HQS HQ Sustainable Maritime Industries Common Stock

Cohen Milstein Sellers & Toll PLLC, is conducting an investigation to determine whether HQ Sustainable Maritime Industries, Inc. (“HQS” or the “Company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.

A class action lawsuit has been filed in the U.S. District Court for the Western District of Washington by another law firm on behalf of all purchasers of the common stock of HQ Sustainable Maritime Industries, Inc. (AMEX:HQS) between May 11, 2009 and April 1, 2011, inclusive (the “Class Period”).

HQS engages in the production and marketing of health products derived from marine-based raw materials, including Tilapia. The Company is headquartered in Seattle, Washington with operations in China. The complaint alleges that HQS and certain of its officers and/or directors (“Defendants”) made false and misleading statements and/or omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the complaint alleges that Defendants misrepresented and/or failed to disclose that: (1) a substantial portion of the Company's revenues were overstated; (2) HQS' financial statements were materially false and misleading and not prepared in accordance with GAAP; (3) HQS had material deficiencies in its system of internal control over its financial reporting; and (4) in light of the foregoing, Defendants lacked a reasonable basis for their positive statements about the Company, its prospects and growth.

On March 16, 2011, HQS announced that it would be unable to timely file its 2010 Form 10-K, citing “delays in compiling information for the preparation of the financial statements.” The Company assured investors that it expected to file its annual report by April 1. Despite that assurance, on April 1 HQS announced that it would not in fact be able to file its 2010 Form 10-K “because the audit of the Company’s financial statements has not been completed due to difficulties and delays in obtaining and verifying certain information.” Trading in HQS shares was suspended on April 1 and the shares last traded at $2.78.

On April 6, Andrew Intrater, the Chairman of HQS’ Audit Committee, abruptly resigned, explaining in a letter to defendant Norbert Sporns, Chief Executive Officer and President of HQS, that Intrater was “compelled by conscience” to do so because of the “delay and resistance” the Audit Committee encountered from Sporns and other members of management in its efforts to verify “information relating to the company’s accounts and customer positions.” The following day, HQS reported that it had been notified by NYSE Amex that, as a result of Intrater’s resignation, HQS was no longer in compliance with listing standards which required the Company to have a majority of independent directors and at least three independent directors on its Audit Committee.

Cohen Milstein encourages all purchasers of HQS stock, including persons or entities that purchased HQS’ common stock pursuant and/or traceable to the Company's secondary offerings on or about June 11, 2009 and/or August 10, 2010, or former employees with information concerning this matter to contact the firm.

If you are a HQS shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. If you purchased the common stock of HQS and wish to serve as lead plaintiff, you must move the Court no later than June 27, 2011 to request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers & Toll PLLC or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, and Chicago, and is active in major litigation pending in federal and state courts throughout the nation.

The firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. Prior results do not guarantee a similar outcome. For more information visit www.cohenmilstein.com.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:

Steven J. Toll, Esq.Tyler GaffneyCohen Milstein Sellers & Toll PLLC1100 New York Avenue, N.W.West Tower, Suite 500Washington, D.C. 20005Telephone: (888) 240-0775 or (202) 408-4600Email: stoll@cohenmilstein.com; tgaffney@cohenmilstein.com

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