SOURCE: Kolorfusion International

November 14, 2006 08:10 ET

Kolorfusion International, Inc. and Chesta Solutions, LLC Announce New China Development Strategy

Kevin Geraghty Named Managing Director

DENVER, CO -- (MARKET WIRE) -- November 14, 2006 -- Kolorfusion International, Inc. (OTCBB: KOLR) announced it has entered a China Development Strategy with its new licensee in Shanghai, China -- Chesta Solutions, LLC (Pickerington, Ohio) for the further commercialization of Kolorfusion's patented decoration technology.

Chesta has agreed to takeover the existing facility in Shenzhen, China (previously owned and operated by Anhua Zhouli Industry development, LTD.) and also operate its new facility in Shanghai. The parties have also agreed that Kolorfusion's previous National Marketing & Sales Manager -- Kevin Geraghty shall become Chesta Solutions' new managing Director for Asian operations.

Steve Nagel, President of Kolorfusion, stated, "We have been working to establish a presence in China starting in 2003 and Kevin has been our lead person. Mr. Geraghty has been with the Company since 1996 and studied in China during his tenure at University of Colorado prior to joining Kolorfusion; it therefore made it a very simple solution for both parties to expedite our opportunities in Asia. Chesta and its owners have many related companies operating in China and Taiwan and it made sense for us to have a primary partner to facilitate our process throughout China and other parts of Asia as we grow. The two facilities are now fully operational, and many projects are in the works."

Chesta Solutions, LLC was formed for the purposes of exploiting the Kolorfusion technology in Asia including the utilization of other companies related to the core owner group of Chesta. Other related companies have been manufacturing and distributing to North America and Europe for over 15 years, and employ over 14,000 workers in China.

"The Kolorfusion process we see as an excellent fit for our infrastructure in China, as well as our distribution capabilities in North America and elsewhere. Product differentiation is a key in many consumer product categories and the Kolorfusion process is a natural for this requirement. I believe in this market, a sound well-executed business model alone is not enough. We are very excited about this new relationship and plan to continue to invest in its success," stated Jeff Berman, CEO of Chesta Solutions, LLC.

About Chesta

Chesta Co. Inc, founded in 1993, is a multi-national, multi-product manufacturer. Chesta has been working in China for the last 12 years with an emphasis on proprietary products, techniques and processes. Chesta and its related companies entered the sublimation business in 1999 and have now become the largest dye-sublimation digital and off-set lithography printer in China, employing the latest printing equipment. With 14 locations throughout China, Chesta's diversified OEM and finished product model has positioned the company to maximize market penetration. Chesta CEO Jeff Berman has over 25 years' experience in doing business in Asia.

About Kolorfusion

Kolorfusion is the owner of process patents for three-dimensional product decoration. The Company's technology is considered a major breakthrough for product finishing, as the process actually transfers any design with any colors into a product's coating or directly into the plastic or aluminum part itself, no matter the shape. The result is a fully decorated product as durable as the coating or part. Kolorfusion's technology is ultraviolet resistant, cost effective, and safe for the environment. Unlike decals, silk screening, or standard painting, Kolorfusion's patented processes offer a full spectrum of colors, shades, and designs. Kolorfusion generates revenues through processing contracts and long-term purchasing and license agreements with product manufacturers. Kolorfusion continues to expand its licensing of major OEM's such as Polaris Industries, Sunrise Medical, Alcoa Forged Wheels, and provide processing for customers such as Daisy, Gerber, Tru-Glo, Sony and others.

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This news release contains forward-looking statements related to future growth and earnings opportunities. Such statements are based upon certain assumptions and assessments made by management of the Company in light of current conditions, expected future developments and other factors it believes to be appropriate. Actual results may differ as a result of factors over which the Company has no control.

Contact Information

    Kolorfusion International, Inc. in Denver
    Steve Nagel

    Chesta Solutions, LLC in Pickerington, Ohio