BUGS Prepares for Bulletin Board Exchange -BBX- Application; BBX Provides First Step for BUGS Listing on NASDAQ Exchange.

Business Editors

CARLSBAD, Calif.--(BUSINESS WIRE)--Sept. 24, 2002

U.S. Microbics Inc. (OTCBB:BUGS) announced that it intends to apply for a listing on the new NASDAQ Bulletin Board Exchange (BBX) when notified that applications can be submitted.

Upon acceptance of a BBX listing, BUGS will have a new trading symbol and will no longer trade on the OTC Bulletin Board.

The Nasdaq Stock Market Inc. has announced the future launch of a new market, the Bulletin Board Exchange (BBX) which will eventually take the place of the OTC Bulletin Board (OTCBB). For six months after the launch of the BBX, Nasdaq plans to operate the BBX and the OTCBB, after which Nasdaq will terminate the OTCBB and only operate the BBX. Nasdaq believes that the BBX will appeal to the same companies that are currently quoted on the OTCBB, but will be a higher quality market. Companies not meeting the BBX requirements can still trade on the Pink Sheets if qualified. For more information see the BBX Web site at: www.bbxchange.com.

Robert Brehm, CEO of U.S. Microbics Inc., stated, "I believe the BBX corporate governance standards and shareholder requirements will create a market of higher quality companies, like BUGS, and will help provide our shareholders with improved liquidity, better protection against stock price manipulation, and enhanced shareholder protection. We already meet or exceed many of the BBX listing requirements and expect to surpass all requirements within twelve months of listing. With a more efficient market of higher quality companies our stock price should reflect our true value better than existing markets."

U.S. Microbics Inc. is an emerging global environmental company using conventional and biological technology to provide better, faster, cheaper and safer environmental cleanup solutions. For further information about U.S. Microbics contact Robert Brehm by phone at 760/918-1860 x 102 or learn about the company by visiting the Web site 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.