iQ Power: Construction of Factory in South Korea Progressing on Schedule

ZUG, Switzerland, April 3 -- Construction work for the new manufacturing plant of iQ POWER Asia Inc., a joint venture of iQ POWER AG (OTCBB: IQPOF), in the major South Korean city of Gwangju is moving ahead right on schedule. Drilling work for the foundation piers is currently underway. The structural frame of the new factory will later be built on these piers and have a superstructure with a floor space of some 11,000 square meters. A total of 632 foundation piers will be installed. Drilling was interrupted because of weather during the recent frost and winter season and has now resumed as planned. Preparation of the steelwork construction for the new building is already underway and will coincide with the approximately 8 weeks of earth working.

With this facility, iQ POWER Asia Inc. is building what is currently the most modern battery factory in the world. The structure is being built on about a 36,000 square meter industrial park in Gwangju. Here is where innovative, electronically managed batteries and energy storage systems for automobiles and the vehicle industry as a whole will be manufactured. The coming years will see investments in the double-digit million euros being made in this factory, which will begin operations this year. The initially planned production capacity has been set at approximately three million smart batteries.

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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      Peter E. Braun
    Information:
                 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