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Urban AG Corp. Announces Criteria For Acquisitions

NORTH ANDOVER, Mass., Jan. 9, 2013 /PRNewswire/ -- Urban AG Corp. (OTCQB: AQUM) (the "Company"), announced today that the Company has initiated its "acquisition model" for future potential acquisitions.  The announcement was made by Chairman of the Board Marshall Sterman, who described the model in the following letter to shareholders:

Thoughts from Our Chairman:

I would like to have our shareholders, and those potential investors who will take the time to do their own due diligence, understand and hopefully appreciate our investment rationale, as well as those guiding principles that we trust will enable us to build a successful public company.

In Urban AG (AQUM), we believe that there is a significant and growing market in several areas under the general heading of construction infrastructure;  these can be remediation projects as simple as asbestos abatement or brownfields cleanup, or the deconstruction of oil rigs and other work platforms.  Also we have capability of being enablers of major field work for telecommunications and other technology activities. There are untold small companies serving this market who have an opportunity to grow substantially if given the money and in some cases guidance to exploit this potential.  We are uniquely positioned to play this role through acquisition.

Unlike other roll-ups, however, we believe in empowering entrepreneurs to continue to build on their success by becoming "partners" so that the incentives for the founders remain at the individual company subsidiary level and not at the parent.  Each acquisition must be responsible for its own success and as such are not "carried" by other acquisitions working under the Urban-AG public company platform; nor are they penalized by others who do not perform. This is accomplished by providing an incubator approach to acquisitions whereby the acquired company's owners can add to their equity positions through performance gains or, if they choose to, under a predetermined formula. This allows compensation to be based on the degree of their "success".   From an Urban- Ag shareholder point of view, we have minimized our portfolio risk substantially. We have not subsidized failure or under performance by giving up our stock, and we have limited fallout by keeping each acquisition as a separate entity under the parent (Urban-AG), thus eliminating additional liability.  

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