BAKERSFIELD, Calif.–(BUSINESS WIRE)–Aug. 2, 2004–American Biofuels (ABF), a biodiesel production company that is 35% owned by Green Star Products, Inc. (OTC:GSPI – News), announced today that its Bakersfield Biodiesel Plant's production and sales have increased by 60% per calendar quarter since plant start-up November 2003.
ABF is also pleased to announce that its projected revenue, based on current biodiesel sales, for the quarter (July 1st through September 30th) is estimated to exceed $700,000.
With the demand for high-grade biodiesel expanding and soybean oil feedstock prices starting to decline, ABF is gearing up for full production (i.e. 5 million gallons per year) by early 2005. At 5 million gallons per year, ABF maximizes its potential share of the Federal Government's USDA $150 million per year bioenergy incentive program.
ABF, a three-year member of the National Biodiesel Board, has been registered and eligible for up to $7.5 million of USDA production incentives per year since 2001. Now with the federal production payments at their highest (e.g. from $1.50 to $2.00 per produced gallon) and with a strong and expanding market, ABF feels the time is right to fully exercise its federal credits (see press release dated March 26, 2004).
ABF's plan is to achieve 35 million gallons per year by 2007. As the 5 million gallon production volume is reached and as ABF's customer base continues to expand, plans for the second phase of expansion for the Bakersfield Plant from 5 million to 10 million gallons per year will be activated. This 10 million gallon production volume will move ABF closer to its planned build out volume of the Bakersfield Plant of 35 million gallons per year.
For a web streaming video of Bakersfield's CBS 29 Eyewitness News' news clip on the Bakersfield Biodiesel Plant aired on July 26, 2004, go to http://kbak.bakersfield.com/local and click on the story "Kern County On Cutting Edge Of New Fuel Technology" to get the news clip transcript and the link for the streaming video.
Green Star Products, Inc. is an environmentally friendly company dedicated to creating innovative cost-effective products to improve the quality of life and clean up the environment. GSPI is involved in the production of renewable clean-burning biodiesel and other products including lubricants, additives and devices that reduce emissions and improve fuel economy in vehicles, machinery and power plants. For more information, see GSPI's Web site at http://www.GreenStarUSA.com or contact Investor Relations at 619-864-4010, fax 619-789-4743 or email info@GreenStarUSA.com. Information about trading prices and volume can be obtained at several Internet sites including http://www.bloomberg.com and http://www.bigcharts.com under the ticker symbol "GSPI."
Forward-looking statements in the release are made pursuant to the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties, including without limitation, continued acceptance of the Company's products, increased levels of competition for the Company, new products and technological changes, the Company's dependence on third-party suppliers, and other risks detailed from time to time in the Company's periodic filings with the Securities and Exchange Commission.
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Contact:
Green Star Products, Inc.
Joseph LaStella, 619-864-4010
Fax: 619-789-4743
info@GreenStarUSA.com