CALI Holdings, Inc. Signs Definitive Agreement with Marine Exploration Company.

ORLANDO, Fla. -- CALI Holdings, Inc. (OTCBB:CALI) announced today that it executed and closed under a definitive agreement with Sovereign Exploration Associates International Inc. (SEAI), a marine exploration company headquartered in Pennsylvania. SEAI, a privately held company, was recently formed through the merger of Sea Research, Inc., and Artifact Recovery & Conservation, Inc. As previously announced, CALI Holdings decided to strategically focus its business efforts on financing the recovery of shipwrecks that have cargo of historic, archeological and intrinsic value. SEAI brings executive management, skilled recovery teams, equipment and agreements for twelve (12) sites containing over 15 ships of historic, archeological and intrinsic value. CALI Holdings has applied to change its name to Sovereign Exploration Associates International Inc.

The agreement involved the exchange of SEAI stock for 90% of CALI stock and pursuant thereto SEAI became a wholly-owned subsidiary of CALI. The new management team will be comprised of key individuals from SEAI. Robert Baca and Curtis Sprouse of SEAI will assume the CEO and COO positions effective immediately. SEAI's web site is under development. Future announcements on the SEAI web site will address current site operations, artifacts recovered to date and future projects.

About CALI Holdings dba Sovereign Exploration Associates International, Inc.

CALI Holdings doing business as Sovereign Exploration Associates International, Inc. is a Business Development Company under the Investment Act of 1940 undertaking shipwreck exploration and recovery initiatives.

Safe Harbor

The statements made in this release constitute "forward-looking" statements, usually containing the words "believe," "estimate," "project," "expect," or similar expressions. These statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements inherently involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors that would cause or contribute to such differences include, but are not limited to, the failure of the ships to contain cargo of historic, archeological or intrinsic value, changing economic conditions, interest rates trends, continued acceptance of the Company's products in the marketplace, competitive factors and other risks detailed in the Company's periodic report filings with the Securities and Exchange Commission. By making these forward-looking statements, the Company undertakes no obligation to update these statements for revisions or changes after the date of this release.