Polaris International Holdings (PIHN)

[transam73wi]

I received mine at 11:00 p.m. last night.

From: Polaris International Holdings, Inc. [mailto:[e-mail]]
Sent: Sunday, February 27, 2011 11:00 PM
To: Jim
Subject: Polaris International Holdings, Inc.


Dear Valued Shareholders,

I am writing to update you, as I am able, about recent progress with Polaris International and to respond to questions I have received over the past few months.

Operations
I am pleased to report that the fiscal year ending September 30. 2010 was the year Polaris finally booked significant revenues following the successful acquisition of Staff IS and Polaris Technologies. For the year, we reported $3,469,559.00 in revenues and were close to profitability losing only $43,865.

I can further report the results for the first quarter of fiscal year ending September 30, 2011 show revenues of $935,381 with a net profit of $15,963. While these results are currently being reviewed by a CPA as a result of the pending acquisitions, we are confident these results will stand without material changes, when the review is complete. It's very gratifying to report to you that we have already achieved profitability in the first quarter of our second year following the closing of our acquisitions and we pledge to remain steadfastly focused now on adding to these profits through organic growth and strategic acquisitions.

Finally, we have just received preliminary figures for January 2011 from Staff IS Co., our Japanese subsidiary, and are delighted to report that this division's revenues for the month came in at $538,332 with a pre-tax profit of $98,175. Based upon current activities within the company, I'm confident we will be bringing you more exciting revenue and profit reports as the year unfolds.

Acquisitions
In January, we announced that we had entered into a Letter of Intent to acquire an international IT services company headquartered in Southern California. This company's business extends beyond the US into the Asian theater including India, one of the world's significant and growing IT markets. We have made significant progress in arranging financing for the acquisition that will allow us to exponentially expand our revenues and profits and to do so in a way that is accretive to existing shareholders.

Additionally, we have engaged the services of a highly respected mezzanine capital firm that is guiding us through the acquisition while arranging the required capital through strategies that will evidence respect for the shareholders by avoiding toxic dilution going forward. The due diligence process is well under way and we are currently are working with CPA's to complete reviews of our financial statements as well as an audit of the target company as part of the due diligence process.

As is the case in many acquisitions, confidentiality is a cornerstone of the process and, as such, we cannot disclose additional information at this time but I can add this. While the acquisition is not completed at this writing and, thus, is not guaranteed to close successfully, we continue to make significant progress toward that end and, I trust our tenacity and determination in successfully closing the Staff IS acquisition will, in some way, communicate our commitment to completing this acquisition to our mutual benefit as well. We will continue to provide updates on future progress as it occurs and confidentiality agreements permit.

Our stock structure
Over the course of the past few years, we have followed a recommended strategy that involved the issuance of several classes of convertible preferred shares. While this strategy has been helpful in making the significant gains we have realized in our operations, it seems to have been less effective in sustaining or increasing shareholder value. I find it regrettable that this would be the case, as I believe that gains within the operating companies should be enjoyed by common shareholders as well.

With this in mind, we have begun taking the steps necessary to repurchase the preferred shares or to convert them into common stock in conjunction with the acquisition and we fully intend on moving forward with a focus on the company's value being directed toward the common shares and the shareholders. We have gained the approval of our tentative strategy going forward from the existing preferred shareholders and we will be disclosing more specifics as the acquisition proceeds towards closing.

I've never forgotten that Polaris International is your company as much as it is mine and the other founders and we readily acknowledge that your support has been crucial in Polaris International attaining the level of success it now enjoys. While reaching profitability was a very important milestone, it's just a way-point on our path to great achievement. I live every day focused on building this company into something we can all be proud of and can profit from. As shareholders, you deserve nothing less. Our commitment to more effective communication and greater transparency will demonstrate that attitude as we move forward together.

Current share structure as of Feb 28, 2011
Authorized Shares
Common - 7,000,000,000
Preferred A - 100,000,000
Preferred B - 10,000,000
Outstanding shares
Common - 5,148,040,366 (3,512,440,366 free trading)
Preferred A - 100,000
Preferred B - 267,250

The report for the quarter ending December 31, 2010 will be released when the review by the CPA is completed.

Investor Relations inquiries: Please contact
Maxwell Media Marketing
[e-mail]
http://maxwellmediamarketing.com

Sincerely

Kuni Misawa
CEO/President
Polaris International Holdings, Inc.