Wellstone Recaps Progress DURHAM, N.C., May 12 /PRNewswire-FirstCall/ -- Wellstone Filters (OTC:WLSF) (BULLETIN BOARD: WLSF) -- Wellstone has experienced many dynamic developments in the months preceding launch of the Wellstone cigarette. Wellstone was conceived as a developer of a superior cigarette filter. After formulation of its patented filter additive, Wellstone refined the use of its additive in large scale manufacture of cigarette filters. In the fall of 2004, Wellstone augmented its scientific staff and focus by hiring management and product development personnel with extensive experience in the cigarette business. Wellstone's original concept was to license its patented filter to existing cigarette companies. After research, and with the input of experienced cigarette industry executives, it was evident to the Company that merely licensing the filter to an existing cigarette brand or brands would be profitable, but management recognized another option: Wellstone could launch its own "Wellstone Cigarette Line" and thereby capture the added value of the filter to a cigarette as well as the normal profit associated with the sale of cigarettes. Wellstone retained expert cigarette tasters to develop a blend of tobacco for a potential Wellstone brand. The tobacco tasters uniformly praised the Wellstone filter for its smooth and flavorful taste. Management's most revealing "test" of the filter is to invite a professional taste tester to smoke his favorite cigarette side by side with the Wellstone filter added in place of the original filter. Without exception, tasters stated the Wellstone filter improved the taste, made for a less harsh cigarette and a milder smoke. Wellstone will now target two exploitable market segments of the cigarette market. The first is the reduced risk conscious smokers who will choose Wellstone because the taste of the cigarette is as good as or better than any non risk reduced smoke. Wellstone believes that in the past, smokers did not flock to previous, less effective industry efforts at reduced risk cigarettes because these cigarettes simply did not taste good. These cigarettes did not give the smoker enough of the pleasures of smoking-in a word, taste. Wellstone redefines this formula. Wellstone reduces the tar and nicotine levels in a novel way, without destroying the fundamental reason people smoke: it is pleasurable in taste. Recent FTC testing of Wellstone Full Flavor cigarettes showed significant reductions in certain carcinogens and TSNAS-without compromising taste. Expert test panels concluded that the Wellstone product to be superior in flavor and taste than controls. Another possible market segment is for a product which may satisfy a possible government mandated reduced risk cigarette. Several federal legislative initiates have foreshadowed a trend in government oversight to bring the manufacture and sale of cigarettes under control of the Food and Drug Administration. Part and parcel with this initiate is government mandated minimums for reduced tar, nicotine and known carcinogen levels. Again, Wellstone believes it has achieved these reductions as verified in independent Federal Trade Commission certified laboratory testing. Management would continue to target the reduced risk smoker, but also now believes it can compete in the full flavor cigarette market with the Wellstone cigarette, a full flavored, great tasting smoke, that happens to significantly reduce tars, nicotine and certain carcinogens. Management has identified two potential marketing tracks to achieve these goals. The first option is to ally the Wellstone cigarette with an existing major cigarette manufacturer, who will manufacture the Wellstone cigarette and take the Wellstone cigarette into its line of brands to be sold and distributed by its existing sales force. This approach has the advantage of quick and extensive market saturation with an existing sales force that will put the Wellstone brand into tens of thousands of retail outlets. The primary disadvantage to this track is the sharing of profits with a major ally. Wellstone has engaged in significant discussions with existing manufacturers in this class. No agreements have been reached to date. The second track is to manufacture the Wellstone brand with a smaller manufacturer and roll out the product gradually using an internally developed sales force. This Approach has the advantage of preserving maximum profit for the Company and retaining full control over the brand. The disadvantage to this approach is a slower introduction of the product to the marketplace. Wellstone has engaged in significant discussions with cigarette manufacturers of this class and believes final agreement can be reached with any number of manufacturers to pursue this option. Management believes it has adequate cash on hand to pursue either of these marketing strategies. Regarding our website, Lowertar.com, Wellstone is awaiting approval from our legal experts as to form and content. In other developments, Wellstone obtained the option to manufacture and sell the Silverton Brand, and reached agreement with several distributors to market the Silverton Brand. Management believed it could utilize the extensive experience of its executives to also compete in the traditional cigarette market. Management has, however, determined to focus all of its efforts and resources on the unique Wellstone cigarette, and has released all distributors from obligations to market to pursue the sale of Silverton cigarettes on behalf of Wellstone. Management has all components in place to launch the Wellstone Brand, and is focused on providing potential partners in either marketing track with information, prototypes and documents required to implement either plan. This stage of development is complex and cannot be rushed or compromised. Therefore, Wellstone will launch its brand under one of the two tracks discussed within the third quarter of 2005. Management believes it is prudent to develop each of these tracks fully and to implement the plan that best insures the success of the Wellstone cigarette. Wellstone believes that its patented filter formulation removes tars and certain carcinogens, while providing better taste. However, any claim as to the benefit of any Wellstone cigarette to be sold will be made within the parameters prescribed by the Federal Trade Commission. Wellstone emphasizes that NO cigarette is safe. This corporate communication by Wellstone is not intended to induce any person to purchase Wellstone tobacco products. ABOUT THE COMPANY Wellstone Filters, Inc. has developed and patented filter material that removes certain carcinogens and other toxins produced when tobacco is smoked without removing the compounds thought to be associated with the pleasurable effects of smoking. Wellstone seeks to promote material for cigarette filters that will enable cigarette manufacturers to provide consumers with an equally enjoyable cigarette with substantially fewer carcinogens. For more information, please see http://www.wellstonefilters.com/ or call Investor relations at 303-620-9194. In addition, all current shareholders, and interested parties should sign into our private Corporate Guest Book, http://www.corporateguestbook.com/?WLSF to receive timely updates and information on any future developments as they happen. Note: Except for the historical information contained herein, this new release contains forward-looking statements that involve substantial risks and uncertainties. Among the factors that could cause actual results or timelines to differ materially are risks associated with research and clinical development, regulatory approvals, supply capabilities and reliance on third- party manufacturers, product commercialization, competition, litigation, and the other risk factors listed from time to time in reports filed by Wellstone with the Securities and Exchange Commission, including but not limited to risks described under the caption "Important Factors That May Affect Our Business, Our Results of Operation and Our Stock Price." The forward-looking statements contained in this news release represent judgments of the management of Wellstone as of the date of this release. Wellstone and its managers and agents undertake no obligation to publicly update any forward- looking statements DATASOURCE: Wellstone Filters, Inc. CONTACT: Wellstone Filters, Inc. Investor Relations, +1-303-620-9194 Web site: http://www.corporateguestbook.com/?WLSF http://www.wellstonefilters.com/ http://www.lowertar.com/

Copyright