QS Energy, Inc.

STWA - CEO Letter to Shareholders

February 11, 2015

February 11, 2015

To all STWA Shareholders,

As a follow-up to our press release on February 3rd in which we announced the engagement of QualityStocks as our investor relations firm, with a particular focus on the retail investment community, it’s my pleasure to inform you of another positive step we have taken to improve stakeholder communications -- the appointment of M Group Strategic Communications (www.mgroupsc.com) as our business communications firm of record.  Their principals have and will be working with the STWA team to refine and enhance our communications program, which encompasses financial relations, media relations, corporate communications, and marketing support. 

We engaged M Group based on their expertise in the energy sector and impressive track record working with emerging technology companies, many of which are similar to STWA.  Our goal is to benefit from their strong relationships with business, financial and industry press, as well as the institutional finance, banking and research communities.  Based in New York, with satellite offices in Washington, DC, Denver, CO and Austin, TX, and overseas in London and Singapore, M Group comes highly recommended, both for their international reach and systematic approach to building shareholder value for their clients.  Our intent, and M Group’s mission, is to increase STWA’s exposure within the global investment community, raising awareness of our Company and our solutions among decision makers in the energy industry, and ultimately, achieve a higher valuation of the Company and our securities.

It is our belief that by engaging in dual, yet highly integrated IR/PR programs coordinated across M Group, QualityStocks and the STWA team, we will more effectively communicate our successes and business opportunities, especially as our commercialization efforts evolve into customer deployments.  With several projects underway and anticipated milestones coming throughout 2015, we believe now is the time to raise awareness of our Company and the technology that we have and continue to develop for the global markets.

Communications is very important to me and to our Board of Directors.  To date, sharing information has been challenging given our contractual agreements and the restrictions they hold, making it only allowable to disclose news that is deemed material to the Company by the Securities and Exchange Commission.  With that said, I receive hundreds of calls and e-mails each month, have held group-oriented investor presentations and conducted one-on-one roadshow meetings, and I take what our shareholders say to heart.  The addition of our new, integrated communications team is both in response to what I have heard from many of you, as well as to maximize our efforts on both the IR and PR fronts given the Company’s evolution.

I realize that in the past, there’s been a lot of excitement over the potential our technology holds for the oil & gas and transportation industries.  That excitement has yet to translate into shareholder value and until these past quarters, we had yet to realize revenues.  However, we’ve been strategically investing in R&D, exploring business partnerships on a global scale and trying to move beyond the lab into the field and over the past few quarters we have made progress, amassing valuable data and proof points for AOT, and our first revenues.  We also have made significant progress with the development of STWA Joule Heat, a new heating technology that has widespread applications.

In my role as Chairman and CEO, it is my duty and highest priority to address your concerns head-on and at the same time, communicate our progress with you and what it means for our business, both now and longer-term.  With that said, we also want to be strategic in what we say and how we manage expectations.  Moving forward, it is our intent to provide shareholders with more detailed quarterly updates, in conjunction with our financial reports, and that will begin shortly when we report fiscal year 2014 results.  We are also going to begin a concerted effort to increase our exposure in targeted news media outlets, focusing on industry need, ROI for operators and transporters, and the drive toward cleaner, more efficient technologies. 

As I noted in my last shareholder communications, our 2014 priorities were to reduce overhead, improve our balance sheet and expedite the commercialization of AOT, while further expanding our technology portfolio.  We made considerable progress on all of these initiatives and I’m proud of our accomplishments.  Looking ahead, it’s about continued execution and our team must demonstrate that this is a business with the potential to generate meaningful revenues, manage and invest capital strategically, and deliver returns – for all stakeholders.  We cannot control the past, but we certainly can impact our future.  

I am a shareholder of STWA and I’m 100% committed to this Company. We’ve been through quite a journey together and I am fervently convinced that the best years are ahead.  I thank you for your continued support and I assure you that our interests are very much aligned.  I’m truly looking forward to providing you all with updates on our progress, and will do so when we report our year-end results.

All the best,

Greggory M. Bigger
Chief Executive Officer, Chairman of the Board
Save the World Air, Inc. d/b/a STWA


Some of the statements in this letter may constitute forward-looking statements under federal securities laws. Please visit the following link for our complete cautionary forward-looking statement: http://www.stwa.com/site-info/disclaimer