PGI Energy Letter to Shareholders

HOUSTON, Jan. 13, 2012 /PRNewswire/ -- PGI Energy, Inc. (Pink Sheets: PGIE)

The executive team wanted to take this opportunity to address shareholders' concerns and to provide an update. The company filed timely, corporate action notice to the corporate action division of FINRA regarding the issuance of a preferred dividend as announced to our shareholders. The company has complied with all requests to get the matter resolved for the issuance. The company decided to issue the preferred dividend certificates to CEDE Corp. who has the responsibility for crediting brokerage accounts for shares held electronically. We expect CEDE Corp. to receive the certificates by Friday, January 13, 2012. Shareholders contacted our office regarding where we are in the process regarding the Frankfurt Exchange listing. The Frankfurt listing committee on December 20, 2011 halted all new listing including those that were pending listing on the first quotation board until they implement new policies and procedures for listing. As a result, the December planned listing was delayed and presented by our listing partner to the Borse Berlin Exchange where we expect trading to begin soon. The management team and board of directors have entered into a business combination agreement whereby PGI Energy Holdings International, Inc would become the parent company and PGI Energy, Inc would remain the operating company. The new ticker for the holding company will be (P9E). We further ratified a board resolution whereby the announced stock repurchase plan can be conducted by the PGI Energy Holdings International through open market purchases with a plan to acquire up to 51% of the public float to restructure the outstanding share structure. We believe this plan of action can be achieved with capital from our institutional investors upon their investment into PGI Energy Holdings International. We believe this will add shareholder value in the near future with a healthy share price. We do not plan at the present time to do any reverse stock split as rumored. We believe being an international company with dual listings will ultimately benefit our shareholders. We plan to use funds from the IPO raise in Berlin to fund acquisition targets in the US. We still have existing contracts for commodities products we are trying to close. The process has taken longer than expected with renegotiations of banking terms to get a closing. We hoped to close the transaction in December, which did not occur. However, the transactions are still ongoing with a hope of closing this month. We began presenting green energy equipment acquisition purchase agreement for financing with financial institutions. We hope to have a great market in the alternative energy space. We hope to release financial results ending the fourth quarter of 2011 in the month of February. We are looking to launch an extensive IR campaign upon completing our listing in Berlin. We are working with a team that has world market reach to develop a multi language website. We look to improve investor relations in the near future. We appreciate our shareholders patience and hope to regain your confidence once we implement these measures.

We look forward to building a long relationship with our shareholders and adding real company value! Please note that while we seek to implement the above, rarely are plans consummated exactly as designed. There may be unexpected and unintentional diversions from the plans outlined above. In any event, we will continue to update our shareholders in order to maintain transparency and confidence. Again, we look forward to adding real company value in the near future.

About us

PGI Energy Holdings International, Inc is an energy holding company, a Canadian company headquartered in Houston, Texas. The company's purpose is to acquire assets in the proven producing oil, gas assets, refinery, pipeline sectors of the energy industry and other synergistic assets.

PGI has formed several partnerships to grow its core business organically through strategic alliances diversifying its interest in green energy through biomass production, waste to energy, wood pellets production, syn gas, bio char production and plastics to synthetic crude. PGI has several core divisions which provide support to its operations and customers such as PGI Energy Transportation & Logistics,PGI Energy, Inc., PGI Green E&P and PGI Energy Trading.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "intends, "plans," "should," "seeks," "pro forma," "anticipates," "estimates," "continues," or other variations thereof (including their use in the negative), or by discussions of strategies, plans or intentions.  A number of factors could cause results to differ materially from those anticipated by such forward-looking statements, including those discussed under "Risk Factors" and "Our Business." Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons.

For more information visit: www.PGIEnergy.us or Email: [email protected]

SOURCE PGI Energy Holdings International, Inc.