SOURCE: Vega Promotional Systems, Inc.

December 17, 2009 08:00 ET

Vega's China Venture to Use Special Torrefaction Technology in Ten Manufacturing Plants

LONDON--(Marketwire - December 17, 2009) - VEGA PROMOTIONAL SYSTEMS, INC. (PINKSHEETS: VGPR) recently announced the Company has entered into a Joint Venture Agreement to build multiple manufacturing plants throughout China to produce alternative energy using torrefaction technology.

The Company's Joint Venture with Global Capital Market, LTD (GCM), located in Shenzhen City, China is moving forward with its plan to build up to 10 manufacturing plants throughout China. The manufacturing plants will use special torrefaction technology to produce briquettes from organic waste products that will then be sold through Agreements with European power generating companies.

Torrefaction is a partial carbonization process that takes place at temperatures between 475 - 575 degrees in a low temperature environment which makes the physical and energetic properties of the biomass much more comparable to traditional coal. The biomass is then compressed into briquettes to be sold to the end user. Torrefaction has the added benefit of reducing or eliminating undesirable volatiles, such as nitrous oxides and sulfur dioxides and is considered carbon neutral to the environment.

By accounting for the positive environmental impact of not allowing biomass to decay and providing a positive impact through renewable energy under an approved methodology from the Clean Development Mechanism (CDM) under the United Nations Framework Convention on Climate Change (UNFCCC), the production and sale of carbon credits from the burning of biomass for CO2 production will guarantee additional income to the Joint Venture.

The target markets for the Company's products are power plants that face mandates to increase biomass usage in their coal burning plants. Firing in existing coal plants will not require any retrofitting of existing power plants.

GCM is providing the land for the manufacturing facilities, the factories, and the necessary biomass resources to produce 100,000 metric tons of torrefaction pellets annually in each plant, generating approximately $14 million in annual revenue, per location.

Vega is currently in discussions with various funding sources to help fund the Company's participation in the project. In addition, the Company is planning a Private Placement of its securities that would include the sale of restricted stock.

Michael K. Molen, Chairman of Vega, stated, "We have had significant interest from all over the world to participate in this venture. This is a very progressive project and if we reach our goals, we will become one of the largest biomass manufacturing companies in China. We will have engineers traveling to China during the month of January and look forward to providing additional details of the project at that time."

In addition to China, Vega now has active projects under way in Western Indiana, South Georgia, and Brazil.

Forward-Looking Statements:

Under the Private Securities Litigation Reform Act of 1995: The statements contained herein which are not historical are forward-looking statements that are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements including, but not limited to, certain delays beyond the company's control, inability to successfully conclude negotiations currently in progress, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission.

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