Vega Issues Q3 Status Report

LONDON, Aug. 20 /PRNewswire-FirstCall/ — VEGA PROMOTIONAL SYSTEMS, INC. (Pink Sheets: VGPR) issues the following third quarter status report.The first half of 2009 was an extremely busy time for the Company. As we move through the third quarter, we are now seeing results from the hard work that was done earlier in the year. We also experienced changes to our management team and have active projects going on in several different locations.

The addition of Interim CEO, Michael Knauff, has proven to be a very important step as the Company expands into the alternative/green energy business. Mr. Knauff is helping to drive various power generating projects for the Company, such as the recently announced “Green Valley Project” in western Indiana.

The Green Valley Project is a very unique energy project that uses coal bed methane gas to run large natural gas reciprocating engine generator sets that are already on site. The electricity that is produced will then be sold to the local power company at a profit. This is not a developmental stage project. The methane has been tested and a demonstration project was in operation for approximately three years, proving the viability of utilizing coal bed methane from the Green Valley Mine as a sole source fuel to run the generator sets. There are a lot of moving pieces to this project and we look forward to sharing the details as we move forward.The Company has also recently announced plans to build a manufacturing plant in the State of Georgia to produce biomass products and bio-diesel products for power generation units. This project has moved to point that we are now evaluating several possible locations in Georgia for the plant and plan to have the manufacturing site chosen as soon as possible. When completed, the fuel pellet manufacturing facility will capitalize on the abundance of  biomass in Georgia’s Bioenergy Corridor. As mentioned earlier, a recent Forbes Magazine article, ranked Georgia third in the nation as a potential source of renewable energy. The article referenced the amount of privately owned forests in Georgia, more than any other state in the country, as a reason for the state’s ranking. Georgia Governor, Sonny Perdue stated, “Georgia’s wealth of natural resources combined with our research institutions and a strong business climate, create an ideal environment for the development of renewable energy.” When completed, the Georgia plant would have the capacity to produce several hundred thousand metrictons of biomass fuel pellets annually. These fuel pellets can be sold in bulk to power companies or bagged to sell to the consumer market. Vega also meets the qualifying criteria and is applying for a grant from the State of Georgia under the federal State Energy Program. The U.S. Department of Energy announced July 7, 2009 that Georgia will receive $32.9 million in federal money to support energy efficiency and renewable energy projects across the state. The money is part of a total of nearly $82.5 million the department will award Georgia as part of the federal State Energy Program. Georgia’s proposal outlined plans for increasing the use of renewable energy and reducing greenhouse gas emissions. The state will get more than $41 million in additional funding upon demonstrating successful implementation of the plan that will create green jobs, address state energy priorities and adopt emerging renewable energy and energy efficiency technologies; all services that are provided by Vega.

The Company is also in the process of changing its legal name to Vega Biofuels, Inc. and will alert its shareholders when the process has been completed. The Company will no longer utilize its subsidiary, Natural Fuels Industries for its energy projects. All energy related business will be run though the parent company, Vega Biofuels, Inc. The Company’s Mission Statement is to provide the most consistent and finest quality biofuel products to consumers throughout the world, and in doing so, increase our shareholder value.

We will have additional information concerning these projects as we move forward. Certain statements in this release constitute forward-looking statements or statements which may be deemed or construed to be forward-looking statements within the meaning of the PrivateSecurities LitigationReform Act of 1995. The words “forecast,” “project,” “intend,” “expect” “should,” “would,” and similar expressions and all statements, which are not historical facts, are intended to identify forward-looking statements. These forward-looking statements involve and are subject to known and unknown risks, uncertainties and other factors which could cause the Company’s actual results, performance (finance or operating) or achievements to differ from future results, performance (financing and operating) or achievements expressed or implied by such forward-looking statements.

DATASOURCE: Vega Promotional Systems, Inc.

SOURCE Vega Promotional Systems, Inc.