IOU Financial provides an update on its activities

MONTREAL, Jan. 23, 2012 /CNW Telbec/ - IOU Financial Inc. ("IOU" or the "Company") (CNSX: IOU) announced today an update on its activities.

IOU Financial's innovative lending platform is rapidly emerging as a viable solution to the challenges small businesses face when trying to obtain financing.  Since the launch of its site in November 2009 through December 31, 2011, IOU has surpassed US$20.8 million in loan demand (loan applications). Specifically, IOU processed US$0.6 million in loan applications during Q1-2011, US$1.1 million in Q2-2011, US$5.4 million in Q3-2011 and US$10.1 million in Q4-2011, for a total of US$17.2 million in 2011, versus US$3.5 million in 2010.

This strong flow of loan applications has been generated online and through a growing base of business loan brokers across the U.S.  Its roster of loan brokers has increased from 6 at the end of 2010 to 144 at the end of 2011. Moreover, IOU's proprietary underwriting algorithm has helped it mitigate credit risk. The Company has charged-off (net of recoveries) less than 2.1% of the total amount of loans it has originated since the launch of its website.

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

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.

please contact:

Philippe Marleau
Chief Executive Officer
[phone] ext. 225

Mayco Quiroz
Chief Financial Officer
[phone] ext. 298