Small Cap Stock Newsletter QualityStocks News-BUGS Continues Expansion in New Year with Strong Backlog and Contracts in Progress

CARLSBAD, Calif.--U.S. Microbics, Inc. (OTCBB:BUGS), an innovative environmental products and services company, has started the New Year, and second quarter of its fiscal year, with $2.5MM of work in progress, and a backlog of $6.4MM expected to start in the current quarter through its subsidiary Sub-Surface Waste Management (OTCBB:SSWM)

U.S. Microbics and its subsidiaries work with the heads of state and federal government in Mexico to create new jobs and economic prosperity by establishing infrastructure, technology and protocols for a new environmental cleanup industry with beneficial social and economic change for the country.

Robert Brehm, CEO stated, "I am very pleased and optimistic about our future in Mexico as we begin to enjoy the fruits of our business development efforts over the past two years in Mexico. After a slow start in 2006, we are on track for record-breaking revenues in 2007 with current contracts expecting to yield $8MM in FY 2007 revenue if started as scheduled with the state governments and the federal electric company. We also have pending contracts for eleven emergency response centers and several landfill projects which should gain traction this quarter and could start implementation in 2007. This fiscal year is shaping up to be our best ever and puts us on the road to positive cash flow and profitability as we help our neighbors to the south create jobs and economic opportunity in their own country using American technology and know-how."

About U.S. Microbics Inc.

U.S. Microbics is a business development and holding company that acquires, develops and deploys innovative environmental technologies for environmental cleanup and agriculture yield enhancement using local resources and stimulating regional economies in developing nations.

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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.