Mr. Page Tucker reports

PROSTAR ANNOUNCES A REDUCTION IN OPERATIONAL COSTS AND AMENDS THE COMPANY'S LONG-TERM INCENTIVE PLAN

Prostar Holdings Inc. has taken additional measures to further streamline its operations and has amended its employee long-term incentive plan.

These operational savings cumulatively will reduce operating expenses by over $1.3-million, representing approximately a 27-per-cent decrease year over year. The savings are primarily related to research and development, investor relations, and long-term leases. The company's focus and primary allocation of its resources going forward will be on sales and marketing, product enhancements, and customer support for its PointMan solution.

"We continue to take pro-active measures to eliminate any expenditures that are not instrumental in driving revenue and providing measurable return on investment," stated Page Tucker, chief executive officer and founder of Prostar. "We are laser focused on driving sales and revenue with the goal of achieving positive cash flow operations."

The company also announced an amendment to its employee long-term incentive plan to reduce the number of shares available for issue from 28,961,427, representing 20 per cent of the company's outstanding shares, to 18,708,106 shares, which represents 12 per cent of the company's outstanding shares. No other changes were made to the plan. The company currently has 13,141,500 stock options outstanding, which are held by the company's directors, officers, employees and consultants.

About Prostar Holdings Inc.

Prostaris a world leader in precision mapping solutions and is creating a digital world by leveraging the most modern GPS, cloud and mobile technologies. Prostar is a software development company specializing in developing patented cloud and mobile precision mapping solutions focused on the critical infrastructure industry. Prostar's flagship product, PointMan, is designed to significantly improve the workflow processes and business practices associated with the life cycle management of critical infrastructure assets both above and below the earth's surface.

Prostar's PointMan is offered as a software as a service, and has strategic business partnerships with the world's leading geospatial technology providers, data collection equipment manufacturers and their dealer networks. The company has made a significant investment in creating a vast intellectual property portfolio that includes 16 issued patents in the United States and Canada. The patents protect the methods and systems required to digitally capture, record, organize, manage, distribute and display the precise location of critical infrastructure, including buried utilities and pipelines.

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