SOURCE: Advanced Growing Systems, Inc.

August 29, 2006 09:15 ET

Organic Growing Systems, Inc. Acquires Manufacturing Facility in Order to Increase Capacity

Organic Fertilizer Factory to Operate in Mississippi and Result in Over $4,000,000 of Additional Revenues in 2007 and Increase Profit Margins to 50%

HOUSTON, TX -- (MARKET WIRE) -- August 29, 2006 -- Organic Growing System's Inc., (OGS) a subsidiary of Advanced Growing Systems, Inc. (PINKSHEETS: AGWS) has completed negotiations with Agreaux Organics, Inc. to acquire it's production facility in Monticello, Mississippi. With an initial capacity to produce over 10,000 tons of organic fertilizer annually (plans are in place to double that amount), Advanced Growing Systems, Inc. anticipates over $4,000,000 of added gross revenue in 2007 with gross margin opportunity well over 50%. This facility will replace the contract manufacturing agreement that the Company presently has in place, which has limited capacity, and where the Company has only been able to recognize margins of approximately 25%. This facility represents the first of three (3) domestic manufacturing plants that the Company will either purchase or build as part of the Company's overall plan to effectively supply over 200MM tons nationally to the Company's customers which include, golf courses, growers and various end users.

At a time when public demand for organic products, and specifically organic fertilizer, is growing exponentially, OGS, Inc., has positioned itself to compete with traditional synthetic fertilizer companies. Consumers, responsible corporate growers, golf courses and environmental groups are challenging traditional fertilizer entities as the damage to the environment by chemical fertilizer run-off is being noted in many locales. In Harris County, Texas, the local flood control district contracts with OGS, Inc., to supply truckloads of organic fertilizer for programs to protect the community and Bay from chemical pollution.

The newly acquired factory, situated in a rural, yet industrial, location is perfect in its ability to meet the growing need for production. Available acreage and a modern laboratory inside the industrial unit are being assessed for their ability to increase plant capability and assure consistent quality control. Situated close to a new four lane divided highway with easy access to numerous metropolitan areas in the South, the location has many exciting possibilities. Plans are currently being drawn up to enhance the design of the facility to improve internal product flow, and ensure access for trucks delivering raw material as well as shipping finished product.

Investing approximately $2 million in plant acquisition and improvements, OGS, Inc., will continue to work with the current owners in an advisory and support capacity. Key plant and office personnel have agreed to stay with OGS, Inc. for a minimum of two (2) years. Access to existing Mississippi and other Southern customers brings value and the exciting potential for substantial sales growth.

OGS will work with local officials and the Lawrence County Chamber of Commerce in order to bring additional economic growth to the immediate area where the plant is located. Local Monticello companies will provide the new and needed construction work. It is anticipated that many new jobs will be created just at the time when a large nearby paper mill has laid off several hundred employees.

Initially, regular shipments of organic fertilizer will be sent to the Company's Houston, Texas and Atlanta, Georgia distribution facilities, as well as direct to major consumers. The factory has the capacity to manufacture and distribute product in bulk, one-ton agricultural totes and 40-pound retail bags in pellet and granular sizes.

OGS, Inc., is a sister company of Advanced Nurseries, Inc. (Alpharetta, GA). Both are wholly owned subsidiaries of Advanced Growing Systems, a publicly traded company (AGWS).

About AGSI:

Advanced Growing Systems, Inc. ("AGSI" or the "Company"), founded in 2006, is the parent company of Organic Growing Systems, Inc. (a scientifically advanced Organic fertilizer manufacturer) and Advanced Nurseries, Inc. (a wholesale group of Commercial Nurseries located in the Southeastern US) AGSI is dedicated to providing its shareholders significant value and is directly involved in the $48 Billion fertilizer market and the $66 Billion Green Industry. AGSI was founded by a skilled group of industry professionals each with over 20 years of direct experience in the "Green" industry. As profitability is paramount, we intend to maintain a combined GPM of 35-40% for Organic Growing Systems, Inc. and Advanced Nurseries, Inc. For more information, please visit

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Statements about AGSI's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. AGSI's actual results could differ materially from expected results. AGSI undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this objective; AGSI will appropriately inform the public.

Contact Information

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