Phototron Completes Merger With SG Technologies And Reports Fiscal Year 2011 Financial Results

Phototron Holdings, Inc. (OTCBB: PHOT) (OTCQB: PHOT), the hydroponic growing systems company behind the “ grow your own” revolution, today announced that it has completed its merger with SG Technologies Corp, a leading manufacturer of hi-powered light emitting diode (“LED”) products for indoor horticulture (the “Merger”). In addition to the Merger, Phototron is also announcing the availability of its fiscal year-end financial results for the period ending December 31, 2011.

“With our combined operations, we are creating a true leader in the indoor horticulture industry for the long established Phototron and Stealth Grow brands,” said Sterling C. Scott, Phototron’s newly appointed CEO and Chairman of the Board, post-merger. “With my increased role at the company, I look forward to implementing various strategic growth opportunities and sales initiatives that will benefit our loyal customers and enhance stockholder value.”

SG Technologies sells products under the highly-recognized “ Stealth Grow” brand, which is at the forefront of indoor horticulture with its superior line of LED grow lights. The completed acquisition is expected to complement Phototron’s existing sales and online initiatives for its innovative hydroponic grow systems. Consumers can now realize significant financial savings, convenience and quality with the company’s combined range of products.

In relation Phototron’s financial results for fiscal 2011, the company reported an annual revenue increase of 11% compared to the fiscal year 2010. 2011 revenue was approximately $499,000 compared to $450,000 in fiscal year 2010. The increase in revenue is the result of management focusing its efforts on expanding Phototron’s marketing activities and shifting from direct sales to traditional sales by marketing products to the public via the Internet and mail order channels. Net loss for 2011 was $4.4 million compared to a net loss of approximately $52,000 in 2010. The net loss in 2011 was primarily due to non-cash charges attributable to the vesting of stock options and restricted stock issued for services. In the third and fourth quarters of 2011, Phototron made significant progress in minimizing overhead and reducing its operational expenses.

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