries. The two companies believe significant synergies will be obtained through this agreement given their respective areas of expertise: Bayern Battery is a manufacturer of high quality, special batteries in the starter and traction field and iQ Power has developed the MagiQ(TM) intelligent battery system.

The Letter of Intent provides that Bayern Battery will supply iQ Power with manufacturing and pre-assembly of standard components for the MagiQ(TM) Battery System leaving the final completion of the MagiQ(TM) battery including the incorporation of the proprietary iQ components, i.e. the electronics, to iQ. Incidental to the cooperation arrangement, iQ will also grant Bayern Battery certain distribution rights to the MagiQ(TM) intelligent system.

iQ and Bayern Battery have agreed to use their best efforts to settle the terms of a full cooperation agreement by June 30, 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.