AirIQ Inc.

AirIQ Inc.

June 24, 2008 16:30 ET

AirIQ Provides Update on Strategic Review Process

Special Committee's mandate extended to August 15, 2008

TORONTO, ONTARIO--(Marketwire - June 24, 2008) - AirIQ Inc. (TSX:IQ), a leader in Wireless Location-Based Services, specializing in Telematics and Security, today announced an update of the strategic review being undertaken by a Special Committee, which was appointed by the Board of Directors of AirIQ Inc. on November 21, 2007. As previously announced, the Special Committee has been supported in this process by Paradigm Capital Inc., who was engaged on an exclusive basis to assess potential partners and/or other financial structuring alternatives, which included:

- the sale of the company,
- mergers with other telematics firms, and
- various financial restructuring options.

Following a broad review of the Telematics industry, Paradigm communicated with a number of potential partners, as well as private equity and venture capital firms. Interested firms were invited to respond, and in depth discussions were then held, with over a dozen potential partners or financial institutions, mainly in the three month period from March to May of this year.

In parallel with this, Paradigm conducted due diligence on AirIQ to provide the Committee and the AirIQ Board of Directors with a valuation assessment.

The Committee has now selected the top candidates for a potential transaction, and is proceeding with due diligence.

No decision on any particular strategic alternative has been reached at this time and there can be no assurance that the review process or negotiations will result in the consummation of any agreement or transaction; however, as result of continuing discussions with these interested parties the time frame for the strategic review process, which was previously announced to conclude on June 30, 2008, has been extended to August 15, 2008.

The Company does not intend to update its progress or disclose developments with respect to the potential initiatives unless the Board of Directors of the Company has approved a specific course of action.

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 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 results in recurring revenues for each device deployed. AirIQ's offers service to three primary markets: Commercial Fleets; dealers that service Consumer segments; and Marine Fleets (fisheries and workboat). AirIQ gives vehicle and vessel owners the ability to monitor, manage and protect their mobile assets. Services include: instant vehicle locating, boundary notification, automated inventory reports, maintenance reminders, security alerts, vehicle disabling and unauthorized movement alerts. For additional information on AirIQ or its products and services, please visit the Company's website at

About Paradigm Capital Inc.

Paradigm Capital Inc. is an independent institutional equity dealer offering full investment banking, advisory, research, sales and trading services. Paradigm Capital is focused on small to mid-cap sized companies in technology (hi-tech, biotech and industrial technology), mining and metals, industrial products, entertainment and the oil and gas sectors. Founded in 1999, Paradigm Capital is based in Toronto and Calgary.

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, the results and progress with respect to AirIQ's strategic review process, business prospects and strategies. Forward-looking information typically contains words such as "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 with respect to its strategic review process 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 and potential downturns in economic conditions generally. Therefore, actual outcomes and results 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 new information, future events or otherwise.

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