Human BioSystems
OTC Bulletin Board : HBSC

Human BioSystems

April 25, 2007 16:15 ET

HBS BioEnergy and its Joint Venture Partner Dairy Development Group Sign Land Purchase Agreement to Build an Energy Park to Convert Waste to Energy to Power a Proposed Ethanol Production Facility

PALO ALTO, CALIFORNIA--(CCNMatthews - April 25, 2007) - Human BioSystems ("HBS" or "Company") (OTCBB:HBSC) announced on February 12, 2007 that HBS BioEnergy ("HBSE"), a wholly owned subsidiary of the Company, formed a joint venture with Visalia-based Dairy Development Groups with its waste bioconversion technology platforms to build a fully integrated Energy Park in the San Joaquin Valley of California. It was also announced that the Energy Park will utilize waste from surrounding dairies to provide the power needed to fuel a proposed ethanol plant to be located on this site.

"HBS BioEnergy/DDG Corcoran LLC Joint Venture ("JV") announced today that it has entered into an agreement to purchase approximately 925 acres of land in Tulare County, California for the proposed construction of a novel, vertically integrated ethanol generation facility which includes a waste-to-energy plant," said Len Chapman, CEO/Manager of the JV. "This is the first of several such plants planned for construction," he continued.

The purchase agreement of April 17, 2007 has set the purchase price at about $12 million with an initial deposit at the opening of escrow and total deposits in the aggregate amount of $690,000 over an 18 month period from the opening of escrow.

"The 18 month period will be used by the JV to finalize its review of the suitability of the property for its planned uses before we close escrow," said Len Chapman, CEO/Manager of the JV.

Mr. Claude Luster III, President of HBSE, noted that, "This project would be the first of its kind in the United States and would utilize proprietary technology designed to mitigate the cost for the production of ethanol. I also believe it would give HBSE a substantial competitive advantage in this rapidly developing marketplace."

The Bush administration has advocated a steady and aggressive increase in the generation of renewable fuels including ethanol. In conjunction with the removal of MTBE from the marketplace in three states, this has stimulated increasing demand for ethanol as a fuel source. In addition, most new automobiles are capable of burning E-85, a fuel mixture containing 85% ethanol.

This policy is being formulated because of the unstable geopolitical circumstances around the globe and the growing dependence of the US economy on dwindling oil reserves. It would also incentivize the American economy to supply the grain required for both the food and fuel markets.

Mr. Luster further went on to say that, "Rising corn prices make it all the more expedient to develop unique new technologies such as these to remain competitive in a tight marketplace."

Dairy Development Group assists dairymen in planning, permitting, building and operating their dairies, with a focus on environmental stewardship, waste mitigation and compliance.

HBS BioEnergy is in the business of bio-fuel production, with a team focused on locating, constructing and operating bio-fuel facilities using cutting-edge technologies. HBS BioEnergy has offices in Fresno, California.

For further information, contact Len Chapman at 559-738-5410 or Nancy Lockwood at 559-733-3737.

Certain statements contained herein are "forward-looking'' statements (as such term is defined in the Private Securities Litigation Reform Act of 1995). Because such statements include risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause results to differ materially from those expressed or implied by such forward-looking statements include, but are not limited to, the inability of HBS to raise funding for the proposed joint venture projects, failure to consummate the purchase of real property on which the park will be built, failure to obtain regulatory approvals for the construction of the energy park and ethanol plant, failure to obtain the required financing and to construct the energy park and ethanol plant, failure of the energy park and ethanol plant to meet standards, the inability to find raw material for the production of energy and ethanol or to sell the energy and ethanol on acceptable terms, the risks involved in pursuing a business unrelated to HBS' prior business, and other factors discussed in filings made by the Company with the Securities and Exchange Commission.

Contact Information

  • Human BioSystems
    Harry Masuda
    (650) 323-0943
    Investor Relations
    Yes International
    (800) 631-8127