AirIQ Obtains $10,000,000 Credit Facility from Royal Bank of Canada.

TORONTO -- AirIQ Inc. (TSX:IQ)

Proceeds to Pay Down Existing Term Loans and Strengthen Cash Position

AirIQ Inc. (TSX:IQ), a leader in the Telematics industry, announces today that it has entered into a $10 million credit facility with Royal Bank of Canada. The funds will be used for corporate purposes and to repay all amounts owing under the Company's current secured term loan debts, which totals approximately $4,950,000.

"This term loan agreement demonstrates confidence in AirIQ's business model and future prospects by one of the country's premier financial institutions," states Donald Simmonds, President and CEO of AirIQ. "Our growth suggests this is the right time for a new banking relationship, and we are pleased with the support mechanism the Royal Bank has put in place."

"Using the strength of our marginable assets is the appropriate next step in our financial strategy," explains Mark Kohler, CFO of AirIQ. "The reduction in our cost of borrowing from 12% under our existing term loan debt to approximately 6.5% initially should also improve our net earnings performance during 2005."

The funds drawn on the 364 day non-revolving credit facility will bear interest at varying margins based on Royal Bank of Canada's Canadian prime rate, United States base rate or banker's acceptance reference rate and will be secured by a general security agreement and first priority mortgage over all of the assets of the Company.

The credit facility provides the usual and customary representations and warranties and covenants including financial covenants and negative covenants restricting the amount of indebtedness. Advances under the credit facility are subject to the Company and its subsidiaries completing the necessary documentation to give effect to the security requirements and other deliveries customary under such arrangements.

The commitment under the credit facility is to be reduced by the net proceeds of any future equity offering of the Company. Additionally, the commitment under the facility may be reduced if planned cash levels are not achieved in certain circumstances.

All dollar amounts are in Canadian dollars, unless otherwise noted.

About RBC Financial Group

Royal Bank of Canada (TSX:RY)(NYSE:RY) uses the initials RBC as a prefix for its businesses and operating subsidiaries, which operate under the master brand name of RBC Financial Group. Royal Bank of Canada is Canada's largest bank as measured by assets, and is one of North America's leading diversified financial services companies. It provides personal and commercial banking, wealth management services, insurance, corporate and investment banking, and transaction processing services on a global basis. The company employs approximately 60,000 people who serve more than 12 million personal, business and public sector clients through offices in North America and some 30 countries around the world. For more information, please visit www.rbc.com.

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 and vessels. AirIQ's services are offered to five primary markets: Commercial Fleets; Consumer; Vehicle Finance; Indirect Distribution; 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, its products and services, and the recent acquisitions of the business of Aircept.com, LLC, and Boatracs, LLC, please visit the Company's website at www.airiq.com or call 1(888) 606-6444.

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. 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 Inc. (TSX:IQ)