AGR Continues to Pursue Aggressive Expansion Strategy

CONROE, TX, March 24 /PRNewswire-FirstCall/ - AGR Tools, Inc. (OTCBB: AGRT) is pleased to announce that AGR Stone & Tools USA, Inc. ("AGR USA"), with which AGR Tools has entered into a binding share exchange agreement, is continuing to pursue its aggressive North American expansion strategy by targeting several new dealers to add to its network of diamond tool distributors. AGR USA has commenced the selection process and is currently interviewing and negotiating with nearly a dozen potential candidates, putting it on track to have a large presence in many important diamond and construction tool markets in both the United States and Canada by the end of 2010.

AGR USA is in the final stages of coordinating a distribution center to service the city of San Francisco as well as the surrounding communities of Oakland and San Jose, which it estimates has a collective annual diamond tool market of over $25 million. "The Bay Area is a key market for us, and the construction outlook there is growing more robust as the economy continues to improve," stated Rock Rutherford, the CEO of both AGR Tools and AGR USA. The company is also close to selecting a dealer to operate in the St. Louis, Missouri market, that would cater to a population of roughly 5.9 million and a potential diamond tool market of over $35 million per year.

In addition, AGR USA is in negotiations with separate dealers in two different Florida markets, dealers in two North Carolina markets and a potential Eastern Texas dealer, and it plans to establish two Canadian distribution centers in Toronto, Ontario and Vancouver, British Columbia within the next month. All of these would bring AGR USA closer to its 2010 goal of having 62 distribution centers.

By increasing its North American distribution capacity, AGR USA plans to capture a significant piece of the diamond tool market and provide construction contractors and fabricators with low-cost, high-quality products directly from its local dealers. The company currently has dealers in over 25 markets and hopes to establish a brand identity that is unrivalled in the segmented and geographically-fragmented diamond tool market. "We are ahead of schedule with our expansion plans and intend to continue moving at full speed toward with our strategy," commented Rutherford.

    About AGR Stone & Tools USA, Inc.
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AGR Stone & Tools USA, Inc. is celebrating its 27th year as a leading diamond tool manufacturer and distributor specializing in producing consumable tools for the natural stone, engineered stone, concrete and masonry industries, and its goal is to provide its clients with superior quality products, excellent customer service and the most competitive prices in the diamond tool industry. The company has completed extensive research and testing, employs some of the world's top scientists, engineers and metallurgists, and uses the latest technologies to produce high quality products and assure its position at the forefront of the diamond tool industry.

On October 29, 2009, AGR Tools, Inc. and AGR Stone & Tools USA, Inc. entered into a binding share exchange agreement. See AGR Tools, Inc.'s November 2, 2009 Current Report on Form 8-K regarding the share exchange agreement with AGR Stone & Tools USA, Inc. for details on various conditions which must be met before the share exchange between the two companies closes. There can be no assurance that the share exchange will close. AGR Tools, Inc. must issue 46,186,516 shares of its common stock to the current shareholders of AGR Stone & Tools USA, Inc. in order to complete the share exchange. Accounting for the anticipated cancellation of 25,000,000 shares of its common stock, upon the closing of the share exchange AGR Tools, Inc. will have 81,186,516 shares of common stock issued and outstanding.

More information on AGR Stone & Tools USA, Inc. can be found at: www.agrtools.com.

    Forward-Looking Statements:
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Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See AGR Tools, Inc.'s filings with the United States Securities and Exchange Commission which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

SOURCE AGR Tools Inc.