Swiss Institutional Investors Buy Two Million Shares of iQ Power

ZUG, Switzerland, June 28 -- iQ POWER AG (OTCBB: IQPOF, Frankfurt: IQPB) has announced that the stock option the company issued has been exercised in its entirety and that institutional investors have acquired a securities package of two million iQ POWER shares. The capital increase accompanying this has already been entered in the commercial register of the Swiss canton Zug. These two million shares represent a stake of more than 5% of iQ POWER. Because the share package is distributed between two investors, the individual investments are not subject to statutory securities reporting requirements. The two capital providers are Swiss first-tier institutional investors.

As was already reported on 11 May, this investment in iQ POWER AG will serve to finance its 40% equity holding in iQ POWER Asia Inc. iQ Power Asia Inc. was established in December 2004 and is structured as a joint venture at a ratio of 40/60 between iQ POWER AG and a Korean consortium. The purpose of this new company is the production and marketing of innovative electrical energy storage systems for the Asian automobile industry on the basis of the technology developed by iQ POWER.

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 power and wiring systems of automobiles and other forms of transportation. Among the company's many achievements was the world's first software-managed, intelligent car battery. The development unit is iQ Power Deutschland GmbH of Munich and a wholly owned subsidiary of iQ Power AG. iQ Power AG is a publicly listed stock corporation (ISIN: CH0020609688), whose shares are traded on the Nasdaq OTC-BB (IQPOF), over the counter on the Frankfurt and Berlin Stock Exchanges, as well as on XETRA (IQPB, WKN: A0DQVL). - Please visit 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, 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
    TEL +49-089-61-44-83-10
    FAX +49-089-61-44-83-40
    E-Mail: peter.braun@iqpower.com

Further Information: Peter E. Braun, President of the iQ Power AG Board of Directors, TEL +49-089-61-44-83-10, FAX +49-089-61-44-83-40, E-Mail: peter.braun@iqpower.com