AirIQ Inc.
TSX : IQ

AirIQ Inc.

December 21, 2006 07:00 ET

AirIQ U.S. and CalAmp Mutually Agree to Settlement of Claims

Requests for Dismissal Filed with Ventura County Superior Court

TORONTO, ONTARIO--(CCNMatthews - Dec. 21, 2006) - AirIQ Inc. (TSX:IQ), a leader in global wireless security, today announced that AirIQ U.S., Inc. ("AirIQ US"), the Company's wholly owned subsidiary, and CalAmp Corp. ("CalAmp"), a former component supplier, have mutually settled their dispute relating to a supply agreement between the parties pursuant to the terms of a settlement agreement (the "Settlement Agreement") entered into between AirIQ US, AirIQ and CalAmp dated as of November 21, 2006.

As previously disclosed, CalAmp filed a complaint against AirIQ US, and AirIQ US filed a cross complaint against CalAmp, relating to alleged breaches of a letter agreement, dated June 1, 2005, between AirIQ US and CalAmp for the supply of certain GPS product components (the "Supply Agreement").

The parties voluntarily entered into the Settlement Agreement in full and final settlement of all disputes, claims and cross claims relating to the Supply Agreement. Pursuant to the terms of the Settlement Agreement, AirIQ will issue to CalAmp 5,947,407 common shares (the "Common Shares") from treasury valued at the Canadian dollar equivalent value of $0.16 per common share (for a total share consideration of US$832,636.98) and CalAmp will (i) deem all amounts due under the Supply Agreement to have been paid in full, (ii) supply to AirIQ at no additional cost certain components either manufactured or held in inventory by CalAmp but not delivered to AirIQ; and (iii) release certain product components owned by AirIQ US currently in the possession of CalAmp. The aggregate standard inventory valuation of the new GPS product components described in (ii) above is approximately US$353,275. AirIQ has conducted an inspection of the products to ensure quality and commercial viability.

The parties have filed a Request for Dismissal, Notice of Settlement and Stipulation and Proposed Order requesting a complete dismissal of all claims with prejudice and the release of the parties' deposits and undertakings being held by the court. The court is expected to release the deposits and undertakings within the next several weeks.

The Toronto Stock Exchange has accepted notice of the proposed private placement of the Common Shares and has conditionally approved the issuance of the Common Shares to CalAmp, which is expected to occur on or before December 29, 2006. The Common Shares acquired will be subject to a statutory hold period of four months and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

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.

About AirIQ

AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in Global Wireless Security, AirIQ is headquartered in Pickering, near Toronto, Canada, with offices in Lake Forest and 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 four primary markets: Commercial Fleets; Consumer; Vehicle Finance; 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 Companyy's website at www.airiq.com.

Contact Information