iQ Power and Dutch TNO Automotive Looking at Cooperation on Secure Energy Supply in Automobiles

MUNICH, Germany, May 11, 2004 --

The Munich-based iQ Battery Research and Development GmbH, the German engineering unit of iQ Power Technology Inc. (OTCBB: IQPR, Frankfurt: IQP), and the Dutch organization TNO Automotive, headquartered in Delft, will be working more closely with one another on secure electrical-energy supplies in automobiles and on automotive electrical systems. The two partners are pleased to announce that they have just signed an agreement to this effect.

TNO Automotive is a part of the major Dutch research-and-development organization TNO and a well-known partner within the international automobile industry for research, development, engineering and testing. The organization works for carmakers and major systems suppliers in special fields such as vehicle safety, drive systems, homologation and x-by-wire.

The goal of this partnership is to generate synergies from the core competencies of both partners. TNO Automotive not only enjoys broad access to the development departments throughout the international automobile and supplier industry, but also has wide-ranging expertise and resources for computing, simulating and testing within the most varied fields of application. iQ, on the other hand, contributes its remarkable competence in the areas of energy-management systems, architectures for energy networks critical to safety, intelligent batteries and DC-BUS technology.

A joint appraisal will precede the actual cooperation and the agreement between the two companies is not exclusive.

With some 5,400 employees worldwide, TNO is one of Europe's biggest task-specific research and technology organizations. Germany, France, Great Britain, the United States, Japan and Korea are just some of the locations where TNO Automotive has offices. - You can find out more about TNO Automotive and TNO at www.automotive.tno.nl and www.tno.nl

The Munich technology company iQ Battery Research & Development GmbH specializes in the development of intelligent systems solutions for electrical energy management (Smart Energy Management, SEMä) in the electrical 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 achievements was the production of the world's first software-managed intelligent automobile battery. - Additional information is available at 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+49 089 /-61-44-83 - 10, FAX +49 089 /-61-44-83 - 40, e-mail: peter.braun@iqbattery.com