SOURCE: Quasar Aerospace Industries, Inc.

January 28, 2011 19:43 ET

Update Announcement Regarding Proposed Merger of Quasar Aerospace Industries, Inc. and Centaflix Corporation

JACKSONVILLE FL--(Marketwire - January 28, 2011) - Quasar Aerospace Industries, Inc. (PINKSHEETS: QASP) ("Quasar"), provides this update announcement regarding the purpose of the proposed merger announced on January 27, 2011. Quasar's continued focus on providing services and products in collaboration with strategic partnerships is part of its continued effort to meet shareholder expectations.

Quasar believes that its flight school operations and other education focused interests currently present the greatest practical opportunity for growth and stabilization of core financial stability. Quasar's long-term growth viability is dependent on Quasar's ability to reorganize its primary business focus on providing these educational services in a competitive and demanding business environment. Quasar's current flight school, Atlantic Aviation, is a certified flight school under 14 CFR Part 61. Expansion of accredited flight school education programs with low overhead operation structures should effectuate positive growth for Quasar. We believe that a strategic merger with a company that is poised to be a major leader in the education and communication technology industry will help establish revenue generating business operations for Quasar.

Centaflix Corporation ("Centaflix") believes that its contribution of its services and products to Quasar's current and planned business focuses make this proposed merger between the companies a positive step towards the stabilization and profitability of Quasar's operations. Centaflix and its subsidiaries engage in the design, manufacture, and direct/indirect sale of its proprietary technology services and products for the entertainment, technology, and education industries. Centaflix has developed patented technology that revolutionizes communication by providing real-time, robust communication and information sharing capabilities to end users via the Centaflix Connects™ platform. The Centaflix Connects™ platform allows for streamlined web meeting and conferencing services utilized for Centaflix's educational software programs as well as providing for various other corporate applications. Under the direction of Centaflix management and relationships with industry leaders including Dr. John A. England, Executive Director, President of National Accreditation for Colleges & Schools, Inc., Centaflix has expanded its web-interface accredited educational services program globally, with particular focus on the United States, the United Kingdom, China, Colombia, Panama, and Italy.

Centaflix, through its subsidiaries and partnerships, is heavily investing its resources into bandwidth operations. Through its strategic relationships, Centaflix purchases bandwidth in bulk packages at extremely low cost and resells the purchased bandwidth with flexible service options unique from other providers. Centaflix introduces a unique distribution process where otherwise non-qualified applicants (an estimated 40% of all applicants) can purchase customized bandwidth packages with flexibility of contract, and security for Centaflix. These operations, managed by Wade Thompson, former senior VP at Deltacom, have direct corporate applications and will launch in Miami, Tampa, Orlando, Atlanta, and Jacksonville.

Quasar believes that a merger of the companies will increase value for shareholders and provide for growth potential in the respective industries.

ALL INQUIRIES REGARDING THIS NOTICE OR THE PROPOSED MERGER SHOULD BE ADDRESSED TO THE FOLLOWING FIRM CONTACT:

BATAINEH | PALMERI, LLP
info@batainehlaw.com
c/o Quasar - Centaflix Merger Team

Forward-Looking Statements
Certain statements in this press release relate to future events and expectations and, as such, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to known and unknown factors that may cause actual results of Quasar Aerospace Industries, Inc. ("Quasar") to be different from those expressed or implied in the forward-looking statements. Words such as "believe," "estimate," "will be," "will," "would," "expect," "anticipate," "plan," "project," "intend," "could," "should" or other similar words or expressions often identify forward-looking statements. All statements other than statements of historical fact are forward-looking statements, including, without limitation, statements regarding our outlook, projections, forecasts or trend descriptions. These statements do not guarantee future performance, and Quasar does not undertake to update its forward-looking statements. It is important to note that actual results of the company may differ materially from those described or implied in such forward-looking statements based on a number of factors, including, but not limited to: (i) economic volatility in the global economy generally and in capital and credit markets; (ii) Quasar's ability to generate cash from operations, secure external funding for operations and manage liquidity needs; (iii) adverse changes in the economic conditions of the industries or markets Quasar serves; (iv) government regulations or policies, including those affecting interest rates, liquidity, access to capital and government spending on infrastructure development; (v) commodity price increases and/or limited availability of raw materials and component products; (vi) compliance costs associated with environmental laws and regulations; (vii) Quasar's ability to maintain their respective credit ratings, material increases in either company's cost of borrowing or an inability of either company to access capital markets; (viii) financial condition and credit worthiness of Quasar's customers; (ix) material adverse changes in our customers' access to liquidity and capital; (x) market acceptance of Quasar's products and services; (xi) effects of changes in the competitive environment, which may include decreased market share, lack of acceptance of price increases, and/or negative changes to our geographic and product mix of sales; (xii) adverse changes in sourcing practices for our dealers or original equipment manufacturers; (xiii) additional tax expense or exposure; (xiv) inability to successfully integrate and realize expected benefits from acquisitions or mergers; (xv) significant legal proceedings, claims, lawsuits or investigations; (xvi) imposition of significant costs or restrictions due to the enactment and implementation of health care reform legislation and proposed financial regulation legislation; (xvii) changes in accounting standards or adoption of new accounting standards; and (xviii) adverse effects of natural disasters. The forward-looking statements in this release are made as of the date hereof and Quasar Aerospace Industries, Inc. under take no obligation to update such statements.

Contact Information

  • BATAINEH | PALMERI, LLP
    info@batainehlaw.com
    c/o Quasar - Centaflix Merger Team

    QUASAR AEROSPACE INDUSTRIES, INC.
    9300 NORMANDY BLVD., SUITE 511
    JACKSONVILLE FL 32221 US

    JEFF DiGENOVA
    CHIEF EXECUTIVE OFFICER

    CENTAFLIX CORPORATION
    ASHOK MOHAN, President