SOURCE: Watercolor Holdings, Inc.

August 03, 2006 09:00 ET

Watercolor Holdings, Inc. f/k/a United Specialties, Inc. Announces Roadmap Forward

NEW YORK, NY -- (MARKET WIRE) -- August 3, 2006 -- Watercolor Holdings, Inc., a publicly held Colorado corporation f/k/a United Specialties, Inc. (PINKSHEETS: WCHG), announced today its plans for the short-term. Watercolor's business strategy is to acquire an operating business in the alternative energy industry. In such regard, Watercolor is exploring various strategic transactions in this industry. In preparation for such a transaction or transactions, Watercolor has agreed to extinguish its $175,000 indebtedness through the issuance of its common stock.

In light of this strategy, Watercolor's next steps are to amend its charter, among other things, obtain a new trading symbol and CUSIP number for the common stock, and apply to trade on the over-the-counter bulletin board. Watercolor hopes to complete these next steps shortly.

Watercolor further announces that it is in the process of completing its financial statements and audits and anticipates being in compliance with its reporting requirements under the Securities Exchange Act of 1934, as amended, in the near future. Upon achieving compliance, Watercolor anticipates filing with the Securities and Exchange Commission an information statement pursuant to Rule 14(c) of such act which shall effect an up to 1-for-30 reverse split of Watercolor's outstanding common stock.

Gary Stein, the President of Watercolor, commented, "We are pleased to report progress by Watercolor on all fronts -- development and implementation of its business plan and strategy, progress and momentum towards achieving full compliance with applicable public reporting requirements, rationalization of our capital structure, and growing interest by the brokerage community. We will endeavor to capitalize upon these developments and work to achieve further developments with the goal of maximizing value for our stockholders."

About Watercolor Holdings, Inc.:

Watercolor Holdings, Inc., is a publicly held Colorado corporation seeking to acquire an operating business in the alternative energy industry and is currently engaged in examining various prospects in that field.

Forward-Looking Statements:

The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking statements made on behalf of Watercolor. All such forward-looking statements are, by necessity, only estimates of future results and actual results achieved by Watercolor may differ materially from these statements due to a number of factors. Any forward-looking statements speak only as of the date made. Statements made in this document that are not purely historical are forward-looking statements, including any statements as to beliefs, plans, expectations, or intentions regarding the future. Risk factors that may cause results to differ from projections include, without limitation, loss of suppliers, loss of customers, inadequate capital, competition, loss of key executives, declining prices and other economic factors. Watercolor assumes no obligations to update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such statements. You should independently investigate and fully understand all risks before making investment decisions.

Contact Information

  • Michael J. Porter
    President - Investor Relations
    Jeff Myhre, VP - Editorial
    212.564.4700