Exhibit 99.1
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Save the World Air,
Inc.
735
State Street, Suite 500
Santa
Barbara, CA 93101
tel.
+1(877)USA-STWA
fax.
+1(805)845-4377
www.stwa.com
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Dear STWA
Shareholder:
2010 is
setting up to be an unprecedented year for Save The World Air, Inc (OTCBB:
ZERO). Our
company’s
patented and patent-pending clean technologies have widespread
applications
towards
reducing fuel consumption and decreasing harmful emissions. We are also
continuing
to prove
our value when it comes to increasing efficiencies in the retrieval and
transportation of
crude
oil. We feel that in the coming year you will begin to see the commercialization
of these
technologies
taking shape as we collaborate with larger organizations in our key
markets.
In 2009,
we targeted the market for trucking fleets and identified that this could be a
multi
billion
dollar addressable market for a product based on our ELEKTRATM technology, which
in our
estimation,
could reduce fuel costs for diesel engines and deliver a return on investment
for our
customer
in less than six months. We signed an agreement with an East Coast-based firm
to
assist us
in the marketing of this product, whereby they have been and will continue to
provide
executive
level introductions to interested parties. This firm has already identified
fleets with
an excess
of 40,000 trucks and made initial introductions that have resulted in meetings
with
decision
makers who have ultimately indicated interest in our technology. Our estimates
are
that a
fleet size of 40,000 trucks could be a $140,000,000 opportunity; and, that the 2
million
trucks in
the U.S. alone represent a market greater than $5 billion. This is why we are
so
committed
to developing the ELEKTRA technology and marketing this
product.
Another
exciting development was the discovery that STWA’s Applied Oil Technology (AOT)
can
be used
to reduce the energy and chemicals called Drag Reducing Agents (DRA) needed
to
extract
crude oil and transport oil through pipelines. Current pipeline technology uses
the
chemical
DRA process, or heating, to reduce crude oil viscosity to make it flow through
a
pipeline.
DRA and heating are both expensive and less efficient processes. STWA’s Applied
Oil
Technology
(AOT) can reduce the viscosity of crude oil rapidly with as little as 0.01
kW-h of
electrical
power, potentially eliminating or supplementing the need for the expensive DRA
or
heating
of the oil. This energy and cost-saving effect has sparked the interest of one
of the
largest
oil producers in the world, with whom we have executed an NDA. AOT technology
has
already
been presented to decision makers at this company in early January, and an
invitation
has been
extended to deploy our device on their test pipeline in the near future. The
company
is past
preliminary discussions and is currently working on the details of the
development stage
of this
deployment.
In late
January, we also exhibited Applied Oil Technology (AOT) at the Pipe Tech
Americas
Summit in
Houston, TX. There we had the opportunity to brief fifteen major pipeline
companies
with
multinational operations on the dramatic savings our AOT can bring to
transportation of oil
in
pipelines. We are following up with these contacts and developing the enormous
potential
market
for pipeline services technology.
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Save the World Air,
Inc.
735
State Street, Suite 500
Santa
Barbara, CA 93101
tel.
+1(877)USA-STWA
fax.
+1(805)845-4377
www.stwa.com
|
As you
may know, the U.S. Navy has stated publicly that their goal is to reduce diesel
fuel
consumption
by 15% by the year 2015. The application of Elektra technology could be a key
to
the Navy
achieving this goal and become a cornerstone of fundamental change in maritime
fuel
delivery
systems. We are in communication with groups within the U.S. Navy working on
these
projects.
On February 23, 2010, we will be exhibiting at the American Society of Naval
Engineers
Energy
Futures Symposium 2010 in Washington, DC. This will be an opportunity for
our
company
to coordinate with all of our various contacts within the U.S. Navy regarding
the
potential
application of our fuel-saving Elektra technology.
Dr.
Rongjia Tao, the co-developer of our technologies, first released his
peer-reviewed results
showing
that Elektra and AOT could significantly reduce viscosities of diesel fuel and
crude oil in
the
Energy and Fuels
journal
in 2008. In late 2008 and early 2009, the Company moved from
the
laboratory directly to dynamometer testing on a small diesel engine. In October
2009,
STWA
released a video showing this repeatable demonstration of our technology
reducing the
viscosity
of API-21 crude oil by 13% on demand.
In the
coming year, on August 16-20, 2010, STWA will be exhibiting at the
12
th
International
Conference
on Electrorheological (ER) Fluids and Magnetorheological (MR) Suspensions
being
held in
Philadelphia, PA. Our very own Dr. Tao, who is also a Professor and Department
Chair of
Temple
University’s Physics Department, will be the Chairperson of this conference,
further
highlighting
STWA as a key leader in an emerging field.
In 2010,
we have a two pronged product development plan:
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First,
we are actively seeking development partnerships with large organizations
that
stand
to benefit from reduction in diesel fuel costs, and reductions in oil
transportation
costs.
The next major step towards releasing a commercial product is to secure
strategic
partners
that can create commercial prototypes, develop and manufacture the
product
and
market ELEKTRA and related products. In order to accelerate this process,
we
continue
to move the product development process forward, so the potential
strategic
partners
will see the shortest possible time-to-market. We are in discussions
with
several
such potential strategic
partners.
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Second,
we are continuing to document and prove the science behind our
fundamental
change
in fuel delivery technology in a step-by-step repeatable process.
Fuel injectors in
diesel
engines turn diesel fuel into a mist. This fuel mist combusts more
efficiently than
fuel
in liquid form. Our technologies improve combustion efficiency by reducing
the size
of
the fuel droplets, creating more contact area between fuel and oxygen. We
published
these
results in 2008, but in practice, we are finding that our potential
partners need to
be
able to see this in action before getting the ball rolling. To this end,
in the first part of
this
year, we are working on recreating the fuel droplet test that Dr. Tao did
in 2008 and
recording
this on video in a repeatable
manner.
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Save the World Air,
Inc.
735
State Street, Suite 500
Santa
Barbara, CA 93101
tel.
+1(877)USA-STWA
fax.
+1(805)845-4377
www.stwa.com
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To
summarize, securing strategic partners to help STWA commercialize our
technologies is a key
focus for
the company. So far in 2010, we are already seeing strong traction towards this
end.
Dr. Tao
has worked with engineers at one of the largest oil producers in the world, with
whom
we have
executed an NDA, to design a prototype of the AOT technology to be installed on
a
production
pipeline and we have additional leads in this space from our attendance at the
Pipe
Tech
Americas Summit. Additionally, we are in talks with partners that have the
ability to
develop,
produce and market the ELEKTRA product line for the market that we estimate to
be
over 2.1
million diesel trucks as well as many other diesel powered engines in the
market.
Positive
developments along these lines could greatly increase the value of your company
and
move STWA
dramatically forward in terms of corporate
visibility.
We look
forward to rewarding you for your vision and investment by continuing to
build
shareholder
value.
I thank
you for your continued support of our efforts and our company.
Warmest
Regards,
Cecil
Bond Kyte
Chairman
and CEO
Forward-Looking
Statement
:
This
letter to shareholders 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.
Shareholders should also be advised to refer
to and to
read the Company’s SEC filings available on the Company’s website at
http://www.stwa.com/investor.html
together
with the
letter, and that the letter is qualified by statements made in the SEC
filings.