AirIQ Inc.
NEX BOARD : IQ.H

AirIQ Inc.

November 13, 2009 16:30 ET

AirIQ Announces Non-Binding Letter of Intent Relating to a Potential Sale of U.S. Subsidiary, Boatracs

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2009) - AirIQ Inc. ("AirIQ") (NEX BOARD:IQ.H), a leader in Wireless Location-Based Services, specializing in Telematics, today announced that it has entered into a non-binding letter of intent with Mosaic Capital Partners L.P. ("Mosaic") contemplating a potential sale of the Company's subsidiary, AirIQ Marine, Inc. ("Boatracs"), and a concurrent private placement of shares and warrants by AirIQ. The parties are currently negotiating terms and definitive documents for the proposed sale transaction and, assuming the parties can come to mutually agreeable terms, AirIQ hopes to close both transactions during the current fiscal quarter.

In connection with the proposed private placement, AirIQ and Mosaic have today executed a subscription agreement pursuant to which it is proposed that Mosaic will purchase 13,333,333 AirIQ Units at a price of $0.015 per Unit for gross proceeds of $200,000. Each Unit will be comprised of one newly issued common share of AirIQ and four tenths (0.4) of one share purchase warrant. The warrants will be exercisable for a term of one year from the date of grant and the exercise price is $0.05 per warrant. The closing of the sale of units described above is conditional upon and will occur concurrently with the sale of Boatracs, if and when such sale occurs.

AirIQ has announced these potential transactions at this point in time in order to preserve the price protection on the private placement in accordance with the policies of the NEX Exchange. There is currently no assurance that either transaction will close.

The proceeds from the transactions, including any proceeds realized from the sale of Boatracs, will be used to repay the Company's outstanding secured loans and for general working capital.

About Mosaic

Mosaic Capital Partners is a private equity firm focused on providing capital, strategic advice and access to an extensive network to add value to small and medium sized enterprises. The firm partners with management and has investments in a number of fast growing businesses in Canada and the US.

About AirIQ

AirIQ trades on the NEX, a separate board of the TSX Venture Exchange under the symbol IQ.H. A leader in Wireless Location Services specializing in Telematics, AirIQ has offices in Pickering, Ontario, Canada, and in San Diego, California, United States. The Company offers a suite of location based services (LBS) under a 'software as a service' (SaaS) model that yields recurring revenues for each device deployed. AirIQ delivers services to three primary markets: Commercial Fleets; dealers that service Consumer segments; and Marine Fleets (fisheries and workboat). AirIQ provides vehicle and vessel owners with the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts and vehicle disabling and unauthorized movement alerts. Management believes that AirIQ maintains a dominant market share in North America, in three segments, namely, rental vehicle fleets, regulated fisheries, and marine workboat markets. For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.

Forward-looking Statements

This news release contains forward-looking information based on management's best estimates and the current operating environment. These forward-looking statements are related to, but not limited to, AirIQ's expectations as to closing of the sale of its subsidiary. Forward-looking information typically contains statements with words such as "hope", "goal", "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. These statements are based upon certain material factors or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking statements, including AirIQ's perception of historical trends, current conditions and expected future developments as well as other factors management believes are appropriate in the circumstances. Such forward-looking statements are as of the date which such statement is made and are subject to a number of known and unknown risks, uncertainties and other factors, which could cause actual results or events to differ materially from future results expressed, anticipated or implied by such forward-looking statements. Such factors include, but are not limited to, changes in market and competition, technological and competitive developments, potential downturns in economic conditions generally and an inability of the parties to agree on terms for such transaction. Therefore, actual outcomes may differ materially from those expressed in such forward-looking statements. Forward-looking statements are provided for the purpose of providing information about management's current expectations and plans relating to the future. Readers are cautioned that such information may not be appropriate for other purposes. Other than as may be required by law, AirIQ disclaims any intention or obligation to update or revise any such forward-looking statements, whether as a result of such information, future events or otherwise.

For additional information on AirIQ or its products and services, please visit the Company's website at www.airiq.com.

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