iQ Power: Groundbreaking in South Korea for Construction of the World's Most Modern and Innovative Battery Factory

GWANGJU, South Korea and ZUG, Switzerland, December 7 -- For iQ Power AG (OTCBB: IQPOF, Frankfurt: IQPB) and iQ Power Asia Inc., Tuesday's formal groundbreaking ceremony marked yesterday's official start of construction on the most modern battery factory in the world. This first facility for the manufacturing of iQ Power's innovative, electronically managed car batteries, will go up next year on an approximately 36,000-square-meter industrial site in the South Korean high-tech center of Gwangju, a city of a million people.

In accordance with the memorandum of understanding (MOU) that iQ Power signed with the city of Gwangju in May of this year, iQ Power Asia Inc.'s equivalent Euro investment will range in the double-digit millions. Some 160 highly qualified Korean workers will be employed in this Korean plant in its first stage of expansion. This new facility will start operations in the coming year producing an initial annual volume of a good three million intelligent batteries (smart batteries).

In attendance at the ceremony were the Lord Mayor and city council of Gwangju, as well as over 350 invited guests, including high-ranking military representatives and top managers from the Korean automobile industry.

iQ Power Asia Inc., which is building this new plant, is a joint venture between the Swiss technology company iQ Power and a Korean industrial consortium. The Swiss organization holds a 40-percent stake in the joint company iQ Power Asia Inc. Swiss iQ Licensing AG will provide the technology for these bold new products and also holds the patents. The licensing company is a wholly owned subsidiary of iQ Power AG.

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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 related to iQ Power's Korean joint venture. 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, the ability of the Korean joint venture to effectively manufacture and market products using iQ technologies, 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. +41-41-7666-900
    Fax. +41-41-7666-940
    E-Mail: peter.braun@iqpower.com

Peter E. Braun, President of the iQ Power AG Board of Directors, Tel. +41-41-7666-900, Fax. +41-41-7666-940, E-Mail: peter.braun@iqpower.com