STWA, Inc. Provides Year End Review of Developments

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Achieves Significant Milestones That Position the Company's Energy-Efficient Technology for Commercialization

SANTA BARBARA, CA--(Marketwire - December 29, 2010) - STWA, Inc. (OTCBB: ZERO) ("STWA" or the "Company"), an innovative technology company focused on improving the efficiency of large-scale energy transportation networks and reducing fuel consumption and emissions in diesel fleets, today highlighted the significant accomplishments achieved by the Company over the last 12 months in order to realize the potential of its energy-efficiency technologies.

Received approval from the U.S. Department of Energy (DOE) to test a prototype based on the Company's Applied Oil Technology (AOT™) at the U.S. Naval Petroleum Reserve #3 (NPR-3) Rocky Mountain Oilfield Testing Center (RMOTC) in Wyoming;

Engaged Colfax Corporation, a NYSE listed global supplier of fluid-handling solutions, pumps and systems for commercial marine, defense, industrial, lubrication, oil & gas, and power generation, to produce a full scale AOT™ product prototype for testing at RMOTC; 

Achieved payment obligations with Temple University covering AOT™ licensing agreement totaling $512,000 in the past 12 months and strengthened intellectual product positioning as technology receives patents in 32 European countries;

Reached agreement with Verdantec Technologies for joint fuel savings project called Advanced Diesel Technology "ADT" to increase efficiency for commercial diesel trucks and reduced carrying costs of R&D facility by 60%;

Confirmed effect of STWA technology on crude oil at nano-scale level as testing at National Institute of Standards and Technology provided evidence of decreased viscosity and direct scientific documentation of technology's efficacy at a molecular level;

Attended Energy Futures Symposium 2010, sponsored by the American Society of Naval Engineers (ASNE), attended by military decision-makers and defense contractors focused on modernization of fleet assets;

Completed funding of over $3 million to support ongoing development of proprietary, patented fuel-saving technology and Applied Oil Technology (AOT™).

"The milestones that we achieved these past twelve months have set up 2011 to be a monumental year," stated Mr. Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "Throughout the course of 2010, we have positioned ourselves to take advantage of the tremendous opportunity that our energy-efficiency technology holds for crude oil transportation and diesel engine efficiency to help meet energy demands and emissions quality standards. We believe that our development of an AOT™ product line has the potential to change how crude oil is transported around the globe, resulting in significant cost savings for pipeline operators, greater safety and a reduction the industry's environmental footprint. I am excited and encouraged by the strides we have made as we get ready to begin our baseline testing in January and enter real-world application with our technology."

About STWA, Inc. 

STWA, Inc. (OTCBB: ZERO) is an innovative company creating technology focused on energy efficiency of large-scale energy production and improved fuel economy for diesel fleets. The Company's Patented and Patent Pending technologies, including AOT™ (Applied Oil Technology), under development with Temple University, and ELEKTRA™ (for Improved Diesel Engine Efficiency), provide efficient and cost-effective means of improving the efficacy of crude oil transport and diesel engine efficiency to assist in meeting global increasing energy demands and emission quality standards. Applications include: (AOT™) Crude oil extraction & delivery systems, including oil platforms, oil fields and pipeline transmission systems. (ELEKTRA™) Diesel trucks, trains, marine vessels, military fleets and jet turbines.

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Safe Harbor Statement

This press release contains information that constitutes forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from any future results described within the forward-looking statements. Risk factors that could contribute to such differences include those matters more fully disclosed in the Company's reports filed with the Securities and Exchange Commission. The forward-looking information provided herein represents the Company's estimates as of the date of the press release, and subsequent events and developments may cause the Company's estimates to change. The Company specifically disclaims any obligation to update the forward-looking information in the future. Therefore, this forward-looking information should not be relied upon as representing the Company's estimates of its future financial performance as of any date subsequent to the date of this press release.