US BioTec, Inc.: Production of First Bio-chemical Products Set to Begin.

LAS VEGAS -- New Corporate Structure and Ventures Announced

US BioTec, Inc. (OTCBB:USBO), an emerging player in the rapidly growing bio-chemical sector of the multi-billion dollar agri-business industry, today announced that it has completed renovation of its new corporate offices in Gleason, Tennessee (Weakly County). USBO is also finalizing negotiations for a formulation plant that should be in operation by April 15th. The new corporate headquarters complex will host most of the growing company's operations, including its executive offices, offices for TelStar Logistics Corp. its wholly owned trucking subsidiary, and TelStar Funding Corp (TLC) its wholly owned factoring company, the parent company's latest venture.

All of US BioTec's products are non-toxic, non-carcinogenic and bio-degradable alternatives to the toxic and sometimes carcinogenic agrichemicals that have been widely used by farmers for decades. The agrichemical market, which is measured in the tens of billions of dollars annually is controlled primarily by a handful of large multi-national corporations such as DuPont (NYSE: DD), Bayer (NYSE: BAY), BASF (NYSE: BF), Dow Chemical (NYSE: DOW) and Monsanto (NYSE: MON).

"We are finally nearing the point that we have been working for since going public last year. We are close to beginning production of our first eight or nine bio-chemical products for agricultural clients in April. We expect to begin realizing immediate revenue from these products as we begin delivering them to farmers in the Southeastern U.S. within the next 60-90 days. US BioTec is quickly transitioning from development stage to production phase" says Jimmy Joyner CEO of US BioTec, Inc.

"Over the past several months USBO has also initiated the formation / acquisition of an over-the-road (OTR) trucking company. USBO has facilitated the acquisition of Scorpion Logistics, an OTR refrigerated trucking company into TelStar Logistics Corp. In doing so, TLC has successfully secured the necessary DOT permits, attained Tennessee registration and acquired an ultra-low fleet insurance program. USBO has hired the past owner of Scorpion Logistics, Thomas Lynch to serve as President of the TLC subsidiary. The Company has also received a verbal commitment from Dave Edwards of Phoenix, AZ, who has over 15 years experience in trucking operations, to act as its V.P. of Safety Compliance. In addition, Mr. Lynch has received verbal commitments from 10 owner/operators willing to lease-on with TLC. With these accomplishments we feel TLC is set to begin commercial hauling operations in about three weeks," continues Joyner.

The basic premise behind USBO's entry into the trucking market is that if USBO products are going to help growers produce commodities, then TLC trucks could help growers haul their commodities. USBO already has contacts with growers and a number of produce brokers that can position TLC favorably with growers. In addition, TCL trucks can also haul USBO products.

"On other fronts, our offices are finished, the computers have been delivered, the intergraded accounting / operations management system is being set up and our staff has already started moving in. The Company's "US BioTec Products Corp" subsidiary will be running the production facility. The primary production equipment is on the way and production operations of our agricultural bio-chemical products should begin in a matter of weeks. We anticipate product sales staring during the second quarter of this year," concludes Joyner.

US BioTec has incorporated four separate subsidiaries: US BioTec Products, Ag Services, Inc., TelStar Logistics, and TelStar Funding Corp., which will all operate under the USBO parent corporation. The company's US BioTec Products subsidiary is divided into three separate biochemical divisions: Agriculture, Commercial and Retail. All of the products being launched in 2005 will come from the Company's Agriculture division. In 2006, US BioTec plans to launch the first lawn & garden products from its Retail division. In 2007, the Company plans to begin offering products from its Commercial division, which will be targeted for the commercial landscaping, turf farm and golf course markets.

The Ag Services subsidiary is the retail farm supply outlet and flagship outlet for the bio-chemical products. The subsidiary's retail business is currently in full swing as the spring fertilizer rush is starting.

TelStar Funding Corp. (TFC) will be the factoring company that will finance the receivables from TelStar Logistics Corp's trucking operations in order for TLC to pay its owner operators more quickly than most other companies in the refrigerated transport industry. USBO believes that the facet of quick pay creates another in-house profit center, while providing TLC with an excellent driver recruitment tool.

About US BioTec

US BioTec was established to profitably develop, manufacture, market and distribute bio-degradable, non-toxic and non-carcinogenic products to agriculture, the commercial turf industry, forestry, golf courses, professional landscapers, nurseries and mass market retail lawn and garden markets. USBO is striving to be the U.S. market leader in the expanding bio-chemical sector of the annual multi-billion dollar agricultural chemical marketplace. The Company's products are designed to rehabilitate soils, repel insects and increase crop (plant) yields through environmentally friendly alternatives to toxic man-made pesticides and caustic synthetic fertilizers. To learn more about US BioTec and its products, please visit www.usbioteccorp.com.

Certain statements in this news release may contain -forward-looking- information within the meaning of the Federal securities laws. All statements, other than statements of fact, included in this release may include forward-looking statements that may involve risks and uncertainties. There can be no assurance that such statements will be accurate and actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances or to reflect unanticipated events or developments.

U.S. BioTec, Inc. (OTC Bulletin Board:USBO)