AirIQ Announces Results for Quarter Ended June 30, 2012 Reports Positive Cash Flow from Operations

AirIQ Inc. ("AirIQ") (TSX VENTURE:IQ), a supplier of wireless asset management
services, today announced its financial results for the three months ended June
30, 2012.


"The Company had a very good start to the 2013 fiscal year," said Donald Gibbs,
President and Chief Executive Officer of AirIQ. "We are pleased to report a
14.5% sequential quarterly growth in revenues. However, our reported results
were reduced by revenue of our hardware devices going into the deferred pools
which exceeded that being recognized in the quarter from prior periods. From an
operational perspective, the level of sales activity and the quality of the
Company's sales pipeline is the best the Company has seen in many years,"
continued Mr. Gibbs.


The main highlights for the quarter were as follows:



1.  Achieved positive cash flow from operating activities during the quarter
    of $67; 
2.  Shipped more units in the first quarter of 2012 than any other quarter
    since June of 2008; 
3.  Successfully integrated a third party's solution for a new oil and gas
    customer; 
4.  Shipped units into the "Buy-Here-Pay-Here" market were the highest since
    re-entering the market in January of 2012; and 
5.  Recurring revenue for the quarter was 73%. 

                                                                            
Financial Highlights                                                        
                                                 Three months  Three months 
                                                        ended         ended 
                                                    30-Jun-12     30-Jun-11 
  --------------------------------------------------------------------------
  Total Revenue                                     $     577     $     617 
  Gross Margin                                      $     389     $     421 
  Gross Margin %                                         67.4%         68.2%
  Net Income (loss)                                 $    (111)    $    (166)
  Net Income (loss) per share, basic and diluted    $    0.00     $    0.00 
  EBITDAS(i)                                        $     (67)    $    (108)
  Cash from operating activities                    $      67     $    (601)
  --------------------------------------------------------------------------



(i) EBITDAS represents earnings before interest, tax, depreciation,
amortization, shared-based compensation expense and the gain on business
acquisition. The Company has included information concerning EBITDAS because it
believes that it may be used by certain investors as one measure of the
Company's financial performance. EBITDAS is not a measure of financial
performance under IFRS and is not necessarily comparable to similarly titled
measures used by other companies. EBITDAS should not be construed as an
alternative to net income or to cash flows from operating activities (as
determined in accordance with IFRS) or as a measure of liquidity.


Unless otherwise noted herein, and except share and per share amounts, all
references to dollar amounts are in thousands of Canadian dollars.


Revenues for the three months ended June 30, 2012, decreased 6% to $577 from
$617 for the three months ended June 30, 2011. Approximately 73% of the total
revenue for the period represents recurring revenue from the Company's airtime
customers.


Overall, gross profit decreased by 8% to $389 for the three months ended June
30, 2012 compared to $421 for the three months ended June 30, 2011.


Sales and marketing, research and development and general and administrative
expenses totalled $474 for the three months ended June 30, 2012 compared to $547
for the three months ended June 30, 2011.


Expense reductions for the three months ended June 30, 2012 when compared to the
three months ended June 30, 2011 were achieved in the following areas; a) wages
and related expense reductions of approximately $40 due to the Company's
restructuring initiatives and work sharing programs, b) legal fees of
approximately $1 primarily related to the reduced legal costs due to the
settlement of suits c) computer operating expense savings of approximately $3
due to the reduction of co-location expenses and, d) other cost reductions of
approximately $38 related to audit fees, director fees, share based payment and
other costs. These savings were partially offset by an increase in consulting
fee expenses of approximately $11.


The Company's net loss from continuing operations for the three months ended
June 30, 2012 was $111, as compared to a net loss of $166 for the three months
ended June 30, 2011, an improvement of $55.


The Company's unaudited consolidated condensed interim financial statements as
at and for the three months ended June 30, 2012, including notes thereto, and
the accompanying Management's Discussion and Analysis were filed with the
Canadian securities regulatory authorities and will be available on the
Company's website (www.airiq.com) and on the System for Electronic Document
Analysis and Retrieval website (www.sedar.com) on August 28, 2012.


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
location based 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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