August 15, 2005 08:38 ET

US BioTec Updates Field Testing of Various Agricultural Bio-Chemical Products

GLEASON, TN -- (MARKET WIRE) -- August 15, 2005 -- US BioTec, Inc. (OTC: USBO), an emerging player in the rapidly growing bio-chemical sector of the multi-billion dollar agri-business industry, today announced results of several weeks of research activity that it has produced overwhelmingly positive initial results from in-field research and controlled tests of several new products in the pathogen control area. These activities were the first in-field "real world" studies ever done outside controlled lab and greenhouse studies of prior years.

The latest US BioTec (USBO) biotechnology research, which tested a new type of anti-pathogen bio-chemical compound on peanuts in Terrell County, Georgia, demonstrated a significant break-through in Tomato Spotted Wilt Virus (TSWV) control. Excellent results have been achieved in controlling TSWV to the point of suppression that lasted for several weeks on previously infected actual in-field grown peanut plants using USBO's experimental anti-pathogen bio-chemical technology. This is a major breakthrough for the Company because to date, no other conventional (toxic) or biotechnology (non-toxic) product has adequately inhibited infection of the virus, or inhibited the function of the pathogen within an infected plant. USBO's positive research trials on peanuts have provided the confidence needed for the Company to arrange to mass market its anti-TSWV peanut product(s) in 2006.

Also this summer, another new compound similar to the peanut compound mentioned above, was applied to TSWV-infected in-field grown tobacco plants in Coffee County, Georgia. Even though the tobacco trials were hindered by massive rain totals throughout the entire growing season, results from this field research, as well as results from prior controlled environment research, coupled with the success of its "sister compound" on peanuts, indicates that the new tobacco product has now achieved the efficiency level necessary to justify limited mass production of two anti-TSWV products for two different applications on tobacco seedlings and in-field tobacco transplants in 2006. USBO will begin the initial marketing of the anti-TSWV products for tobacco in the first quarter of 2006 and will begin marketing similar products for application on tomatoes and bell peppers later in 2006.

"The 2005 spring/summer research with the TSWV products has yielded a tremendous advancement in our anti-pathogen product capabilities. These tests have proven that USBO products applied correctly and precisely can offer acceptable field control of TSWV on peanuts, and the limited trials on tobacco have shown positive signs as well. These compounds can also be modified for use on bell peppers and tomatoes. The windfall for US BioTec is very significant, with potential new annual sales that can easily total millions of dollars due to the ready-made market(s) that obviously exists for anti-TSWV products," states Jimmy Joyner, CEO of US BioTec.

"To put the TSWV situation into perspective, it is a niche market that has been begging and screaming for control products for about 10 years. Still, no company has offered any good product technology, primarily because TSWV does not generate the product sales needed to attract the large ag-chem companies' interest," explains Joyner.

USBO feels confident that it should be in position to control the anti-TSWV product market for the foreseeable future. This is based on the fact that even though the sales potential for anti-TSWV products for these four crops total millions of dollars annually, which should prove to be quite profitable for a company the size of USBO, it is too small of a core market to make it economically feasible for the ag-chemical giants to justify spending tens of millions of dollars, plus several years of research and development, to produce a toxic chemistry-based product(s) for TSWV control. And, even if they were to enter this market later, USBO will still have the "ecologically friendly" marketing edge on their toxic products. Therefore USBO believes that it is logical to assume that it should control the TSWV market for the next several years without any real outside competition to drive down the profit margin of these products. The four-crop market is estimated around 2.5 million acres, with peanuts being the largest acreage crop.

Record rainfall levels in areas of Georgia this spring and summer where the Company had already made contacts to sell tobacco and vegetable products, coupled with an extraordinary drought in areas of Indiana where USBO had made contacts to test market its "Asian Rust or anti-pathogen" product for soybeans, has hindered sales in each market area. The Company feels extremely confident that sales of its soybean product will be significant for the 2006 soybean growing season as some university and industry sources believe the "Asian Rust" will spread to more acres each year. In 2005 the USDA projected approximately 73.9 million acres of soybeans would be planted in the U.S. and several universities have indicated U.S. farmers intend to treat a large percentage of soybean acres for "Asian Rust."

"Although a big part of our efforts in 2005 has been focused on building out our infrastructure and running in-field research tests on a variety of products, which have produced very promising market potential, and although 2005 sales numbers have not yet been as large as some would desire or resulted as soon, the Company is making real progress in lining up future marketing contacts not only for agricultural products, but for marketing consumer -- lawn & garden products as well. USBO's biotechnology has attracted the attention of sizable companies within these industries," declares Joyner.

USBO will soon start selling to vegetable operations in the Southeast to get sales of its fruiting agents and growth promotion products out on 2005 fall and winter vegetable crops. The product results achieved through 2005 sales should put US BioTec in an even better marketing position in 2006 when it begins offering many more of it products to farmers in the same regions as well as in many other states. This should significantly boost revenues for next year.

USBO will continue to research and develop new products as markets present themselves. One of which is a proposed solution to control "citrus canker," the most devastating fruit growing problem in Florida.

"In addition, we are aggressively pursuing ongoing talks with a large nationally known lawn & garden equipment company about the potential joint venture that was previously announced, wherein USBO will develop a line of consumer products to be branded, distributed and marketed by this partner. Our goal at this point is to sign a deal in time to have the first joint products available for Spring/Summer 2006. Based on the resources of this national partner, and their existing presence in several thousand stores of major mass retailers, this joint venture would place USBO far ahead of our initial consumer products sales projections in the lucrative lawn & garden retail market," concludes Joyner.

All of US BioTec's products are non-toxic, non-carcinogenic and bio-degradable alternatives to the toxic and sometimes carcinogenic agrichemicals that have been widely used by farmers for decades. The agrichemical market, which is measured in the tens of billions of dollars annually, is controlled primarily by a handful of large multi-national corporations such as DuPont, Syngenta, Bayer, BASF, Dow Chemical and Monsanto.

About US BioTec

US BioTec was established to profitably develop, manufacture, market and distribute bio-degradable, non-toxic and non-carcinogenic products to agriculture, the commercial turf industry, forestry, golf courses, professional landscapers, nurseries and mass market retail lawn and garden markets. USBO is striving to be the U.S. market leader in the expanding bio-chemical sector of the annual multi-billion dollar agricultural chemical marketplace. The Company's products are designed to rehabilitate soils, repel insects and increase crop (plant) yields through environmentally friendly alternatives to toxic man-made pesticides and caustic synthetic fertilizers. To learn more about US BioTec and its products, please visit

Certain statements in this news release may contain forward-looking information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.

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