Agreement Covers Cruise Line, Home Furnishings, Catalog and Internet Sales Channels

SANTA FE SPRINGS, Calif. -- Silvergraph International, Inc. (OTCBB:SVGI), which designs, develops and distributes wall art to the $20.8 billion wall decor industry, today announced that it has entered into a Letter of Intent ("LOI") with Applejack Art Partners, Inc., one of America's leading art licensing and publishing companies.

Under the terms of the LOI, Silvergraph will become the primary supplier to Applejack, and its affiliates, of serigraph and serigraphy-based art reproductions in the Cruise Line, Home Furnishings, Catalog and Internet sales channels.

"There has been very little product innovation in the wall art industry over the past few decades," noted Jack Appelman, Chairman and C.E.O. of Applejack Art Partners, Inc. "Silvergraph's patent-pending technology creates one of the most advanced product platforms in the industry. Its technology will allow us to cost-effectively incorporate materials and substrates into our art prints that have historically been cost-prohibitive. We believe our relationship with Silvergraph will further distinguish our products in all of our established sales channels."

Pursuant to the LOI agreement, Applejack Art Partners, through its affiliates, will introduce Silvergraph's custom serigraphy-based gallery-quality fine art reproduction prints to its customers, including those in the cruise line channels, which currently generate several million dollars annually in art print sales.

The agreement also states that Applejack Art Partners will represent the patent-pending Silvergraph[TM] and Luminaire[TM] product lines through its current sales force, which targets home furnishings retailers in the northeastern United States, and through its internet and catalog sales channels.

The LOI agreement contemplates that the Parties will develop a co-warehousing and fulfillment program, wherein each Party would co-locate product to maximize efficiencies and profitability.

"Applejack Art Partners is a perfect fit for us, because it contributes to our ongoing focus on the $4.3 billion U.S. home furnishings vertical, while establishing a presence in the vibrant and growing cruise line art market and expanding our presences in internet and catalog sales channels," stated James Simpson, Chief Executive Officer of Silvergraph International, Inc.

The non-binding LOI agreement requires Silvergraph to issue 1.8 million warrants to Applejack Art Partners, so long as Applejack generates at least $1 million in sales by September 30, 2008.

About Silvergraph International, Inc.

Silvergraph International, Inc., through its operating subsidiaries, designs, develops and distributes wall art to the $20.8 billion wall art industry. Unique in the industry, Silvergraph International's patent-pending technology enables it to introduce fine art quality textured prints to the mass wall decor industry. The Company is headquartered in Santa Fe Springs, California (Los Angeles metropolitan area) and its common stock is listed on the OTC Bulletin Board under the symbol "SVGI." For more information, visit the Company's website at www.silvergraph.com (http://www.silvergraph.com/).

About Applejack Art Partners, Inc.

Applejack Art Partners, headquartered in Sunderland, Vermont, is one of the country's foremost art licensing and publishing companies with more than 300 artists under contract and over 100,000 images in its collections. The company sells and licenses artwork to manufacturers in every major product category and maintains an extensive searchable on-line database at www.applejackart.com.

This press release includes statements that may constitute "forward-looking" statements, usually containing the words "believe", "project", "expect" or similar expressions. All forward-looking statements are made pursuant to the 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 may cause or contribute to such material differences can be found in Silvergraph's filings with the Securities and Exchange Commission. By making these forward-looking statements, Silvergraph undertakes no obligation to update these statements for revisions or changes after the date of this release.