U.S. BioTec, Inc.

March 08, 2005 10:24 ET

US BioTec, Inc.: Production of First Bio-chemical Products Set to Begin


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: U.S. BIOTEC, INC.

OTC Bulletin Board SYMBOL: USBO

MARCH 8, 2005 - 10:24 ET

US BioTec, Inc.: Production of First Bio-chemical
Products Set to Begin

LAS VEGAS, NEVADA--(CCNMatthews - March 8, 2005) -

New Corporate Structure and Ventures Announced

US BioTec, Inc. (OTCBB:USBO), an emerging player in the rapidly growing
bio-chemical sector of the multi-billion dollar agri-business industry,
today announced that it has completed renovation of its new corporate
offices in Gleason, Tennessee (Weakly County). USBO is also finalizing
negotiations for a formulation plant that should be in operation by
April 15th. The new corporate headquarters complex will host most of the
growing company's operations, including its executive offices, offices
for TelStar Logistics Corp. its wholly owned trucking subsidiary, and
TelStar Funding Corp (TLC) its wholly owned factoring company, the
parent company's latest venture.

All of US BioTec's products are non-toxic, non-carcinogenic and
bio-degradable alternatives to the toxic and sometimes carcinogenic
agrichemicals that have been widely used by farmers for decades. The
agrichemical market, which is measured in the tens of billions of
dollars annually is controlled primarily by a handful of large
multi-national corporations such as DuPont (NYSE: DD), Bayer (NYSE:
BAY), BASF (NYSE: BF), Dow Chemical (NYSE: DOW) and Monsanto (NYSE: MON).

"We are finally nearing the point that we have been working for since
going public last year. We are close to beginning production of our
first eight or nine bio-chemical products for agricultural clients in
April. We expect to begin realizing immediate revenue from these
products as we begin delivering them to farmers in the Southeastern U.S.
within the next 60-90 days. US BioTec is quickly transitioning from
development stage to production phase" says Jimmy Joyner CEO of US
BioTec, Inc.

"Over the past several months USBO has also initiated the formation /
acquisition of an over-the-road (OTR) trucking company. USBO has
facilitated the acquisition of Scorpion Logistics, an OTR refrigerated
trucking company into TelStar Logistics Corp. In doing so, TLC has
successfully secured the necessary DOT permits, attained Tennessee
registration and acquired an ultra-low fleet insurance program. USBO has
hired the past owner of Scorpion Logistics, Thomas Lynch to serve as
President of the TLC subsidiary. The Company has also received a verbal
commitment from Dave Edwards of Phoenix, AZ, who has over 15 years
experience in trucking operations, to act as its V.P. of Safety
Compliance. In addition, Mr. Lynch has received verbal commitments from
10 owner/operators willing to lease-on with TLC. With these
accomplishments we feel TLC is set to begin commercial hauling
operations in about three weeks," continues Joyner.

The basic premise behind USBO's entry into the trucking market is that
if USBO products are going to help growers produce commodities, then TLC
trucks could help growers haul their commodities. USBO already has
contacts with growers and a number of produce brokers that can position
TLC favorably with growers. In addition, TCL trucks can also haul USBO
products.

"On other fronts, our offices are finished, the computers have been
delivered, the intergraded accounting / operations management system is
being set up and our staff has already started moving in. The Company's
"US BioTec Products Corp" subsidiary will be running the production
facility. The primary production equipment is on the way and production
operations of our agricultural bio-chemical products should begin in a
matter of weeks. We anticipate product sales staring during the second
quarter of this year," concludes Joyner.

US BioTec has incorporated four separate subsidiaries: US BioTec
Products, Ag Services, Inc., TelStar Logistics, and TelStar Funding
Corp., which will all operate under the USBO parent corporation. The
company's US BioTec Products subsidiary is divided into three separate
biochemical divisions: Agriculture, Commercial and Retail. All of the
products being launched in 2005 will come from the Company's Agriculture
division. In 2006, US BioTec plans to launch the first lawn & garden
products from its Retail division. In 2007, the Company plans to begin
offering products from its Commercial division, which will be targeted
for the commercial landscaping, turf farm and golf course markets.

The Ag Services subsidiary is the retail farm supply outlet and flagship
outlet for the bio-chemical products. The subsidiary's retail business
is currently in full swing as the spring fertilizer rush is starting.

TelStar Funding Corp. (TFC) will be the factoring company that will
finance the receivables from TelStar Logistics Corp's trucking
operations in order for TLC to pay its owner operators more quickly than
most other companies in the refrigerated transport industry. USBO
believes that the facet of quick pay creates another in-house profit
center, while providing TLC with an excellent driver recruitment tool.

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. 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. 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.

-30-

Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    US BioTec
    Jimmy Joyner
    (713) 894-1503
    ir@usbioteccorp.com