IOU Financial Enters into a New Sublease for its Montreal Head Office

Montreal, Quebec, October 01, 2014 — IOU Financial Inc. (TSX Venture Exchange: IOU) (“IOU Financial” or the “Company”) today announced that it has entered into a new twelve-year Sublease agreement with Palos Management Inc. (“Sublease”) for the rental of new premises located on the 16th floor of Place Ville-Marie, Montreal, Canada.

“We are looking forward to moving our Montreal head office into these new premises in April 2015”, said Philippe Marleau, Chief Executive Officer. “The current space rented by IOU Financial is no longer adequate considering the rapid growth of our US subsidiary and the addition of new employees in our head office to support this growth.”

This transaction may be considered a related party transaction within the meaning of Regulation 61-101 respecting Protection of Minority Security Holders in Special Transactions (“61-101”) since Philippe Marleau, Chief Executive Officer and a director of IOU Financial, is a shareholder in a company that has control over more than 10% of IOU Financial’s common shares and which controls, indirectly, Palos Management Inc. However, this transaction is exempt from the valuation and minority approval requirements provided under 61-101 since the Sublease contains reasonable commercial terms that, considered as a whole, are not less advantageous to the Company than if the Sublease was with a person dealing at arm’s length with the Company.

The Board of Directors of IOU Financial has unanimously approved the transaction. Philippe Marleau declared his interest prior to the approval by the Board of Directors of IOU Financial and abstained from voting thereon.

About IOU Financial Inc.

IOU Financial provides small businesses throughout the U.S. access to the capital they need to seize growth opportunities quickly. Typical customers include medical and dental practices, grocery and retail stores, restaurant and hotel franchisees and ecommerce companies. In a unique approach to lending, IOU Financial’s advanced, automated application and approval system accurately assesses applicants’ financial realities, with an emphasis on day-to-day cash flow trends. It makes loans of up to $150,000 to qualified applicants within a few business days, with affordable charges favorable to cash-flow management. IOU Financial’s speed and transparency make it a trusted alternative to banks. To learn more visit:

Forward Looking Statements

Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of IOU including, but not limited to, the impact of general economic conditions, industry conditions, dependence upon regulatory and shareholder approvals, the execution of definitive documentation and the uncertainty of obtaining additional financing. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. IOU does not assume any obligation to update or revise its forward looking statements, whether as a result of new information, future events, or otherwise.

The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

For more information, please contact:

Philippe Marleau
Chief Executive Officer
(514) 789-0694 ext. 225

Mayco Quiroz
Chief Financial Officer
(514) 789-0694 ext. 298