SOURCE: Advanced Plant Pharmaceuticals, Inc.

December 19, 2006 16:30 ET

Advanced Plant Pharmaceuticals, Inc. and H & H Equipment Co. (HHE) Sign Letter of Intent Agreement To Provide $1.2 Million in Financing for Construction of Two Biodiesel Plants

NEW YORK, NY -- (MARKET WIRE) -- December 19, 2006 -- Advanced Plant Pharmaceuticals, Inc. (OTCBB: APPI) announced today the signing of a Letter of Intent (LOI) agreement with H & H Equipment Company, Inc. (HHE), a division of Hannah Industries, for the necessary financing to construct two biodiesel plants.

HHE, a Kentucky corporation engaged in coal mining, loading and blending, washing and marketing and brokering of coal for utilities and other large industrial users, is a privately held company. According to the terms of the LOI, HHE will provide $1.2 million in funding to APPI in exchange for a minority interest in APPI in the form of preferred convertible stock. The funds will primarily be used to construct two biodiesel plants, with one plant to be constructed in eastern Kentucky and one in Palm Beach County, Florida.

As previously announced, the biodiesel plant in Kentucky is for a coal mine which will require 4-5 thousand gallons a day. Revenue for the first full quarter of operation is projected at $1 million, or $4 million annually.

Separately, APPI has announced merger negotiations with an undisclosed clean coal technology company. The clean coal patented process is designed to increase the BTU of low quality coal which substantially increases the value of low-grade lignite and sub-bituminous coal. The environmentally friendly process captures and removes harmful elements without disintegrating the coal and destroying further processing. Significantly, the patented process requires only 4-18 minutes retention time vs. the industry standard of 2-6 hours. Further development will require limited capital expenditures to be funded via grants from future partners.

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About Advanced Plant Pharmaceuticals, Inc. (

Advanced Plant Pharmaceuticals, Inc. (APPI) focuses on the research and development of whole plant-based nutritionals. The company has a composition-oriented patent for a proprietary process of utilizing whole plants to safely manufacture all-natural nutritional supplements. APPI markets and distributes its line of products including Lo-Chol™ worldwide through various sales distribution channels.

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