U.S. Microbics Forms Bio-Energy Business Unit

CARLSBAD, Calif.--(BUSINESS WIRE)--U.S. Microbics (OTCBB:BUGS) announced that it has formed a new business unit to research and apply its proprietary microbial blends for use in the production processes of bio-diesel and ethanol from organic material sources such as corn and sugar cane for fuel applications. The company believes its microbial products could be suitable for optimizing the production of bio-diesel and ethanol by contributing to the process of turning certain waste streams and/or organic materials into useable bio-energy derived fuel sources.

“Management's Discussion and Analysis or Plan of Operation”

Robert Brehm, CEO of U.S. Microbics, commented, “We have had many inquiries regarding the applicability of our proprietary products and processes for use in ethanol and bio-diesel production. In addition, our agricultural growth enhancement products have shown up to 38% yield increase for sugar cane, a prime feedstock, along with corn, for ethanol production. With feedstock yield improvements and organic material source processing using microbial based technology, we may have a golden opportunity to participate in the bio-fuels industry, where the reduction in green house gases is a major goal.”

Brehm continued, “At this time, we are establishing a new business unit to investigate the market opportunities, applicability of our products and the economic metrics for production in Mexico, which has good political and economic support for creating additional jobs and has ample corn and sugar cane feed stocks for bio-fuels. To help with our market and technical evaluation, we will be working with a current customer who has successfully used our in-house produced microbial products in an ethanol pilot plant in the Midwestern U.S. To keep the market abreast of our developments, we will inform our shareholders via future press releases or new product or service announcements.”

About U.S. Microbics, Inc.

U.S. Microbics is a business development and holding company that acquires, develops and deploys innovative technologies for environmental cleanup, agriculture yield enhancement and waste stream treatment in developing nations using local resources to stimulate regional economies.

For more information on the company, contact Robert Brehm at 760-918-1860 x102 or visit the website at www.bugsatwork.com.

The information contained in this press release includes forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect" or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's status as a startup company with uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis or Plan of Operation" and other sections of the Company's Form 10-KSB and other publicly available information regarding the Company on file with the Securities and Exchange Commission. The Company will provide you with copies of this information upon request.