BUGS CEO Updates Shareholders on Current Quarter Events.

- Subsidiary Financing, Mexico Business Development, Acquisition Due Diligence Are Management Focus

CARLSBAD, Calif. -- U.S. Microbics (OTCBB:BUGS), a global environmental enhancement company, announced that its management continues to work on key strategic projects to prepare the company for business expansion over the next year. These projects include financing for a subsidiary doing business in Mexico, acquisition candidate due diligence, Bio-Raptor[TM] business development, and current contract implementation.

Robert Brehm, CEO of U.S. Microbics, commented, "In order for us to prepare for the expected increase in future project revenues from the Mexico environmental cleanup company, Environmentaltec International, S.A de C.V. (ETI), operated by our subsidiary, Sub-Surface Waste Management (OTCBB:SSWM), we have worked with our investment bankers to finalize the financial analysis and capital markets valuation model used in the $7MM Structure Financing Information Memorandum for ETI. The valuation model computes a present value of ETI based upon current and pro forma revenue and net income over the fiscal years 2008 to 2010 taking into consideration industry specific market ratios and risk factors. The valuation analysis is used to structure a proposed debt and equity financing transaction to present to investors. After significant due diligence and financial analysis, I am happy to report we are now ready to present the Information Memorandum to private and institutional investors who have an interest in this transaction."

Brehm continued, "Concurrent with the ETI financing project, ETI has continued its business development efforts in Mexico with additional site visits and project proposal presentations by our engineering and support staff. They are also planning the task implementations for the current Puebla contracts and developing staffing requirements for project billable and administration positions for ETI in a new office in Mexico City."

Brehm further stated, "We have previously identified an environmental transportation company as a potential acquisition and we are in the due diligence and strategic planning stage for this company which could provide additional revenues of $10MM plus per year along with financing for its own acquisitions and future growth in the U.S. and possibly Mexico with ETI target projects. We not only have to understand the transportations company's business, but we also have to plan for its expansion and growth as well as understand the impacts upon our financial statements and shareholder value. We are trying to get this transaction completed before the end of our fiscal year on September 30, but the timing is contingent upon completion of the ETI financing and satisfactory due diligence results."

Brehm concluded by saying, "Our strategic game plan is to complete the ETI financing, continue the current projects in Mexico and finalize pending contracts and prepare to staff and deploy personnel in a new Mexico City office by September 30. After the ETI financing is done we plan to acquire the environmental transportation company and be ready to kick off FY 2008 as a banner year in our company history."

About U.S. Microbics Inc.

U.S. Microbics is an environmental enhancement company that collaborates with a global business and political network to implement innovative technologies in developing nations for environmental cleanup, agriculture yield enhancement, and waste stream optimization using local resources to stimulate regional economies.

For more information on the company, contact Robert Brehm at 760-918-1860 x102 or email to [e-mail] or visit the website at www.usmicrobics.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.