iQ Power Occupies Initial Site in Dortmund to Establish Modelling and Design Production

DORTMUND, Germany and ZUG, Switzerland, August 17 -- iQ Power (OTCBB: IQPOF) now has its own facility in the Ruhr city of Dortmund. The University of Dortmund and iQ Power Deutschland GmbH signed usage agreements yesterday, which provide the company a suitably large hall in close proximity to the University of Dortmund's Faculty of Mechanical Engineering. iQ Power is currently furnishing the rooms with the needed IT infrastructure and technical equipment in this over 500-square-meter large hall adjacent to the site of the company's future manufacturing plant.

This facility on the University of Dortmund campus provides iQ Power an ideal interim solution since it enjoys both ready connections to and is only a very short distance from the engineering faculty and the Department of Plant and Factory Organization. The agreed term of use extends until the spring of 2008, which is when plans call for completion of the land development and construction of iQ Power's own factory at the future PHOENIX West site, located only a few kilometers away at a former coal and steel property.

iQ Power's new future factory will be an ultra-modern complex with model character in which the company intends to build a half million innovative, intelligent energy-storage systems a year for the automobile industry. Production is scheduled to start at the beginning of 2008.

This Dortmund location means much for iQ Power than just a manufacturing plant in its conventional sense. By working closely with the University of Dortmund and the local Fraunhofer Institute for Material Flow and Logistics (IML), iQ Power will be developing here the latest procedures and technologies needed for optimal manufacturing. All the procedures and process steps will be perfected for use in later large-scale production through simulations as a digital factory in the computer. The goal is an integrated site for production, research and development, as well as manufacturing operations that have a model character. This site is also where iQ Power will develop optimized process steps for its licensing partners' production operations and provide the related training and education. Its Korean licensing partner will be the first to use these services.

iQ Power will be supported in this endeavor through the new "Center for Production and Manufacturing Technology", which the city of Dortmund will be building right next to its new plant. iQ Power aims to occupy additional offices and laboratories in this new center in order to access and benefit from the infrastructure the center will be offering, including the latest computer technology, machine tools, systems and staffing.

"Moving into this remarkably practical interim solution allows us to get started right away at the Dortmund location with additional construction and the developmental work needed for the individual process steps involved in the later manufacturing effort," explained Christian Runge, managing director of iQ Power Deutschland GmbH.

Visit: www.iqpower.com.

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

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