iQ Power AG

Board of directors convenes extraordinary general meeting to decide on parent-subsidiary merger

Adhoc announcement according to article 15 WpHG

Zug (pta004/22.12.2014/07:30) - .. - Merger of iQ Power AG with the wholly owned subsidiary iQ Power Licensing AG - Decision to be taken by extraordinary general meeting on 27 January 2015 - Equity restructuring will allow earlier dividend payout - Simplified company structure will increase efficiency and reduce costs - Current shares to be exchanged for new shares in the new company - Listing of the new shares on the Berlin stock exchange is planned - Reduction in the total number of shares in a 4:1 ratio - Amalgamation of the two previous classes of shares

Zug/Switzerland, 18 December 2014 - iQ Power AG (ISIN: CH0020609688, German Securities Code Number (WKN): A0DQVL / symbol: IQPB, ISIN: CH0199540599 / German Securities Code Number (WKN): A1J7TW / symbol: IQPA), a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licences in these technologies, is convening an extraordinary general meeting to approve the merger contract entered into by iQ Power AG and iQ Power Licensing AG. The extraordinary general meeting will be held at 10 a.m. on 27 January 2015 at the premises of the Migros Klubschule, Metalli-Gebäude, Industriestrasse 15, Zug, Switzerland. In addition to the resolution on the merger and there will be a resolution for the set-off of capital contribution reserves in the amount of CHF 14,575,665.57 through loss carryforwards which is an accounting prerequisite for the merger are the only items on the agenda. The shareholders can vote by mail in which they appoint the independent proxy to represent them.

The plan involves the takeover of iQ Power AG by iQ Power Licensing AG, which is a wholly owned subsidiary of iQ Power AG and is the legal owner of all patent rights held by the iQ Power Group as well as all tools and equipment for the production of the plastic components based on the patents held by the iQ Power Group.

All rights and obligations of iQ Power AG will be taken over in full by iQ Power Licensing AG as part of the merger.

The key reason for the merger is the prospect of being able earlier than was previously possible to distribute dividends as soon as the company earns suitable profits. Details can be viewed under the Questions and Answers to be published on the company website shortly.

The implementation of the planned transaction will reduce the share capital of the listed company to 2.452 million Swiss francs and the total number of shares will be reduced to around 245 million and this will mean, as a result, an exchange ratio of 4:1 for the new shares. The total net assets of the iQ Power Group will be the same post-merger.