SOURCE: Prime Star Group, Inc.

March 15, 2010 15:53 ET

Prime Star Group's Intela-Pac Signs $2.5M Agreement

Intela-Pac Products to Be Used in New Caribbean Production Facility

LAS VEGAS, NV--(Marketwire - March 15, 2010) -  Prime Star Group, Inc. (OTCBB: PSGI) wholly owned subsidiary, Intela-Pac, is pleased to announce that it has entered into an agreement for its proprietary packaging machinery and related equipment. This agreement will provide the Intela-Pac business unit with recurring annual revenue of approximately $2.5M.

David Maldonado, President of Isla Nena Direct Distributors and Manufacturing stated, "I am proud to announce this relationship. We have long sought the opportunity to locally manufacture and package water and beverages for the Latin American market. Our new operation provides the ability to expand our operation as well as create new industry in Vieques which at the present time has little industry. The local government is supportive of this endeavor and we are all excited and looking forward to the positive economic impact."

Additionally, Isla Nena Direct Distributors and Manufacturing will be moving its operation to a larger facility located on State Road 200, KM 3.1, Vieques, Puerto Rico 00765. The new location provides an added 10,000 sq ft. of factory space and will be employing approximately 25 men and women. The company has also leased an additional 23,000 sq ft. of space for product storage and improved logistical capabilities.

Roger Mohlman, President of Prime Star Group, stated, "We are excited to be part of Isla Nena's strategic expansion and look forward to a partnership that will benefit both parties and provide an opportunity to distribute all of Prime Star Groups products throughout the Caribbean."

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.

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