Ikona Gear Announces Private Placement of $1 million

COQUITLAM, BC, March 16 -- Ikona Gear International, Inc. (OTC BB: IKGI) ("the Company"), a leader in innovative gearing systems technology, has arranged a non-brokered private placement of $1 million consisting of 1,333,333 Units at a price of $0.75 per Unit. Each Unit will consist of one (1) common share and one (1) non-transferable share purchase warrant which will entitle the holder to purchase one (1) additional common share at an exercise price of $1.00 per share for a period of one year from the closing date of the placement, and an exercise price of $1.40 per share for a further period of one year. A finder's fee of 7% will be paid in connection with this placement. The proceeds of the placement will be used for general working capital purposes.

This private placement will provide sufficient operating funds for the Company to conclude a number of licensing agreements and to establish sufficient royalties, at its current rate of operating expenses, to reach a break even level of operations on a cash basis within the next year of operations.

The Company also wishes to advise that it is presently in discussions with Magna Advanced Technologies ("MAT") regarding licensing agreements for two proposed commercial applications developed by MAT. Further details will be provided on completion of the negotiations with MAT.

About Ikona Gear

Ikona Gear designs, manufactures and markets innovative gearing-enabled applications and gear increasing and reduction systems. Ikona's patented intellectual property involves a unique gear tooth form that provides very high gear reduction and very high gear tooth contact. Our technology affords significant advantages over traditional planetary gearing systems including: very high torque, reduced size and weight, almost zero backlash, accurate back-and-forth actuation, low wear, superior efficiency and low noise. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2".

For more information on Ikona, please visit us at http://www.ikonagear.com/.

Investors may contact Messrs. Dal Brynelsen, Laith Nosh or Raymond Polman, at Ikona Gear International, Inc. at (604) 523-5500, or email us at: ir@ikonagear.com

  On Behalf of the Board
  Ikona Gear International, Inc.

  "Laith Nosh"
  Laith I. Nosh, President and CEO

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.