IQ AirIQ Inc

NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES


AirIQ Inc. (the "Company" or "AirIQ") (TSX VENTURE:IQ), a supplier of wireless
location-based services, today announced the closing of the previously announced
$300,000 financing comprised of a $150,000 loan and a non-brokered private
placement for gross proceeds of $150,000 (the "Private Placement"). In addition,
the Company issued an additional 350,000 common shares in satisfaction of
$28,000 of accrued directors' fees for annual non-executive Board compensation.


Loan Financing

The Company entered into a Credit Agreement with Mosaic Capital Partners LP
("Mosaic") and 2204671 Ontario Inc. ("2204671") (collectively the "Lenders") for
a loan of $500,000 (the "Loan").


Pursuant to the terms of the Credit Agreement, the Company executed a promissory
note in favour of each of the Lenders; $100,000 to Mosaic and $50,000 to
2204671. The Loan has a maturity date of November 12, 2012 and bears interest at
a rate of 15% per annum, accrued daily and compounded monthly. The Company paid
a fee of $3,000 to the Lenders in connection with the advance of the Loan
proportionate to their respective contribution. Interest only is payable on the
Loan on a monthly basis in arrears, and the Loan is secured by a charge over all
of AirIQ's property and assets. The Loan is not convertible into shares of the
Company.


Mosaic is a shareholder of the Company and Vernon Lobo, a director and Chairman
of AirIQ, is a managing director of Mosaic. 2204671 is the personal holding
company of Donald Gibbs, a director, President and Chief Executive Officer of
the Company. During the Company's approval of the Loan, Messrs. Lobo and Gibbs
each declared their conflict on the matter and abstained from voting in respect
of their interest.


Non-Brokered Private Placement

The Company issued 1,875,000 common shares under the Private Placement at a
price of $0.08 per share for gross proceeds of $150,000.


Certain officers, directors and insiders of the Company purchased the common
shares under the offering, representing 100% of the total number of common
shares issued under the Private Placement. Following completion of the offering,
and the shares for debt transaction described below, these parties together with
other officers, directors and insiders of the Company will have beneficial
ownership of, or control or direction over, an aggregate of 9,300,511 common
shares of the Company, which represents 51.5% of the total number of outstanding
shares of the Company post-offering and post shares for debt transaction.


Following completion of the Private Placement, Mosaic owns 12.46% of the issued
and outstanding common shares of the Company, and will file a report under
National Instrument 62-103 - The Early Warning System and Related Take-Over Bid
and Insider Reporting Issues.


Pursuant to applicable Canadian securities laws, the securities issued under the
Private Placement are subject to a four-month hold period from the date of
closing of the Private Placement, expiring on March 13, 2013. No fees or
commissions were paid in connection with the Private Placement.


The Private Placement remains subject to the receipt of all necessary approvals,
including the final approval of the TSX Venture Exchange.


Shares for Debt

The Company also issued a total of 350,000 shares at a price of $0.08 per share
to satisfy indebtedness in the aggregate amount of $28,000 to its non-executive
directors for annual director compensation. The Company issued 150,000 common
shares to Vernon Lobo, and 100,000 common shares to each of Emmanuel Mounouchos
and Mathew Wilson, all current directors of the Company. The Company elected to
satisfy the indebtedness with shares in order to preserve its cash for
operations.


Pursuant to applicable Canadian securities laws, the securities issued in
connection with the shares for debt are subject to a four-month hold period from
the date of issuance, expiring on March 13, 2013.


The Private Placement and the shares for debt transaction constitute related
party transactions under Canadian Multilateral Instrument 61-101 ("MI 61-101")
by virtue of the participation in such transactions of the directors of the
Company referenced above, but the transactions are otherwise exempt from the
formal valuation and minority approval requirements of MI 61-101.


This press release shall not constitute an offer to sell or the solicitation of
an offer to buy any of the securities referenced herein, nor shall there be any
offer or sale of such securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of such jurisdiction.


Following completion of the Private Placement and the shares for debt issuance,
AirIQ now has a total of 18,058,947 common shares issued and outstanding.


About AirIQ

AirIQ currently trades on the TSX Venture Exchange under the symbol IQ. AirIQ's
office is located in Pickering, Ontario, Canada. The Company offers a suite of
asset management services that generate recurring revenues from each device
deployed. AirIQ delivers services to two primary markets: Commercial Fleets and
dealers that service Consumer segments. AirIQ provides vehicle 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. 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 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
and potential downturns in economic conditions generally. 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 FURTHER INFORMATION PLEASE CONTACT: 
AirIQ Inc.
Donald Gibbs
President and Chief Executive Officer
(905) 831-6444, Ext. 4255
dgibbs@airiq.com

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