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STWA Achieves Key Milestones in the Third Quarter of Fiscal 2011


November 16, 2011 - Santa Barbara, CA

STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), an innovative company creating technology focused on energy efficiency of large-scale energy production and improved fuel economy for diesel fleets, reached several key milestones during the third quarter ended September 30, 2011, leading the Company's Applied Oil Technology™ (AOT) toward commercialization. STWA announced test results quantifying the efficacy of both its AOT™ and ELEKTRA™ technologies. Milestones for the Company were achieved in technology, intellectual property, R&D funding, and strategic positioning for commercialization agreements.

  • AOT™ Improves Pipeline Efficiency by Over 13%

    During Q3, STWA completed a key phase of testing with the U.S. Department of Energy's (DOE) Rocky Mountain Oilfield Testing Center (RMOTC) in Wyoming. According to RMOTC literature, the center's prime directive is, "The link between development and getting your technology to the industry." STWA's AOT™ test results were published in October by the DOE and RMOTC. The independently published report states STWA's AOT™ achieved significant gains in crude oil pipeline efficiency of 13.14% to 13.55%. These results mean that AOT™ could materially reduce oil transport costs and assist in US energy independence. The RMOTC can be found at the following link: http://www.rmotc.doe.gov.

  • Testing Funded by Leading Pipeline Industry Organization

    STWA's testing at the DOE's RMOTC was funded in part by the Pipeline Research Council International (PRCI), which made a contract payment to STWA in the third quarter. The PRCI's website states, "The Pipeline Research Council International (PRCI) is the preeminent global collaborative research development organization of, by, and for the energy pipeline industry." PRCI is dedicated to assuring the maximum efficiency of research development and deployment through a highly-leveraged funding model of member and external funding, information sharing, cooperative project development, and the broad dissemination and application of its research results. PRCI can be found at the following link: http://www.prci.org

  • AOT Positioned for Near-Term Commercial Partnerships

    As a result of the positive results published by the DOE and RMOTC, as well as the funding, support, and visibility it has received from PRCI and its members, STWA made an important transition in the third quarter. The Company's energy and cost saving AOT™ has come to the forefront of key decision makers and purchasers of complementary new technologies in the oil pipeline industry.

  • Secured Platform Technology and Future Intellectual Property Rights

    In the third quarter of 2011, STWA signed an exclusive licensing agreement with Temple University reflecting updated technologies and terms covering intellectual property related to the Company's products. The new licensing agreement creates a convergent, non-divisional relationship with Temple University based largely on the grant of exclusive rights and co-ownership of future Intellectual Property (IP) through co-development. This agreement sets the stage for the next STWA and Temple to focus efforts on testing, scale-up, and commercialization of the technologies in the oil industry and for the benefit of society.

  • ELEKTRA™ Technology Achieved 4.1% Increased Fuel Efficiency In Diesel Engines

    The Company's preliminary ELEKTRA™ prototypes have shown repeatable improvements in fuel economy of approximately 4.1% in the third quarter. Additional research is being conducted at this time at the Company's research facility in Morgan Hill, California to optimize the results above 4.1% and further support ELEKTRA™'s commercial proof of concept for improved fuel economy and reduced emissions in diesel engines. Based on these positive results, ELEKTRA™ will be undergoing additional testing and improvements with its co-development partner, Verdantec Technologies. ELEKTRA™ testing will be conducted concurrently with the testing of AOT™.

"This has been a pivotal quarter for us on many fronts and has culminated in a published report by the US Department of Energy and the Rocky Mountain Oil Field Testing Center, proving that our platform energy efficiency technology works. The 13%-plus improvement in efficiency for the transport of oil across pipelines is huge and quantifiable. AOT™ can save an estimated $12,000 to $25,000* per pump station, per day, for pipelines such as the Trans Alaska Pipeline System. Beyond reducing transportation costs, AOT™ can reduce carbon emissions created in the pipeline transport of oil," stated STWA Chairman and CEO, Mr. Cecil Bond Kyte. "We believe our work with the Department of Energy, partially funded by the Pipeline Research Council International, has positioned us favorably in front of the key decision makers in the oil and pipeline industry. They are aware of the benefits and savings AOT™ offers, as a complement to other current efficiency technologies being implemented."

Mr. Bjorn Simundson, Executive Director of Program Management and Operations of STWA, added, "In terms of technology, IP, and product development, we have really reached a turning point. Our achievements with AOT™ support our progress and potential for success with ELEKTRA™. We are now working diligently on our next AOT™ milestone in conjunction with the US Department of Energy and the Rocky Mountain Oil Field Testing Center."

*Estimate is calculated based upon published data from independent sources. According to a report by the Alyeska Pipeline Service Company (http://www.alyeska-pipe.com/Pipelinefacts/FACT-BOOK.pdf), the Trans Alaska Pipeline System (TAPS) uses 30,000 to 60,000 gallons of fuel oil per pump station, per day. AOT™ reduces energy required by fuel pumps by approximately 13%. The cost of fuel oil or heating oil, as of November 14, 2011 is $3.16 per gallon (http://www.sacbee.com/2011/11/14/4054096/oil-price-drops-near-98-per-barrel.html). The cost of fuel used at each pump station on the TAPS is approximately $94,800 - $189,600 per day. A 13% reduction in energy would mean a $12,324 - $24,648 reduction in costs.

About STWA, Inc.
STWA, Inc. (OTCBB: ZERO) is an innovative company creating technology focused on energy efficiency of large-scale energy production and improved fuel economy for diesel fleets. The Company's Patented and Patent Pending technologies, including AOT™ (Applied Oil Technology), under development with Temple University, and ELEKTRA™ (for Improved Diesel Engine Efficiency), provide efficient and cost-effective means of improving the efficacy of crude oil transport and diesel engine efficiency to assist in meeting global increasing energy demands and emission quality standards. Applications include: (AOT™) Crude oil extraction & delivery systems, including oil platforms, oil fields and pipeline transmission systems. (ELEKTRA™) Diesel trucks, trains, marine vessels, military fleets and jet turbines.

More information including a company Fact Sheet, logos and media articles are available at: http://www.stwa.com.

Safe Harbor Statement

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.

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Contact Information

Investor Relations Contacts:
Mr. Andrew Haag
Managing Partner
IRTH Communications, LLC
Tel: +1-866-976-IRTH (4784)
E-Mail: Email Contact
Website: www.irthcommunications.com
Company Website: www.stwa.com

Mr. Jeremy Roe
Managing Partner
Integra Consulting Group, LLC
Tel: +1-925-262-8305
E-Mail: Email Contact
Website: www.integraconsultinggroup.com

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