SOURCE: Prime Star Group, Inc.

March 16, 2010 11:30 ET

Prime Star Group Signs $16M Distribution Agreement

Distribution of IntelAPac Product in Southern New York State Through Beverage Source 1, LLC

LAS VEGAS, NV--(Marketwire - March 16, 2010) -  Prime Star Group, Inc. (OTCBB: PSGI) subsidiary, IntelAPac, is pleased to announce that it has executed a master distribution agreement valued up to $16M annually with Beverage Source 1, LLC, located in North Bergen, NJ, and will cover New York State's Southern 14 County Region which is comprised of: Dutchess, Orange, Ulster, Bergen, Putnam, Rockland, Westchester, Richmond (Staten Island), New York (Manhattan), Kings (Brooklyn), Queens, Bronx, Nassau, and Suffolk Counties. Distribution of IntelAPac's H2O water and ice product will be the focus of this agreement.

Cosmo Amato, General Manager of Beverage Source 1, LLC, stated, "IntelAPac H2O and ice products provide our state and municipal clients in the lower region of New York State access to additional necessary amounts of water and ice inventory. The greater New York metropolitan area can at times be vulnerable and lack basic necessities such as water and ice, especially during the coming summer months where brown outs and black outs take place, can often make a bad situation worse. With additional consideration to the constant and potential threat for disruption of services due to terror attacks, local and state governments understand the need to be prepared by having access to flexible, easily deployed water and ice inventory. IntelAPac's products provide that capability to those entities."

Roger Mohlman, President of Prime Star Group, added, "We are extremely proud to be working with Beverage Source 1.Through their distribution capability and penetration, we are able to make water and ice available for emergency use to local and state government in New York. We could not ask for a better channel partner and corporate citizen to be aligned with than Beverage Source 1. We look forward to a long and rewarding relationship."

About Beverage Source 1, LLC
Based in North Bergen, New Jersey, Beverage Source 1, LLC provides distribution of juice drinks, water, mixers, and carbonated beverages throughout the State of New Jersey and Southern New York State. The company services both the on premise segment which includes restaurants, bars, and night clubs as well as off premise convenience stores, local grocery, regional chain supermarkets, hospitals, and municipalities. Beverage Source 1, LLC's product portfolio currently includes fine brands such as Hawaiian Punch™, Tampico™, Crystal Choice™ Water, and Daily's Drink Mixers. For more information about Beverage Source 1, LLC, visit:

About Prime Star Group
Prime Star Group, Inc. is a holding company that focuses on four areas of business: SmartPax™ Packaging, Premium Food & Beverage Products, Distribution, and Risk Management. The company's operating subsidiaries produce, market, and distribute wines, tea, adult mixed beverages, flavored water, and gourmet seafood products. The company also produces co-brand and co-pack existing high-end beverages and private label liquors for large hospitality and entertainment brands. Prime Star is focused on the food and beverage, entertainment, hospitality, healthcare and disaster relief industries.

Forward Looking Statements - Safe Harbor
This release contains statements that constitute 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. These statements appear in a number of places in this release and include all statements that are not statements of historical fact regarding the intent, belief or current expectations of Prime Star Group, Inc., its directors or its officers with respect to, among other things: (i) financing plans; (ii) trends affecting its financial condition or results of operations; (iii) growth strategy and operating strategy. The words "may," "would," "will," "expect," "estimate," "can," "believe," "potential" and similar expressions and variations thereof are intended to identify forward-looking statements. Investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, many of which are beyond Prime Star Group, Inc.'s ability to control, and that actual results may differ materially from those projected in the forward-looking statements as a result of various factors. More information about the potential factors that could affect the business and financial results is and will be included in Prime Star Group, Inc.'s filings with the Securities and Exchange Commission.

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