U.S. Microbics Signs Letter of Intent for Acquisition of Environmental Products Transportation Company

Business Wire, April 27, 2007

- Acquisition Could Provide Transportation Services for U.S. and Mexico Environmental Projects -

CARLSBAD, Calif. -- U.S. Microbics (OTCBB:BUGS) announced that it has signed a letter of intent for the due diligence and acquisition of a confidential environmental products transportation company engaged in the supply, sale, hauling and delivery of environmental materials in the Southwestern U.S. marketplace. The transaction and due diligence will be handled by USM Capital Group, Inc. (see www.usmcapital.com), the financial services subsidiary of U.S. Microbics.

The Letter of Intent outlines the procedures and time frames for the acquisition, the roles and responsibilities of both parties, and the exchange of due diligence information to take place to prepare an acquisition agreement between the parties. The acquisition candidate remains confidential to preserve the negotiation leverage of the parties from potential competitors.

Robert Brehm, CEO of U.S. Microbics, commented, "This transaction gives the transportation company a greater degree of flexibility and access to growth capital, and new corporate management on the public company side with increased liquidity for their shareholder's investment. The merger also creates a new opportunity for BUGS shareholders by providing a profitable growth vehicle in the environmental transportation industry with the large scope and scale of projects planned by U.S. Microbics in Mexico."

Brehm summarized by saying, "We are delighted to have the opportunity to develop a transportation services division for our environmental projects with the potential acquisition of this company. The company has shown an explosive growth to $9MM in revenues with good profit margins since its inception and could add strength to our financial statements while providing significant transportation services for our planned material recycling, landfill and environmental projects in Mexico. We are working with our investment bankers to finance the acquisition using a combination of debt and equity and hope to close the transaction before the end of our fiscal year on September 30."

About U.S. Microbics Inc.

U.S. Microbics is an environmental enhancement company that collaborates with a global business and political network to implement innovative technologies in developing nations for environmental cleanup, agriculture yield enhancement, and waste stream optimization using local resources to stimulate regional economies.

For more information on the company, contact Robert Brehm at 760-918-1860 x102 or visit the website at www.usmicrobics.com.

The information contained in this press release includes forward-looking statements. Forward-looking statements usually contain 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's 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.