SOURCE: NavStar Technologies, Inc.

NavStar Technologies, Inc.

December 16, 2009 09:00 ET

NavStar Technologies, Inc. Restructures and Positions Company for Significant Growth in 2010

ANAHEIM, CA--(Marketwire - December 16, 2009) - NavStar Technologies, Inc. (PINKSHEETS: NVSR). The following is a letter to shareholders from N. Douglas Pritt, Chairman & Chief Executive Officer of NavStar Technologies, Inc.

December 16, 2009

Dear Shareholders,

The NavStar Board of Directors and over 50% of the shareholders have officially approved a reverse stock split at a ratio of one hundred fifty to one. This action will reduce the number of shares of outstanding common stock from approximately 330.5 million to approximately 2.3 million. The reverse split takes effect today with the commencement of pre-market trading. NavStar will begin trading on a split-adjusted basis under the trading symbol "NVSRD" for a period of 20 trading days. Commencing January 13, 2010, NavStar's common stock will resume trading under the symbol "NVSR."

The reverse split comes at a time when NavStar's strategic execution and focus is on fundamentals that strengthen the company's financial position and enhance long-term shareholder value.

NavStar is moving from a developmental company to a company with customer engagements and product shipments on the horizon. This action is consistent with NavStar's overall growth and corporate strategy and will help us complete three key initiatives that were announced in the fall of this year: (1) Provide the appropriate capital structure necessary for investment in a company of NavStar's size and potential, (2) Increase the number and quality of brokers and investors that will be attracted to the company, (3) Move from limited to current on the OTC.PK.

We have spent a great deal of 2009 developing strategic relationships in Ecuador, Mexico, US and Korea which are now positioned to deliver $5M in revenue as we enter 2010. The revenue projection is based on pending orders that NavStar expects to deliver beginning as early as February 2010.

The company has adequate cash reserves for the near term and anticipates raising additional capital to supplement its operations until it reaches cash flow sustainability.

Shareholders who hold their shares in brokerage accounts or "street name" will not be required to take any action to affect the exchange of their shares. Shareholders of record who hold physical certificates will receive a letter of transmittal from the Company requesting that they surrender their old stock certificates for new stock certificates reflecting the adjusted number of shares as a result of the reverse stock split. Corporate Stock Transfer, NavStar's transfer agent, will act as the exchange agent for purposes of implementing the exchange of stock certificates.

Thank you for your continued support of NavStar Technologies and the management team at the company. We are looking forward to a great 2010.

Sincerely,

N. Douglas Pritt

Contact Information

  • CONTACT:
    NavStar Technologies, Inc.
    Patrick Bannister
    714-502-6900
    Email Contact