STWA's AOT™ Product Line to Address $60 Billion Plus Market for Oil Transportation

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Company in Development With Colfax Corporation for AOT™ Product Prototype

SANTA BARBARA, CA--(Marketwire - December 28, 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, announced today that full scale product prototypes of its Applied Oil Technology (AOT™) have the potential to provide greater efficiency and substantial cost savings to deep sea and land-based oil pipeline operators.

The Company has been working closely with Colfax Corporation, a global leader in critical fluid-handling products and technologies, to develop and build a full scale AOT™ product prototype that it will begin to test in January, 2011, at the Department of Energy's (DOE) Rocky Mountain Oilfield Testing Center (RMOTC) in Casper, Wyoming. The testing will measure the value that AOT™ has to offer the oil pipeline industry in reducing the cost of transmission of crude oil through pipelines. While current technology includes heating crude oil with natural gas and injecting Drag Reducing Agent Chemicals (DRA) to reduce oil viscosity, AOT™ uses an electric field to reduce viscosity designed to be less expensive to operate and that requires less energy than traditional heating and/or chemical methods.

"The market for oil transportation is growing very rapidly," stated Mr. Cecil Bond Kyte, Chairman and CEO of STWA, Inc. "Our findings have shown that annual pipeline market growth will rise from $62.2 billion this year to $100.1 billion by 2020. There are approximately 400,000 miles of crude oil pipeline in operation around the globe that could potentially benefit from our new technology. For example, on a new pipeline approximately 2,000 miles long and 36" wide with a capacity of 500,000 barrels a day, a 1% increase crude oil flow capacity would produce an extra 5,000 barrels a day, or an additional yield of $450,000 per day at today's price of roughly $90 per barrel. That 1% equates to an additional value of $164,250,000 per year for that one theoretical pipeline alone. If one looks at the 400,000 miles of pipeline out there, the numbers become increasingly attractive for this company." Mr. Kyte added, "We are working to optimize our technology to make that percentage gain as high as possible to bring to bear considerable cost savings and additional earnings potential to the oil pipeline, drilling and transportation industry."

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.