AirIQ provides update on patent infringement claim

Requests declaratory judgment that patent is invalid

TORONTO, ONTARIO – July 2008 – AirIQ Inc. (TSX: IQ), a leader in Wireless Location-Based Services, specializing in Telematics and Security, today provided an update on the status of the patent infringement claim which had been filed against the Company.

As previously disclosed, in May of 2007 the Company was sued for patent infringement in the United States District Court for the Eastern District of Texas by a company named LunarEye, Inc. AirIQ has denied the allegations of the complaint, and requested a declaratory judgment since it believes the infringement claim is without merit and furthermore that the patent is invalid.

Over the past year, AirIQ management has been successful in negotiating a substantial narrowing of LunarEye’s complaint to claim #3 of Patent No. 6,484,035. Recently, the United States Patent and Trademarks Office issued an office action rejecting this same and single claim. LunarEye has a limited time within which to respond to the office action. In light of this development, the litigation has been suspended for 120 days or until the Patent Office makes a final decision.

Although the outcome of the complaint is not determinable at this time, the Company is pleased by these developments and continues to believe that LunarEye’s claim of infringement is without merit.
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. 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 and results 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 new information, future events or otherwise.