The transaction provides Cell-Loc with an up front payment of $1.5 million (Cdn) as consideration for the increased ownership in the joint venture. As a result of the transaction, IQ2 now holds a 70% working interest in the joint venture and Cell-Loc will maintain a 30% working interest in addition to its 10% royalty interest.

The previously announced joint venture holds the sole rights to Cell-Loc's intellectual property, including its Cellocate Beacon™ technology, for the Calgary location-based network. The joint venture operates under the TimesThree Calgary name.

"IQ2 obviously recognizes the immense potential market for our wireless location technology and we are particularly encouraged by their commitment to be a much larger part of our commercial program," said Dr. Michel Fattouche, president & CEO, Cell-Loc Inc.

"IQ2 Communications Corp. is committed to the development of the Calgary location-based network services market. Exercising this option provides us with the valuable opportunity to increase our share in this venture." said Tom Dechert, president, IQ2 Communications Corp. "We are extremely excited by the ongoing progress that is being achieved in the commercial development of the Cellocate Beacon and CDMA technology and the roll-out of our business plan."

About Cell-Loc Inc.
Cell-Loc Inc. (www.cell-loc.com), a leader in the emerging wireless location industry, is the developer of Cellocate^TM, a family of wireless location products that enable location-based services. Located in Calgary, Alberta, Cell-Loc currently develops, markets and supports its patented wireless location technology in North and South American countries with a view to expanding globally. Cell-Loc is listed on the Toronto Stock Exchange under the trading symbol: "CLQ."

About IQ2 Communications Corp.
IQ2 Communications Corp has extensive experience in the area of billing and administration services, software development, marketing management and is a wholly-owned subsidiary of IQ2 POWER Corp (www.iq2power.com), a registered independent power retailer in the newly deregulated Alberta power.

Forward Looking Statements: This news release contains certain forward-looking statements. All statements, other than statements of historical fact, included herein, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements are based on the estimates and opinions of management on the date the statements are made, and Cell-Loc does not undertake an obligation to update forward-looking statements should conditions or management's estimates or opinions change.

Note to Editors: Cell-Loc, Cellocate, Cellocate System, Cellocate Beacon, TimesThree and LocationBroker are trademarks of Cell-Loc Inc.

The Toronto Stock Exchange has neither approved nor disapproved the information contained herein.

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