ALISO VIEJO, Calif., July 20, 2005 (PRIMEZONE) -- Joystar, Inc. (OTCBB:JYSR), the nation's largest and fastest-growing travel agency network, announced today that Dutton Associates (www.jmdutton.com) analyst, Richard West, CFA, issued a Speculative Buy Rating for Joystar. The research note reads as follows:
J.M. Dutton Joystar Rating Increased To Speculative Buy Richard W. West, CFA
July 19, 2005. Joystar (OTCBB:JYSR) announced on July 19, 2005, the closing of an equity offering that raised gross cash proceeds of $1,057,000. In addition, under the same terms as the private placement, Chairman of the Board and Chief Executive Officer, William M. Alverson, and one other member of the Board of Directors converted loans, totaling $575,000 to Joystar, into shares of Joystar's common stock; this transaction virtually eliminated debt on Joystar's balance sheet. As the fastest-growing host agency in the domestic travel market, with an attractive group of travel providers, and an up-to-date technology-based infrastructure, Joystar is attracting professional agents at a high rate. We view the raising of additional capital, the debt-free balance sheet, the projected positive cash flow and the rapid growth in agents as positive events for Joystar's long-term viability. At less than $0.50 a share, Joystar is selling at an approximate market capitalization of $14.0 million. In view of these positive events, we are increasing our rating on Joystar from neutral to Speculative Buy with a price target of $1.50 over the next 12 months.
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About Joystar, Inc.
Joystar is the nation's largest and fastest-growing host travel agency with over 2,200 professional agents. The Company empowers travel agents to operate successful home-based businesses by providing them with the training, tools and back office support they need to achieve and sustain competitive advantage. In addition to the most rewarding compensation plan in the industry, the benefits of being a member of Joystar include a free consumer travel website, Joystar's "Agents Only" Extranet filled with booking and marketing booking tools, stock options, and Solo 401K retirement plan.
Safe Harbor Act
Statements contained in this press release, which are not historical facts, are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based largely on the Company's expectations and are subject to a number of risks and uncertainties beyond the Company's control, including but not limited to economic, competitive and other factors affecting the Company's operations, management team effectiveness, expansion strategies, available financing, market prices and recovery costs, government regulations involving the Company, facts and events not known at the time of this release, and other factors discussed in the Company's filings with the Securities and Exchange Commission. These statements are not guarantees of future performance and readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company undertakes no obligation to update publicly any forward-looking statements.