BlueStar Health CEO Issues Shareholder Letter.

SUGAR LAND, Texas -- BlueStar Health Inc., (OTCBB:BLSH), CEO, Alfred Oglesby, issued a letter to shareholders outlining the Company's target market, growth strategy and recent developments:

Dear Shareholders of BlueStar Health, Inc.,

An ancient Chinese proverb states, "May you live in interesting times". While this certainly applies in general to the world in which we live, it also applies to the world in which shareholders of BlueStar Health exist. We are witnessing, first-hand, a transformation in the U.S. healthcare industry from a reactive model based on the treatment of illness to a proactive model of preventative care and wellness. It is in this sphere that BlueStar Health will play both a critical and leading role as the first mainstream and nationwide preventative care and wellness provider.

The transition toward a focus on preventative care and wellness are a result of three powerful trends shaping the future of healthcare: 1.) Skyrocketing costs of treatment and insurance (Preventable illnesses are estimated to make up two-thirds of the burden of all illnesses and associated costs as U.S. healthcare expenditures now exceed $1.7 trillion annually); 2.) The demand generated by nearly 80 million aging baby-boomers seeking to feel better, look younger and live longer; and 3.) Americans increased desire to more directly control their own personal health and well-being. These trends have also precipitated legislation that addresses each of these issues, which should champion preventative care as a more mainstream treatment approach and potentially extend the treatments covered by Medicare to include preventative care.

Another phenomenon validating the Company's direction is the evidence of significant investment in like minded companies. Former AOL Time Warner, now Time Warner (NYSE:TWX) CEO Gerald Levin has opened the Moonview Sanctuary in Santa Monica, CA. Dubbed as a high-end ultra-chic clinic for celebrities, the location incorporates many varying disciplines of mental, spiritual and physical health. Similarly, another AOL Time Warner Alumnus, Steve Case, has formed Revolution, LLC; to invest in wellness related assets and businesses. With major investors including, Jim Barksdale the former CEO of Netscape, AT&T Wireless and COO of FedEx Corp. (NYSE:FDX), and Frank Raines, former CEO of Fannie Mae (NYSE:FNM
FNM Free National Movement (Bahamas)
FNM Foot and Mouth ), the group has begun investing in wellness retreats as well as in media assets featuring spiritual and wellness content.

Investment activity, however, is not isolated to the recently disavowed corporate executive. Recently, Rob Wrubel, founder of Ask Jeeves (NASDAQ:ASKJ) and his business partner, George Lichter, founded WholeBody, Inc. Backed by Venture Capital juggernaut, Highland Capital Partners (whose previous investments have included high-profile deals such as Staples (NASDAQ:SPLS) and Sybase (NYSE:SY), WholeBody has made a series of acquisitions including several popular Yoga studio franchises on both the east and west coasts.

Clearly, demand exists and the drivers for growth are present and only getting stronger. We believe that existing physical therapy clinics represent our 'doorway' to a leadership position within the sector, allowing the company to capture a leadership role in delivering services to the emerging preventative care industry. Our strategy is to enter the market early, build a defensible position, and ride the crest of industry growth by acquiring cash flow positive outpatient physical therapy practices and adding preventative care and wellness services. In addition to BlueStar's acquisition of cash flow positive facilities we will also be acquiring prime real-estate to add to our balance sheet as assets.

We are currently restructuring and converting our existing Mississippi facilities from physical medicine operations to physical therapy, prevention and wellness operations. We anticipate that initiative to be completed shortly. Additionally, to date we have executed three Letters Of Intent to acquire additional facilities and are currently entering into definitive agreements. We fully expect to close at least one of these acquisitions within the next few weeks, which when integrated, will translate into significant revenue and earnings streams with healthy gross and net margins for shareholders of BlueStar Health.

We are participating in a healthcare revolution and the journey we are undertaking possesses the potential to reshape the modern notion of health. We hope you will take the journey with us.

Sincerely,

Alfred Oglesby, CEO

BlueStar Health, Inc.

About BlueStar Health

BlueStar Health Inc. (BLSH) is a healthcare management company with operations in physical therapy and preventative care services. The Company is acquiring physical therapy clinics and integrating health prevention treatments and programs to create a new healthcare services model based on preventing illness. Preventative care products and services are designed to help people feel better, loose or manage weight, slow aging, look younger, and detect diseases at an early stage when treatment outcomes are the most effective. The Company's strategy will capitalize on the transition from traditional to preventative care by offering an "a la carte" line of preventative care services in order to participate in the transition from sick-care to well-care.

Safe Harbor 

This press release contains statements, which 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 BlueStar Health, Inc., and members of its 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.