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SpongeTech is on track to become a recognizable, household brand name. The company recently released its 10QSB for the first quarter of 2009, which emphasized rapidly expanding sales growth. SpongeTech designs, produces and markets innovative, cost-effective and environmentally sensitive packaging and product delivery solutions through its exclusive patented packaging technology.

SpongeTech's current product line is designed for car care and pet care. However, SpongeTech is currently exploring additional applications for its technology including an anti-bacterial, kitchen and bath cleaner, as well as a unique ’foaming’ bath sponge for children.

Its sponge-based products utilize SpongeTech's proprietary, patent (and patent-pending) technologies involving hydrophilic (liquid absorbing) foam and polyurethane matrices. The company’s sponges are specially configured with an outer contact layer and an inner matrix, the latter of which comes pre-loaded with specially formulated soaps and wax that are released when the sponge is soaked and applied to a surface with minimal pressure.

Effective marketing campaign has been paying off for Spongetech: the company continues to see strong demand for its innovative product offerings.

For fiscal 2008, SpongeTech significantly expanded its sales and marketing, began airing a TV commercial for its auto wash & wax system, and produced a new commercial for the Pet Sponge Care Kit. The commercials are expected to run through February 2010 in all 50 U.S. states. The company’s commercials will air on LOGO, Inspiration, Hallmark Movie Channel, Discovery Science, NBATV, ESPN University, CBS College Sports, Sports New England, Sports Mid-Atlantic, Sports South, Fox Sports Pittsburgh, Fox Sports Southwest, and other cable and satellite TV channels.

Also, the company signed advertising agreements with several magazines and retail catalogs, complementing its ongoing radio and TV advertising on WFAN-AM Radio, SportsNet New York, BusinessTalkRadio and LifestyleTalkRadio.

During the three months ending August 31, 2008, SpongeTech posted sales of $5,544,619, as compared to sales of $64,076 for the same period in 2007, an increase of $5,480,543. Shipments have commenced to domestic retail outlets and distributors. Some of the domestic shipments were to Bashas', Kroger, and Price Chopper. The company's Three-Pack Car Sponge Kit is available in these stores.

The company also reported an increase of $1,086,314 in its net income. For the three months ended August 31, 2008, net income was $1,076,053, as compared to a net loss of $10,261 for the three months ended August 31, 2007.

The company's balance sheet is strong with no debt: as of August 31, 2008, the company had cash in the amount of $165,919, as compared to $2,549 at August 31, 2007.

The company said it will continue to build inventory and prepay for products to keep its flow of merchandise timely to meet delivery dates as they proceed through the year.

SpongeTech’s management attributed the increase in sales to the demand for the company's quality products introduced through its powerful media campaigns. Due to a recently implemented national advertising campaign for the holiday season, SpongeTech noted a strong demand for its Uncle Norman's Pet Sponges.

Spongetech is also extending its product line, with a goal of broadening its revenue potential. The company will soon be introducing additional children's products to enhance its Puddle Pal line, which is expected to start shipping in time for the holiday season. Also, the company continues to design and create new products using its hydrophilic technology and other technologies for kitchen and bath, health and beauty, auto, and medical use that the company intends to market and sell as part of its product offerings.

Powerful media campaigns are making tremendous impact on SpongeTech's visibility, pushing the company up into the elites of the cleaning industry.

SpongeTech has exhibited considerable strength due to an effective marketing campaign - combined with the anticipation of a more favorable prospect in the future, SpongeTech may yet deliver the strongest quarter in its history.

About SpongeTech(R) Delivery Systems Inc.

SpongeTech Delivery Systems is a development stage company, which designs, produces, and markets a unique line of reusable cleaning products for household use. These sponge-based products utilize SpongeTech(R)'s proprietary, patent (and patent-pending) technologies involving hydrophilic (liquid absorbing) foam and polyurethane matrices. The Company's sponges are specially configured with an outer contact layer and an inner matrix, the latter of which comes pre-loaded with specially formulated soaps and wax that are released when the sponge is wetted and applied to a surface with minimal pressure. The Company's current product line is designed for Car Care and Pet Care, however, SpongeTech(R) is currently exploring additional applications for its technology including an anti-bacterial, kitchen and bath cleaner, as well as a unique 'foaming' bath sponge for children.