TORONTO– AirIQ Inc. has provided an update on the status of the patent infringement claim that had been filed against the company. As previously disclosed in May 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.