SOURCE: Advanced Growing Systems, Inc.

December 26, 2006 09:10 ET

Organic Growing Systems, Inc. Ramps Production for Spring as Demand for Their Organic Fertilizer Exceeds Projections

Pallet Orders in the Past Become Multiple Truckload Orders

HOUSTON, TX -- (MARKET WIRE) -- December 26, 2006 -- Organic Growing Systems, Inc. (OGSI), a subsidiary of Advanced Growing Systems, Inc. (PINKSHEETS: AGWS), has taken several key steps to prepare for the spring growing season and the increased demand for its quality, organic fertilizer. Staff at the Mississippi factory has been augmented with new management to supervise a second shift beginning early in 2007. This shift will effectively double the production capabilities to over 2000 bags per day. Equipment has been modified and production begun on a fine granular product to complement the production of pelletized fertilizer. Final development and subsequent marketing of a third and fourth line of fertilizers is underway following a substantial number of inquiries at the Deep South Fruit and Vegetable Growers Conference in Mobile, AL. These lines will target specific growers in specific markets.

Using poultry litter as the base of its organic fertilizer, Organic Growing Systems is frequently asked by prospective customers about odor problems. "We are proud to announce that, following tests last week, we are now able to manufacture varieties of organic fertilizer without any objectionable odor," stated Dr. Marty Reiner, President of Organic Growing Systems. "Using a high grade organic plant extract that is refrigerated and prepared several times a month for incorporation with the raw material, OGSI now favorably compares with the common odors associated with leading synthetic fertilizers."

Further research is being undertaken cooperatively with Dr. William Evans, research scientist at the Mississippi State University Truck Farm Research Station in Crystal Springs, MS. Solubility/insolubility issues and the impact of the organic extract and heat are being studied. Additional tests using talc in the process have shown that power consumption can be reduced at the pellet mill. Dr. Reiner also states, "Working with Mississippi State University we will determine talc's impact on pellet deterioration and plant growth. The addition of talc is cost effective and looks to have several marketable benefits."

From the marketing perspective, OGSI is making significant inroads to the rice-growing sector of Texas agriculture. Numerous growers are seeking the advantage of growing organic rice (much of which is imported from overseas) due to the added value it brings to the profit margins they make on their rice. "With our introduction of the fine granular 4-2-2, golf courses are expressing an unprecedented interest in using OGSI's product," stated Steve Wood, head of sales for Organic Growing Systems. "We needed an organic product that immediately delivered micro nutrition and insoluble nitrogen to the greens. The larger pellets are less effective in particular on the greens. The new fine granular we are now producing actually blankets the green and melts into the soil."

The company is also pleased to announce the following customer activity:

In Alabama a major turf farm will begin growing tests comparing the productivity differences between OGSI fertilizers. And in the retail marketplace, a leading suburban Houston nursery that markets and uses TOP Organic Fertilizer (OGSI's premier product) has ordered three truckloads in preparation of the spring demand for organic fertilizer.

The Harris County Flood Control District is continuing through the winter with several turf and maintenance projects requiring fertilizer. TOP Organic Fertilizer is their product of choice and in this slow season they still are requiring a truckload each week. Product success during this past year has led the County to renew its contract for another year (beginning March 1, 2007) and to expand product use to numerous sports venues.

OGSI is now considered an asset to Lawrence County, MS and has been invited to participate in upcoming local events. OGSI's labor force growth is thought of as a bright spot in the local economy where a recent wave of job layoffs has taken its toll. OGSI is perfectly positioned to benefit from the increased demand nationally for organic food and the related growth of the organic fertilizer industry.

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

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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.

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