Biofarm, Inc. Announces Distribution to Shareholders of Shares in New Office Supply E-Commerce Venture.

Business Editors/High-Tech Writers

LINFIELD, Pa.--(BUSINESS WIRE)--May 12, 2000

Biofarm, Inc. (OTCBB:BIOF.OB) announced today that a non-binding letter of intent has been signed with United Source, Corporation, a privately owned Delaware corporation based in Mill Neck, New York.

Biofarm, Inc. ("BIOF") has signed a non-binding letter of intent to complete a tax-free merger between BIOF's wholly-owned subsidiary Hannibal Capital Corp. ("Hannibal") and United Source Corporation ("USC"). The agreement provides for Hannibal to be the surviving entity. Hannibal would issue to the shareholders of USC such number of fully paid and non-assessable shares of Hannibal Common Stock as would result in the shareholders of USC collectively owning immediately after the closing of the merger, ninety (90%) percent of the common equity of Hannibal on a fully diluted basis. USC shareholders would surrender their USC shares to Hannibal at closing. Hannibal would issue to the shareholders of BIOF such number of fully-paid and non-assessable shares of Hannibal Common Stock as would equal one share of Hannibal for each four shares of BIOF. Such distribution would be a stock dividend that does not require the surrender of any BIOF shares and will be issued to BIOF shareholders of record on the date the Hannibal registration statement is declared effective. At closing, the name of Hannibal would be changed to United Source Corporation. The amended Hannibal registration statement will be filed upon receipt of the required audited financial statements.

There are significant contingencies involved in the non-binding letter of intent, including but not limited to, proper due diligence, negotiation and execution of an Agreement and Plan of Merger by May 22, 2000, mutually acceptable to all parties; additional funding of BIOF and Hannibal prior to closing; approval of the transaction by the shareholders of each company; and the filing of an amended registration statement with the Securities and Exchange Commission by BIOF and Hannibal reflecting the proposed merger transaction and the spin-off of Hannibal as a publicly registered company, which registration statement must be declared effective by the SEC prior to the completion of the merger but not later than June 30, 2000. BIOF is using its best efforts to effect the required actions to bring the transaction to completion, but there is no guarantee the transaction will be completed as described or at all.

United Source Corporation. (USC) a private company founded in November, 1999, is a software company providing "Business-to-Business E-Procurement Solutions."

USC is now in the process of developing the following sites: United Source.com, United Procurement.com and UnitedSource MarketpPlace.com, all of which are powered by Commerce One. USC has developed an internet based Business-to-Business Corporate Procurement Solution and "Blind Bid" market place exchange, for both suppliers and purchasers of products and services. USC's online objective is to provide full-service business solutions, become a one-stop shopping source, and attract additional corporate purchasers to its site.

USC believes its early entry into E-Commerce procurement within the business procurement area has positioned USC to take advantage of what is "expected to be", according to Dun & Bradstreet data, a $110 billion market in North America for office supply products in the year 2000. USC also believes that, according to Forrester Research, Business-to-Business E-Commerce will represent more than ninety (90%) percent of the dollar value of all E-Commerce in the U.S. by the year 2003.

This press release contains forward-looking statements, which are made pursuant to the safe-harbor provisions of the Private Securities Litigation Reform Act of 1995. Expressions of future goals and similar expressions including without limitation such words as: "expects", "believes", "seeks" and "anticipates", reflecting something other than historical facts, are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, and other factors. The actual results may differ materially from any forward-looking statements due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.