AirIQ and Telefonica Moviles Enter GSM/GPRS Service Agreement in Mexico.

TORONTO -- Digital solution paves way for expanded services

AirIQ Inc. (TSX:IQ), a leader in Global Wireless Security, announces that it has entered into an agreement with Telefonica Moviles Mexico, the country's second-largest cellular operator. AirIQ will utilize Telefonica Moviles' GSM/GPRS network to expand its product and service offering in Mexico. Global System for Mobile Communications (GSM) technology is the fourth commercial wireless technology to be included in the delivery of AirIQ's location-based services.

"The value of offering GSM technology is in its higher messaging volume capabilities and improved power management," says Donald Simmonds, President and CEO of AirIQ Inc. "In conjunction with these benefits, launching our GSM solution in Mexico will provide long term service reliability for this growing market. We are impressed with the capabilities of Telefonica Moviles Mexico and pleased with the strategic nature of this partnership for the future."

General Packet Radio Services (GPRS) enables the data component of GSM. GPRS offer reliable connectivity with efficiency, making GSM suitable for Telematics services. GPRS enabled networks offer 'always-on', higher capacity, Internet-based content and packet-based data services, making it ideal for AirIQ's customers with larger messaging needs.

"AirIQ has an excellent distribution model for wireless location-based services and we wanted to work with the dominant supplier in this industry," states Purificacion Carpinteyro, Telefonica Moviles Mexico's Corporate Sales Director. "We have made a significant investment in our GPRS deployment and we are looking forward to supplying a quality service for AirIQ's products and services."

"Telefonica Moviles is a natural fit for our business and offers 100% GPRS coverage everywhere it offers GSM service in Mexico," explains Dan Seto, Vice President, Technology Planning for AirIQ. "With awareness of other carriers' service disruptions that previously affected AirIQ's Mexican customers, Telefonica Moviles Mexico is providing tremendous support for our business, customer focus and aggressive new subscriber acquisition in this territory."

About Telefonica Moviles, S.A.

Telefonica Moviles is one of the world's largest mobile operators and the leading cellular company in the Spanish- and Portuguese-speaking markets. The company has operations in 15 countries across three continents and a customer base that totaled 86.4 million at June 30, 2005. At present, Telefonica Moviles' customer base totals more than 88 million.

During 2004, Telefonica Moviles obtained revenues of 11.828 billion euros, or 17.5% more than in 2003. EBITDA rose 5.3% in the year, to 4.701 billion euros, while net profit totaled 1.634 billion euros.

Telefonica Moviles is a founding member of the FreeMove alliance of European mobile operators. The company's shares trade on the Spanish stock exchanges and the New York Stock Exchange under the ticker symbol TEM. For further information, see our website at www.telefonicamoviles.com.

About AirIQ

AirIQ trades on the Toronto Stock Exchange under the symbol IQ. A leader in Global Wireless Security, 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, 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 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 Inc. (TSX:IQ)