SOURCE: Ikona Gear International, Inc.

December 20, 2006 16:27 ET

Ikona Reports Substantial Revenue Growth for 2006

Company Highlights Achievements of Fiscal Year 2006

COQUITLAM, BC -- (MARKET WIRE) -- December 20, 2006 -- Ikona Gear International, Inc. (OTCBB: IKGI) ("Ikona"), an innovator in compact, lightweight, gearing systems solutions, today announced that it has made significant progress in its financial year ended August 31, 2006 as revenues were $464,213 compared with $15,886 for 2005. A majority of the revenue was generated in the 4th quarter from licensing royalties and engineering services as the Company prepared to launch its proprietary products in the Oil & Gas market. The Company also received its first licensee fee for the use of its gear in the automotive industry. The Audit financial statements have been filed in its Form 10KSB with the SEC (

The Company plans to commence commercial shipments from January 2007 onwards to fulfill orders resulting from its rapidly expanding pipeline of business. The Company's business development strategy for 2007 is to focus on penetrating lead customers in the Oil & Gas market while expanding the use of its technology by licensees in the automotive sector. The Company has filed patents for the use of its gear technology in a new clutch and differential for the transmission industry and as a result expects to secure a number of commercial relationships with international engineering companies in order to commercialize these new technologies in its target markets.

2006 Highlights included:

--  Received initial orders of $650,000 from customers, for new Oil & Gas
    drilling products following the launch of the Company's six new gearing
    products for Oil & Gas exploration at two global petroleum shows. The
    products enable drilling systems and equipment manufacturers to build more
    efficient, lightweight, compact systems and equipment, thus enhancing the
    value they provide to the end users, the drilling rig operators.
--  Raised $1.2 million in new financing.
--  Signed multi-million dollar global licensing agreement with Magna
    Powertrain for the use of Ikona's gear in the automotive industry. Magna
    and Ikona executed a Designation Addendum for an application designated as
    the "Park Brake Actuator," and Magna has paid the exclusivity fee of
    CAD$200,000 to Ikona. Further applications are currently being tested.
--  Expanded management team through the new key appointments of Vladimir
    Scekic - Vice President of Business Development, George Stefan - Chief
    Operating Officer, and Sasha Tesic - Chief Engineer.
--  Signed a potential multi-million dollar development agreement and
    completed a proto-type first phase development program with a tier one U.S.
    defense contractor for a satellite pedestal antenna product. Ikona is
    currently in the second phase of development with a pre-production phase
    beginning during the third quarter of 2007.
"We have seen significant momentum build in our business during 2006 specifically during the last quarter," said Laith Nosh, CEO. "Our decision to diversify from the automotive sector and other niche markets into the Oil & Gas market has significantly increased our revenue opportunity for 2007."

About Ikona Gear International, Inc.

Ikona Gear is a knowledge-based company focused on the design and manufacture of innovative and patented solutions for gearing and power transmission applications, a $100 billion market. The Ikona gear system is better, stronger, more precise and generally superior to standard gearing systems. The Company's unique, patented technology is ideally suited for deep ratio, weight and size constrained applications where often it is the only solution. The Ikona gear technology is the only technology that enables internal gear-sets with only one tooth difference, resulting in a much higher meshing of gears, and significantly higher gear ratios -- very important factors, especially in plastic gearing solutions. 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

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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    Ikona Gear International
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