SOURCE: Advanced Growing Systems

August 01, 2006 09:05 ET

Organic Growing Systems, Inc. Makes Major Advances in Developing Organic Fertilizer

Market Resistance Successfully Addressed

HOUSTON, TX -- (MARKET WIRE) -- August 1, 2006 -- Organic Growing System's Inc. (Subsidiary of Advanced Growing Systems, Inc.) (PINKSHEETS: AGWS) has developed one of the finest organic fertilizers on the market. Now, as the new company begins to make inroads to the $44 billion dollar a year fertilizer industry in the United States, it finds itself in a most advantageous position.

Traditionally, organic fertilizer has met marketplace resistance due to either cost or the perception that the finished product has an odor reminding people of the raw material used to create it. TOP Organic Fertilizer, manufactured now in Mississippi and soon to be manufactured in Georgia, uses raw poultry litter (not composted) as its basis. Applying organic chemistry, the product is changed from a source of soluble (i.e., polluting) Nitrogen, to insoluble non-polluting Nitrogen. During this process the issue of odor is addressed and the scent removed. Many years of research and work have gone into developing this new process. No longer is the product poultry manure, but is now a registered organic fertilizer.

TOP Organic Fertilizer works by feeding microbes in the soil. They in turn digest the fertilizer and release nutrition that the plants take up through their roots. "TOP feeds the soil and the soil feeds the plants" is the way OGS, Inc. President and CEO Lon Musgrove describes the process. The result is a single fertilizer that meets the needs of all plants, since all plants will do well in a healthy, nutritious soil. "Thus," Musgrove continues, "you don't need a fertilizer for the flowers in your garden, another for the lawn and still another for the trees. One size fits all."

TOP Organic Fertilizer is sold in 40-pound bags in the retail market and in one-ton totes for agricultural and large-scale applications. Customers are finding that with the increase in price of natural gas, the traditional source of synthetic chemical fertilizers, the new organic fertilizer is a good deal. Also, by requiring less watering and fewer applications each year, savings of water and fuel costs are now being found.

Sales continue to grow in all segments of the marketplace. One retailer reported selling 200 more bags per week this spring as a result of the decrease in odor. A major turf grower commented how his workers asked whether they were using a different fertilizer since it did not smell like what they were used to.

As the Company fills capacity in the Mississippi Plant, they plan to construct a new facility in Northern Georgia. This new plant will increase capacity over 10 times current levels. Advanced Nurseries (the other operating subsidiary of AGWS) has begun to introduce the fertilizer products to its current list of customers that include some of the largest commercial landscape and real estate development firms in the Southeast.

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 www.AGSIncorporated.com. In order to receive regular updates on AGWS, please click on the following link: http://www.b2i.us/irpass.asp?BzID=1435&to=ea&s=0to=ea&s=0

FORWARD-LOOKING STATEMENTS:

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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