Institutional Investors Expand Their Holdings in iQ Power

ZUG, Switzerland, March 1 -- Institutional investors have expanded their involvement in iQ POWER AG (OTCBB: IQPOF). In early February, a German and two Swiss institutional investors subscribed a total of 1.5 million shares of iQ POWER stock valued at 2.7 million euros. In accordance with Swiss law, the related capital increase was recorded in the commercial registry of the canton of Zug on 24 February 2006.

There are currently five institutional investors that have made a commitment to iQ POWER through financing measures, including two first-tier capital providers. Two of these investors expanded their current holdings during this latest round of financing. This capital increase is the start of securing the company's own production capacities in Europe.

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

    
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    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

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