Powerstar International Inc.

April 26, 2007 14:13 ET

PowerStar International to Purchase Xpel Communications

CALGARY, ALBERTA--(CCNMatthews - April 26, 2007) - PowerStar International Inc. (TSX VENTURE:PWS) (PowerStar) has entered into agreements to purchase Xpel Communications AB, the Stockholm, Sweden-based provider of Wi-Fi wireless networks and digital signage.

Xpel Communications is the largest provider of Wi-Fi internet access in the Swedish capital of Stockholm, with a population of 1.9 million people. The current active network of over 100 hotspots presently covers the downtown area and continues to receive national recognition and plaudits for innovation, reliability and quality. The network has been active since early March 2007 and is operationally cash flow positive.

Xpel's existing coverage and client base provide complementary entry into the European marketplace for PowerStar. Xpel currently provides network access to the public and major VoIP and media suppliers. The new layering of retail digital signage systems onto the network will add both revenue and advertising clients to Solutrea's growing portfolio of municipal coverage for business services, internet access and digital signage.

"PowerStar is pleased to announce the planned integration of Xpel, a key regional player, into the group" said Dr. Hatim Zaghloul, CEO and Chairman of PowerStar, "Xpel's network and experience in citywide deployment with major brand name clients in key wireless markets and ongoing sales pipeline will allow PowerStar and Solutrea to enter the European marketplace with a profitable network. Thus, Xpel and Solutrea plan to expand across Scandinavia and Europe through a series of further planned agreements."

"This is a great step forward for Xpel and PowerStar" said Johan Franck, Director of Expel Communications, "PowerStar gives Xpel the financial backing and management support required to replicate our profitable model across Europe, while also enabling us to layer new services from Solutrea onto the networks for additional revenue growth on both new and existing networks. In particular we see the increasing market demand of state-of-the-art VoIP enabled wireless networks will be matched by our increasing capabilities to supply similar networks as in Stockholm to a pan European market. Europe has great opportunities in municipal, educational and government led Wi-Fi projects right now, and our new integration with PowerStar will allow our clients, partners and shareholders to fully benefit from that."

Under the terms of the agreement Xpel and the rapidly growing Stockholm network will be transfer to PowerStar for $50,000 CDN in cash immediately, approximately 735,300 common shares of Powerstar to be issued over the next year and an estimated $1,500,00 in cash or shares based on specific performance targets. The agreement is subject to approval by the TSX Venture Exchange.

About PowerStar International Inc.

PowerStar is a fast-growing provider of Digital Communications Networks for the consumer, business and government providing services under it's Solutrea brand and companies. The company provides public Wi-Fi networks, digital signage, corporate communications and Business Television over wireless, satellite and terrestrial platforms. PowerStar is a publicly-traded corporation, whose shares are listed on the TSX Venture Exchange. For more information visit www.solutrea.com.

About Xpel Communications AB

Xpel Communications AB is an industry leading supplier of Wi-Fi networks and digital signage platforms. Xpel designs, owns and operates the largest open Wi-Fi network in Sweden using the latest technology with focus on quality of voice over IP. Xpel's media streaming allows Digital signage portals to be effectively deployed to facilitate advertising applications and revenue streams for, and from, retail while promoting a profitable and sustainable model for free internet access to the public.

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

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