SOURCE: Freshstart Properties, Inc.

January 16, 2007 16:35 ET

Freshstart Properties, Inc. Seeks New Markets for Continued Growth

Company Issues Corporate Update on Pacific Northwest Properties

TACOMA, WA -- (MARKET WIRE) -- January 16, 2007 -- Freshstart Properties, Inc. (PINKSHEETS: FSPP) is pleased to announce that several new real estate markets throughout the continental U.S. are being evaluated for possible acquisitions. This would be a milestone for the company as it diversifies outside of the Pacific Northwest.

President Nazir Maherali commented, "With the company's growth, we felt that expanding beyond the Pacific Northwest would be beneficial to the company to maximize on other undervalued markets in the continental U.S. This would not only provide us with further real estate diversification and allow the company to grow but would also enhance shareholder value."

Mr. Maherali went on to say, "The Pacific Northwest is and will continue to be Freshstart Properties' core region for investment, but expansion is important for any growing company and we feel the timing is right for this announcement."

Freshstart Properties, Inc. also announced the following updates on its property transactions:

6834 South I Street in Tacoma, WA

This single family home with a large parcel of land, suitable for additional subdivision and development was purchased for $200,000 with seller-backed financing of two notes, one long-term ($146,250), and one short-term ($53,750). The home currently provides a rental income of $925/month. The lot is in the process being surveyed in preparation for subdividing it. This related party transaction is now completed.

1731 South 48th Street, Tacoma, WA

This property was not purchased as it was deemed to be too expensive to develop.

10229 - 19th Ave SW, Seattle, WA

This single family home was lease optioned with a purchase price of $202,000. The lease option is for a three-year term with interest only payments of $929.00/month. It was previously announced that this transaction was to be seller-financed by two notes. However, it was agreed by both parties to finalize this transaction via a lease to own option. This related party transaction is now finalized.

1419 South Ainsworth Ave, Tacoma, WA

This building, formerly a large Victorian home converted to a duplex, consists of a three bedroom unit and a two bedroom unit. The purchase price of $215,000 was seller-financed by two notes, one long-term ($127,000), and one short-term ($88,000). This related party transaction is now closed.

About Freshstart Properties

Freshstart Properties, Inc. (PINKSHEETS: FSPP) is a publicly traded real estate development company operating in the Pacific Northwest. The company's principal objective is to create equity and long-term earnings growth through the acquisition and development or renovation of undervalued and foreclosed real estate.

Safe Harbor Statement Under the Private Securities Litigation Reform Act of 1995: Except for historical information, the forward-looking matters discussed in this news release are subject to certain risks and uncertainties which could cause the Company's actual results and financial condition to differ materially from those anticipated by the forward-looking statements including, but not limited to, the Company's liquidity and the ability to obtain financing, the timing of regulatory approvals, uncertainties related to corporate partners or third-parties, product liability, the dependence on third parties for manufacturing and marketing, patent risk, copyright risk, competition, and the early stage of products being marketed or under development, as well as other risks indicated from time to time in the Company's filings with the Securities and Exchange Commission. The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

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