ValueStar Appoints New Senior Managers as Business Grows and Expands Into New Major Markets

ALAMEDA, Calif.--(BUSINESS WIRE)--Jan. 4, 1999--ValueStar Corporation (OTC:VSTR) President, Jim Stein, announced the appointment of two senior managers who will help manage the aggressive expansion plans in new major markets of the country's pioneer in local business ratings.

Following a record 52% increase in revenues in FY 1998 (ended June 30), and record first quarter revenues in Q1FY 1999, ValueStar continues to build its senior team to prepare for further expansion. "The marketing demand for ValueStar's local customer satisfaction ratings has become quite strong in Northern California. During the past six months we have expanded our rating operation into Southern California and began an internal muscle-building program of our systems and senior management. We now have the senior team to begin further geographical expansion," said Stein.

Paul Drobot is appointed to the newly created position of Vice President of Business Marketing. His responsibilities include management of business rating sales, Qualified Service Provider certification, business certification satisfaction, retention programs and information product sales. Prior to joining ValueStar Drobot was part owner of a multi-location company in the personal introductory services industry where he was responsible for sales and marketing.

Guy Sherman is appointed to the new position of General Manager of the Ratings Process department. His responsibilities include managing the quality, cost and turnaround time of all ValueStar ratings. Sherman is a Certified Public Accountant. Prior to joining ValueStar he was an owner and executive of a medical supply company and partner in a sportswear wholesale business.

ValueStar has been providing consumers with free customer satisfaction ratings of local professionals, businesses and services in California since 1992. Consumers use ValueStar(R) ratings to quickly identify top-rated local companies either through the Company's Internet site, www.valuestar.com, its free Consumer ValueStar Report, or by identifying top-rated companies displaying the ValueStar Certified(R) symbol.