AirIQ Announces December 31, 2011 Interim Results

AirIQ Inc. ("AirIQ" or "the Company") (TSX VENTURE:IQ), a supplier of asset
management services, today announced its financial results for the three months
and nine months ended December 31, 2011.


Quarterly Highlights compared to the same period last year:



--  Net loss improved approximately 75% from $386 thousand to $97 thousand 
--  Cash flow from operations improved 96% from a use of $386 thousand to a
    use of $15 thousand 
--  Gross margins improved from 63% to 76% 
--  Operating expenses were reduced by over 30% from $746 thousand to $527
    thousand 
--  EBITDAS improved from a loss of $246 thousand to a loss of $55 thousand 
--  Revenues slipped approximately 8% from $649 thousand to $600 thousand 
--  Recurring monthly revenues from airtime represent approximately 74% of
    total revenue



"The Company is pleased to report that its new hardware platform has now been
integrated into its back-end, which gives us full over-the-air (OTA)
capability," said Don Gibbs, President and Chief Executive Officer of AirIQ. "We
are also excited about the introduction of a new AirIQ 'Plug and Track' product
that plugs into the vehicle and provides complete tracking capability. This new
product has been enthusiastically received by the marketplace and we look
forward to increasing revenues in the coming quarters with the sale of this
product," continued Mr. Gibbs.


The Company also reported that the cost of integrating the recently acquired
ResQ platform and application into AirIQ is now behind the Company, and it is
expected that this new product line will be accretive in future quarters.


Financial Highlights

Unless otherwise noted herein, from this point forward, all amounts are in
thousands of Canadian dollars except share, per share and unit information.


Revenues for the three months ended December 31, 2011, decreased 8% to $600 from
$649 for the three months ended December 31, 2010. Revenues for the nine months
ended December 31, 2011, decreased - 15% to $1,850 from $2,186 for the nine
months ended December 31, 2010. Approximately 74% of the total revenue for the
quarter represents recurring revenue from the Company's airtime customers.


Overall, gross profit for the three months increased by 11% to $454 for the
three months ended December 31, 2011 and decreased by 3% to $1,351 for the nine
months ended December 31, 2011, from $406 and $1,394, respectively for the
comparative three and nine months ended December 31, 2010.


Total expenses were $522 for the three months ended December 31, 2011 compared
to $742 for the three months ended December 31, 2010. Expense reductions were
achieved in the following areas; a) wages and related expense reductions of
approximately $58 due to the Company's restructuring initiatives and work
sharing programs, b) legal fees of approximately $20 primarily related to the
reduced legal costs due to the settlement of suits c) computer operating expense
savings of approximately $36 due to the reduction of co-location expenses, (d)
reduction in share-based payments of $75, and (e) other cost reductions of
approximately $31 related to audit fees, director fees, and other costs.


Total expenses were $1,574 for the nine months ended December 31, 2011 compared
to $2,337 for the nine months ended December 31, 2010. Expense reductions were
achieved in the following areas; a) wages and related expense reductions of
approximately $208 due to the Company's restructuring initiatives and work
sharing programs, b) consulting expense of approximately $76 primarily related
to the restructuring initiatives, c) computer operating expense savings of
approximately $69 due to the reduction of co-location expenses, (d) reduction in
share-based payments of $232, and (e) other cost reductions of approximately
$178 related to audit fees, director fees, legal fees and other costs.


The Company's net loss from continuing operations for the three months ended
December 31, 2011 was $97, as compared to a net loss of $386 for the three
months ended December 31, 2010, a decrease of $289. The Company's net loss from
continuing operations for the nine months ended December 31, 2011 was $326, as
compared to a net loss of $1,066 for the nine months ended December 31, 2010, a
decrease of $740.


The Company's unaudited consolidated condensed interim financial statements as
at and for the three months and nine months ended December 31, 2011, including
notes thereto, and the accompanying Management's Discussion and Analysis will be
filed with the Canadian securities regulatory authorities on February 28, 2012,
and are available on the Company's website (www.airiq.com) and on the System for
Electronic Document Analysis and Retrieval website (www.sedar.com).


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.
AirIQ (TSXV:IQ)
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