Seaway Valley Capital Corporation Releases Update

GOUVERNEUR, N.Y.--(Business Wire)--
Seaway Valley Capital Corporation (OTC Bulletin Board: SWVC)
("Seaway Valley") chairman and chief executive officer, Thomas W.
Scozzafava, issued the following update to its shareholders today:

Dear Shareholders:

Despite the recent pressure in the shares of Seaway Valley
(www.seawaycapital.com), the Company has made and continues to make
significant strides in the underlying value of the businesses in its
portfolio. To review, Seaway Valley has accomplished the following
major milestones:

-- In the fall of 2007, Seaway Valley acquired one hundred
percent of WiseBuys Stores, Inc. (www.wisebuysstores.com) and
then quickly acquired one hundred percent of Patrick Hackett
Hardware Company (www.hackettsonline.com). As previously
announced, management is in the process of converting each
WiseBuys store into a "Hackett's" brand store.

-- In March 2008, Seaway Valley assisted Hackett's in securing a
$5 million inventory based line of credit from Wells Fargo.

-- Including the previously announced and soon-to-be-opened
Sackets Harbor store, Hackett's has ten (10) locations with
expected 2008 revenues of over $20 million and pro forma (once
all ten stores are open for a complete calendar year) of over
$30 million. The WiseBuys store transitions are both time and
capital intensive, but the process continues on. We converted
the Canton store on June 14th and expect to convert the
Gouverneur store by mid-August. Hamilton and Tupper Lake are
expected to transition this fall, and Pulaski is targeted
before year-end.

-- In June 2008, Seaway acquired North Country Hospitality, Inc.,
bringing to Seaway Valley four distinct-but-synergistic
business lines including: (1) Sackets Harbor Brewing Company,
which develops, produces, and markets craft-brewed beers such
as the award winning "War of 1812 Amber Ale" and "Thousand
Island Pale Ale", as well as "Railroad Red," "1812 Amber Ale
Light" and "Harbor Wheat" specialty beers; (2) Seaway
Restaurant Group, which includes Sackets Harbor Brew Pub, Good
Fello's Brick Oven Pizza and Wine Bar, The 1812 Stationhouse,
and five Jreck Subs franchises; (3) Alteri Bakery, which is
the largest and one of the last traditional Italian bakeries
in the region; and (4) boutique lodging assets including hotel
and long-term rental assets in the heart of the village of
Sackets Harbor.

Seaway Valley, in short order, acquired assets totaling
approximately $30 million and has current projected pro forma
annualized revenues of $36 - $40 million including the current North
Country assets and revenues. While management continues the task of
integrating its core holdings it will also continue to drive growth in
the portfolio companies.

Hackett's - New Store Locations

While Hackett's current focus is converting the WiseBuys stores,
management continues to aggressively seek opportunities for new store
development. Hackett's is targeting locations with demographics that
are consistent with Hackett's premium branded products and excellent
customer service. To this end, management is close to executing a Term
Sheet for its eleventh site and has begun negotiations with
representatives for a possible twelfth location. Each store would be
projected to produce revenues of $3-$4 million per store. We hope to
announce soon the finalization of at least one - but possibly both -
of these locations.

Hackett's - Acquisitions

The Company has executed a Term Sheet and is currently drafting
definitive agreements to acquire a regional retail company with
calendar 2007 revenues of over $15 million and profits of about
$550,000. The transaction, which is contingent upon execution of the
definitive agreements and financing, would immediately complement
Hackett's business and management team with diversified merchandise
offering and proven operators. We hope to finalize this transaction in
the coming weeks. Additionally, the Company continues to seek out
investments and acquisitions in the consumer products and retail
space.

Sackets Harbor Brewing Company

Sackets Harbor Brewing Company represents a significant growth
opportunity for the Company. Based on the success of the Company's
flagship "1812 Amber Ale" and the brand's continued acceptance in
northern New York, central New York, and central Florida markets, we
have begun plans to begin aggressively promoting the beer in a much
wider geographic region. We are also seeking strategic alliances that
will more quickly build the brand's critical mass. To this end, we
recently commenced brewing our flagship 1812 Amber Ale brand with a
much larger, nationally recognized brewer and in 500 barrel batches,
which is about two and one-half times larger than our previously
produced batches. Additionally, management will seek to build its
portfolio of beer brands through opportunistic acquisitions.

Alteri Bakery, Inc.

Alteri Bakery, Inc., which is currently projected to produce
annualized revenues of approximately $2.2-$2.5 million, has physical
plant capacity that would enable it to more than double its current
revenues. Securing new commercial contracts to drive production while
also promoting its higher margin specialty products will be the focus
of management over the coming months. Management is also currently
seeking financing for equipment that will immediately increase output
and productivity.

Restaurant Group

Management is currently in discussions with various parties for
potential development of its most popular proprietary restaurant
concepts: Good Fello's Brick Oven Pizza and Wine Bar and The 1812
Brewpub. The concepts can be co-located or rolled out separately,
depending on the market. Additionally, the Company is in discussions
to acquire a similar established restaurant with projected 2008
revenues of around $1.8 million that would introduce Seaway Valley to
an urban, high volume market.

Other

Seaway Valley will also continue to evaluate other acquisitions
and investments in industries outside the retail, hospitality, and
consumer products industry. In particular, the Company is planning to
establish, together with additional outside partners, production
facilities based on regionally harvested agricultural products such as
wheat, corn, and barley. And as many of you already are aware, I am a
founder, former Chief Executive Officer, and significant shareholder
of GS AgriFuels Corporation, which was formed as a platform
acquisition company for the development of ethanol, biodiesel, crush
plant, and biofuels feedstock production facilities from the use of
proprietary technologies. The company, primarily under my direction,
made investments and acquisitions including NextGen Fuel, Inc., a
biodiesel equipment manufacturer; Sustainable Systems, Inc., a 600 ton
per day oilseed crush plant; ZeroPoint Clean Tech, Inc., a biomass
gasification and gas-to-liquids company; and acquired Corn Oil
Extraction Systems ("COES"), a technology that extracts high value
corn oil from low value distillers grain. I recently initiated efforts
to secure the rights to the approximate 30% equity stake in GS
AgriFuels, which in early 2008 merged into GreenShift Corporation.
While the outcome of these efforts is yet to be determined, I will
certainly pursue the maximum value owed to Seaway and its
shareholders.

About Seaway Valley Capital Corporation

Seaway Valley Capital Corporation (www.seawaycapital.com) was
formed in 2002 to make equity, equity-related, and debt investments in
companies that require expansion capital and in companies pursuing
acquisition strategies. Seaway also seeks investments in leveraged
buyouts and restructurings. Seaway Valley will consider investment
opportunities in a number of different industries including retail,
restaurants, media, business services, and manufacturing. Seaway
Valley will also consider select technology investments.

Safe Harbor Statement

This press release contains statements that may constitute
"forward-looking statements" within the meaning of the Securities Act
of 1933 and the Securities Exchange Act of 1934, as amended by the
Private Securities Litigation Reform Act of 1995. Those statements
include statements regarding the intent, belief or current
expectations of the Company, and members of their management as well
as the assumptions on which such statements are based. Prospective
investors are cautioned that any such forward-looking statements are
not guarantees of future performance and involve risks and
uncertainties, and that actual results may differ materially from
those contemplated by such forward-looking statements. Important
factors currently known to management that could cause actual results
to differ materially from those in forward-statements include
fluctuation of operating results, the ability to compete successfully
and the ability to complete before-mentioned transactions. The company
undertakes no obligation to update or revise forward-looking
statements to reflect changed assumptions, the occurrence of
unanticipated events or changes to future operating results.

Seaway Valley Capital Corporation
email: contact@seawaycapital.com
Web: www.seawaycapital.com
or
Investor Relations:
CEOcast, Inc.
Gary Nash, 212-732-4300

Copyright Business Wire 2008