Bio-Con Sets Up Subsidiary For International Marketing of Agricultural Products; Industry Expert, Rene De S. Palomares To Spearhead Effort.

Business Editors

CARLSBAD, Calif.--(BUSINESS WIRE)--Aug. 14, 2000

US Microbics, Inc. (OTCBB: BUGS), announced today that its subsidiary Bio-Con Microbes, Inc. (Bio-Con) has formed a Mexican Corporation to serve as it's international marketing arm for agricultural products and services based upon naturally occurring micro-organisms and additives manufactured by the company.

Gus Olson, President of Bio-Con announced that Rene De S. Palomares has been appointed President of Natura Ag, SA de CV. Olson stated "Sr. Palomares has twenty years experience in manufacturing and marketing bio-rational fertilizers to growers throughout the world. He also has an extensive background in direct farming of high-value crops. A prominent citizen, Sr. Palomares is well known and respected throughout Mexico and Latin America."

Olson continued, "Natura Ag will have responsibility for sales of our products in Mexico and Latin America. Sr. Palomares believes in building on strengths and focusing marketing efforts in those areas where existing business relationships can lead to immediate and profitable sales. Through his extensive network of business contacts, we expect Natura Ag to grow rapidly to take advantage of the large emerging market for microbial innoculants. Our further expansion into the international marketplace will provide us with growth and revenue producing opportunities as well as the ability to capture substantial market share. Our initial goal is to ship $200,000 of product during this quarter as we kickoff our south of the border sales."

Sr. Palomares stated, "We have known for a long time that microbial products should be part of the growing system. The overuse of conventional fertilizers has depleted soil microbiology and has lead to decreased yields, increased soil-borne plant disease, and decreased crop quality. Systems that use microbial innoculants and bio-rational fertilizers will help restore balance to the soil and result in healthier crops. In addition, we can help growers save money by cutting back on fertilizers, pesticides, and fungicides while at the same time, reducing their adverse impact on our environment. Sustainable growing practices give us a win for the grower, a win for our environment, and result in a very profitable business opportunity for our company.

For information about U.S. Microbics Inc. contact Robert Brehm at 760-918-1860 or for agricultural product information contact Gus Olson at 760-776-8003 or visit online at http://bugsatwork.com. Investor Relations: DeMonte Associates- Gail Johnson 212-473-3700/ [e-mail]

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.