SUTIMCo International Posts Net Profit of $362,590

SANTA ANA, Calif., Aug. 16, 2012

In April of 2011, the Company completed the acquisition of SUTIMCo, Inc. (www.SUTI.com) a provider of management services and infrastructure for emerging technology companies based in Santa Ana, CA. As part of the agreement, SUTIMCo International (formerly known as AquaStar Holdings) acquired 100% of the shares of SUTIMCo Inc. in exchange for $9,500,000, payable in $4,000,000 worth of restricted stock ($1,000,000 worth of restricted common shares and $3,000,000 worth of preferred shares) in the Company and $5,500,000 in cash to be paid within a 24 month period from the date of closing. SUTI Holdings has presently converted $1 million of their preferred shares into restricted common shares of the Company. The Company's first objective will be to negotiate and secure new financing to support the growth and product development of the university developed technologies that SUTIMCo manages.

SUTIMCo's early stage management services and infrastructure are provided through Business Units (parent companies that manage and support up to four portfolio companies). The mission of each Business Unit is to finance, grow and sell successful companies, which are derived from University based technologies, as they mature out of the start-up stage and become attractive to larger companies.  SUTIMCo plans to operate Business Units in the areas of Quality of Life, Alternative Energy, Food Safety, Advanced Material, Water Technologies, Media and Entertainment and Skin and Wound Care.

Currently SUTIMCo is working to fund and operate five Business Units, Quality of Life, Water Technologies (which will include its AquaStar Corporation), Media and Entertainment, Food Safety and Skin & Wound Care.  SUTIMCo is actively seeking investment partners to assist in the further development of the University technologies described above.

As of June 30, 2012, SUTIMCo posted Total Assets of $3,269,464 compared to Total Liabilities of $10,174,345. Management has identified approximately $1,000,000 in Accounts Payable and $5,500,000 of Long Term Debt that it plans to reduce over the next several Quarters.  

For the Six Month period ended June 30, 2012, SUTIMCo posted Revenues of $930,000, which is a reduction from $1.8 million for the same period in 2011. Although the Company has identified approximately twenty new University Technologies, Management elected to cease signing new Venture Accelerator Agreements (VAA) until it begins to receive cash proceeds from the VAA's previously signed. The Company has reduced Total Operating Expenses from $858,607 for Six Months Ended June 30, 2011 to just $556,334 for the Six Month Period Ended June 30, 2012. As a result, SUTIMCo has posted a Net Profit for the Six Month period ended June 30, 2012 of $362,590.

Although the new business model is tremendously profitable, SUTIMCo's clients do not have the capital necessary to pay SUTIMCo on a timely basis. SUTIMCo must wait for its clients to either raise money or generate revenues in order to receive money from its Venture Accelerator Agreements (VAA). Therefore, SUTIMCo must rely on equity investments to make up for the cash shortfall from operations. SUTIMCo management believes that the short term risk will pay off as the technologies behind the VAA are based upon both University Research and Government support.