Gleason, Tennessee
August 15, 2005
US BioTec, Inc.
(Other OTC:USBO), an emerging player in the rapidly growing
bio-chemical sector of the multi-billion dollar agri-business
industry, today announced results of several weeks of research
activity that it has produced overwhelmingly positive initial
results from in-field research and controlled tests of several
new products in the pathogen control area. These activities were
the first in-field "real world" studies ever done outside
controlled lab and greenhouse studies of prior years.
The latest
US BioTec (USBO) biotechnology research, which tested a new type
of anti-pathogen bio-chemical compound on peanuts in Terrell
County, Georgia, demonstrated a significant break-through in
Tomato Spotted Wilt Virus (TSWV) control. Excellent results have
been achieved in controlling TSWV to the point of suppression
that lasted for several weeks on previously infected actual
in-field grown peanut plants using USBO's experimental
anti-pathogen bio-chemical technology. This is a major
breakthrough for the Company because to date, no other
conventional (toxic) or biotechnology (non-toxic) product has
adequately inhibited infection of the virus, or inhibited the
function of the pathogen within an infected plant. USBO's
positive research trials on peanuts have provided the confidence
needed for the Company to arrange to mass market its anti-TSWV
peanut product(s) in 2006.
Also this
summer, another new compound similar to the peanut compound
mentioned above, was applied to TSWV-infected in-field grown
tobacco plants in Coffee County, Georgia. Even though the
tobacco trials were hindered by massive rain totals throughout
the entire growing season, results from this field research, as
well as results from prior controlled environment research,
coupled with the success of its "sister compound" on peanuts,
indicates that the new tobacco product has now achieved the
efficiency level necessary to justify limited mass production of
two anti-TSWV products for two different applications on tobacco
seedlings and in-field tobacco transplants in 2006. USBO will
begin the initial marketing of the anti-TSWV products for
tobacco in the first quarter of 2006 and will begin marketing
similar products for application on tomatoes and bell peppers
later in 2006.
"The 2005
spring/summer research with the TSWV products has yielded a
tremendous advancement in our anti-pathogen product
capabilities. These tests have proven that USBO products applied
correctly and precisely can offer acceptable field control of
TSWV on peanuts, and the limited trials on tobacco have shown
positive signs as well. These compounds can also be modified for
use on bell peppers and tomatoes. The windfall for US BioTec is
very significant, with potential new annual sales that can
easily total millions of dollars due to the ready-made market(s)
that obviously exists for anti-TSWV products," states Jimmy
Joyner, CEO of US BioTec.
"To put the
TSWV situation into perspective, it is a niche market that has
been begging and screaming for control products for about 10
years. Still, no company has offered any good product
technology, primarily because TSWV does not generate the product
sales needed to attract the large ag-chem companies' interest,"
explains Joyner.
USBO feels
confident that it should be in position to control the anti-TSWV
product market for the foreseeable future. This is based on the
fact that even though the sales potential for anti-TSWV products
for these four crops total millions of dollars annually, which
should prove to be quite profitable for a company the size of
USBO, it is too small of a core market to make it economically
feasible for the ag-chemical giants to justify spending tens of
millions of dollars, plus several years of research and
development, to produce a toxic chemistry-based product(s) for
TSWV control. And, even if they were to enter this market later,
USBO will still have the "ecologically friendly" marketing edge
on their toxic products. Therefore USBO believes that it is
logical to assume that it should control the TSWV market for the
next several years without any real outside competition to drive
down the profit margin of these products. The four-crop market
is estimated around 2.5 million acres, with peanuts being the
largest acreage crop.
Record
rainfall levels in areas of Georgia this spring and summer where
the Company had already made contacts to sell tobacco and
vegetable products, coupled with an extraordinary drought in
areas of Indiana where USBO had made contacts to test market its
"Asian Rust or anti-pathogen" product for soybeans, has hindered
sales in each market area. The Company feels extremely confident
that sales of its soybean product will be significant for the
2006 soybean growing season as some university and industry
sources believe the "Asian Rust" will spread to more acres each
year. In 2005 the USDA projected approximately 73.9 million
acres of soybeans would be planted in the U.S. and several
universities have indicated U.S. farmers intend to treat a large
percentage of soybean acres for "Asian Rust."
"Although a
big part of our efforts in 2005 has been focused on building out
our infrastructure and running in-field research tests on a
variety of products, which have produced very promising market
potential, and although 2005 sales numbers have not yet been as
large as some would desire or resulted as soon, the Company is
making real progress in lining up future marketing contacts not
only for agricultural products, but for marketing consumer --
lawn & garden products as well. USBO's biotechnology has
attracted the attention of sizable companies within these
industries," declares Joyner.
USBO will
soon start selling to vegetable operations in the Southeast to
get sales of its fruiting agents and growth promotion products
out on 2005 fall and winter vegetable crops. The product results
achieved through 2005 sales should put US BioTec in an even
better marketing position in 2006 when it begins offering many
more of it products to farmers in the same regions as well as in
many other states. This should significantly boost revenues for
next year.
USBO will
continue to research and develop new products as markets present
themselves. One of which is a proposed solution to control
"citrus canker," the most devastating fruit growing problem in
Florida.
"In
addition, we are aggressively pursuing ongoing talks with a
large nationally known lawn & garden equipment company about the
potential joint venture that was previously announced, wherein
USBO will develop a line of consumer products to be branded,
distributed and marketed by this partner. Our goal at this point
is to sign a deal in time to have the first joint products
available for Spring/Summer 2006. Based on the resources of this
national partner, and their existing presence in several
thousand stores of major mass retailers, this joint venture
would place USBO far ahead of our initial consumer products
sales projections in the lucrative lawn & garden retail market,"
concludes Joyner.
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,
Syngenta, Bayer, BASF, Dow Chemical and Monsanto.
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.
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