CGHC Files BUGS Spin-Off Shares for Registration; BUGS Shareholders to Receive Dividend of Shares From Senior Housing Merger/Spin-Off.

Business Editors

CARLSBAD, Calif.--(BUSINESS WIRE)--Oct. 3, 2002

Robert Brehm, president and CEO of U.S. Microbics Inc. (OTCBB:BUGS), an emerging environmental technology and services firm, announced today that Capital Group Holdings Corp, (CGHC) has filed a registration statement with the Securities and Exchange Commission to register the common shares of CGHC to be distributed to BUGS shareholders.

The full text of the registration statement can be found at http://www.sec.gov/cgi-bin/browse-edgar?company=&CIK=0001193763&State= &SIC=&action=getcompany. (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.) In the registration statement, 2,175,028 shares of CGHC will be spun off to BUGS shareholders. The list of spin-off shareholders shown in the registration statement only includes shareholders whose stock is held in certificate form. BUGS shareholders with stock in a brokerage account are not shown; however CGHC shares will be distributed to their account if they were a BUGS shareholder as of July 3, 2002. Distribution of the shares will take place following the effective date of the registration. BUGS shareholders of record will receive 1 free trading share of CGHC for each 18 shares of BUGS held. No fractional shares will be issued.

Capitol Group Holdings Inc. (CGHI) is working closely with Fleetwood Homes (NYSE:FLE), one of the largest builders of manufactured homes, to introduce the first-ever environmentally-friendly "Energy Star" manufactured housing development for seniors. See www.capitolghc.com for further information.

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, ext. 102 or learn about the company by visiting the Web site at www.bugsatwork.com.

The information contained in this press release included forward-looking statements usually contains 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 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. This press release does not constitute an offer to buy or sell securities.