AquaStar Holdings, Inc.
www.aquastarcooling.com
OTCPK: RPPR
Page 1 2010 President’s Letter to Shareholders
DEAR FELLOW
SHAREHOLDERS
I am very pleased to be able to communicate with our loyal shareholders
directly and to give you an update on our impressive progress to date.
AquaStar Holdings, Inc. through its wholly owned subsidiary AquaStar
Corporation is commercializing a new generation air conditioning compressor
technology that enables the unprecedented use of water as a refrigerant in
residential and light industrial/commercial air conditioners, replacing
environmentally hazardous chemicals. This air conditioning system exceeds
present and proposed future environmental regulations, sets a challenging new
standard for ultra-efficiency rating, delivers remarkable electricity cost-savings
to the consumer, and benefits the environment.
The Company has been researching and engineering the technology at the
University of Texas A&M and intend to build a fully functional unit that is the
market ready by November 2010. Production units are expected to be available
in standard 5 ton and 3.5 ton units as well as a 2 ton unit designed for multifamily
residential housing applications.
AquaStar recently announced that its wholly owned subsidiary, AquaStar
Corporation ("AquaStar") has signed a joint development agreement with
Absolute Graphic Technologies USA, Inc. ("AGT"), a contract engineering and
manufacturing enterprise with an expertise in the design and manufacture of
state of the art temperature controlled fluidic systems. The two companies have
partnered to work collaboratively on the product development of Aquastar’s
high efficiency water based air conditioning system.
There is a large and growing demand for high-efficiency air conditioning systems
in both the residential and light-commercial marketplace, including new
construction, replacement, and retrofit segments. In the United States there are
over 76 million air conditioning units installed in homes and small commercial
buildings. As the universal demand for heating and air conditioning has grown,
so has the consumption and cost of electricity. Residential air conditioners in
the United States consume about 5 percent of all the electricity produced in the
United States, at a cost of over $11 billion to homeowners. As a result, roughly
AquaStar The Green
Air Cooling System
The new generation
AquaStar cooling system
achieves an ultra-high
efficiency 40-plus SEER
(Seasonal Energy Efficiency
Ratio) rating, has no CFCs
or toxic gases, improves
Indoor Air Quality and
reduces AC electricity
operating cost by up to 40
percent.
Page 2 2010 President’s Letter to Shareholders
150 million tons of carbon dioxide are released into the air each year—an average of about two tons for each home with an air conditioner.
AquaStar plans an ongoing effort to attend industry trade shows and events to promote its products. In 2010, management attended the Building Show and Licensing Show in Las Vegas as well as the Orlando Green Builders Show; with plans to attend several more tradeshows in San Fransico, Passadena and Boston throughout the remainder of the year. The tradeshows are an essential tool as they provide a platform where we can help educate the public on our revolutionary product.
During the remainder of 2010, our primary goal is to continue building market awareness for the Company and its products. We are implementing several strategies to accomplish this goal. We plan on completing the first production run of our units by spring of 2011, develop our national distribution channels in the United States and begin research and work that will allow us to launch the our product lines internationally. Work has already begun in attracting and hiring key employees and building our sales and distribution network.
In closing, I want to thank each of you for your patience and continued support of AquaStar Holdings. I encourage you to contact our investment relations group, at (407) 389-5900, regarding any questions you might have about the Company and where you can enter your email address to receive email updates, whenever a press release is published.
Regards,
Malcolm Lennie
President
Safe Harbor Statement:
The information posted in this release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by use of the words "may," "will," "should," "plans," "expects," "anticipates," "continue," "estimate," "project," "intend," and similar expressions. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those projected or anticipated. These risks and uncertainties include, but are not limited to, general economic and business conditions, effects of continued geopolitical unrest and regional conflicts, competition, changes in technology and methods of marketing, delays in completing various engineering and manufacturing programs, changes in customer order patterns, changes in product mix, continued success in technological advances and delivering technological innovations, shortages in components, production delays due to performance quality issues with outsourced components, and various other factors beyond the Company's control.
