Polaris International Holdings, Inc. Announces Second Quarter 2010 Financial Report and Management Discussions

LOS ANGELES, May 14 /PRNewswire-FirstCall/ -- Polaris International Holdings, Inc. (Pink Sheets: PIHN), a global IT outsourcing services company with a U.S.-Japan dual market base, today announced unaudited consolidated financial results for the second fiscal quarter of 2010 ending March 31, 2010 (all figures in U.S. dollars).

"We are happy to announce that our subsidiary in Japan continues to perform well and that we have recently set up U.S. offices in San Diego, CA to launch U.S. based business activities. We are steadily and firmly expanding our operations," said Kuni Misawa, CEO/President of Polaris International Holdings, Inc. "Meanwhile, we are carefully exploring and doing due-diligence on additional outsourcing service companies as potential acquisition targets in North America."

2010Q2 Financial Summary

1. 2010Q2 Financial Statements include Real Estate division financials of Staff IS Co. The former owner of Staff IS has agreed to separate its real estate division from Staff IS within six (6) months from November 1, 2009. Until the separation has been completed, interest payments on the mortgage shall be deducted from the purchase price of $1.7 million.

2. IT division of Staff IS in Japan had $678,226.00 in revenues with $48,712.00 EBITDA for the quarter ending March 31, 2010.

3. Total Consolidated Revenue for the quarter ending March 31, 2010 was $678,226.00. The revenues were primarily attributable to operations in Japan.

4. Total Consolidated Expenses for the quarter ending March 31, 2010 were $755,963.00.  The expenses were primarily attributable to cost of materials, salaries and management costs, other general and administrative expenses and for expansion for our U.S. based business set up.

5. The Company raised a total of $127,936.00 through the sales of restricted Series B Preferred Shares.

Management Discussions

1. Staff IS, our subsidiary in Japan, continues to perform well while we have set up an additional new office location in San Diego, CA to expand our business operations in the United States. We believe that our San Diego office will be a hotbed for the IT business including web design, graphics and software development.

2. As of April 30, 2010, Staff IS has a total of approximately $1.3 million in sales in which $645,000 is reflected in accounts receivable and $655,000 is for upcoming projects that are contractual agreements with our customers.

3. Staff IS also anticipates receiving large scale projects later in 2010. Staff IS has recently initiated our first ASP services to our customers in full scale.

4. Our U.S. Based Polaris International business activities will now start to kick in as we have recently opened our new office in San Diego, CA. Sales Projections for the 2010 calendar year fall in the $536,000 range with margins in the 30 percent range plus. These projections include new business in IT Services, web design, software development, marketing and graphic services.  

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About Polaris International Holdings, Inc.:

Polaris International Holdings, Inc., a Delaware corporation with offices in Huntington Beach and Los Angeles, California and in Tokyo, Japan is in the business of supplying services for Network Infrastructure, ASP and Cloud Computing Solutions. Its management team is composed of seasoned international business professionals with over 60 years of expertise in technology, media, entertainment and investment industries. POLARIS with both a U.S. and Japan market base is well positioned for the global evolution occurring in IT services and is meeting this evolution with its progressive collection of 'Cloud Solutions and Services' for its corporate Fortune 100 clients. POLARIS' near term plan is to build out its 'Global IT Services' through acquisitions and/or strategic partnerships. The Company is currently engaged in due diligence with several international businesses which, if successfully completed, will significantly expand its territory from Japan to include other rapidly growing Asian markets and North American markets. www.polaris-int.com

Safe Harbor: Statements regarding financial matters in this press release other than historical facts are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as that term is defined in the Private Securities Litigation Reform Act of 1995. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, technology efficacy and all other forward-looking statements be subject to the Safe Harbors created thereby. Since these statements (future operational results and sales) involve risks and uncertainties and are subject to change at any time, the Company's actual results may differ materially form the expected results.

SOURCE Polaris International Holdings, Inc.