LandStar, Inc. Announces Facility Reorganization.

Business Editors

PHOENIX--(BUSINESS WIRE)--June 28, 2001

LandStar, Inc. (OTC:BB LDSR, www.ldsr.com), advises that management have completed an analysis of market opportunities, production capacities and asset utilization and are undertaking a plant reconfiguration over the next six months as follows:

1. The Flatrock, Michigan facility will be taken out of

production effective June 30. This plant has never produced a

profit since it was established. The facility will be

mothballed while the Company negotiates either an exit from or

reconfiguration of the plant.

2. The Bristow, Oklahoma facility will undergo a reconfiguration

of production with the installation of additional equipment to

develop two full production lines. This reconfiguration will

approximately double production volume and will increase

product flexibility.

3. The Mesa, Arizona facility will undergo an expansion and

reconfiguration to double production capacity and diversify

product options. The Company will install a new line to

process truck tires and produce a variety of ambient processed

crumb rubber materials. This facility entered into contracts

last year to process truck tires for several counties but did

not have truck tire processing capabilities. This plant has

historically concentrated on supplying crumb rubber to the

asphalt rubber industry primarily in Arizona.

The Arizona asphalt rubber market has matured with a large proportion of roadways now topped with asphalt rubber. The new line will add product line diversity to mitigate against a potential slowdown in demand in Arizona.

Asphalt Rubber Division:

The Company continues with its development of its Asphalt Rubber Division with an agreement to acquire two real estate properties in Mesa, Arizona. The first property consists of 2.9 acres of land and a 23,000 sq.ft. building. This site will house offices and maintenance operations for the Division and will accommodate some manufacturing operations of asphalt rubber related equipment. The Company has agreed to acquire the adjacent site of 2.5 acres of land from the City of Mesa and will use some of this adjacent site for access to the asphalt rubber facility.

New Corporate Facility:

The Company intends to develop the lands purchased from the City of Mesa to accommodate part of the Company's corporate office needs and certain research and development operations. The Company expects that this site will in due course be the prime R&D facility with extensive staffing providing basic, advanced and developmental research support to all divisions of the Company. The Company has not determined a commencement date for design and construction.

Other Information:

Subsequent to the filing of the 10Q for the first quarter the Company has received expressions of concern from a number of Shareholders with respect to the significant loss recorded in the quarter. In the interest of allaying these concerns, the Company President, Elroy Fimrite, comments as follows: " The position of leadership that Landstar has achieved in the rubber recycling industry is a direct result of an investment in intellectual capital and research of all facets of the industry, worldwide. The Company has engaged an industry dominating team with knowledge and experience in rubber science, rubber manufacturing, tire processing (ambient, cryogenic and wet grind), general management, systems development, finance, equipment design, equipment manufacturing, asphalt rubber application, public company management and strategic management. This team has been assembled because it takes significant size and sophisticated management to build a successful recycling business. The business must be much larger than we currently are and the Company intends to aggressively pursue acquisitions to grow the Company horizontally and vertically. It is essential to this plan that we invest in manpower and the attendant costs of travel to pursue the goals of corporate growth and industry position. This commitment will be reflected in an operating loss until sufficient acquisitions are consummated to carry this corporate overhead."

Mr. Fimrite further stated: "Our campaign to bring order to the chaos of the rubber recycling industry is akin to a military campaign. In the teachings of Sun Tzu, (Honored Chinese military strategist Circa 500 B.C.), when `Waging War', Sun Tzu said: In order to establish an army, the general needs thousands of chariots, tens of thousands of wagons and carts, and hundreds of thousands of soldiers. Supplies must be transported over thousands of li (miles). There will be expenses for officers and staff, expenses for soldiers, expenses for chariots, leather armor, arrows, spears and swords, expenses for many things. Thousands of liang (pieces) of gold will be expended each day to establish the army."

Annual General Meeting:

The Company advises that its Annual General Meeting will be held in Scottsdale, AZ on August 3, 2001.

About LandStar, Inc.

LandStar is a polymer redeployment and polymer reactivation Company currently aggressively expanding through acquisitions and development of proprietary technologies in the polymer recycling industry.

On behalf of the Company

KCSA 

No Stock Exchange or Securities Commission has approved nor disapproved the statements in this release. Any statements that are not strictly historical are "forward-looking statements" made pursuant to the "safe harbour" provisions of the Private Securities Litigation Reform Act of 1995 and within the meaning of section 27A of the Securities Act of 1933 and section 21E of the Securities Exchange Act of 1934. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to a number of risks and uncertainties that may affect actual events or results materially. All such forward-looking statements, whether written or oral, and whether made by or on behalf of the company are expressly qualified by these cautionary statements. In addition, the Company disclaims any obligation to update any forward-looking statements to reflect events or circumstances after the date hereof.

This release is available on the KCSA Public Relations Worldwide Web site at www.kcsa.com.