Biodiesel Car Captures Highest Ratings in Six Performance Categories at the 2003 Michelin Challenge Bibendum.

Energy Editors/Business Editors/Environment Writers

2003 Michelin Challenge Bibendum 

SAN FRANCISCO--(BUSINESS WIRE)--Oct. 1, 2003

Achievements Include Gold Awards in Reduction of Global Warming

(CO2) Emissions and Fuel Economy

Green Star Products Inc. (OTC US: GSPI) announced today that its 35% owned affiliate company -- American Biofuels -- captured an impressive array of performance awards at the 2003 Michelin Challenge Bibendum.

One of the American Biofuels entry vehicles, a 2001 Volkswagen Jetta TDI Turbo diesel, running on 100% biodiesel, captured 'A' ratings in six categories, more than any other "production class" vehicle entered, including all of the major automobile manufacturers.

American Biofuels, which is 35% owned by GSPI, is currently building the largest biodiesel plant in the United States. The biodiesel plant, located in Bakersfield, Calif., is being completed this week and is currently undergoing final testing and check out (see press release dated Feb. 24, 2003).

American Biofuels produces biodiesel fuel, which can be made from any natural fat or vegetable oil, such as soybean oil. Biodiesel has similar horsepower, torque and BTU content compared to petroleum diesel. It offers excellent lubricity and higher cetane than diesel fuel. Biodiesel is registered with the EPA as a fuel and fuel additive. About 300 major fleets currently use biodiesel nationwide, and more than 100 retail locations make the fuel available to the public. Biodiesel is the only alternative fuel to have completed the rigorous Health Effects testing required by the Clean Air Act. Results show biodiesel poses less of a risk to human health than petroleum diesel.

The Challenge Bibendum is not considered a competitive event but a performance event to display the advancements in vehicle technologies. Therefore, entrants are only rated with A, B, C and D letters (ratings). There are 11 performance categories, seven of which are award categories and four are non-award categories. The seven award categories receive gold awards for 'A' ratings and silver awards for 'B' ratings.

There were a total of 26 of the most advanced production vehicles in the world entered in the event: hybrid, fuel cell, natural gas and biofuel vehicles. Entries include: seven by Honda (NYSE: HMC), six by Toyota (NYSE: TM), three by Nissan (NASDAQ SC: NSANY), two by Volvo (NASDAQ NM: VOLVY), three by DaimlerChrysler (NYSE: DCX), one by Ford (NYSE: F), one by Mercedes-Benz (NYSE: DCX) and two Volkswagen diesel cars by American Biofuels.

The 'A' ratings are very difficult to attain. For example, 12 of the 26 production entries from the major automakers did not achieve one single 'A' in any of the 11 performance categories. Furthermore, even the Honda Insight hybrid vehicle, which is considered to be the most efficient and environmentally friendly production vehicle on the road today, received not one 'A'.

The American Biofuels' Volkswagen Jetta entry, running on 100% biodiesel, needed 43 miles per gallon to secure its first 'A' Gold Award in the fuel efficiency event. It attained the award by achieving over 60 miles per gallon on the aggressive Infineon Raceway while clocking some of the fastest lap times in the fuel efficiency event.

American Biofuels entered the Michelin challenge this year to specifically capture the CO2 award that relates to reducing global warming greenhouse gases to support a renewable and sustainable transportation industry.

American Biofuels attained 'A's in all three CO2 performance categories and received its second Gold Award for CO2 performance.

It is also noteworthy that the second American Biofuels entry, a Volkswagen TDI Golf vehicle running on 20% biodiesel blend (B-20), also received two 'A' ratings and three 'B' ratings.

At the conclusion of the four-day Michelin Challenge, the awards were presented at a Gala Dinner at the Downtown San Francisco Marriott Hotel. During the awards dinner, there were many very notable speakers including the mayor of San Francisco, Willie Brown, and (via video tape) the vice-president of the European Union, Loyola de Palacio, who identified the great importance of biofuels in establishing a sustainable and renewable transportation industry.

At the Bibendum event, many of the European participants stated that they believed that the United States was not committed to reducing CO2 emissions. In this context, reducing CO2 emissions relates to the burning of fossil fuels and the resulting increase in atmospheric CO2. The European Union has already committed to substantial CO2 fossil fuel emissions reductions (coming from the burning of fossil fuels).

The best way to reduce CO2 emissions coming from the burning of petroleum fossil fuels is to instead burn biofuels, e.g., biodiesel. When biofuel is burned, the resulting CO2 emissions are offset by the intake of CO2 from living plants during their growth cycle resulting in a "0%" increase in the net amount of CO2 in the atmosphere. The current increase in man-made greenhouse gases like fossil fuel CO2 has increased global temperatures. This global greenhouse effect is melting our polar ice caps and drastically changing our worldwide weather conditions.

American Biofuels and Green Star Products Inc. (OTC US: GSPI) have identified a 311-page comprehensive government study (NREL/SR-580-24089 UC Category 1503 "Life Cycle Inventory of Biodiesel and Petroleum Diesel for Use in an Urban Bus," sponsored by USDA & USDOE May 1998 http://www.nrel.gov), which clearly indicates that the use of biodiesel can reduce CO2 emissions by 78.45% on a life cycle basis. This means that the use of renewable biodiesel fuel produced by our American soybean farmers will reduce CO2 emissions by 78.45% (as per the study) versus the use of conventional "out of the ground" diesel fuel.

The U.S. Senate clearly recognizes the need to increase the use of environmentally friendly renewable resources and clean burning fuels produced in the United States, and passed the 2002 Version of the Energy Bill with a vote of 84 to 14 on July 30, 2003 to provide a tax incentive for biodiesel and increase biofuel production in the U.S. to 5 billion gallons per year by 2012.

The Environmental Protection Agency (EPA) recently released a comprehensive technical report of biodiesel emissions data that shows the exhaust emissions of particulate matter from pure biodiesel are about 47 percent lower than overall particulate matter emissions from petroleum diesel. Breathing particulates has been shown to be a human health hazard. Biodiesel emissions also reduce by 80 to 90 percent potential cancer-causing compounds called Polycyclic Aromatic Hydrocarbons (PAH) and nitrated PAH. Emissions of total unburned hydrocarbons, a contributing factor to smog and ozone, are reduced by 68 percent. Carbon monoxide is reduced by 48 percent.

American Biofuels' objective is to demonstrate the use of "practical" green technologies available today and to show they are more effective at alleviating the current ills of our environment and economy than other "more expensive" green technologies that will not be available to the general public for many years to come. Biodiesel, a fuel created from renewable resource living plants, is a "clean" and "practical" fuel that is currently available to the general public.

American Biofuels is also pleased to support the National Biodiesel Board (NBB) and acknowledge their continued effort to get the word out about the many benefits of biodiesel. To read the NBB Sept. 29, 2003 press release about the 2003 Michelin Challenge Bibendum and learn more about biodiesel and the NBB organization, visit their Web site at www.biodiesel.org.

The American Biofuels and GSPI want to thank the Michelin Group for allowing our participation in this most important annual advanced transportation event. For more information about the event, visit the Michelin Challenge Bibendum Web site at www.challengebibendum.com.

Green Star Products Inc. is organized as a holding company with major ownership positions in a set of subsidiary and affiliated companies now commercializing advanced automotive and energy technology products. For more information, see GSPI's Web site at http://www.greenstarusa.com or call Investor Relations at 619-409-8977, or fax [phone], or e-mail [e-mail]. Information about trading prices and volume can be obtained at several Internet sites including http://www.bloomberg.com and http://www.bigcharts.com under the ticker symbol "GSPI."

Forward-looking statements in the release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the company's products, increased levels of competition for the company, new products and technological changes, the company's dependence on third-party suppliers and other risks detailed from time to time in the company's periodic filings with the Securities and Exchange Commission.