Progress Being Made by iQ Power AG's Asian Activities

SEOUL, South Korea, March 14 -- iQ Power AG (OTCBB: IQPWF , Frankfurt WKN: A0DKTR) is pleased to announce how the collaboration with its Korean partner is making progress. During its current trip to Asia, iQ Power's management has confirmed a number of accomplishments. As agreed, the Korean partner has formally founded iQ Power Asia Inc. and registered it with the articles of incorporation that were stipulated. This new company has its corporate domicile in Seoul and maintains offices near the Kimpo Airport.

Plans call for iQ Power AG to take its share position in iQ Power Asia Inc. by increasing the company's current minimal capitalisation of 50 million Korean Wong (about 50,000 US Dollars) together with other partners. This capital increase will be conducted in accordance with Korean rules governing foreign investors and is subject to appropriately regulated steps and procedures.

The visit to Korea also provides the opportunity for iQ Power's management and its Korean partner to engage in negotiations with local government agencies regarding suitable locations for building a planned production facility. Initial talks were also held with potential suppliers, who hosted tours of their plants and gave iQ Power product samples for qualification testing in Germany.

During an exclusive gala event honoring iQ Power, management had the opportunity of presenting the high-ranking and distinguished guests with a look at iQ Power as a company and its goals. Some 60 prominent representatives from the world of politics, industry and public service attended the event.

About iQ Power AG

Headquartered in Zug/Switzerland, iQ Power AG specializes in the development and marketing of intelligent systems solutions for electrical energy management (Smart Energy Management, SEM) in the on-board network of automobiles and other vehicles. Among the company's many achievements was the world's first software-managed, intelligent car battery. The development unit is iQ Power Deutschland GmbH, located in Munich/Germany, a wholly owned subsidiary of iQ Power AG, a publicly listed company. Shares of iQ Power are traded on the OTC BB (IQPWF), over the counter on the Frankfurt and Berlin Stock Exchanges, as well as on XETRA (IQPA, German WKN: A0DKTR).

Please visit www.iqpower.com.

    
    Further Information: 
    Peter E. Braun
    President of the iQ Power AG Board of Directors 
    and Managing Director of iQ Power Deutschland GmbH 
    TEL: +49-(0)89-61-44-83-10
    FAX: +49-(0)89-61-44-83-40
    E-Mail: peter.braun@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, 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.

Further Information: Peter E. Braun, President of the iQ Power AG Board of Directors and Managing Director of iQ Power Deutschland GmbH, TEL: +49-(0)89-61-44-83-10, FAX: +49-(0)89-61-44-83-40, E-Mail: peter.braun@iqpower.com