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02/19/10 4:32 PM

#190001 RE: richboy1 #189965

ARSC to Spin-off Hydra Subsidiary@$1.00/sh.Estimated Value!!!

E-mail Post 15562

I e-mailed the company and got a response from the president, Bob Farr. I asked some of the questions that were discussed on the board here, anyway here is my e-mail and then his response;

Could you please explain to me how the spin-off of "Hydra" would be beneficial to the shareholders?

I also need to know if you've received any of the patents that you have applied for? I have received an e-mail from you stateing, quote; "Our production prototype is complete and ready to go." But i'd like to know is the prototype certified for safety?

Also could you tell me specifically when we can expect a progress update press release?

Please respond soon, thank you

AND his response;

We decided to Spin off Hydra in order to go to market with this technology and not have the weight of low stock prices hold us back. We will put Hydra on the market as a stand alone and raise money at the same time. Our advisors suggest that we can expect pricing of over $1 on the Hydra offering. We expect the structure to be around 50 million shares of Hydra stock. About 40 million of that will go to curent ARSC shareholders as a dividend. We think Hydra stock will go up and because ARSC will get some it will elevate ARSC stock also. The natural gas Technology will remain in AHC which stays inARSC.

The first patent has been issued – USPO no. 7,445,647 B! which covers design of one cell. We have been notified on the second patent and that will come in the next 3 to 6 months.

We have completed 75% of the certification process and the remaining is basically independent test which are very expensive. We have verified the safety of the unit in our own labs by our chief engineer who was a major player at Ballard.

We have been audited by the SEC twice and by Finra once because of our PR’s. They were satisfied and gave us “no further action letters”. We are very cautious on issuing PRs and only issue when something material occurs. That is what the SEC requires and we comply.

GLTA, h2h