SOURCE: Freedom Financial Holdings, Inc.

May 17, 2010 15:53 ET

Freedom Energy Holdings CEO Updates Shareholders

FORT WAYNE, IN--(Marketwire - May 17, 2010) -  Freedom Financial Holdings, Inc. (PINKSHEETS: FDMF) today released a letter to shareholders from CEO and founder Brian Kistler.

Dear Shareholders,

I acknowledge that it has been six weeks since my last update, and for some it appears to be just too long to hold on. I further acknowledge that we all would like for things to move faster than they seem to be, however when dealing with the national oil companies in these other countries it just does not happen overnight. The implications of what KC 9000® and the various blends we have been able to create is extremely promising. KC 9000® is a new product in an industry that has had to deal with every kind of "snake oil" imaginable, and we are working very hard to overcome that image. There have been many promises made over the years with very little results that have been economically viable and or environmentally acceptable. I am proud to reiterate, KC 9000® is both.

In keeping with the marketing plan we have been executing, I am extremely pleased that we have been able to open the doors that we have been able to in just 6 months. For instance, in Kuwait we have had audiences with several department heads for the KOC and KNPC. We have been working through the process of obtaining approval for KC 9000® to be used in a larger pilot project which has included meetings with the private contractors who all are anxious for the approval to be given.

Additionally, I made great strides during my last trip, with contractors in Dubai which are progressing. Those meetings led to a presentation in Saudi Arabia at the Aramco Headquarters. As you can tell, I am not just trying to sell KC 9000®, but open the whole region to where KC 9000® is the product of choice. It is not a small task, but one I am committed to accomplishing.

Most recently, I am happy to report the discussions are continuing with the Venezuelan efforts. In January I reported the results of the KC 9000® on the oil samples taken from Venezuela. The next step was to see if improvements could be made and then compare the special blend of KC 9000® to the current process being used to lower the oil viscosity. The efforts to adjust the base formula of the KC 9000® has been successful and just this last week we were able to run comparative tests. KC 9000® was shown to reduce the viscosity by 35% to 53% more than the product that is currently being used. As the temperature of the oil decreased KC 9000® maintained its effectiveness. This is important since the oil being produced is approximately 130o F at the well head, and as it is transported via pipeline for about 1.5 miles it cools at night and builds up pressure to the point of having to shut production down for a period of time until the ambient temperature raises enough to warm up the oil in the pipeline.

All oil will flow if hot enough. The main characteristic of KC 9000® with Heavy Oil offers effective reduction of viscosity at lower temperatures. Couple this with cost effectiveness and safety for the environment and time will prove we have a winner.

Lastly, contact has been made with high level officials dealing with the British Petroleum oil spill in the Gulf of Mexico. They have been made aware of KC 9000®'s environmentally safe cleaning capabilities should the oil slick reach the coastline.

Not to sound like a broken record, but thank you for the patience and support being supplied as we work through the painfully slow process of fully optimizing the value of KC 9000®. I will release further developments in the near future.

Respectfully submitted,
Brian Kistler, CEO

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to develop operations, the Company's ability to consummate and complete the acquisition, the Company's access to future capital, the successful integration of acquired companies, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition, sales and other factors that may be identified from time to time in the Company's public announcements.

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