PGI Energy Announces Company Update

HOUSTON, TX--(Marketwire - Oct 12, 2011) - PGI Energy, Inc. (PINKSHEETS: PGIE) --

The executive team wants to take this opportunity to address shareholders regarding its issuance of the preferred stock dividend. We received numerous calls and emails from shareholders regarding the preferred issuance for shareholders with stock held at brokerage accounts. We initially relied upon our transfer agent to file the FINRA Corporate Action forms and were subsequently notified that process has changed, that we are required to file an electronic notice form now. We have begun that process and are working with DTC to complete the issuance process for shareholders holding certificates in brokerage accounts. DTC indicates the shares will be held in "street name" which means issued in brokerage company name for brokerage account holders. We hope this addresses shareholder concerns over the issuance.

The Company has been working with its operator to Home Creek Energy to complete its work over and re-works program on the Reams and Masterson wells. Shareholders have questioned whether we have received the funds generated by the field since our acquisition. We have designated those funds to be used by the operator to complete the development program on the field as there are additional funds needed to complete the work to bring the field to full production.

The Company transportation and logistics division has secured new trucking fleet lease and new client shippers for transportation of products. The trucks will be delivered this week.

PT Rebana Energi Corpindo of Malaysia has not visited PGI Energy for the acquisition of the drilling rigs related to Structural Dynamics Engineering joint venture. The Company will provide further updates regarding this matter as soon as details develop.

The Company has made significant progress in its commodities trading division having secured new trade agreements for Russian products and Chinese companies as buyers. The Company will announce agreements once all terms of the agreements have been performed. We hope to announce significant earnings soon.

The Company has been working with a local hedge fund to acquire proven producing oil and gas assets in Louisiana, Galveston, and West Texas. We are reviewing these various packages for 100% financing. Updates will be released once the agreements have been secured and funding documents are executed.

The company plans to post its third quarter financials today. The Company will release its written business plan with earnings guidance for fourth quarter earnings and through year 2012 later in October. The Company is also considering a stock buyback program to be funded through an institutional investor and will present its plan to the board of directors.

About us
PGI Energy, Inc. is an energy holding company, headquartered in Houston, Texas. The company's purpose is to acquire assets in the proven producing oil, gas assets, refinery, pipeline sectors of the energy industry and other synergistic assets.

PGI has formed several partnerships to grow its core business organically through strategic alliances diversifying its interest in green energy through biomass production, waste to energy, wood pellets production, syn gas, bio char production and plastics to synthetic crude. PGI has several core divisions which provide support to its operations and customers such as PGI Transportation & Logistics, PGI Manufacturing & Engineering, PGI Green E & P and PGI Commodities Trading.

CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This press release contains forward-looking statements that involve a number of risks and uncertainties. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "believes," "expects," "may," "will," "intends, "plans," "should," "seeks," "pro forma," "anticipates," "estimates," "continues," or other variations thereof (including their use in the negative), or by discussions of strategies, plans or intentions. A number of factors could cause results to differ materially from those anticipated by such forward-looking statements, including those discussed under "Risk Factors" and "Our Business." Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons.

For more information visit: WWW.PGIEnergy.us or Email: ir@pgienergy.us