iQ Power AG sells European business unit per MBO

iQ Power AG  / Key word(s): Miscellaneous/Strategic Company Decision

16.05.2012 18:00

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iQ Power AG sells European business unit per MBO

  - Sell of majority stake is part of new structure of business

  - Future concentration on Licensing operations

  - 15% Equity Participation for Sales and Production companies

  - R&D subsidiary to be closed through Insolvency

Zug/Switzerland, 16 May 2012 - iQ Power AG (ISIN: CH0020609688, WKN:
A0DQVL, Symbol: IQPB), the developer and marketer of eco-friendly and
technologically advanced starter batteries for motor vehicles, announces
the accomplishment of the restructuring of the company as announced
recently through the sale of majority shareholding of the European sales
and production unit.

The European production operations in Maribor, Slovenia, Interbat d.o.o.,
has been sold per Management-Buy-Out (MBO) to local management, led by the
current Operations Director, Dr. Michael McDonagh.

The European sales and trading organization, iQ Power GmbH, Chemnitz,
Germany, has been sold per Management-Buy-Out (MBO) to the current sales
team and Dr. Luca Butti, owner and Managing Director of iQ Industries GmbH,
Chemnitz, Germany.

Both companies will keep their current names and are committed to maintain
and expand sales of batteries with iQ Power technology in Europe. As part
of the purchase agreement, both companies will receive a non-exclusive
license for sales of batteries with iQ Power technology in Europe at a
reduced rate through 2013. Management of iQ Power feels that the management
groups at both companies will make the best possible use of the operations
and sales structure created by iQ Power AG since 2009.

In both companies, iQ Power AG will retain a 15% equity stake. This
minority position will allow iQ Power AG to participate in any positive
developments of both units, while relieving iQ Power AG from further
funding obligations.

Purchase Contracts have been signed by all parties and are subject to
registration in the respective commercial registers of each country. The
sales of the both companies are effective retroactive to April 1, 2012.
Terms of sale were agreed to be kept confidential between all parties.

As a result of this transaction, Mr. Sullivan will resign as Managing
Director of these companies.

iQ Power Group will also close operations of the F&E subsidiary of iQ Power
Technik GmbH, Chemnitz, Germany through paragraph 16 of German Insolvency
Law. All employees have exited the company or will be released after their
notification period is over. Measures have been taken to assure that key
know-how for the technology as well as testing equipment will remain under
corporate control.

Through these transactions, the new strategy of a lean corporate structure
and the concentration on Licensing operations and the marketing of the
patented iQ Power technology, has been accomplished.

The CEO

About iQ POWER
iQ Power AG is a developer and supplier of innovative starter batteries for
motor vehicles. The products are technologically advanced, deliver greater
efficiency, and are environmentally sound and lighter in weight. The
company's many achievements include the development of the world's first
software-controlled smart car battery. Industrial batteries and system
solutions for electrical energy management in vehicles help round out its
operational portfolio.

The company's operational element is iQ Power GmbH in Chemnitz (Germany),
which is a wholly owned subsidiary of iQ Power AG. Headquartered in Zug
(Switzerland), iQ Power AG is a publicly listed stock corporation whose
shares are traded on the regulated market (General Standard segment) of the
Frankfurt Stock Exchange, over the counter on the securities exchanges in
Berlin, Düsseldorf, Munich and Stuttgart, as well as on Xetra (ISIN:
CH0020609688, WKN: A0DQVL, IQPB).


Contact:
Company Contact:
iQ Power AG
Metallstrasse 9
6304 Zug
Schweiz
Tel.: +41(0) 41 768 03 63
Fax: +41(0) 41 768 03 68
info@iqpower.com
www.iqpower.com

Investor Relations Contact:
GFEI Aktiengesellschaft
Am Hauptbahnhof 6
60329 Frankfurt am Main
Tel.: +49 (0)69 - 74 30 37 00
Fax: +49 (0)69 - 74 30 37 22
iQPower@gfei.de
www.gfei.de


16.05.2012 DGAP's Distribution Services include Regulatory Announcements,
Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de

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Language:     English
Company:      iQ Power AG
              Metallstrasse 9
              6304 Zug
              Switzerland
Phone:        +41 41 7680360
Fax:          +41 41 768 03 68
E-mail:       investor-relations@iqpower.com
Internet:     www.iqpower.com
ISIN:         CH0020609688
WKN:          A0DQVL
Listed:       Regulierter Markt in Frankfurt (General Standard);
              Freiverkehr in Berlin, Düsseldorf, München, Stuttgart
 
End of Announcement                             DGAP News-Service
 
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