the best Tilapia
products available. In 2004, management estimates sales were in excess of
USD 7 million;
-- Management intends to expand this sales network as follows:
-- The current manufacturing facility will be upgraded to GMP
pharmaceutical standards (certified manufacturer of
pharmaceutical grade products ) in China;
-- Current direct sales in China will be expanded through a
strategic partnership with a western direct sales health
product company;
-- HQSM has the foreign owned status, the manufacturing
facilities and the track record to easily certify new
products in China for direct marketing and is negotiating
with several western direct sales; companies to exchange
access to their respective marketing networks
-- HQSM will certify and sell its products through its western
direct marketing partner into the countries in which its
partner operates. We are vertically integrated in order
to control all aspects of our operations -- from the technologies that we
share and monitor with our cooperative farmers to our state-of-the-art
processing plant, to direct international marketing and branding. is an integrated aquaculture and
aquatic product processing company, with operations based in the
environmentally pristine island province of Hainan, in the South China Sea.

dense revenues

Lillian Wang, Chairman
HQ Sustainable Maritime Industries, Inc. Its variety of farmed and
ocean-harvested products -- ranging from tilapia and shrimp to squid and
red snapper -- are sold around the world. The Company holds HACCP
certification from the U.D.

microwaved healthiest

The expansion of plant capacity and
acquisitions in 2004 provide the foundation for additional growth in the
coming months, pursuant to the agreement to secure a bank guarantee from a
Standard and Poor's A+ rated Bank (See 8k filed August 1st 2005). This plant
produces nutraceuticals , which enrich feed used by HQ's cooperative
aquaculture operations.' Clearly, further research is needed before any
solid recommendations to industry and consumers can be made regarding reducing
levels of acrylamide in food.

genetically revenues

(HQ)
(OTC BB: HQSM),

Dear Shareholders:

HQ Sustainable Maritime Industries Inc. The technology is there.

revenues healthiest

com)

Except for historical information contained herein, the statements in this
letter are forward-looking statements that are made pursuant to the safe
harbor provision of the Private Securities Litigation Reform Act of 1995.

, Executive Vice
President and Chief Science Officer of the Food Products Association (FPA)
made the following remarks:

"WHO and FAO, in announcing the JECFA report, continue to recommend that
national governments encourage consumers to follow established dietary
guidelines and eat a well-balanced diet consisting of a wide variety of foods
in moderation.

spends additive

HQSM is in a
position to expand based on its unique business model moving forward. HQSM zero-toxin
farmed Tilapia products point the way to a consumer friendly, sustainable,
healthy, replacement for Ocean sourced products.
Vertical integration is what allows us to assure to our consumers the
quality that they deserve.'
"Acrylamide is found in a wide variety of foods, both commercially
prepared and those cooked at home , and is likely to be impossible to totally
eliminate from foods.

unpasteurized spends

We welcome any questions or concerns that you, our investors, might have
concerning our plans for growth and our partnership with you. FDA and the EU Code assignment of quality,
permitting its products to be sold in these international markets. WASHINGTON, On March 2, the Food and Agriculture
Organization (FAO) and World Health Organization (WHO) Joint Expert Committee
on Food Additives (JECFA) released a report on acrylamide in food.

revenues healthiest

HQ Sustainable Maritime Industries, Inc.

Zero Toxin Aquaculture

All Tilapia are not created equal.
"As the scientific and technical trade association for the U.

germs tartrazine

(http://www.S.

spends irradiation

Investing in Zero Toxicity

The change outlined above requires investment in the following components;

-- Feed Mill
-- HQSM has completed its feasibility study for a China based feed
mill which will manufacture patented feed formulations meeting its
exacting standards of zero toxin feed;
-- This feed mill will use supplements manufactured by its own
nutraceutical processing facility (acquired last August for the
price of USD 20 million) able to produce the nutrients which are
essential additives;
-- The technology partnership with American River Nutrition gives
HQSM access to the latest American technologies in the formulation
and manufacture of feed additives;
-- Marketing and Distribution
-- HQSM intends to acquire the distribution capabilities in the
United States and Europe enabling the sale of products to major
customers usually reliant on intermediaries to source its
products;
-- HQSM intends to sensitize the public through a multi-pronged
marketing campaign highlighting the importance of zero -toxicity
and sustainability;
-- Organic Fish Farming
-- HQSM intends to establish segregated certified organic farming and
processing facilities in response to strong US and European demand
for organic products;
-- Nutraceutical products development
-- Nutraceutical manufacturing in China currently produces four
products which are sold through a direct sales and other networks
in China. This
model has hit a nerve with our partners and consumers who recognize that
where food products are concerned we can never compromise on quality.

Food Products Association Comments on JECFA Acrylamide Report

Commenting
on the report 's conclusions, Dr.

dense revenues

No assurances can
be given that any projections or any fulfillment of our business plans
described herein (such as distribution capabilities) will be realized.

farmed bovine

destroys nutrient

Ocean production levels are capped at around 100
million metric tonnes in spite of new fishing technology improvements.

nutrient greenpeace

fao .
Forward-looking statements involve known and unknown risks and
uncertainties that may cause the companies' actual results in future
periods to differ materially from forecasted results.

irradiating greenpeace

. (See
"State of the World Fisheries and Aquaculture" December 2004 the Food and
Agriculture Organisation (FAO) at
http://www.


About HQ Sustainable Maritime Industries, Inc. It should be noted that the
JECFA report recommends that acrylamide be re-evaluated when the results from
ongoing toxicological studies are available.

microwaved tartrazine

On March 3, commenting on the JECFA report, the
Food and Drug Administration (FDA) reiterated its advice that consumers should
'eat a balanced diet, choosing a variety of foods that are low in trans fat
and saturated fat, and rich in high-fiber grains, fruits and vegetables.

dense irradiation

com.

borne tartrazine

To achieve the Highest Quality, we are
committed to responsible stewardship of our resources, human and natural;
this is key to our business success.
The above information does not guarantee any increase in net profits or a
change in the valuation of your shares of common stock.

farmed nutrient

Growth leading to Growth

After an important expansion of our production facilities , HQ resumed
production with expanded vigour in June 2004 with a view to increasing our
profile and our reputation for quality among our clientele.htm) In order to meet demand, the
world must pass from "ocean
hunter-gatherers" to "farmed product consumers" or suffer from shortages
and unacceptable levels of toxicity.
"The JECFA report notes that scientists in the food industry and other
institutions are exploring possible safe and effective ways to reduce
acrylamide levels in various foods.

irradiation spends

The JECFA report also points to
the need for additional information about acrylamide in foods to adequately
consider potential human health concerns. FPA agrees with the cautionary note made
by the JECFA report, as well as by WHO and FAO, in addressing reduction
options, that 'any major changes would need to be checked for consumer
acceptability, nutritional quality and the possible increased formation of
other undesirable substances.

spends irradiation

In fact
the Company's current position is as follows;

-- Vigers Hong Kong appraisal of assets dated August 2004 of USD 68
million
-- 2005 run rate will increase by more than 50% from 2004

In this letter, I want to reconfirm how HQSM is shaping the future of
aquaculture and aquatic products. Consumers want superior product , like
coffee consumers are prepared to pay a premium for branded differentiated
products, Tilapia consumers deserve and want the best. HQSM is
seizing the opportunity by;

-- Avoiding hormones during production (no hormones in Tilapia fry
sexing)
-- Natural food additives reducing reliance on antibiotics to maintain
farmed fish health;
-- Elimination of fishmeal in feed to avoid the concentration of Ocean
pollutants such as heavy metals;
-- Farming using bottom feeding and predator fish which manage naturally
the pond environment without the need for chemical additives;
-- Toxin free waste water from ponds becomes a quality nutrient rich
fertilizer for neighbouring plants;
-- Toxin free Tilapia byproducts after filleting operations becomes a
toxin free quality additive for other fish farming operations for shrimp
and other species .hqfish.

dense irradiation

PRESS RELEASE HQSM Roadmap for Acquisition and Expansion Strategy

In addition to operational offices based in Haikou,
Hainan, HQ has offices in Montreal, Hong Kong, New York City, Beijing, and
Shanghai.

nutrient microwaving

.org/sof/sofia/index_en.

Sustainable, Fair Trade production, and Vertical Integration

HQ stands for Highest Quality. Please
contact us at hq@hqfish.

HQ Sustainable Maritime Industries, Inc. It has
recently acquired a nutraceuticals and health products company, which is
HACCP certified, and produces and sells products subject to stringent
laboratory tests certified by the China Ministry of Health. Such risks and
uncertainties include, but are not limited to, market conditions,
competitive factors, the ability to successfully complete additional
financings and other risks. Susan Ferenc, DVM, Ph. This is consistent with advice given by numerous public health
authorities around the world. food
processing industry, FPA will continue to participate in the ongoing
assessment of acrylamide in foods.

exceed tartrazine

The purpose of the JECFA report is to examine available
scientific information to assist national governments in better understanding
what is known about acrylamide toxicology, and how to evaluate potential ways
to reduce acrylamide concentrations in food.

bovine hormones

has made another important step in
the completion of its growth plan.
HQ's activities include using renewable ocean resources, practicing
cooperative sustainable aquaculture, using nutraceutically enriched feeds
and conducting fish processing and sales.S."

The Food Products Association is the science-based trade association
serving the food and beverage industry in the United States and worldwide.

nutrient genetically

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- - kjjkjk

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