Powerstar International Inc. Completes the Acquisition of Fatport Corporation
Powerstar Becomes One of the Largest WiFi Hot Spot Operators in Canada
Calgary, AB - July 04, 2007,
Powerstar International Inc. (TSX-V: PWS) (Powerstar), the wireless and digital signage solutions provider, has completed the previously announced acquisition of Fatport Corporation. Powerstar acquired all the issued and outstanding shares of Fatport for $1 and lent Fatport $1,292,800 to pay out amounts owing to its former parent company.
Fatport had often described itself as the largest independent WiFi hot spot operator in Canada having over 2,000 access points in over 275 locations of its own and managing hot locations for Telcos such as Sasktel and Manitoba Telecom. Fatport has roaming arrangements with over 5 roaming partners giving its customers access to over 4,000 hot spots worldwide. Fatport provides Internet access to Nintendo DS devices in many of its locations.
"We are pleased to complete this transaction," said Dr. Hatim Zaghloul, CEO and Chairman of Powerstar, "we are now in the hot spot business in Canada and look forward to expanding our coverage. We plan to offer digital signage to the establishments where we have hot spots. This should increase the revenue from both operations. We want to expand on the roaming arrangements and harmonize Fatport with our Swedish network, Xpel. We also want to build on the Nintendo partnership"
About Powerstar International Inc.
PowerStar is a provider of digital signage/communications networks for consumers, businesses and the US government. PowerStar provides services under its Solutrea brand and companies. The company provides public Wi-Fi networks, digital signage, corporate communications and business television over wireless, satellite and terrestrial platforms. Powerstar International Inc.'s shares trade on the TSX Venture Exchange, as TSX-V: PWS. For more information visit www.solutrea.com.
For more information, please contact:
Hatim Zaghloul
Chairman and CEO
403 285 0223
hzaghloul@solutrea.com
Forward-looking Information
Certain statements in this release, other than statements of historical fact, may include forward-looking information that involves various risks and uncertainties. These may include, without limitation, statements based on current expectations involving a number of risks and uncertainties related to all aspects of the wireless and wireline communications industry and the global economy. These risks and uncertainties include, but are not restricted to: the short history of Powerstar International Inc. and its main subsidiary, Solutrea Inc., (the Company), the dependence of the business model on advertising whilst the Company has no advertising track record,; that the Company may be required to raise additional capital to execute its business plan; that the Company will need to acquire or develop new services to continue to grow its business; that the Company requires investment to translate its vision into sustainable profit in the market; that the Company is dependent on the performance of its key officers and employees; that changes in regulatory environment could materially adversely affect the Company; and that the Company has and may make acquisitions of products, services, technologies or businesses which could materially adversely affect the Company. These risks and uncertainties may cause actual results to differ from information contained herein, when estimates and assumptions have been used to measure and report results. There can be no assurance that such forward-looking statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. The Company assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.
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