SOURCE: HQ Sustainable Maritime Industries Inc.

September 16, 2008 08:18 ET

HQS Provides Operational Update

SEATTLE, WA--(Marketwire - September 16, 2008) - HQ Sustainable Maritime Industries, Inc. (AMEX: HQS) ("HQS" or the "Company"), a leader in toxin-free integrated aquaculture and aquatic product processing including fish byproduct personal healthcare products with operations in Hainan, PRC, announced today an operational update.

Norbert Sporns, Chief Executive Officer of HQ Sustainable Maritime Industries, Inc., noted, "I am extremely pleased with the positive level of business activity we have achieved thus far in the third quarter. Operationally, we are performing at a very high level, which we attribute to both an increase in our production capacity and a stabilization in Tilapia pricing. Worldwide demand for our aquaculture and health products remains strong and we are confident that our expansion efforts will enable us to more efficiently and effectively meet this demand."

Additional update details include:

Aquaculture

--  The intended 50% Tilapia production capacity increase is fully
    operational since training of new workers was completed in August 2008,
    increasing the Company's overall work force;
--  "Urner Barry Seafood Price-current" reports Tilapia sales prices spiked
    during the second quarter and have stabilized in the third quarter, See
    http://www.urnerbarry.com/;
--  Direct sales of product to a new group of buyers brought in during the
    second quarter, continues with complete cost flow through;
--  Production of higher margin organic and value added products continues;
--  The Feed Mill nears completion and sales of feed are to commence before
    year end;
--  Expansion of product marketing to new markets in Europe for Seafood
    products and health products continues.
    

Health Products

--  Sales of health products are responding well to rebranding efforts and
    expanded marketing campaign;
--  New Health products derived from fish by-products are being certified
    and will be added to the range of products.
    

Corporate

--  Additional vertical integration through "pond ownership" has been
    studied and management is preparing final conclusions which will be made
    public in the coming weeks;
--  KCSA Strategic Communications, a New York-based communications firm, has
    been hired to expand upon the Company's investor relations program, in an
    effort to bring a fresh perspective and increased dissemination of
    corporate information to its shareholder base.
    

About HQ Sustainable Maritime Industries, Inc.

HQ Sustainable Maritime Industries, Inc. is an integrated aquaculture and aquatic product processing company, with operations based in the environmentally pristine island province of Hainan, in the South China Sea. HQS practices co-operative sustainable aquaculture, using nutraceutically enriched feeds and conducting fish processing and sales. The company is dedicated to sustainable toxin-free methods giving its customers the purest products possible. The Company holds HACCP certification from the U.S. FDA and the EU Code assignment of quality, permitting its products to be sold in these international markets. The Aquaculture Certification Council, Inc. (ACC) certified that tilapia processing standards met Best Aquaculture Practices, and the Chinese government gave organic certification to the Company's tilapia production, processing, labeling, marketing and management system. The Company owns a nutraceuticals and health products company, which is HACCP and GMP certified, and produces and sells products subject to stringent laboratory tests certified by the China Ministry of Health. This GMP certified plant produces nutraceuticals, which enrich feed used by HQS' cooperative aquaculture operations. In addition to headquarters in Seattle, HQ has operational offices in Wenchang, Hainan. The Company's website is: http://www.hqfish.com.

Safe Harbor Statement

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as "anticipate," "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of HQ Sustainable Maritime Industries, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."

Contact Information

  • Company Contact:

    Norbert Sporns
    Chief Executive Officer
    HQ Sustainable Maritime Industries, Inc.
    206-621-9888
    Email Contact

    Investor Contact:
    Jeffrey Goldberger
    KCSA Strategic Communications
    212.896.1249
    Email Contact