Dutton Associates Announces Investment Opinion: Seawright Holdings Rating Speculative Buy in Update Coverage by Dutton Associates

Business Wire, Dec 12, 2007

EL DORADO HILLS, Calif. -- Dutton Associates updates its coverage of Seawright Holdings (OTCBB:SWRI) maintaining a Speculative Buy rating and a lower price target of $0.45. The 6-page report by Dutton senior analyst Jonathan H. Ziegler, CFA is available at www.jmdutton.com as well as from First Call, Bloomberg, Zacks, Reuters, Knobias, and other leading financial portals.

Seawright shares recently closed at $0.24 per share, which effects a company enterprise capitalization of approximately $5.2 million. While this number does not appear to be inexpensive premised upon our current estimate of 2007 and 2008 EBITDA of ($1.2 million) and ($74,000) respectively, it represents to us a relative bargain in view of the putative asset values of the Company. The Company's strategy is to monetize the 300 million gallon per annum spring in rural Virginia, which is within short driving distance of 2/3 of the vast east coast population. The Company has managed to distribute its branded bottled water to local Whole Foods stores and just got into Balducci's, both upscale operators. However, to become really successful as a major bottler/marketing/merchandising company, we believe the Company will require far more resources in personnel, facilities and capital than it has now. The Company sold a couple of thousand cases during the quarter and generated revenue of only $4,183 up from $522 in the same quarter a year ago. With our view that fresh-water, an inexhaustible supply, represents a major asset which could grow in importance as fresh-water-supplies could conceivably rank up there with energy reserves today, we believe that the Company boasts major asset values which are under-stated by the Company's current market.

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