SOURCE: US BioTec, Inc.

December 19, 2006 09:30 ET

US BioTec Announces Progress on Preparation of Its Financials and Plans for Move to OTCBB

GLEASON, TN -- (MARKET WIRE) -- December 19, 2006 -- 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 that it has secured approximately 90% of the financial compilations needed for completion of its annual 2004, annual 2005 and first three quarters of 2006 consolidated financials through its accounting firm. The Company plans to deliver all of its completed, up-to-date financials to a SEC-approved auditing firm for auditing within the next several weeks.

Completion of the Company's financials is part of US BioTec's short-term plan to have its financials audited soon after the first of the year. While the Company's financials are being audited, US BioTec's SEC counsel will initiate the filing of an SB-10 form and the filing of a 15C211 pursuing the effort to reach its goal of achieving "fully reporting" status and listing on the OTC Bulletin Board.

"These achievements, along with our other filings will fit hand-in-glove with the acquisition of the PHS Group's multimillion dollar revenues and asset base. These filings, plus the planned addition of the PHS Group's assets and revenues should establish a solid foundation as US BioTec's team of advisors guides the Company towards a successful OTCBB listing and beyond to another exchange, which is our ultimate goal. Our advisors will work closely with us through meetings this week and the rest of the holiday season to complete the due diligence process and allow us to pursue the planned PHS Group acquisition," says Jimmy Joyner CEO of US BioTec.

US BioTec announced earlier this month that the company is working to complete the acquisition of the PHS Group, Inc. an energy company with four subsidiaries whose operations began in 1932. Initial research shows the total combined cash flow of all four of the PHS Group's subsidiaries was over $81,000,000 in gross revenues in the fiscal year of 2005-2006. US BioTec firmly believes that the revenue potential for the PHS Group can be significantly higher as its refinery is supplied with enough crude to run at full capacity.

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

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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