Q Lotus Asset Based Lending Subsidiary Announces Plans to Commence Operations

CHICAGO, Dec. 14, 2011 /PRNewswire/ -- A Wholly Owned Subsidiary of Q Lotus Holdings, Inc. (OTCBB:QLTS) announces plans to initiate and expand the Q Lotus Financial Group.

Midwest Business Credit, Inc. (MBCi), a wholly owned subsidiary of Q Lotus Holdings, Inc., will acquire the assets of Midwest Business Credit LLC (MBC), an asset based lending company which provides secured financing to companies, which are typically deprived of working capital from traditional financial institutions.

"We anticipate substantial expansion of various lending activities given the high demand from manufacturing, distribution, and service businesses looking for additional capital," said Tim Bellcourt, manager of MBC.

"The demand for asset based financing is growing at a time when the number of lenders is shrinking.  The changing market conditions have opened a substantial hole in the commercial credit operation geared toward the needs of the small to mid-size businesses," stated Mr. Rosenberg, CEO of Q Lotus.

MBC is led by Tim Bellcourt, who has over 25 years of experience in the asset-based lending industry with such organizations as LaSalle Business Credit, GE Capital Corporation, and US Bank.  Tim has successfully started independent asset based lending companies, and has served as a consultant for Wells Fargo's Special Asset Group.  Mr. Bellcourt will continue to manage the day-to-day operations of MBCi as President and CEO, and he will have a vested interest in the company after the acquisition is completed.

Joining Gary Rosenberg, CEO of Q Lotus, and Tim Bellcourt on the Board of MBCi will be Nino Pellettieri.  His asset-based lending and banking experience covers more than 30 years in the industry with organizations such as Heller Financial, Cole Taylor, First National Bank of Chicago, and CIB Marine Bancshares.  Robert Daskal is also slated to become a Director of MBCi, who currently serves on the Board of Directors for Q Lotus.  His Bio can be found on the Q Lotus website www.QLotusPE.com.

MBCi will continue to use the management consulting services of Mr. Stephen Phillips, the Managing Principal of Clear Course Consulting which provides strategy planning, corporate development and financial advisory for companies in the financial services, commercial and residential real estate, agribusiness, commodities merchandising, and food processing industries. Mr. Phillips was previously Senior Vice President and Regional Manager with US Bank, Executive Vice President and Chief Operating Officer of GMAC Home Services, and Managing Director of Koch Ventures, Inc.  Stephen is a graduate of the Kellogg School of Management at Northwestern University and serves on the Advisory Board of Kellogg's real estate program.

MBCi plans to initiate an aggressive expansion in the asset-based lending market through significant growth.  The acquisition of assets and the future growth of the company will be financed with a combination of equity from Q Lotus and a credit facility.  The Q Lotus financing will be provided by an anticipated equity placement.  Q Lotus has hired Centarus Legal Services, a Chicago based legal and consulting firm, for consultation on and the preparation of an S-1 Registration Statement.

Q Lotus has also engaged Mark Bergman to consult as a strategic advisor to the company and assist management with strategic planning, business modeling, revenue structuring, market and industry analysis, identification and integration of acquisitions, corporate structuring, operational and technical advice, including assisting the Company on building its IT infrastructure.

About Q Lotus

Q Lotus Holdings, Inc. is a diversified financial services holding company which provides financing and acquires growing companies in which its management participation in operations can create additional value. The Company's principal investment focus is to provide equity and debt capital to growing and middle-market companies with increasing cash flow and escalating income in the following areas: Finance, Real Estate, and Mining.

Safe Harbor Statements

This release contains forward-looking statements within the meaning of the federal securities laws. The forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. Information on significant potential risks and uncertainties that may also cause differences includes, but is not limited to, those mentioned by Q Lotus from time to time in its filings with the SEC. The words "may," "will," "believe," "estimate," "expect," "plan," "intend," "project," "anticipate," "could," "would," "should," "seek," "continue," "pursue" and similar expressions and variations thereof identify certain of such forward-looking statements, which speak only as of the dates on which they were made. Q Lotus undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may be disclosed from time to time in our SEC filings or otherwise, including factors discussed in our periodic reports made with the SEC, and, therefore, readers should not place undue reliance on these forward-looking statements. Actual results, including, without limitations, the results of Q Lotus' strategic initiatives, may differ significantly than those anticipated in forward-looking statements. Q Lotus undertakes no duty to update these forward-looking statements, except as required by law.  The credit and financing transactions and arrangements discussed above are preliminary or pending in nature and may or may not close.

Contact:
Brad Friedman
[email protected]
(312) 379-1800 x5

SOURCE Q Lotus Holdings, Inc.