Seaway Valley Capital Corporation (OTC Bulletin Board: SWYV) (�Seaway Valley�) (www.seawayvalleycapitalcorp.com) chairman and chief executive officer, Thomas W. Scozzafava, issued the following update to its shareholders today: Dear Shareholders: Despite the uncertainty surrounding the recent events in financial markets, the Company continues to make significant strides in the underlying businesses in its growing portfolio. The following is a brief overview of the Company�s recent business activities and certain goals for the near future. Hackett�s - While management converts the three remaining WiseBuys stores, it continues to move forward with opportunities for new store development. Most recently Hackett�s management announced the signing of a Letter of Intent for a new 41,000 square foot store in Lake Placid, NY, and it has received a draft lease agreement for one other store in the region. If opened, each store would be projected to generate revenues of $3-$4 million per store. Operationally, Hackett�s has initiated the exploration of meaningful merchandise procurement directly from manufacturers � both domestic and overseas. Management feels Hackett�s has reached the certain critical mass that is required to make negotiating, purchasing, consolidating and shipping � particularly from overseas suppliers � economically viable. To this end, Hackett�s has initiated and will continue to cultivate relationships with manufacturers whereby it can purchase at greater discounts that both drive profitability and higher sales. Seaway Valley and Hackett�s continue acquisition discussions with a regional retailer that achieved calendar 2007 revenues of over $15 million and profits of about $550,000. The transaction, if consummated, would complement Hackett�s business and management team with diversified merchandise offering and proven operators. Additionally, the Company is exploring the possibility of investment or acquisition of certain synergistic consumer products companies. Sackets Harbor Brewing Company - Sackets Harbor Brewing Company maintains its remarkable growth. The Company has recently received inquiries from major distributors with large geographic footprints, and we anticipate consummating at least one major distributing agreement in the coming months. We are also seeking strategic retail alliances that will more quickly build brand awareness. As reported previously, management also will seek to build its portfolio of beer brands through opportunistic brand acquisitions. Alteri Bakery, Inc. and Seaway Restaurant Group - Alteri Bakery, Inc., continues to make progress in streamlining operations, and the bakery recently won contracts to provide baked goods to a number of local schools. Alteri supplies all of the Jreck Sub franchises its rolls and certain deserts and is exploring other unique goods to introduce to the marketplace. At Seaway Restaurant Group (�SRG�) we continue 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.� Additionally, management is working on a new concept for the former �Cantina�, which it intends to roll out in the Spring of 2009. Because the SRG restaurants are fine-but-affordable cuisine, management feels we are positioned well for any prolonged economic slump. Seaway Ventures - Seaway Valley will also continue to evaluate other acquisitions and investments in industries such as technology and manufacturing. The Company recently established North Country Farms, LLC to build production facilities based on regionally harvested crops such as wheat, corn, and barley. Because of increased transportation costs and a growing demand for local goods, the partners in NCF feel there may be significant opportunities for such a niche. Additionally, Seaway Valley is exploring the possibility of an investment in another early stage technology venture. Other - Over the next several months, Seaway�s senior management team will be seeking to align itself with a financial party with a long-term investment horizon. To date, Seaway, through creative deal structuring and financings, has been able to establish itself as a significant entity with assets of over $32 million and expected 2008 revenues well in excess of $20 million. Notwithstanding the importance of these financings and deal structures in the creation and rapid development of the Company, the disparate nature and potential dilutive impact of certain of these financings is not desired by management and make it difficult to create lasting shareholder value for all shareholders. To this end, management is seeking to raise significant long term capital whereby certain proceeds would be used to at least partially recapitalize the company through the repayment or elimination of many of these instruments and to also fund Seaway�s core business growth. Although our ability to transact and timing of such a capital raise is uncertain, management is committed to pursuing it, and discussions with qualified parties are already underway. 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.