iQ Power Expands to Asia - Korean Partner to Make $1.1 Million Payment to iQ

ZUG, Switzerland and SEOUL, Korea, December 10 -- iQ Power AG has announced the establishment of a joint company with a Korean consortium. A related agreement is in effect now that the financing has been secured.

In accordance with this agreement, the new joint company, called iQ Power Asia Inc., will be founded this year. The purpose of the company is the production and marketing of innovative electrical energy management systems for the rapidly expanding Asian automobile industry. The foundation for this undertaking is the technology that iQ Power developed for the "MagiQ", the world's first microelectronically controlled car battery.

The agreement stipulates that the participating partners provide the new company with $2.2 million in starting capital. iQ Power AG will hold a 40-percent shareholding in iQ Power Asia Inc., which cannot be diluted. Furthermore, iQ Power AG will be afforded an advance dividend of $2 million from iQ Power Asia's net income.

iQ Power's contract partner is a consortium of Korean representatives from the military-industrial sector under the leadership of Tae Soo Lee..

This Korean partner will make a one-time payment of $1.1 million to iQ Power AG before the end of the year.

"We're convinced that we have found just the right partner to successfully expand into the Asian market," commented Peter E. Braun, board president of iQ Power AG. "This new iQ Power Asia organization will serve as a bridgehead for implementing our Asia strategy."

It took a great deal of time and many visits back and forth by both parties to work out the terms of the current agreement. Negotiations were supported by the Korea Trade Investment Promotion Agency (KOTRA) and the AiF industrial-research workgroup of the German Ministry of Economics and Labor.

Tae Soo Lee: "We are extremely interested in bringing innovative German high technology to Korea and making it a success on the Asian market"

About iQ Power AG

iQ Power AG is a Swiss company that specializes in the development of intelligent systems solutions for electrical energy management (Smart Energy Management, SEM) in the power and wiring systems of automobiles and other forms of transportation. Among the company's numerous achievements was the world's first software-managed, intelligent car battery. The development unit is iQ Power Deutschland GmbH, a wholly owned subsidiary of iQ Power AG located in Munich, Germany.

iQ Power AG