Us Microbics About Us

ABOUT US

The 21st Century Environmental Revolution

AN ENVIRONMENTAL REALITY CHECK FROM THE FRONT LINES

We at U.S. Microbics feel the time has come - it is time to further define our vision to even better serve our investors, our employees, our customers and our fellow man. As we all head through the infant years of the 21st century and the challenges that face us, our Mission moving forward is to help the world community leap from the current path of environmental "status quo", characterized by conventional solutions which treat the "symptom" of an environmental problem, to a higher path which empowers governments, corporations, institutions and individuals to eliminate the environmental "problem" altogether by using alternative technologies which improve the environment for everyone.
With this Mission in mind, U.S. Microbics has redefined itself to be an environmental enhancement company that acquires, develops and deploys innovative technologies for environmental cleanup, agriculture yield enhancement, and bio-energy generation.

The Environmental Industry today uses 1980's technology to prolong the problem
If I were going to explain the industry to a layperson, I would say that this industry over the past 20 years has been mostly involved in the environment in terms of study and site assessment and only more recently the actual site cleanup. There has been a concern with polluted water and toxic air contamination, but the environmental industry, for the most part, has treated this issue as a problem that has to be studied and investigated - but rarely ever fixed.

Environmental consultants tend to concentrate upon the symptoms of the problem rather than go after the source of the problem and create a viable solution. The dominant reason for this protocol is because the industry has been paid on an effort basis - to study it, to look at it, to tinker with it. They don't really get paid to fix the problem.

U.S. Microbics maintains a different approach. We study, analyze and then provide a solution or solutions. We liken what we do to building a house. We design the plan and construct the house, rather than tinker with the foundation for the next 20 years and keep the building inspector happy!

The good news is the industry is slowly starting to shift in our direction, with the help of the state and some federal government agencies, there is now definitive evidence that the protocols we deploy are becoming more and more accepted as a preferred solution to alleviate many contamination and environmental problems.

At this time in history the opportunity for an environmental enhancement company like U.S. Microbics to make a meaningful difference is immense. The need for an alternative technology company like ours is great particularly in the areas of environmental defense and health & safety solutions as they both relate to air, soil and water cleanup in all corners of the world.

Lastly, the need for alternative technologies is great because as we all know conventional technology and its associated "treat-the-symptom" philosophy have not been particularly successful over the past twenty years in mitigating pollution and contamination problems on a global basis.

As you're reading this reality check maybe you're asking yourself how could this be true? The following is an incredible fact: Approximately 70% of all pollution cleanup projects started in the past 20 years have never been closed or completed to regulatory cleanup levels!

And, here's another thought to ponder! One of the reasons for this appalling record is the politics of public and corporate bureaucrats wanting to enhance their job security with lots of open projects and environmental contractors using outdated 1980's technology that treats the symptom of the problem rather than the source of the problem. Kind of like putting a water filter on your faucet to stop the foul odor and bad taste rather than fixing the source of the problem at the public water works or, better yet, at the underground source. This "symptom mentality" helps sell a lot of water filters, creates a large "monitor the problem, change the filters and hope the contamination goes away naturally" consulting industry, which prolongs the problem by keeping regulators happy, (and gainfully employed) but really never solves the problem!

But we have a different view……

AN ENVIRONMENTAL REALITY CHECK FROM THE FRONT LINES

In the United States, there's a big industry (over $200 Billion/year) full of billion dollar engineering and consulting firms versus our small, innovative company with a new alternative technology and service delivery paradigm. In short, we take a common sense approach to environmental problems. We don't bury the problem in somebody's landfill and we don't incinerate the problem and put the contamination into the air. Likewise we don't study the problem for years and hope it goes away while we collect more fees. We simply eliminate the source of the problem, once and for all. Can that be so hard?

Our technology will take a contaminant - for example, in the soil and groundwater - and actually eliminate it. Using biotechnology and sound engineering practice, we convert that contaminant to harmless carbon dioxide and water - so the problem physically goes away. Most of our competitors will try to pump & filter the contamination for 5 to 20 years and then at the end of that exercise give up and try to "wish" or study the remainder away assuming "natural attenuation" will finish the job. Where has accountability and ethics taken us in this politically correct world?

The protocols U.S. Microbics employs work and provide viable solutions to many environmental problems. We provide results rather than dance around the issue. Ever wonder who pays for these multi-million and sometimes billion dollar fox trots? The cost of a dance ticket keeps getting higher and the dances get longer with the same old teachers!

Before we came on the environmental scene, the predominate environmental cleanup paradigm, or strategy, was "Pay for Effort" or "PFE", a.k.a Time-and-Materials consulting where the customer pays for the effort of "trying" to clean up the problem, or most often, the symptom of the problem, to satisfy regulatory bodies. The net result of using 1980's technology with the PFE paradigm was projects which generally took 5 to 30 years to meet regulatory "clean up" levels or minimal levels of effort towards cleanup levels. Unfortunately, the world in which we live can no longer wait 10, 20, 30 years to be partially healed.

U.S. Microbics is passionate about what we do. Every one of our staff deeply cares and is committed to making a difference. We truly care about the environment and the effect of contamination on you and your family. That's why we pioneered a new cleanup strategy based upon "Source Abatement" - or eliminating the contamination source, where we get paid for actually meeting predetermined cleanup levels much like a building contractor gets paid for milestone achievements like completing the building foundation, framing the house, completing the roof, etc. We have a financial incentive to eliminate the source of the problem, not just cover up the symptom and wait for it to reoccur. Isn't that what customers want? It's the right solution for concerned citizens but probably not for fat-cat bureaucrats living off government contract fees and subsidies!

Over the last 20 years, most of the environmental companies have not been very profitable -especially when compared to the computer and electronics industries during the same period. There's a clear reason for their low profitability: They're using technology that is 20 years old and their "product" is a billable consulting labor hour with cost and profit restrictions. If Intel was still using the original 8008 processor from 20 years ago, they wouldn't even be used in calculators today! And so, since the late 1970s or early 1980s, the technology in the environmental industry has remained nearly the same; it's basically a process of charging labor for filtering water or liquids through carbon filters similar to the filter you may have on the end of your faucet in your sink. They filter through carbon, they clean the carbon, they write a report about what they did and they do it over and over again. Or, they take the gasoline vapors and run them through a V8 combustion engine with catalytic converter that releases them into the air. If there is anything left over after all this activity, it can even be dumped in a landfill near your own backyard. That's the technology that most of the environmental industry uses today with an estimated 5 to 10% of the problem solved each year!

However, there is a better way. We couple our proprietary biotechnology with state-of-the-art engineering and 3-D modeling pivotal to understanding the cleanup process. We use a large container called a bio-reactor which contains the contamination and where our microbes consume the contaminants and expel water and carbon dioxide. We can also make an underground area into a bio-reactor; with pressurized containment zones so that all of the reactions take place within a defined area underneath a gas station or the dry cleaner or a manufacturing facility for example. Then the reaction takes place with the microbes in a completely controlled, safe process. In many cases the process takes less time and cost then conventional 1980's technology. Our solution alleviates the problem; it doesn't prolong it.

In short, we solve the problem, we do it right, and we do it well using the tools Mother Nature has made available to all of us for thousands of years - are we the only company to see the light and give you the reality check from the front lines?

BIOTECHNOLOGY SOLUTIONS FOR THE ENVIRONMENT IN THE 21ST CENTURY

U.S. Microbics or BUGS, as many shareholders call us, has taken a unique approach to solving the environmental problems caused by contamination generators. There are several facets to our environmental cleanup strategy:

1. U.S. Microbics owns a microbe production plant that ferments or brews naturally-occurring (non-genetically engineered) bacteria (bugs) that has been specially chosen to "eat" contamination and convert it into carbon dioxide and water, thus eliminating the problem forever and eliminating years of collateral damage from ineffective treatment systems so prevalent today.
2. U.S. Microbics also has a subsidiary aptly named Sub-Surface Waste Management which consists of civil engineers and geologists specializing in bioremediation or cleanup using biotechnology. This is the first time an engineering company has teamed up with a bug manufacturer to solve contamination problems and is one of the reasons for its acknowledged success at "better," "faster," "cheaper" and "safer" environmental solutions.
3. We focus our efforts on common contamination problems that affect millions of people. These niche markets include fuel station contamination remediation, soil and groundwater decontamination, and activated charcoal recycling. The biotechnology works very successfully in these areas to reclaim contaminated land, to cleanup water and soil affecting neighborhoods and to filter water and air intake and exhaust systems.
4. We have bugs that can also enhance agricultural growth with less water and little if any fertilizer but still yield large more lush plants. In particular we have shown that we can enhance the yield of sugarcane (a prime ingredient for the production of alternative energy, ethanol) up to as much as 34% without any serious side effects and at a lower cost than conventional technology. We have also shown significant increases in food production from plants which could be a lifesaving gift to many people in third world countries with starving populations.
5. We have microbial formulations and engineering services which can turn a waste stream (like manure or dairy whey) into a resource stream generating bio-energy or high protein food sources supplementing the use of fish meals and other limited quantity protein sources in developing nations.

Why we could be very successful in cleaning up the planet
There are several driving forces, which provide great opportunity for U.S. Microbics and its subsidiaries. The first is the environmental cleanup mandate for members of the World Trade Organization, the second is the environmental industry shift to source abatement standards, and the third is world population growth requiring increased environmental stewardship for clean water, land and air and natural alternatives to chemical fertilizers for agricultural growth enhancement, and bio-fuels for energy sources. Let's elaborate on each of these trends and why they help ensure the success of U.S. Microbics and the health of people around the world.

The World Trade Organization (WTO) is comprised of recognized member nations who subscribe to a specific code of business and trade conduct and compliance that ranges from monetary to environmental compliance issues. They have issued a mandate to their members for environmental cleanup standards that must be met or they are restrained from shipping products and services to other members. Currently there is a major effort being made by WTO members to solve environmental problems and the bioremediation solution is one of the key choices.

The environmental industry is shifting to Pay for Performance and source abatement standards for cleanup projects rather than Time & Materials, symptom treatment standards. This paradigm is well suited to SSWM biological solutions which are the only alternative that is economical, gets rid of problem at the source, in time frames needed to meet closure deadlines, particularly for WTO member nations.

Population Growth of the world is forecast to be 9 billion by 2050 and it is estimated there will not be enough fresh water and agricultural land (as it is now used) to feed this population. Therefore alternative technologies, such as biological growth enhancement of agricultural products to feed people and bioremediation to clean up water, soil, and air, and the use of bio-fuels for energy should be in high demand as this young century matures.

Since our underlying technology is biotechnology based, we have an assortment of different microbes for a wide variety of applications. One of the applications, and the one that we spend a lot of time on now, is soil and groundwater cleanup. We also have a division named Bio-Con, which is involved with agricultural products. A different set of bacteria is used, for example, as a soil amendment. It allows you to grow plants with significantly higher yields, less costs, and little or no fertilizer, and half the water. We can make deserts bloom, for example, because we can cultivate crops with much less water.

We have a technology to clean up the environment and make fish smile, deserts bloom, and contamination disappear!

Right now, we're concentrating on cleaning up the messes, but soon we'll be concentrating on feeding the masses of people who hunger every day. Since 80 percent of the world's people live on rice and fish in this world, I think that our products are well positioned for the next 100 years. It's absolutely revolutionary, what we can do with these basic bacteria building blocks that we apply to clean up people's messes and feed people by the masses.

WAKE UP! THIS REALITY CHECK COULD AFFECT YOU AND YOUR FAMILY FOR DECADES TO COME!

Whenever you try to change people's minds, whenever you try to make people think differently, you have the basis for skepticism and entrepreneurial opportunity at the same time! I am trying to make paradigm changes in an industry that hasn't changed in over 20 years. When a bureaucrat's job security depends on having more and more environmental projects under contract, and you've got a technology that can finish close to half of those projects in the next several years, the bureaucrats are very resistant to using, endorsing, or recommending that technology, regardless of whether it works or not. Such was a similar case when commercial sailing ships were replaced with steam ships, but it was certainly not an overnight process and in fact was very disruptive but made many ship and engine manufacturers (and their investors) very wealthy as the industry shifted! We have that same type of opportunity now in the environmental industry.

But project by project, day by day, politicians and rainmakers are saying, "Forget the rules." Rational and responsible officials are now taking a view from 100,000 feet up rather than 10 feet, and realized that the BUGS solution is what they should do if they want to get rid of the problem once and for all and make the lives of the community, its members and families healthier and safer for the 21st century.

From the view of society's health and well-being standpoint, though, we're getting rid of the problem so we don't have cancer-causing agents spreading throughout our drinking water supplies. Change takes a long time, and the way we change people's minds is one project at a time. We go out and solve a problem 50 percent faster and much cheaper, we earn more profits, we attract more investors to grow which gives us even more projects and suddenly we have made a major difference with a cleaner planet.

There are also several reasons customers are drawn to us. First, our work philosophy is that you pay us to solve the problem. And second, our solution is just like Mother Nature only better, faster, cheaper, and safer than anyone else's. Customers are attracted to the possibility of finite cost in a defined time. They are tired of treating symptoms for years and years and not getting anywhere. The government is now making people accountable; they have to clean up their own mess, so to sit there and poke at it for the next 15 years is no longer an option for job security.

WE ARE ALL RESPONSIBLE FOR THE ENVIRONMENT WE LIVE IN

U.S. Microbics salutes all people who stand up for conservation of environmental resources, protect and correct impacts to soil, air and water, and use and apply biotechnology for the betterment of all humans and successive generations. If you support this position you will buy or recommend our products and services, invest in our stock, enjoy the financial returns of stock appreciation, and tell others how we can help the environment.

I believe we should all stand united in our environmental stewardship as well as our other personal endeavors, to enhance the quality of life for all humans and the habitat that supports them. An environmental revolution is taking place and our world is changing and so must you - do your part by helping us succeed in cleaning up the world for our children's future.

The world has lots of messes to cleanup and more and more people to feed each day. We can help solve these problems. Certainly there is an opportunity for all of us to participate who so choose. I challenge each person to take action and find your place in our world.

Robert C, Brehm, CEO
U.S. Microbics, Inc.
www.bugsatwork.com
April 16, 2007