Human BioSystems
OTC Bulletin Board : HBSC

Human BioSystems

April 17, 2007 16:15 ET

HBS BioEnergy Signs Land Lease with Port of Morrow for the Proposed Construction of Ethanol and Bio-diesel Renewable Fuel Facilities

PALO ALTO, CALIFORNIA--(CCNMatthews - April 17, 2007) - (OTCBB:HBSC) - Human BioSystems ("HBS") announced today that HBS BioEnergy ("HBSE"), its wholly owned subsidiary, has signed a land lease with the Port of Morrow in Boardman, Oregon for the proposed construction of both an ethanol plant and a bio-diesel facility. Both are considered renewable fuel facilities.

The terms of the lease call for a 20 year lease with 10 successive renewable options totaling an additional 50 years if exercised. The lease also provides for an initial three-month feasibility period and an additional three-month extension, allowing HBSE to conduct further due diligence on the suitability of the site for HBSE's intended purpose to build a 100 million gallon ethanol and a 50 million gallon bio-diesel facility on the leased property.

The growing demand for renewable fuel and the current limited supply combine to drive market needs for similar operations. It is believed that bio-diesel is also especially well suited to help diminish the carbon footprint that is a major contributor to the process of global warming.

Both projects will take advantage of HBS BioEnergy's recent joint venture and affiliation with Agri-Mass Enviro of Visalia, California to supply the facilities with thermal and electrical energy costs that management believes will be 50%-80% below typical facilities that are fueled by natural gas. HBSE also plans to employ a value added process platform that is designed to provide greater financial risk mitigation compared to standard facilities, by producing value added salable end products in addition to ethanol and bio-diesel fuels.

The President of HBSE, Claude Luster III, said "The location and logistical attributes of the 90-acre Port of Morrow site will help give HBSE an advantage in most cost effectively producing these fuels and delivering them to consumers especially on the west coast of the United States.

Governmental support for the establishment of this type of novel approach should help reduce our demand for oil-based fuels, which are generally produced in regions of the world with unstable political profiles."

Mr. Luster further went on to state, "In combination with the Port of Morrow site, our cost-mitigating approach and vertically integrated technology are perfectly adapted for the production of these bio-fuels and should allow HBSE to compete effectively in this rapidly growing industrial market."

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. The Company has offices in Fresno, California.

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, failure to successfully complete the due diligence process during the feasibility period, the inability of HBS to raise funding for the proposed ethanol and bio-diesel projects, failure, failure to obtain regulatory approvals for the construction of ethanol and bio-diesel plants, failure to obtain the required financing and to construct the ethanol and bio-diesel plants, failure of the ethanol and bio-diesel plants to meet standards, the inability to find raw material for the production of ethanol and bio-diesel or to sell the ethanol or bio-diesel 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