GelStat Corporation’s CEO Issues Shareholder Update

PALM CITY, FL--(Marketwire - January 20, 2009) - GelStat Corporation (PINKSHEETS: GSAC), a consumer healthcare company focused on the development and marketing of safe and effective over-the-counter (OTC) products, is pleased to update shareholders on recent events.

To all of our valued shareholders and the investment community:

Since our last update to shareholders in October of 2008, the following projects have been completed:

-- Officially Launched GelStat Sleep on January 12, 2009. The product is currently available on our website at https://gelstat.com/BuySleepNow.asp -- Completed financial statements from the last 10Q filed with the SEC for the period ending September of 2005 through the end of the third quarter of 2008. Investors can access these reports at http://www.gelstat.com/corp/financials.asp -- Filed a Form 15 with the U.S. Security and Exchange Commission (SEC) to temporarily suspend the Company’s reporting requirements, while also affirming the Company’s intention to complete and submit 10Ks for 2005, 2006, 2007 and 2008 as well as complete and submit 10Qs for the first, second and third quarters of 2006, 2007 and 2008. -- Re-submitted a complete “Application Form for the Registration of a Pharmaceutical Product” with the Ministry of Health in Kuwait in conjunction with our Middle Eastern distribution partner Icarus Medical Industries, Inc. -- Initiated advertising tests that have yielded positive return on advertising dollars. 

Our primary objectives moving forward will be focused on the following efforts:

-- Testing a number of advertising methods to determine which efforts result in the highest revenues per advertising dollar. These efforts include, but are not limited to: pay-per-click Internet, 3 minute infomercial, 30 second and 60 second commercials, opt-in email campaigns, Internet affiliate programs through banner ads, and tradeshows, as well as sales calls to healthcare professionals and local retail chains. -- Driving revenue growth by implementing advertising campaigns based on the results of the aforementioned tests. -- Liquidating inventory to strengthen the Company’s balance sheet. 

In summary, we have made significant progress over the last few months and we are very excited about the launch of GelStat Sleep. It is estimated that 100 million people suffer from some form of sleeplessness and we have received a large number of positive testimonials on our product. Furthermore, having two products available for sale significantly expands our customer base and leverages our advertising dollars dedicated to website traffic.

With virtually all of the restructuring projects completed, we can fully commit our resources to driving revenue growth for a prosperous 2009. We appreciate the continued support from our shareholders and will give further updates as we achieve progress on the goals outlined above.

Sincerely,

Gerald N. Kieft CEO GelStat Corporation 

ABOUT GELSTAT CORPORATION

GelStat Corporation is dedicated to providing safe and effective over-the-counter (OTC) treatments for relief from migraine headaches, sleeplessness and arthritis using all natural ingredients. GelStat’s first product, GelStat™ Migraine, is sold through direct-to-consumer channels, retail chain stores, independent retailers and pharmacies. The Company also has a suite of additional, effective healthcare products that address large consumer markets including GelStat™ Sleep and GelStat™ Arthritis. For more information, visit www.gelstat.com.

Safe Harbor Statement Under the Private Securities Litigation Act of 1995

With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of GelStat could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company’s operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” or “continue,” the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors, please review our SEC filings.