BUGS CEO Recaps Progress in Momentous Year; Potential for Quantum Revenue Leap with New Business Strategy.

CARLSBAD, Calif. -- Robert Brehm, CEO of U.S. Microbics, Inc. (OTCBB:BUGS) (BCN:615212), an innovative environmental products and services company, recapped the company's key events and progress for the record-breaking 2005 fiscal year, as the company prepared for an exciting 2006 using a new business strategy with environmentally proactive governmental leaders seeking economic growth and a healthy future for their constituents.

Brehm opened his comments by saying, "As the year draws to a close, I want to take this opportunity to thank all of you for your continued support of BUGS and its efforts to become a leading environmental company that cleans up the world's messes to make the earth a better place for each of us. Even though we are a small company, we have experienced management with big ideas and have accomplished much with your input, support and encouragement as we build a new environmental paradigm in the 21st century."

Brehm continued, "In 2005 we made a quantum philosophical change from a company that supplies strictly environmental products and services to a company that plans to provide key resources to government leaders, including environmentally compliant real estate locations to attract foreign investment, manufacturing and service industries, creating projects that hire local labor to solve water and soil contamination problems using innovative technology, and establishing emergency response centers to protect citizens from environmental disasters while enhancing the local economy with technical training and new jobs."

Brehm further commented, "Our new philosophy has been very well received by our customers and is one of the key reasons our cleanup subsidiary, Sub-Surface Waste Management (OTCBB:SSWM), had revenues increase by 333% over the prior year. Armed with our new tools for environmental resources, our management is working very closely to implement an environmental cleanup program for the Governor of Puebla, Mexico, an environmental educational program for Semarnet (Mexico EPA) and PEMEX, and an emergency environmental response program which could create up to 400 new jobs in Puebla. Our close working relationship with state and federal government officials in Mexico could show significant revenue results in 2006 as we help the people of Mexico clean up environmental contamination using the skills of in-country strategic partners in Puebla and surrounding states."

"With the effects of Katrina, the tsunami and various environmental disasters around the world, each of us has become vitally aware of how important it is to protect our environment and its resources for a healthy future for our children. I believe our philosophical business strategy shift coupled with a new world awareness of environmental stewardship creating new economic opportunity and political capital has the potential to catapult us from a small company into a major player for social and economic growth in countries around the world. I invite our shareholders who share this vision to follow our progress as we start a very exciting year in 2006."

About U.S. Microbics Inc.

U.S. Microbics is a business development and holding company that acquires, develops and deploys innovative environmental technologies for soil, groundwater and carbon remediation, air pollution reduction, modular drinking water systems and agriculture enhancement. For more information on the company, contact Robert Brehm at 760-918-1860 x102 or visit the website at www.bugsatwork.com.

The information contained in this press release includes forward-looking statements. Forward-looking statements usually contain the words "estimate," "anticipate," "believe," "expect" or similar expressions that involve risks and uncertainties. These risks and uncertainties include the Company's status as a startup company with uncertain profitability, need for significant capital, uncertainty concerning market acceptance of its products, competition, limited service and manufacturing facilities, dependence on technological developments and protection of its intellectual property. The Company's actual results could differ materially from those discussed herein. Factors that could cause or contribute to such differences are discussed more fully in the "Risk Factors," "Management's Discussion and Analysis or Plan of Operation" and other sections of the Company's Form 10-KSB and other publicly available information regarding the Company on file with the Securities and Exchange Commission. The Company will provide you with copies of this information upon request.