SOURCE: US Farms, Inc.

April 15, 2008 15:56 ET

US Farms, Inc. Announces Record Revenues of $9.5 Million for the Year Ended December 31, 2007

SAN DIEGO, CA--(Marketwire - April 15, 2008) - US Farms, Inc. (OTCBB: USFI), a diversified commercial Farming and Nursery company, today announced its audited financial results for the year ended December 31, 2007. Full details are available on the Form 10-KSB filed at http://www.sec.gov.

US Farms, Inc. posted revenue of $9,460,585 for the year ended December 31, 2007 versus $361,414 for 2006. The Company refocused its business activities in the agricultural sector during the second and third quarters of 2007, which provided the framework for this significant growth. The majority of growth was from revenues generated through the California Produce Exchange business segment. California Produce Exchange distributes a variety of bulk vegetables and fruits to brokers, distributors and food converters.

Gross profit for 2007 was $771,701, or 8.2% of revenues, with a net loss for the period of $5,955,327 or ($0.18) loss per basic share. This compares to a gross profit of $36,141, or 10% of gross revenues, and a net loss of $4,471,910, or ($0.33) loss per basic share, for 2006. The increase in the operating loss was due primarily to costs associated with the startup of the Company's Sammy's Produce, Inc. and World Garlic & Spice, Inc., both wholly owned subsidiaries of US Farms, Inc., in addition to business development costs, and general and administrative expenses associated with the implementation of the Company's growth strategies.

Yan Skwara, President and Chief Executive Officer, US Farms, Inc., stated, "In 2006, we planted the seed; in 2007, we started to grow; in 2008 and beyond, we should begin to bear fruit. We have met key milestones in terms of revenue growth and market penetration. We have acquired and began operating wholly owned subsidiaries that broaden our product offering to provide for year-round sustainable growth. We thank our shareholders for their continued support and remain committed to building shareholder value in the future."

2007 Company Highlights:

--  From January to March of 2007, the Company harvested its first Winter
    Asparagus crop that generated in excess of $1.4 million in revenues.
--  In February 2007, the Company purchased the assets of a San Diego
    based nursery and formed American Nursery Exchange, Inc., a wholly owned
    subsidiary of US Farms.
--  In April 2007, the Company hired Sam Nucci as VP Sales for its newly
    formed Sammy's Produce Exchange, Inc., a wholly owned subsidiary of US
    Farms. Revenues for the nine months in 2007 for Sammy's Produce were in
    excess of $6.2 million.
--  In July 2007, the Company formed and began operating its wholly owned
    subsidiary US Ag Transportation, Inc., which received a US Department of
    Transportation license and registration for Refrigerated Produce,
    Agriculture and Food transportation nationwide.
--  In August 2007, the Company formed World Garlic and Spice, Inc., a
    wholly owned subsidiary of US Farms. Revenues for World Garlic and Spice
    for 2007 were in excess of $600,000.
--  In October of 2007, the Company formed US Trading Group, Inc., a
    wholly owned subsidiary, and began importation of Chinese garlic. US
    Trading Group imported garlic in excess of $450 thousand during 2007.
--  In October 2007, the Company appointed Darin Pines, an agricultural
    industry veteran as Chief Operating Officer.
--  During 2007, the Company successfully raised $4,092,049 from private
    investors as a result of a private placement of common stock and warrants.
    

Sales Revenue by operating business segment for the year ended December 31, 2007:

--  California Produce Exchange had sales of $8,628,922. This subsidiary
    grows and distributes asparagus, fresh market tomatoes, garlic and other
    bulk produce through retail and wholesale distribution channels in Southern
    California.
--  American Aloe Vera Growers had sales of $677,840. This subsidiary
    farms and sells domestically grown aloe vera potted plants, aloe vera boxed
    produce and bulk aloe vera leaves to brokers, re-wholesalers and directly
    to retailers.
--  American Nursery Exchange had sales of $126,409. This subsidiary grows
    and sells palms, jade, cycads and other potted plants to grocery stores,
    garden centers, landscapers, home improvement centers and via Internet/mail
    order.
    

Cash utilized from operations 2007 was $4,137,669. The cash and marketable securities balance at December 31, 2007 was $24,487. As of September 30, 2007, shareholders' equity improved by $1,202,865 compared with December 31, 2006 mainly due to capital raises.

About US Farms, Inc.

US Farms, Inc. (OTCBB: USFI) is a diversified commercial Farming, Nursery and Brokerage company based in Southern California. The Company's principal operations are located in Southern California in the Imperial Valley, North County San Diego and Los Angeles. US Farms, Inc. grows, markets and distributes horticultural products through a number of wholly owned subsidiaries which include: American Nursery Exchange, Inc. (ANE); California Management Solutions, Inc. (CMS); California Produce Exchange, Inc. (CPE); American Aloe Vera Growers, Inc. (AAVG); Imperial Ethanol, Inc. (IE); Sammy's Produce, Inc. (SPI); US Ag Transportation, Inc. (USAT); US Produce, Inc. (USPI); Texas Garlic & Spice, Inc. (TGS); US Trading Group, Inc. (USTG); and World Garlic & Spice, Inc. (WGS).

For more information on US Farms, Inc., please visit http://www.usfarmsinc.com. US Farms, Inc. is publicly traded on the Over-the-Counter market under the ticker symbol USFI.

Safe Harbor

Forward-looking statement: Except for historical information, this press release contains forward-looking statements, which reflect the Company's current expectation regarding future events. These forward-looking statements involve risks and uncertainties, which may cause actual results to differ materially from those statements. Those risks and uncertainties include, but are not limited to, changing market conditions and other risks detailed from time to time in the Company's ongoing quarterly filings, annual information form, and annual reports. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. In light of these risks, uncertainties and assumptions, the forward-looking events in this press release might not occur.

Contact Information

  • Contact:

    US Farms, Inc.
    Yan K. Skwara
    President
    Tel: 858-488-7775 Ext 101 or 800-845-9133
    Fax: 858-488-2828

    Investor Relations
    Flagler Communications, an affiliate of OTC Financial Network
    Jamie Dryer
    561-837-8057, Ext. 2
    Email Contact
    www.otcfn.com/usfi