SavWatt CEO's New Year Message to Shareholders

   SavWatt USA, Inc. (OTCBB: SAVW), pioneers in LED lighting and the Green Revolution, today released a New Year message from SavWatt's CEO, Mr Ike H. Sutton.

Dear Shareholders,

We are now at a pivotal point in SavWatt's history; 2011 has closed with a long list of accomplishments and we are starting 2012 with a long list of goals. Building a new business takes focus, determination, and support from all those involved. We are slowly becoming a major force in the new LED revolution, a supplier of a product which is a game changer for an industry that has been around for 100 years, and an innovator of new technology for energy saving and green initiatives.

Our 2011 accomplishments are attributed to the efforts of SavWatt's team which is now 30 and growing. I would like to highlight a few:

• We have completed Phase 1 of the Baltimore facility build-out; our LED Quality Control Burn in Machine has been installed and tested. LED Bulbs are put through a 6 hour testing regimen before being shipped to clients providing the highest level of quality control in the industry and enabling SavWatt to offer a 4 year warranty. Additionally, 2 assembly lines have been installed to produce orders that require Built in America status which will make available US government stimulus funds.
• Company sales offices in New York, Florida, Virginia, and soon to open in California have been established and staffed. Our focus has been areas with high cost of energy -- note each of these areas the cost of energy exceeds .15 per kilowatt, which makes LED bulb replacement a must.
• International subsidiaries have been established in Asia and Europe in anticipation of global distribution of SavWatt products.
• An Exclusive Worldwide License has been entered into with P2i, a provider of a patented nano coating which will make our LED bulbs water and dirt resistant, a major differentiator from suppliers like Phillips, GE and Sylvania.
• Our Ecopoles have been installed in strategic locations for testing and continued to be installed and upgraded. These tests provide valuable information for deployment of thousand units worldwide in the upcoming years. The ecopole has been classified as art sculpture and is aesthetically acceptable by communities nationwide.
• Savwatt's web site, a project by itself. The site tracks all our products, specifications and uses. It tracks our ecopoles location with pictures, provides a calculator for all to see the saving affect of our LED lights, and is a repository of all news and sec information for our investors.
• Our products are constantly changing due to technology advancements in this area. We pride ourselves as being able to bring the latest technological engineered products to market before our competitors due to our size and determination. Our products consist of outdoor, indoor, and our totally off the grid ecopoles and soon to be released sunpoles.
• Our suppliers overseas and in the USA have recognized that our vision and marketing efforts are unique and have either entered into exclusive distribution agreements or partnership agreements to make SavWatt the brand of choice worldwide.
• We have attended several trade shows over the year and have developed a database of hundreds of Energy Solution Providers that are hungry for information and partnership; we look forward to developing these relationships.
• We have retained 3rd party consultants to apply for Carbon Credits for our ecopoles. With a projection of 10,000 units a $15 million carbon credit plan is in the works. Coupled with a successful forward sale of these credits, these funds will provide SavWatt substantial working capital for their deployment worldwide.
• Our shareholder based grown to over 3,000 shareholders and this is one of our major assets for the new year.

We, like any other business, had a few disappointments and we are dealing with them. Our relationship with Humanim was terminated as our vision and their boards vision parted ways. DTC which clears stock for all brokerage houses decided not to clear our stock electronically, creating hardship for shareholders to buy and sell our shares, but on a good note, it also limits the shorting of the stock. We are trying to rectify this matter but it is out of our control and is affecting all small micro cap stocks. Our quarterly filings in 2011 were late and we have taken actions to make sure that all our required SEC filing are made on time.

For 2012 we have many resolutions and goals, but to name the top 3:

• Share Valuation - we would like to see a major increase in valuation. Our industry values companies at a minimum of 4 times revenues. Our minimum sales goal for 2012 is $10 million. We have planted the seeds and in 2012 we should start to see the results of our efforts.
• Higher Exchange - we would like to move to Amex or Small Cap Nasdaq -- we are currently evaluating their requirements and creating a plan that will enable to achieve this goal.
• Cash Flow Positive - we believe that by mid-year we will be cash flow positive. Our projection, cash requirements, sales objectives are being monitored daily in order to achieve these goals.

In regards to funding and dilution, a touchy subject, which I receive many emails and calls daily, I would like to point out and remind all shareholders that SavWatt is a Development Stage company. We have accomplished a lot in 2011 but still are pre-substantial revenues; we are still not cash flow positive. We are raising funds through short term convertible loans; these loans when converted do dilute the stock. This method of financing is necessary to grow our business; we are not bankable and do not have a major company big brother. In fact all the shareholders should consider themselves venture capitalists. The alternative and easier solution to this is to accept a $10 million funding from a venture capital firm, give up control and 80% ownership and be subject to a share reverse and major dilution. I believe the road we have taken is best for all shareholders including myself. It provides the cash needed for operations and growth. Based on current share price and 3.1 billion shares outstanding as of today, our company has a valuation of under $1 million, as stated above our goal for 2012 is for a much higher valuation. As venture capitalists, building a business takes time and is not for day traders.

For this new year, I would like to thank the support of our shareholders which is our major asset. We have grown and developed due to their support. I have only one request for the new year that is in regards to SavWatt's bashers on online chat boards. Ask yourself why are they bashing SavWatt? If they are shareholders, why bash? This only creates negativity in the marketplace. If they are not shareholders, why are they on the board? Are they being paid for bashing? By whom and what's the purpose? And if they are really unhappy with SavWatt and the SavWatt team, get out of the stock and move on. Please do not listen or act based on basher information as they have an agenda of their own and provide misinformation to the determent of the company.

On a positive note, we are providing a product that saves energy, is green and is mandated by government regulations. The opportunity is huge; we are aggressively working our plan and we will succeed.

Happy and Healthy New Year and Regards to All. Ike H. Sutton, CEO SavWatt USA, Inc

About SavWatt Fast becoming the market leader in LED lighting, SavWatt focuses on developing innovative, energy-efficient and cost-effective LED lighting solutions. By delivering value added, application-specific LED lighting systems, we can significantly reduce energy costs and minimize our carbon footprint worldwide. SavWatt is leading the LED lighting revolution and setting the stage to obsolete the incandescent light bulb. SavWatt's product families include LED fixtures, bulbs, street lights, and parking lights. For additional product and company information, please refer to www.savwatt.com. To hear audio updates on the company, text SAVW to 46800.

This press release contains forward-looking statements involving risks and uncertainties, both known and unknown, that may cause actual results to differ materially from those indicated. Actual results may differ materially due to a number of factors, including the risk we may encounter delays or other difficulties in ramping-up production of our new products; the rapid development of new technology and competing products that may impair demand or render SavWatt's products obsolete; and other factors discussed in SavWatt's filings with the Securities and Exchange Commission, including its report on Form 10-K for the year ended December 31, 2010, and subsequent filings.

SavWatt and Eco-Pole are registered trademarks of SavWatt USA, Inc.

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