AirIQ Inc.
TSX : IQ

AirIQ Inc.

November 21, 2007 16:30 ET

AirIQ Announces Cost Reductions and Review of Strategic Alternatives

TORONTO, ONTARIO--(Marketwire - Nov. 21, 2007) - AirIQ Inc. (TSX:IQ), a leader in Wireless Location-Based Services, specializing in Telematics and Security, today announced a series of measures focused on value improvement.

The Company reduced its workforce today by 23% primarily as a response to the recent shift in the value of the US dollar relative to the Canadian dollar. The annualized cost savings equates to approximately $1,300,000 with one time severance costs of approximately $125,000 to be incurred as an extraordinary expense.

Historically, AirIQ has benefited by earning US-based revenues (over 95% of its revenue is derived in US currency) while delivering many services from a Canadian cost base. The rising Canadian dollar has worked against AirIQ over the past few years, and it is now clear that any advantage has now been effectively eliminated.

Along with the workforce reduction, the Company is immediately implementing several other initiatives including a realignment of remaining staff and functions to improve efficiencies and reduce overall costs. The proposed realignment will ultimately increase the proportion of US-based staff to almost 20%.

As part of the realignment, Brian Bowyer, Vice President, Technology, will lead a fully integrated Land-based Product Division from Canada, while Irwin Rodrigues will oversee the Marine Division from the US Office in San Diego, California.

Steve Willey, President and Chief Executive Officer said, "By responding quickly and vigorously to implement these new cost management measures, we intend to build a stronger company that is better equipped to leverage our position in the industry."

Along with the anticipated operating improvements expected from these measures, the Chairman and CEO requested that the Board of Directors appoint a Special Committee to consider various strategic alternatives so that all options can be fully explored simultaneously. Randy Reynolds as Chairman, Robert Metcalfe, and David Vaughn will serve on the committee. The Company believes that service industries should consolidate where possible to achieve scale and critical mass. Accordingly, while management continues to advance AirIQ's Marine Fleet, Land Fleet, and Consumer businesses organically, the Board of Directors will study its strategic alternatives.

The process may include, but is not limited to, a review of financing measures, strategic partnerships and/or business combinations or other structural alternatives. AirIQ expects to appoint a Financial Advisor to assist the Special Committee of the Board of Directors and the Company in the evaluation of strategic alternatives.

"Operationally, we expect the cost saving initiatives introduced today to enhance the Company's position in the telematics industry," said Steve Willey, President and Chief Executive Officer. "Additionally, we believe that by embarking on the parallel track of reviewing other significant options we will be able to determine the best value creation options for our shareholders."

About AirIQ

AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in Wireless Location Services, specializing in Telematics and Security, AirIQ is headquartered in Pickering, near Toronto, Canada, with an office in San Diego, California, U.S.A. The Company operates as a wireless Internet applications service provider specializing in location-based services. AirIQ's services are offered to three primary markets: Commercial Fleets; Consumer; and Marine Fleets. AirIQ gives vehicle and vessel owners the abilities to manage and protect their mobile assets. AirIQ's services include: vehicle locating, boundary notification, automated inventory, maintenance reminders, security alerts, vehicle disabling, unauthorized movement alerts and many more features. 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 operations, anticipated financial performance, business prospects and strategies. Forward-looking information typically contains words such as "anticipate", "believe", "expect", "plan" or similar words suggesting future outcomes. 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 and potential downturns in economic conditions generally. Therefore, actual outcomes and results may differ materially from those expressed in such forward-looking statements. 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 new information, future events or otherwise.

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