iQ Power Selected by DaimlerChrysler as Development Partner in New European X-By-Wire Project

MUNICH, Germany, February 23 --

iQ Power Technology Inc. (IQPR: OTC US Bulletin Board, IQP: Frankfurt) is pleased to report that its German subsidiary, iQ Battery Research and Development GmbH, has again been selected by DaimlerChrysler as a development partner for its trailblazing automotive project known as SPARC - Secure Propulsion using Advanced Redundant Control - a large-scaled, pan-European industry project to improve traffic vehicle safety through X-By-Wire technologies.

The SPARC project (www.eu-sparc.net - launch of website anticipated around March 1st, 2004) follows DaimlerChrysler's PEIT project (www.eu-peit.net) but is larger in terms of both budget and participation. Of the overall 14.2 million Euro budget, the European Union alone is contributing 6.5 million Euro. The 22 industry participants and research establishments involved in the project include DAIMLERCHRYSLER, FIAT CRF, , ENGINEERING CENTER STEYR (MAGNA), HALDEX, KNORR BREMSE, MOTOROLA, MICHELIN, SIEMENS VDO and SKF. IQ's inclusion in the SPARC project arises out of its successful collaboration in the PEIT project, with iQ again having been engaged to develop the architecture and design of the complete electrical power supply employing iQ's intelligent energy management technology.

The goal of SPARC is to substantially improve traffic safety and efficiency for heavy goods vehicles using intelligent X-By-Wire technologies in the powertrain. To prove this standardized concept, an automotive Software/Hardware platform will be developed that is scalable and usable from heavy goods vehicles down to small passenger cars (sPC) and be integrated therein. SPARC will propose a complete automotive concept of an open system architecture, where software functionalities of different partners can be integrated easily. Two validator vehicles of this architecture will be built and evaluated.

The Project aims to describe a homologation path for scalable SPARC technology and to transfer the developed technology into serial models. It is anticipated that the outcome of the project will ensure European technologically leadership for the purposes of the SPARC-type vehicle.

For information about iQ Power, please visit our website at: www.iqpower.com.