iQ Power Licensing AG: Announcement of preliminary financial results 2014, growing and sustainable revenue

Zug (pta002/01.05.2015/00:10 UTC+2) ,

- License Income of CHF 1 million (2013: EUR 15.000)
- Improved Profitability of CHF 0,2 Mio. loss (2013: EUR 1,7 Mio. loss)
- Growth in Revenues through Licensee Discover Energy
- Milestone in OEM business through contract with Moura Baterias, Brazil
- Financial Reporting changed to Swiss Franc and Swiss Accounting rules
- Situation with Korean Licensee remained unclear

Zug/Schweiz, 01. Mai 2015 - 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, announces the preliminary annual report for 2014.

Financial Results 2014
The start of sales by Discover Energy and signing of the License Agreement with the Brazilian battery manufacturer, Moura Baterias led to significant license income of CHF 1 Million (2013: EUR 15.000). Due to the successful capital increase and stable profitability in 2014 the Total Equity increased to CHF 2.2 Million (2013: 1,0 Million) and the Equity Quota rose to 44% (2013: 27%). Cash-on-Hand at year-end was an adequate CHF 458.000.

The upward trend in earnings since 2012 continued in 2014 with losses reduced to CHF 0,2 Million (2013: EUR 1,7 Million), which were due mainly to higher revenues. Operating costs were stable at CHF 1,6 Million (2013: EUR 1,7 Million). Included in the costs were one-time write-downs for license receivables from the Korean licensee and receivables for engineering services to the American licensee totaling together CHF 0,3 Million. Operational costs are divided fairly evenly between R&D, Reporting and Listing, and General Administrative costs. All known risks were taken into account.

Operations Report
In 2014 Discover Energy initiated sales of batteries with iQ Power technology to new and existing customers following receipt of a license in 2013. Initial market reaction was positive and Discover Energy has been able to regularly add new customers.

Another meaningful milestone was the license agreement with the OEM-oriented battery manufacturer, Moura Baterias. Moura is the largest battery manufacturer in South America. The contract included a significant upfront royalty. More importantly, the cooperation will be the bridgehead into OEM usage of the iQ Power technology.

During the whole of 2014 the situation was unclear at the Korean licensee, iQ Power Asia Inc., both in terms of financial stability as well as operations. In February 2015 the long-time but controversial CEO was replaced at the request of the Board of Directors and Bob Sullivan, CEO of iQ Power Licensing AG was named new CEO. The new CEO is tasked with restructuring and restarting the financially troubled company. Shareholders of iQ Power Asia solidly support the new CEO and are convinced that the company still has a bright future.

The self-announced sales guidance for 2014 from the North American licensee was completely missed. No significant license income was reported for 2014. iQ Power Licensing management is studying the justification of continuing the business relationship as it now exists.

Outlook 2015
With the introduction of the strategic partner, Discover Energy, iQPL has established a base for growing and stable license sales income. The focus of activities in the first half of 2015 will be the restart of the factory in Korea, which represents the best and fastest chance for license income revenue. Management anticipates difficult discussions with the North American licensee due to the continued disappointing license income. In the second half of 2015, the focus will swing to rejuvenating license activities in Europe with both aftermarket and OEM-oriented battery manufacturers.

Management views the overall situation as very positive for 2015.

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Emitter:	iQ Power Licensing AG Metallstrasse 6 6304 Zug Switzerland
Contact Person:	Dr. Eva Reuter
Phone:	+49 251 9801560
E-Mail:	e.reuter@dr-reuter.eu
Website:	www.iqpower.com
ISIN(s):	CH0268536338 (Share)
Stock Exchange(s):	Free Market in Berlin