SOURCE: Universal Systems, Inc.

January 16, 2008 11:09 ET

Universal Systems, Inc. (UVSS) Announces News Update

BAKER CITY, OR--(Marketwire - January 16, 2008) - An announcement has been made by Universal Systems, Inc. (USI) (PINKSHEETS: UVSS) that they have concluded the purchase of the Alaska Communication Submarine Cable. Prior to WWII this cable was laid under water by the United States Department of the Navy approximately 1/4 mile offshore along the continental shelf of the United States at depths between 6-30 fathoms. In 1956, this cable was abandoned from strategic use. The rights by contract to salvage and lift the abandoned cable and other materials are presently held by Universal Systems, Inc. of Baker City, OR.

While Universal has been focusing on the development of state-of-the-art water and wastewater treatment systems, the purchase of the Alaska Communication Submarine Cable opens up a unique opportunity to generate unprecedented value for shareholders. The metal recovery operation will be handled by a dedicated division of Universal. This division has been set up for future metals recovery. Universal has the technological ability to recover many metals with great efficiency and has decided to keep those metals for future marketing.

As per charts supplied by the Navy, the exact location has been verified by an independent contractor. The cable extends approximately 4,850 miles from San Diego, California, towards the Alaskan Islands along the west coast of the United States. Total weight of the cable is 31.5/lbs. per foot; the approximate weight in Copper is in excess of 600 Million lbs. Today's index price for copper from Kitco Base Metals listing is over $3.00 per/lb. bringing a total value in copper to $1,814,967,000. Total approximate weight of the Lead is in excess of 170 Million lbs. At today's index price for Lead, the evaluation is $532,390,320. Calculating the Total Value of both metals, Universal profits could be in excess of $2.3 Billion in Metal Assets. This asset fits nicely with Universal's metals division. Universal is now in the late stage of formalizing the recovery schedule, currently targeted for March-April this year. The present option underway is for Universal Systems to contract with a local and reputable salvage contractor to lift the copper cable. Contractors have been located and are currently being interviewed.

Universal has issued a convertible debenture in the face amount of $102 Million to the holders of the submarine rights. The debenture is convertible into UVSS common shares at (l) shares for each $10.00 of debenture principal. Accordingly, UVSS will be issuing a total of 10.2 Million shares upon conversion of the debenture. The contract for the recovery operations is from the direct order of the Department of the Navy, issued by the office of the Chief of Naval Operations, Washington D.C. 22025 ("contract # OP314-CRC Ser 227 P"). This order was issued to Mr. L. Mills Beam. Universal has issued Convertible debentures to Mr. Darrell Throckmorton and company who are the named nominees of Mr. Beam.

The cable is anticipated to be recovered over a five-year period. It is anticipated that 2 to 2 1/2 miles of cable can be recovered per day with a potential profit of approx. $1,100,000/day after paying the recovery costs. This type of recovery operation is common in the cable salvage business. Additional press releases will follow, as and when dedicated by the trigger points inherent in the recovery program.

The ability of UVSS to carry through with this proposal and to generate profits is dependent upon the following factors:

1. The ability of the Company to close an agreement with a salvage
   company with the resources to locate and pull up the cable in a
   timely and efficient manner
2. A cash advance in an as yet undetermined amount to the salvage
   company as a condition to undertake such salvage operation
3. Either creation of a subsidiary to contracting with a third-party
   entity for clearing all debris from the cable and separating the
   various metallic components
4. Continuation of world prices at their present historically high levels

Safe Harbor Statement Under The Private Securities Litigation Reform Act Of 1995:

The Private Securities Litigation Reform Act of 1995 (the "Reform Act") provides a "safe harbor" for forward-looking statements to encourage companies to provide prospective information, as long as those statements are identified as forward-looking and are accompanied by cautionary statements identifying important factors that could cause actual results to differ materially from those discussed in the forward-looking statements. Universal Systems, Inc. desires to take advantage of the safe harbor provisions of the Reform Act. All future written and oral forward-looking statements attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements contained or referred to above. New risks and uncertainties arise from time to time, and it is impossible for the Company to predict these events or how they may affect the Company. We assume no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by federal securities laws. In addition, it is our policy generally not to make any specific projections as to future earnings, and we do not endorse any projections regarding future performance that may be made by third parties.

Universal Systems, Inc. is traded on the OTC Exchange under the symbol UVSS. More information is located at the web-site

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