BUGS Management Preparing Company for Significant Growth.

- Project Financing, Acquisition Due Diligence, Bio-Raptor[TM] Business Development -

CARLSBAD, Calif. -- U.S. Microbics (OTCBB: BUGS), announced that its management is working on many strategic projects which will prepare the company to take on significant new future business over the next year. These projects include Mexico project financing, acquisition candidate due diligence, Bio-Raptor[TM] business development, and existing contract commencement and execution. The completion of these tasks could transform the company, which had revenue of $514K last year, into a company with over $8MM in Mexico environmental cleanup and infrastructure contracts commencing this fiscal year and anticipated acquisition company revenues over $9MM in the U.S.

Robert Brehm, CEO of U.S. Microbics, commented, "In order for us to prepare for the significant expected increase in project revenues from our Mexico environmental cleanup operations run by our subsidiary, Sub-Surface Waste Management (OTCBB: SSWM), and prepare for synergistic acquisitions which provide U.S.-based revenue, we have expended significant resources dealing with new Mexico governmental political changes and business development in a foreign country, redefining our mission as an environmental enhancement company in developing nations, and delineating the long-range objectives for integrated growth which uses our core environmental products and services."

Brehm continued, "Over the past two years we have developed our skills, knowledge and experience in delivering environmental solutions for projects in Mexico both on the commercial level for a U.S. company maquiladora operation and on limited governmental projects initiated prior to the state and federal elections last year. Our technology works well in Mexico and the country needs to implement environmental infrastructure to meet World Trade Organization and ISO manufacturing standards as well as provide clean water and soil for its populace, but the country also has limited environmental infrastructure to enforce pollution compliance on a commercial level. However, many politicians and federal agencies are taking a proactive stance for environmental compliance and we have been able to obtain state contracts for cleanup and pollution permitting as well as federal contracts with the electric utility as we partner with regional universities to hire students and create jobs in a new industry. We are beginning to commence these state and federal contracts now that federal budget allocations under the new government have been released."

Brehm further stated, "We expect that these initial contracts for the governors and the electric utility are only the beginning of many to come in the future as Mexico begins to implement additional environmental projects such as emergency response centers, countrywide pollution permitting, and U.S. EPA standards for landfills. In anticipation of this future business we hired investment bankers to provide project financing for the current projects and the larger ones currently under consideration. The bankers have completed their due diligence and we are in the final stages of project financing for the initial Mexico projects. The bankers have also indicated a desire to have first right of refusal on the larger projects as well."

Brehm continued, "We have experienced the growing pains of a new political government in Mexico recently elected which manifests itself in significant project delays as new politicians take office and budgets begin to flow. Fortunately many of our projects were budgeted last year and are now being let to us so that we can begin to recognize revenue as we start billing work on the contracts. To help stabilize the revenue swings we are experiencing with the governmental sector in Mexico, we are working with our investment bankers to acquire synergistic environmental companies with commercial business in the U.S. which can also be replicated in Mexico, Central and South America. We have previously identified an environmental transportation company as a potential acquisition and we are in the final stages of closing that transaction which could provide additional revenues of $9MM plus per year. We don't expect to stop with only one acquisition and we are looking at others in material recycling, waste stream optimization, bio-fuels, and agricultural bio-energy."

Brehm summarized by saying, "We are finally beginning to see the results of the past two years of business development in Mexico as contract revenues begin to flow, making shareholder value increase and allowing new financing for acquisitions and new business development. I expect to see higher revenue this quarter with a larger ramping up next quarter as equipment is deployed and labor is billed with the new contracts and we start to recognize revenue from the expected acquisition."

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.