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TORONTO, ONTARIO - October 14, 2004 — AirIQ Inc. (TSX: IQ), a leader in the Telematics industry, announces the completion of its previously announced acquisition of the assets of Boatracs, LLC based in San Diego, California.
AirIQ announced that it had entered into the Boatracs acquisition agreement on September 14, 2004. Since then Boatracs extended its geographical service coverage to marine fleets in Alaska and Hawaii through the expanded satellite service capability recently announced by Qualcomm. Boatracs is the exclusive distributor of the Qualcomm OmniTracs® mobile communications solution for the North American marine market.
"Boatracs' strong presence in the commercial marine industry makes this acquisition a logical step in our Telematics service industry consolidation," says Donald Simmonds, President and CEO of AirIQ. "It represents a stable, profitable segment which we intend to grow in both existing and new market areas."
The completion of the acquisition was subject to financing. Earlier today, AirIQ announced the completion of a CDN$12,000,000 private placement financing. Through its U.S. subsidiary AirIQ Marine, Inc., AirIQ delivered cash proceeds to Boatracs making up the balance of the US$5,000,000 (CDN$6,275,000) purchase price. Previously, and concurrent with the signing of the acquisition agreement, AirIQ had delivered a deposit to Boatracs in the amount of US$200,000 (CDN$251,000). As a result of the closing of the Boatracs transaction, all subscription receipts will be deemed to be exercised into common shares.
"We are looking forward to our role within the expanding AirIQ family and the exciting opportunities in the marine vertical market," explains David Brandos, Vice-President and AirIQ's newly appointed executive leader of the Boatracs Division. "Our team is enthusiastic and ready to multiply offshore subscribers throughout North America, while we prepare to add AirIQ's proven terrestrial-based services for inland commercial and consumer marine applications."
Effective today, the AirIQ client service staff in Pickering, Ontario have assumed responsibility for servicing the needs of Boatracs' customers, 24 hours per day, 7 days a week.
All CDN dollar figures in this news release have been converted on the basis of $1.255 Canadian for each $1 US.
About AirIQ
AirIQ trades on The Toronto Stock Exchange under the symbol IQ. A leader in the Telematics marketplace, AirIQ is headquartered in Pickering, near Toronto, Canada. The Company operates as a wireless Internet applications service provider specializing in Telematics. Telematics is the name given to information and control messages sent wirelessly to and from vehicles. AirIQ's services are offered to three large commercial markets (rental vehicle, commercial transport and heavy equipment fleets) and the Consumer market. AirIQ gives vehicle 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 more information, please call 1(888) 606-6444 or visit www.airiq.com.
About Boatracs
For over a decade, Boatracs has been setting the pace in the maritime communications field, providing cost-effective integrated hardware and software solutions for over 400 commercial fleets. The Boatracs solution is backed by a Network Operations Center that operates 24 hours a day, 7 days a week, 365 days a year. Boatracs helps its customers achieve significant cost savings by automating workflow and integrating their operations management. For more information, please call (877)-468-8722 or visit www.boatracs.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 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. 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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