SOURCE: HQ Sustainable Maritime Industries Inc.

March 07, 2005 13:13 ET

HQSM Finalizes Landmark Agreement With American River Nutrition & Kicks Off New Distribution Initiative

NEW YORK, NY -- (MARKET WIRE) -- March 7, 2005 -- HQ Sustainable Maritime Industries, Inc. (HQ) (OTC BB: HQSM), a Delaware corporation engaged in integrated aquaculture and aquatic product processing, announced today that its wholly owned subsidiary HQ Sustainable Maritime Marketing Inc. (HQMM), has finalized an agreement with American River Nutrition Inc. (ARN) providing HQSM with leading nutraceutical technology for its health products and nutraceutically enriched aquaculture feed products business. The Agreement also sets the stage for distribution of Health products produced by HQSM in the United States as well as introducing ARN nutraceuticals into China through HQSM's marketing network there.

ARN has cutting-edge technology to develop unique nutraceuticals for aquaculture feeds. These ingredients are directed at improving general health, growth, feed conversion and meat quality of fish and shrimp. ARN is currently developing a product that can boost the immune system of shrimp to ward off common viruses. The impact of access to these new technologies will be a significant boost in developing proprietary technology within the company and an expected significant boost in sales and profitability. Furthermore, the agreement will begin the process of selling HQSM health products in the United States as well as the sale of ARN products through HQSM's distribution network in China. The relevant health products markets in both countries represent a multi-billion dollar business and is expected to lead to the development and sale of many more such products for these markets. Currently HQSM produces and sells shark liver oil and shark cartilage products and sells these through a unique direct sales and retail sales system in China. Currently ARN produces and sells its patent-protected DeltaGold® vitamin E, primarily in the USA and Canada.

ARN will work with HQMM to develop and validate relevant technologies and coordinate the application of nutraceutical feed ingredients in feed products for Tilapia and Shrimp particularly developing Nutraceutical feed additives in HQSM's Nutraceutical plant that are health oriented and environmentally sound.

Said Norbert Sporns, CEO of HQSM; "We are pleased to access leading American technologies in nutraceuticals provided by American River Nutrition. The unique combination of aquaculture feed technology using actualized nutraceuticals and nutraceutical products production and development will make HQSM a leader in this field in China. China is the leading producer of farmed Tilapia in the world. The sale of HQSM health products in the United States through ARN will increase sales and profitability and will increase the profile of HQSM."

Said Dr. Barrie Tan, CEO of American River Nutrition, "We are pleased to be a partner in the development of nutraceutically enriched feed products with HQSM. We have worked with HQSM over the years and find that we are on the threshold of a new era in the use of new and more natural feeds. The health product distribution agreement will allow us to distribute the superior products produced by HQSM and to use HQSM's network to distribute our patented nutraceutical products and in particular DeltaGold® vitamin E in China."

About HQ Sustainable Maritime Industries, Inc.

HQ Sustainable Maritime Industries, Inc. is an integrated aquaculture and aquatic product processing company, with operations based in the environmentally pristine island province of Hainan, in the South China Sea. HQ's activities include using renewable ocean resources, practicing cooperative sustainable aquaculture, using nutraceutically enriched feeds and conducting fish processing and sales. Its variety of farmed and ocean-harvested products -- ranging from tilapia and shrimp to squid and red snapper -- are sold around the world. The Company holds HACCP certification from the U.S. FDA and the EU Code assignment of quality, permitting its products to be sold in these international markets; the Government of China as a leading agricultural enterprise has also certified it. It has recently acquired a nutraceuticals and health products company, which is HACCP certified, and produces and sells products subject to stringent laboratory tests certified by the China Ministry of Health. This plant produces nutraceuticals, which enrich feed used by HQ's cooperative aquaculture operations. In addition to operational offices based in Haikou, Hainan, HQ has offices in Montreal, Hong Kong, New York City, Beijing, and Shanghai. (http://www.hqfish.com)

About American River Nutrition Inc.

American River Nutrition (ARN) is primarily focused in the discovery, development and extraction of nutraceuticals from natural sources. Examples of such sources include rice, soy, palm, carrot, annatto, marigold and tomato. To maximize this sourcing, ARN persists on searching new raw materials. ARN has over 20 years in original Tilapia and shrimp research and is one of the pioneers in raising the quality of products in this area. ARN is also involved in improving existing extraction technology by process-design upgrading (PDU) and unit-process shortening (UPS). Applications and uses are generally focused in the vitamin, mineral and supplement, food and beverage, animal health, drug and cosmetic market sectors. ARN has developed DeltaGold®, which is 50 times more potent than tocopherol, or regular Vitamin E which is an excellent anti-oxidant and cholesterol modulator.

Certain statements in this press release that are not historical facts are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use words such as "anticipate, "believe," "expect," "future," "may," "will," "would," "should," "plan," "projected," "intend," and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of HQ Sustainable Maritime Industries, Inc. (the Company) to be materially different from those expressed or implied by such forward-looking statements. The Company's future operating results are dependent upon many factors, including but not limited to the Company's ability to: (i) obtain sufficient capital or a strategic business arrangement to fund its expansion plans; (ii) build the management and human resources and infrastructure necessary to support the growth of its business; (iii) competitive factors and developments beyond the Company's control; and (iv) other risk factors discussed in the Company's periodic filings with the Securities and Exchange Commission, which are available for review at www.sec.gov under "Search for Company Filings."

Contact Information

  • CONTACT:
    Norbert Sporns
    Chief Executive Officer
    HQ Sustainable Maritime Industries, Inc.
    Tel. 212-618-1712
    Fax: 212-618-1713
    Sporns@hqfish.com