iQ Power Licensing AG

Successful conclusion of negotiations in South Korea and results of first half year 2015

Announcement according to stock regulations

Zug / Gwangju, South Korea (pta028/26.01.2016/18:30) - . . * Rehabilitation Plan for South Korean factory approved by Court of Gwangju * New products introduced and increased sales to current and new customers * Cooperation with Discover Energy intensifies * Financial Results for the first six months of 2015

Zug / Gwangju, South Korea, 26 January 2016 - iQ Power Licensing AG (ISIN: CH0268536338; WKN/Security Number: A14M1C; Symbol: IQL) a developer and marketer of technologies for environmentally friendly and technologically innovative starter batteries for motor vehicles and licenses in these technologies, gives a status update on its Korean license partner iQ Power Asia Inc.

Approval of Plan iQ Power Asia (IQPA) announces the approval of the financial re-structuring plan by the Federal Court of Gwangju. Following long and intense negotiations, the required majority of creditors have voted for the plan submitted by IQPA to the court. The Plan foresees a partial debt re-payment totaling about 37% of the total claims submitted. The amount varies between various secured creditors and unsecured creditors. The payments will be stretched out over a time period starting at the end of 2016 and ending in year 2022.

The approval is a major step forward for the revitalization efforts. With the approval, IQPA has a stable financial basis from which to continue its aggressive expansion program. The approval is significant for both customers and suppliers and will spur further increases in sales. The stability will also allow for a secure basis for investment in plant and equipment to expand the capacity of the factory.

The key to achieving majority approval was the purchase of the senior secured debt by Discover Energy (DEC) as well as the purchase by DEC of the large unsecured debt from the 5 venture capital banks. The purchases represent a significant investment of DEC in IQPA. The purchases also underscore the large potential value of IQPA.

Until the end of the repayment plan, IQPA will remain under the oversight of the Court. The 2 administrators, including the current CEO of IQ Power Licensing AG, will remain in charge of day-to-day operations. All shareholders of iQ Power Asia will retain their current shares at a reduced par value, however the share percentage will be unchanged unless an investor should decide to make a capital contribution.