AirIQ/eDispatch, involved in mobile resource management, on Nov. 27 announced the purchase of a 50 per cent interest in U.S. patents for the use of telematics in vehicle recovery. The proceeds of the transaction were not disclosed.

The strategic patents are applicable when the financial services industry uses a telematics solution to locate and recover mobile assets -- such as cars, trucks, construction equipment and trailers -- for which financing is in default. Telematics involves the wireless transmission of location-based information and control messages to and from vehicles.

"For financial services companies facing impaired vehicle loans, AirIQ's location services provide greater assurance that vehicle assets are recovered quickly and cost-effectively," said Donald E. Simmonds, president and CEO of AirIQ. "Acquiring ownership in these patents strengthens AirIQ's position in what we believe to be a significant new growth market for telematics."

Bad loans and the cost of repossessing mobile assets represent a significant burden to the financial services industry. More than 1.25 million vehicles were returned to car auctions from financial institutions in the U.S. after being repossessed, according to the U.S. Statistical Abstract for 1997.

The reality, however, is that many more could not be recovered. The majority of both new and used vehicles sold in the U.S. are financed through loans or leasing plans.

The use of telematics in vehicle recovery is growing rapidly as the technology becomes increasingly prevalent in new and aftermarket vehicles, according to Alain Laflamme, vice president of business development at AirIQ. "As the value of telematics becomes increasingly apparent to financial services firms, we are confident that the licensing of our patents will represent a significant revenue growth opportunity for AirIQ," Laflamme said. "Already, these firms are using aftermarket telematics devices to protect their more sensitive loans."

About AirIQ

AirIQ is the operating name of eDispatch.com Wireless Data Inc., which trades on the Toronto Stock Exchange under the symbol IQ.

Involved in mobile resource management, AirIQ is headquartered in Pickering, near Toronto, Canada. The company operates as a wireless Internet applications service provider.

AirIQ (www.airiq.com) gives managers information about their vehicles, including vehicle location, boundary notification, automated inventory, maintenance reminders, security alerts and remote vehicle disabling.

AirIQ also offers dispatch services under the eDispatch brand (www.edispatch.com), which enables clients to send and receive job information to and from any PC, via the Internet, to the display of their mobile workers' portable wireless device. This ensures that the right person gets to the right place at the right time, according to AirIQ.