Powerstar International Inc.

September 10, 2007 09:00 ET

Powerstar International Inc. Delayed in Issuing Q2 Financial Statements

Alberta Securities Commission Places a Cease Trade Order on PWS

CALGARY, ALBERTA--(Marketwire - Sept. 10, 2007) - Powerstar International Inc. ("Powerstar") (TSX VENTURE:PWS), the wireless and digital signage solutions provider, advises that it has been delayed in filing its Q2 financial statements and, as a result, has been cease-traded by the Alberta Securities Commission, effective September 7, 2007 (the "CTO").

Prior to completion of Powerstar's Qualifying Transaction on April 18, 2007, its fiscal year was based on the calendar year, meaning that Q2 would have focused on the three-month period from April 1, 2007 through June 30, 2007 with normal filing of financial statements within 60 days of the end of the calendar quarter ended June 30, 2007.

Solutrea Inc. ("Solutrea"), acquired by Powerstar in its Qualifying Transaction, was incorporated on April 23, 2006 and had its first fiscal year-end on October 31, 2006. Thus, Q2 for Solutrea would normally be the three-month period from February 1, 2007 through April 30, 2007, with normal filing of financial statements within 60 days.

After the April 18, 2007 completion of the Qualifying Transaction, Powerstar's management proceeded on the assumption that the Q2 financial statements for the merged entity should be based on the year-end and quarterly filing requirements of the pre-merger Powerstar. Thus, from April 18, 2007 through June and July of 2007, management assumed that Q2 financials would be based on Q2 ending June 30, 2007 with such statements being filed within 60 days, being no later than August 29, 2007.

A change of auditors (to PricewaterhouseCoopers) and a change of CFO were announced in a press release on July 30, 2007. These two events were independent and neither was linked to issues involving the fiscal year of Powerstar or Solutrea. A thorough review led Powerstar to conclude that its fiscal year should be that of Solutrea, meaning its Q2 ended April 30, 2007 and should have been filed no later than June 29, 2007.

Management of Powerstar used their best efforts to complete the financial statements and related MD&A prior to the issuance of the CTO, but due to the unexpected timing adjustments, was unsuccessful. Powerstar intends to continue to use its best efforts to complete the statements, related MD&A and all other required continuous disclosure documents as soon as possible.

Powerstar will make application to the Alberta Securities Commission for revocation of the CTO as soon as its continuous disclosure documentation, including the Q2 financial statements and related MD&A, are up-to-date.

About PowerStar International Inc.

PowerStar is a provider of digital signage/communications networks for consumers, businesses and the US government. Powerstar provides services under its Solutrea brand and companies. The company provides public Wi-Fi networks, digital signage, corporate communications and Business Television over wireless, satellite and terrestrial platforms.

The TSX Venture Exchange has not reviewed and does not accept responsibility for either the accuracy or adequacy of this news release.

Contact Information