SOURCE: Ikona Gear International

October 17, 2005 08:30 ET

Ikona Gear Developing Revolutionary New Continuously Variable Transmission

Company Expands Into New Vertical Markets With First In-House Application Built on Patented Gearing Platform

COQUITLAM, BC -- (MARKET WIRE) -- October 17, 2005 -- Ikona Gear International, Inc. (OTC BB: IKGI), a leader in innovative gearing systems technology, today announced that it has embarked on the development of a revolutionary new Continuously Variable Transmission (CVT) based on its patented Ikona Gear Platform. This technology breakthrough will enable a new generation of CVTs to be rapidly introduced into dozens of vertical markets including automotive, oil and gas, alternative energy, and industrial transportation. The new Ikona CVT will boast significant size and weight reductions, improved performance, and increased efficiency, all while providing for an infinite number of gear ratios.

"Our business model has been to out-license our patented gearing technology platform across more than 80 industry sectors in a $100 billion global gearing market," said Ikona CEO and President Laith I. Nosh. "In effort to drive immediate revenue and speed time-to-market for commercial applications, we are also selectively choosing high impact vertical markets on which to focus in-house application development."

Nosh continued, "As oil prices hit all-time highs, and emissions standards becoming more stringent, this is an opportune time for us to introduce our first in-house product, the Ikona Continuously Variable Transmission. We are already seeing tremendous interest in the CVT technology from our market partners, and look forward to continuing the introduction of applications with additional market partners over the next several months."

Transmissions operate over a wide range of power conditions, such as low speed-high torque to high speed-low torque, as well as through a variety of gear ratios. The Ikona CVT technology provides an infinite number of ratios, enabling manufacturers to hit the desired operating speed of an automobile, for example, with a constant input speed, while also enabling the engine to operate in its optimum efficiency range. As operating conditions change, CVT allows ratio change without any interruption of power flow. When a driver is cruising in conditions requiring low power, CVT technology will operate the engine and turn the motor more slowly. As the driver approaches power-intensive conditions such as towing, accelerating or hill climbing, CVT will turn faster. This provides for significant fuel efficiency and performance over traditional transmission technology.

The new Ikona CVT provides manufacturers with the technology to enjoy vast improvements including:

--  Significant size and weight reductions in power transmissions from
    existing market solutions;
    
--  Increased efficiency, allowing smaller engines to operate at broader
    optimum RPM ranges;
    
--  Lower fuel consumption;
    
--  More environmentally friendly than existing market solutions;
    
--  Scalable to high torque industrial applications;
    
--  Potential to replace expensive Variable Frequency Drives (VFDs) with
    low cost, low power electro-mechanical CVT drives;
    
--  Decreased development and manufacturing costs;
    
--  Higher quality transmission product with increased durability.
    
The new Ikona CVT technology will be the subject of a white paper and presented to the gearing and technology communities in early 2006. For more information, including a CVT product demo and technical presentation, please contact Sasa Tesic at 604-523-5512.

About Ikona Gear International

Ikona Gear designs, manufactures and markets innovative gearing-enabled applications and gear increasing and reduction systems. Ikona's patented intellectual property involves a unique gear tooth form that provides very high gear reduction and very high gear tooth contact. The company's patented technology affords significant advantages over traditional planetary gearing systems including: very high torque, reduced size and weight, zero backlash, accurate back-and-forth actuation, low wear, superior efficiency and low noise. Ikona trades on the Over the Counter market under the symbol "IKGI" and on the Frankfurt Exchange under the symbol "IG2." For more information on Ikona, please visit us at http://www.ikonagear.com/.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the company to differ materially from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.

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