Friday, August 25, 2006

GREM USA Corporate Update

GREM USA (OTCBB:GRMU) announced today that the Company has completed the design and programming of the Company's CNC router for the FT-101 model and has started production of FT-101 guitar bodies.

Edward Miers, President/CEO of GREM USA, stated, "The Company is now working to complete the CNC design programming for the 'GREM Standard' model and the company intends to have all five models and cases programmed for automated production by year's end. As the Company continues to progress in the setup of automated production, we are also progressing towards the closing of the previously announced agreement to purchase of a 40,000 square foot manufacturing facility in Fort Wayne, Indiana. Attorneys are working to complete the necessary closing documents and we hope to be in the position to close within the coming weeks."

"My current primary focus as CEO of GREM USA is to get our Company's automated manufacturing equipment operating and producing guitars. I believe that the downfall of many development stage companies is that their CEO's are overly intent and focused on their company's daily stock price, rather than focusing efforts on the growth and operations of their business," stated Mr. Miers. "It is my firm belief that by focusing our time and efforts on the actual business of manufacturing quality guitars that the Company's stock price will take care of itself."

Additionally, Mr. Miers stated, "On behalf of the Company and all fellow shareholders, I would like to invite any interested parties to visit our current manufacturing facility in Spencerville, Indiana. We will be proud to provide a tour of our current manufacturing operations and we look forward to being able to showcase the new facility in Fort Wayne sometime in the mid part of 2006. I look forward to providing additional updates about the Company as material events take place."

The Company presently has five original designs in its line of guitars. The Company's present guitar line includes the following designs: the "Uppercut", the "GREM Reaper", the "Free Radical", the "FT-101" and the "GREM Standard". Collectors and music enthusiasts interested in purchasing one of the Company's custom handmade guitars are encouraged to phone the Company directly at 260-238-2000 for more details.

About GREM USA

GREM USA is a development stage company focusing on design and manufacture of custom handmade and mass-produced electric and acoustic guitars, amplifiers and accessories. For more information, please contact Edward Miers, Chief Executive Officer, phone 260-238-2000. http://www.gremusa.com and additional designs can be viewed on the Greg Reszel website at http://www.gmreszel.com

This press release contains certain "forward-looking" statements, as defined in the United States Private Securities Litigation Reform Act of 1995 that involve a number of risks and uncertainties. Statements, which are not historical facts, are forward-looking statements. The Company, through its management, makes forward-looking public statements concerning its expected future operations, performance and other developments. Such forward-looking statements are necessarily estimates reflecting the Company's best judgment based upon current information and involve a number of risks and uncertainties, and there can be no assurance that other factors will not affect the accuracy of such forward-looking statements. It is impossible to identify all such factors, factors that could cause actual results to differ materially from those estimated by the Company. They include, but are not limited to, the Company's ability to execute its business strategy, the Company's ability to consummate and complete operations, the Company's access to future capital, government regulation, managing and maintaining growth, the effect of adverse publicity, litigation, competition and other factors that may be identified from time to time in the Company's public announcements. The Company undertakes no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.