SOURCE: HotCloud Mobile, Inc.

June 29, 2011 06:30 ET

HotCloud Mobile, Inc. Establishing Wholesale Mobile Equipment Subsidiary

New B to B-Focused Subsidiary, Stars Wireless, Inc., Will Sell Pre-Loaded, Branded Phones to Wholesale and Retail Customers

BURBANK, CA--(Marketwire - Jun 29, 2011) - HotCloud Mobile, Inc. (OTCBB: HOTM), a vertically integrated wireless telecommunications company that operates three business units: Products; services; and content, stated today that it is establishing a wholly-owned subsidiary, Stars Wireless, Inc., to build out a multi-channel distribution infrastructure and manage retail and wholesale channels, including the HotCloudMobile.com direct-to-consumer website.

"We have a wholesale customer list of about 2,000 clients. These are people I have done business with previously, sold branded phones and mobile accessories to and have an established relationship with," stated Mr. David J. Bleeden, CEO of HotCloud Mobile, Inc.

"Our new wholesale subsidiary, Stars Wireless, Inc., will be led by an established industry veteran who brings immense experience and past successes to our organization," added Mr. Bleeden. "We feel that we can move hundreds of thousands of mobile handsets, pre-loaded with our licensed apps, in the first six to nine months. This will form the cornerstone of our equipment business."

HotCloud will provide its new subsidiary with inventory financing, distribution capital, and multi-channel product distribution. HotCloud will also use its distribution network and historic customer base to promote and market Stars Wireless, Inc.

"Stars Wireless will pre-load HotCloud Mobile applications onto its phones, PDAs and tablets, which will allow us to reach every customer who buys equipment directly and indirectly through wholesalers," continued Mr. Bleeden. "For every customer that buys a phone from Stars Wireless we're getting a potential app sale that will generate recurring revenue to HotCloud. For example, when you consider the opportunity that getting a million handsets into consumers' hands creates, the business model becomes really exciting."

About HotCloud Mobile, Inc.

HotCloud Mobile (http://www.hotcloud.net, and http://www.hotcloudmobile.com) is a leading supplier of wireless products and services designed to enhance the wireless experience. HotCloud offers the latest products on its website, including handsets, unlocked phones, specialty accessories, as well as phone insurance and exclusive mobile applications and licensed content from its in-house design team. From music and ring tones to the latest mobile apps for business or pleasure, HotCloud is the premier destination for mobile products, content and subscription services.

Learn more about HotCloud corporate at: http://www.hotcloud.net.

Information in this press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Without limiting the foregoing, the words "believes," "anticipates," "plans," "expects" and similar expressions are intended to identify forward-looking statements. The forward-looking statements may include our future operations, financial condition and prospects and business strategies. These forward-looking statements are subject to certain risks and uncertainties that could cause our actual results to differ materially. Factors that could cause or contribute to such differences include, but are not limited to, those discussed in this press release or in other documents including those filed with the SEC. We undertake no obligation to revise or publicly release the results of any revision to these forward-looking statements. Given these risks and uncertainties, readers are cautioned not to place undue reliance on such forward-looking statements.

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