iQ Power Makes First Delivery of the SEM(TM) Smart Energy Manager to Vehicle Manufacturer

MUNICH, Germany, March 29 -- iQ Power Technology (OTCBB: IQPR, Frankfurt: IQP) just passed an important milestone along its roadmap with yet another one of the its sophisticated products. This marks the first time that iQ Battery Research and Development GmbH, the German engineering unit of iQ Power Technology Inc., has shipped to a well-known German vehicle manufacturer its SEM(TM) Smart Energy Manager, an important new product designed to manage energy within wiring and power systems.

iQ's innovative SEM(TM) is being used in drive-by-wire platforms as a part of the PEIT (Powertrain Equipped with Intelligent Technologies) project being actively promoted by the EU. The SEM(TM) Smart Energy Manager is a critical component along with the MagiQ(TM) smart battery, also designed and being delivered by iQ. The company's new SEM(TM) product manages and tracks energy levels within the two independently operated, redundant electrical systems inside the vehicle used by the project. It also forwards safety-related information to the vehicle's central drive-line electronics.

The PEIT drive-by-wire project, under the leadership of DaimlerChrysler, is recognized as both an imaginative and seminal undertaking with the goal of developing technologies for "accident-preventing" vehicles. The project will build the foundation on which to establish an open European technology standard in this new and important field. iQ Power is responsible for safety-related electrical-energy management within this international x-by-wire project.

The Munich technology company iQ Battery Research & Development GmbH specializes in the design and development of intelligent systems solutions for electrical-energy management (SEM(TM) - Smart Energy Management) within the wiring and power systems of automobiles and other means of transportation. This young high-tech company is a wholly owned subsidiary of the North American iQ POWER Technology Inc. Among the company's innovations is the world's first software-managed intelligent automobile battery. - You can find out more by visiting www.iqpower.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 battery, potential fluctuations in operating and research and development expenses, project and product development contingencies, and iQ's ability to generate revenue from the sale of its battery and energy management products and through licensing its technologies. The reader is cautioned not to place undue reliance on forward-looking statements.

Additional Information: Peter E. Braun, (Corporate Management), tel +49 (0)89-61-44-83-10, fax +49 (0)89-61-44-83-40, e-mail: peter.braun@iqbattery.com