IOU Financial engages investor relations firm, grants stock options

MONTREAL, Jan. 26, 2012 /CNW Telbec/ - IOU Financial Inc. (CNSX: IOU) ("IOU" or the "Company") announced today that it has engaged Paradox Public Relations Inc. (hereinafter, "Paradox") as strategic investor relations consultants to the Company. Paradox will focus on developing and expanding IOU's communications with the investment community through a comprehensive investor relations program.

Paradox is a Montreal-based investor relations agency founded in 2001 which provides a wide range of services to companies to help broaden investor exposure and develop a shareholder following.

Paradox has been engaged pursuant to a 24-month arm's length agreement effective January 26, 2012 (hereinafter, the "Agreement"). The Agreement may be terminated by either party upon 30 days notice. In consideration for their services, IOU has agreed to pay to Paradox fees in the amount of $6,500 per month.  In addition, Paradox has been granted 250,000 stock options of class B common shares of IOU exercisable at a price of $0.45 per class B common share, for a period of two years, provided that options shall expire upon the termination of the Agreement. The options shall vest and become exercisable over a period of 12 months, at a rate of 25% at the end of each quarter.

About IOU Financial

IOU Financial Inc., via its U.S. subsidiary, IOU Central Inc. ("IOU"), operates an online lending platform which services store-front businesses (traditional and internet-based) throughout the United States, that it believes are under served by banks today.  IOU allows these businesses to obtain loans of up to $100,000, without having to resort to more expensive factoring type products.  Loan applications are done online and businesses can receive funding in as little as two business days. The Company's approach to lending is unique.  Its underwriting model looks holistically at a business' financial realities, with an emphasis on its day-to-day cash flow trends, while its micro-payment system allows it to service the loans on a daily basis for easy cash flow management.  To learn more visit:  www.ioucentral.com

About Paradox

Based in Montreal, Paradox has provided investor relations services to micro cap and small cap listed public companies over the past 10 years.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS 

Certain statements contained in this news release are forward-looking and are subject to numerous risks and uncertainties, known and unknown. For information identifying known risks and uncertainties, relating to liquidity risks, risks inherent in growing a new business, dependence on third-party service providers, credit risks, competition, regulatory risk, and assumptions that could cause the company's actual results to differ from current expectations, please refer to the section "Risks and Uncertainties" of IOU's most recent Management's Discussion and Analysis ("MD&A"), which may be consulted at www.sedar.com. IOU cautions that the foregoing list of factors is not exhaustive. The forward-looking statements presented in the MD&A reflect IOU's expectations as at the date of the MD&A. IOU Financial does not undertake any obligation to update publicly or to revise any such forward-looking statements, unless required by applicable legislation or regulation.

The Canadian National Stock Exchange (CNSX Markets Inc.) has neither approved nor disapproved of the contents of this press release.

For further information:

Philippe Marleau
Chief Executive Officer
[phone] ext. 225

Mayco Quiroz
Chief Financial Officer
[phone] ext. 298