Ikona Reports on Progress with Magna Advanced Technologies

VANCOUVER, Jan. 12, 2004 -- In April of 2003, Ikona Gear International Inc. ("Ikona") and Magna Advanced Technologies ("MAT"), a division of Magna International Inc., entered into a preliminary letter agreement that allows MAT to develop automotive applications for Ikona's patented planetary gear technology (the "Agreement").

In accordance with the Agreement, during the first phase of the development program which runs until April 2004, MAT is examining Ikona's technology in detail and building and testing prototypes to determine the commercial feasibility of Ikona's technology. MAT is paying Ikona an engineering fee during phase one of the development program. MAT may, on or before April 30, 2004, enter into phase two involving the licensing of Ikona's technology. If MAT proceeds to phase two, it will compensate Ikona in exchange for the exclusive right to make use of the patented Ikona gear technology for automotive applications, and will pay royalties to Ikona based on the sales price of gear sub-assemblies incorporating the Ikona technology.

"In tests conducted to date," says Barrie Freeke, P.Eng. Director and Vice President Engineering for Ikona, "results have been very positive. Ikona believes the Ikona Gear Technology may lead in the development of a number of new engineering applications for the worldwide automotive industry."

Ikona Gear International, Inc. is a publicly traded company OTCBB:IKGI, incorporated in the United States, with head office facilities in Vancouver, BC. It is owned by professional engineers and businessmen, owners of US Patent No. 5,505,668, granted April 9, 1996. Ikona's technology is based on a specific gear tooth form that allows high reduction and high tooth contact ratio with rolling, rather than sliding contact between gear teeth. The technology affords significant advantages: very high torque and zero backlash to allow accurate back-and-forth actuation; low wear and higher efficiency due to rolling contact; fewer moving parts, constant output speed and low noise.