AUSTIN, TX, July 19 /PRNewswire-FirstCall/ - Due to a number of recent inquiries from shareholders and potential investors, the management of AGR Tools, Inc. (OTCBB: AGRT) would like to provide the following clarification of its operations.

Overview

AGR, through its wholly owned subsidiary AGR Stone & Tools USA, Inc., contract manufactures and distributes tooling and tooling-related products for the professional construction and demolition industries through its stocking dealer network and via its website. AGR's main assets are its relationships with contract manufacturers, its Matrix Maxx technology, its brand name and its stocking dealer network. It generates revenue from the spread between the manufacturing cost of each product it sells and the wholesale price its distributors or customers pay for the same product.

Market Niche

In order to understand AGR's business, the company's shareholders and potential investors must be aware of the difference between tools and tooling. Tooling is the consumable disposal portion of a tool that makes the tool work. It wears out as the tool is operated, and includes items such as saw blades for saws, drill bits for drills and pads for polishers.

AGR manufactures and distributes tooling, not tools. As a result, demand for its products is driven by the need for original and replacement tool parts, not the tools themselves. So, for example, although the life of a saw may be many years, the saw blade that powers that saw may need to be replaced 1,000 times, and AGR products exist to meet that need.

A recent research report published by Curtis Michael Management Corporation estimated the size of the consumable tooling market in the United States to be approximately $12 billion annually. AGR's goal is to capture 25% of that market within the next 10 years. A copy of the report is available at the following link: http://www.stockreportcard.com/pdf/agrt_final_june_2010.pdf.

Tooling Products

AGR's product line consists of over 700 different tooling and tooling-related products. These fall under the categories of diamond blades, drill bits, grinding wheels & stones, polishing pads, milling wheels & router bits and CNC tooling. All of the company's products are designed and manufactured for use by professionals in the construction and demolition industries.

"What differentiates AGR's products from other products on the market are their superior quality, cost effectiveness and long life," stated Rock Rutherford, the President and CEO of both AGR and AGR USA. "We design and contract manufacture our products with the professional in mind. A professional doesn't want to spend his day changing saw blades or drill bits, so the longer the life of the tooling, the more efficient he can be. Our goal is simple: to offer better quality tooling at a lower price than our competitors."

Stocking Dealer Network

AGR distributes its products through its stocking dealers and its website. The company currently has contracts with 31 stocking dealers covering 48 market territories in the United States and Canada, and it plans to increase the number of dealers to 63 covering 121 market territories by the end of the 2012 calendar year. AGR's stocking dealers purchase their tooling products directly from AGR and then deliver them to their customers. Over time, this distribution model has proven to be very effective.

"Our stocking dealership model takes a hands-on approach to the distribution of our products that has been highly effective," Mr. Rutherford continued. "We feel that doing business on a face-to-face basis allows us to establish a relationship with end users of our products and increases customer loyalty. It also ensures that we receive feedback from the people that use our products, allowing us to better meet the needs of our customers."

Revenue Growth

AGR's distribution network has grown from 11 stocking dealers covering 18 market territories in 2009 to 31 stocking dealers covering 48 market territories this year. It expects to meet its expansion target for 2012 as described above, and that each of its dealers will generate a minimum of $150,000 in gross revenue per year. Thus, as AGR's dealership network grows, so too will its revenues.

"Our shareholders should realize that every time we acquire a new distributor, it results in increased sales", concluded Mr. Rutherford. "With our aggressive marketing tactics, top-notch customer service and quality products, we feel that our goal of capturing 25% of the tooling market is very realistic."

    About AGR Tools, Inc.
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AGR Tools, Inc. is a public company with its common stock quoted on the OTC Bulletin Board under the symbol AGRT and the Berlin and Stuttgart Stock Exchanges under the symbol LVSA.

    About AGR Stone & Tools USA, Inc.
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AGR Stone & Tools USA, Inc. is a contract manufacturer and distributor of tools and accessories to the construction, building maintenance and demolition industries in the United States and Canada. It supplies more than 700 products through its stocking dealership network and website. The products include diamond based tools and adhesives and it specializes in producing consumable tools for the natural stone, engineered stone, concrete and masonry industries. Its goal is to provide its clients with superior quality products, excellent customer service and the most competitive prices in the diamond tool industry. The company has conducted extensive research and testing of its products, and uses the latest technologies to assure it is at the forefront of the diamond tool industry. AGR Stone & Tools USA, Inc. is a wholly owed subsidiary of AGR Tools, Inc.

More information on AGR Stone & Tools USA, Inc. can be found at: www.agrtools.com

    Forward-Looking Statements:
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Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See AGR Tools, Inc.'s filings with the United States Securities and Exchange Commission which may identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements.

SOURCE AGR Tools Inc.