SOURCE: US Farms, Inc.

August 20, 2007 06:00 ET

US Farms, Inc. Announces Second Quarter 2007 Financial Results

Second Quarter Reported Revenue of $2,402,521 and Six Month Reported Revenue of $4,076,470

SAN DIEGO, CA--(Marketwire - August 20, 2007) - US Farms, Inc. (OTCBB: USFI), a diversified commercial Farming and Nursery company today announced financial results for the second quarter ending June 30, 2007.

US Farms, Inc. posted revenue of $2,402,521 for the quarter ended June 30, 2007. The second quarter results reflected significant revenue growth in the wholly owned subsidiary, California Produce Exchange. California Produce Exchange distributes a variety of bulk vegetables and fruits to brokers, distributors, food converters and Retail and Wholesale grocery stores.

Gross profit for the quarter was $237,593, or 9.9% of revenues, with a net loss for the period of $1,239,110 or ($.04) loss per basic share. This compares to a net loss for the same period last year of $451,409 or ($.05) loss per basic share. The increase in the operating loss was due mainly to the costs associated with the startup of Sammy's Produce, Inc., a wholly owned subsidiary of US Farms, Inc., business development costs, and general and administrative expenses associated with the company's growth strategy.

Yan Skwara, President and Chief Executive Officer, US Farms, Inc., stated, "In the second quarter we achieved key milestones that position the Company for continued accelerating revenue growth for the remainder of fiscal year 2007 and well into 2008."

Second quarter business highlights include:

--  US Farms, Inc. hires Sam Nucci, VP Sales & Marketing and starts
    operations of Sammy's Produce, Inc. (SPI), a wholly owned subsidiary of US
    Farms, Inc. SPI sources and distributes bulk produce items to large
    regional customers and through food service operations.
--  US Farms, Inc. appointed Iraj Shadfar, VP Sales & Marketing directing
    operations of World Garlic & Spice, Inc. (WGS), a wholly owned subsidiary
    of US Farms, Inc. WGS will be major importer and distributor of garlic
    through its Los Angeles facilities.
--  US Farms, Inc. completes construction of a two acre state-of-the-art
    shade house nursery facility in Southern California which will enable the
    company to expand its fledgling nursery operations.
--  The Company has successfully raised $3,219,213 from private investors
    as a result of a private placement of common stock and warrants.
    

US Farms, Inc. posted revenue of $4,076,470 for the six months ended June 30, 2007. There was no sales activity in the comparable period last year as the company refocused its business activities to the agricultural sector during the second and third quarters of 2006.

Sales Revenue of Individual Subsidiaries

--  California Produce Exchange had sales of $3,634,780. This subsidiary
    grows and sells asparagus and sources and distributes fresh market tomatoes
    and other bulk vegetables and fruits to brokers, distributors, food
    converters and grocery stores.
--  American Aloe Vera Growers had sales of $324,652. 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 $117,038. 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.
    

Gross profit for the six months ended June 30, 2007 was $770,156, or 18.9% of revenues, with a net loss for the period of $1,789,115 or ($.06) loss per basic share. This compares to a net loss for the same period last year of $1,527,909 or ($.20) loss per basic share. The increase in the operating loss was due mainly to the costs associated with the startup of Sammy's Produce, Inc., a wholly owned subsidiary of US Farms, Inc., business development costs, and general and administrative expenses associated with the company's growth strategy.

Cash utilized from operations for the first six months of 2007 was $2,910,140. The cash and marketable securities balance at June 20, 2007 was $674,826. Shareholders' Equity, at June 30, 2007, for the Company improved by $3,604,171 compared with the same period for the prior year mainly due to capital raises.

Yan Skwara commented, "The first half of 2007 achievements have been outstanding. Our growth initiatives, market penetration and expansion will continue. We thank our shareholders for their support and vow to continue to build shareholder value in the future."

About US Farms, Inc.

US Farms, Inc. is a diversified commercial agriculture company. The company grows, markets and distributes horticultural products through a number of subsidiaries. The horticultural products are sold through supermarkets, home centers, retail merchandisers, garden centers, re-wholesalers, and landscapers throughout the United States and Canada. Through internal growth and strategic acquisitions the company is expanding its market share in its nursery and specialty produce businesses. Currently the company has subsidiaries which provide a full range of products including Aloe Vera, Cactus, Succulents, Jade, rare and exotic Palm Trees and Cycads. Those products are offered along with produce that includes Garlic, Aloe Vera, Asparagus, Tomatoes and Wheat Grass. In 2007 the company plans to make over 100 specialty niche produce items available to consumers.

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.

Visit US Farms, Inc. Web site at www.usfarmsinc.com.

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 or 800-845-9133
    Fax: 858-488-2828

    Corporate Financial Advisors
    Allen & Assoc
    Ms. Marcia Allen
    310-820-8730