SOURCE: Vega Promotional Systems, Inc.

November 13, 2009 19:09 ET

Vega Issues Update to Shareholders

LONDON--(Marketwire - November 13, 2009) - VEGA PROMOTIONAL SYSTEMS, INC. (PINKSHEETS: VGPR) issues the following update to shareholders.

The Company is proud to announce that its Board of Directors has approved a move from the Pinksheets to the OTCBB. The Company is currently interviewing accounting firms to handle the audit associated with the move and hopes to have a firm secured in the next few days and will provide further updates as this matter progresses.

As announced earlier, the past few months have been an extremely busy time for the Company. We are now seeing results from the hard work that was done earlier in the year on the various projects we are working on. We've also made critical additions to our management team.

The addition of Robert Chew to assist in redesigning the Green Valley Project has moved that project to the forefront of the Company's plans. Mr. Chew has been working with various vendors that can provide the necessary generator sets for the project and has chosen the company and type of generator sets that will be installed on the western Indiana land recently leased by the Company directly above the Green Valley Mine. We will have an announcement next week that will provide details of the vendor agreement and timeframe for installation.

The Green Valley Project is a very unique energy project that uses coal bed methane gas to run large natural gas reciprocating engine generator sets that are already on site. The electricity that is produced will then be sold to the local power company at a profit. This is not a developmental stage project. The methane has been tested and a demonstration project was in operation for approximately three years, proving the viability of utilizing coal bed methane from the Green Valley Mine as a sole source fuel to run the generator sets.

We also recently announced plans to build a manufacturing plant in the State of Georgia to produce biomass products and bio-diesel products for power generation units. The site for the manufacturing plant has been chosen and we will be posting pictures of the site on our website as soon as possible. When completed, the fuel pellet manufacturing facility will capitalize on the abundance of biomass in Georgia's Bioenergy Corridor. As mentioned earlier, a recent Forbes Magazine article ranked Georgia third in the nation as a potential source of renewable energy. When completed, the Georgia plant would have the capacity to produce several hundred thousand metric tons of biomass fuel pellets annually.

The Company has applied for a grant from the State of Georgia under the federal State Energy Program to help fund the construction of the manufacturing plant. The U.S. Department of Energy announced July 7, 2009 that Georgia will receive $32.9 million in federal money to support energy efficiency and renewable energy projects across the state. The money is part of a total of nearly $82.5 million the department will award Georgia as part of the federal State Energy Program. Georgia's proposal outlined plans for increasing the use of renewable energy and reducing greenhouse gas emissions. The state will get more than $41 million in additional funding upon demonstrating successful implementation of the plan that will create green jobs, address state energy priorities and adopt emerging renewable energy and energy efficiency technologies; all services that are provided by Vega.

The Company's name change to Vega Biofuels, Inc. has also been completed.

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    Vega Promotional Systems, Inc.