SOURCE: Freshstart Properties, Inc.

February 28, 2007 07:30 ET

Freshstart Properties, Inc. Surpasses Milestone and Significantly Increases Revenue

Assets Valued Over a Million Dollars

TACOMA, WA -- (MARKET WIRE) -- February 28, 2007 -- Freshstart Properties, Inc. (PINKSHEETS: FSPP) exceeds expectation in its current investment activities. In only six months, the company has acquired five properties with a total market value of over a million dollars. 2007's projected outlook is a continued aggressive growth for acquiring holdings in the Seattle and Tacoma markets.

Currently, the company's management is focused on attractive opportunities in the residential rental market. Real estate publications have stated that this past year's appreciation values have risen significantly. Single-family homes rose 16.3%. Condominiums' pricing has risen 13.5% and some areas in Seattle-Tacoma have risen as much as 23.9% a square foot. The price valuation is forecasted to increase by 15%; this trend is due to renovating apartments into condos. Freshstart Properties expects a significant increase in revenue along with strengthening its asset base.

6834 South I Street in Tacoma, WA

This single-family home sits on a large parcel of land and was purchased for $200,000. This property is suitable for additional subdivision and development. The subdivision of this lot will gain an additional value of $100,000. The home currently provides a rental income of $925/month. This rental income shows a return of 34%.

10229 - 19th Ave SW, Seattle, WA

This single family home was lease optioned with a purchase price of $202,000 with interest only payments of $929.00/month. The price of this property is now valued at $239,000 which earned a return of 18.32%.

712 South Yakima, Tacoma, WA

This large Victorian 3 bedroom, 2 bathroom has a purchase price of $205,000. This acquisition is closing with a lease option.

1419 South Ainsworth Ave, Tacoma, WA

This large Victorian home has been converted to a duplex. The duplex consists of a three-bedroom unit and a two-bedroom unit which is valued at $265,000. The purchase price of $215,000 shows a 23.25% return.

6310 South I St., Tacoma, WA

Freshstart Properties, Inc. built this 3-bedroom, 2-bathroom home. The company acquired the lot on which the home was built for $48,809. Building costs were $118,906. The property recently appraised for $238,000 resulting in a total profit through increased equity of over 49%.

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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