SOURCE: US BioTec, Inc.

March 20, 2007 07:30 ET

US BioTec Announces Initial Step for Entering Bio-Diesel Market

GLEASON, TN -- (MARKET WIRE) -- March 20, 2007 -- US BioTec, Inc. (PINKSHEETS: USBO), an emerging player in the rapidly growing bio-chemical sector of the annual multi-billion dollar industries related to agriculture, lawn and garden, and golf course products, announces today it has tendered an acquisition proposal to acquire "Biofuel of Tennessee LLC" an existing bio-diesel manufacturing operation. The bio-diesel operation is capable of processing bio-diesel or B-100 from soy oil, canola oil or animal fats.

"We were impressed with the sophistication of their fuel formulation technology and the plant is equipped and set-up with new cutting edge equipment. The plant is a combination of German, English and American engineering," states Jimmy Joyner, CEO of USBO. "The plant is less than one year old and presently has an estimated annual bio-diesel capacity of 10,000,000 gallons and we can economically expand this volume to approximately 14 million gallons.

"After several months of due diligence dedicated toward evaluating the aspects of acquiring the PHS Group, USBO management and consultants agreed the acquisition of a bio-fuel company was a better fit with the USBO's core products than acquiring a petroleum refinery with significant debt. The bio-fuel concept was even more popular than the small refinery deal among the Company's possible financing candidates, as indicated by the interest USBO has received from investment bankers in NYC about this and other biotech related projects. We are now conducting the due diligence necessary to secure funding and develop strategic alliances for this bio-diesel operation," concludes Mr. Joyner.

Timing for the Company's entry into the bio-fuel industry is well planned as bio-fuels is a hot stock sector and is receiving tremendous interest from various types of investment entities. Government programs promoting the bio-fuels of ethanol and bio-diesel is a well received benefit for manufacturers of these fuels. Government subsidy payments and tax credits combine to provide approximately $1.10 per gallon of total benefits for bio-diesel production. All these factors from the private and government sectors provide validity that these types of eco-friendly and "home grown" fuels are the "new generation" of fuels for America.

The strategic and financial advantages offered to an agriculturally oriented biotechnology company such as USBO through the opportunity to enter the emerging bio-diesel and ethanol markets in their initial stage of growth is readily apparent. The new opportunities this change of fortune offers through new advanced technology, and restructured government incentives, combined with an ecologically minded society, provide uniquely exciting possibilities that form a win-win-win scenario for US BioTec Products, the Producers of America's food, fiber and grain, plus the ecological benefits for the United States as a nation.

About US BioTec

US BioTec was established to profitably develop, manufacture, market and distribute bio-degradable, non-toxic and non-carcinogenic products to agriculture, the commercial turf industry, forestry, golf courses, professional landscapers, nurseries and mass market retail lawn and garden markets. USBO is striving to be the U.S. market leader in the expanding bio-chemical sector of the annual multi-billion dollar agricultural chemical marketplace. It has already begun taking the necessary steps to negotiate distribution and joint venture contracts to facilitate its nationwide expansion over the next few years. The Company's products are designed to rehabilitate soils, repel insects and increase crop (plant) yields through environmentally friendly alternatives to toxic man-made pesticides and caustic synthetic fertilizers and herbicides. The company also operates an OTR trucking fleet through its TelStar Logistics Corp. subsidiary and is exploring entry into the petrochemical/alternative fuels market through its newest subsidiary, US BioTec Energy Services Corp. To learn more about US BioTec and its products, please visit www.usbioteccorp.com

Certain statements in this news release may contain forward-looking information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.

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