iQ Power to Get Higher Advance Payment Totaling $1.35 Million From Korea

ZUG, Switzerland, June 30 -- iQ Power AG (OTCBB: IQPOF, Frankfurt: IQPB) has reported that the payment announced on 10 December 2004 has increased from $1.1 million to $1.35 million. Of this amount, $1.1 million has already been received, of which $0.65 million was in 2004. The additional $250,000 is a flat-rate licensing fee that is attributable to increased administrative expenses and is due this year.

Payments are being made on the basis of the licensing agreement signed in December 2004 between iQ Power Licensing AG, a wholly owned subsidiary of iQ Power AG, and iQ Power Asia Inc. According to this licensing agreement, the since-established iQ Power Asia Inc. initially pays fixed compensation of $1.35 million. This payment is in addition to licensing fees, which are dependent on future production volumes.

This licensing agreement is an integral part of a number of contracts with the Korean consortium. Among other things, these contracts call for the establishment of a joint venture in Korea with the goal of manufacturing and marketing innovative products for the Asian automotive market on the basis of 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

    
    Peter E. Braun
    President of the iQ Power AG Board of Directors
    Tel. +49-89-61-44-83-10
    Fax. +49-89-61-44-83-40
    E-Mail: peter.braun@iqpower.com

Peter E. Braun, President of the iQ Power AG Board of Directors, Tel. +49-89-61-44-83-10, Fax. +49-89-61-44-83-40, E-Mail: peter.braun@iqpower.com