Diesel Automobiles Will Soon Invade The U.S. Highways Under Growing Pressure To Make Vehicles More Fuel Efficient

    SAN DIEGO--Nov. 21, 2002--Green Star Products Inc. (OTCBB:GSPI) announced that through its subsidiary, American Bio-Fuels (ABF), is preparing to prove that the "extra cost" associated with the use of biodiesel can be offset by the use of other GSPI peripheral products that will provide sufficient "fuel savings" for the consumer to have positive net savings!
    In a Wall Street Journal article dated Oct. 24, 2002, the chairman of the powerful California Air Resources Board (CARB) is taking a new look at diesel vehicles. The article states that this represents a striking change of heart for Dr. Alan Lloyd who has regarded diesel as a dirty word for over three decades. Dr. Lloyd has concluded that a new generation of high tech diesel vehicles developed in Europe could be on American roads within years. The article further stated, "Detroit's Big Three and their European and Japanese rivals face growing pressure to make their vehicles more fuel efficient, reduce dependence on mid-East oil and help global warming."
    As light trucks, SUVs and minivans have soared in popularity in the U.S., they have dragged down the average fuel economy to the lowest level in two decades. The article concludes that the only way to address these concerns is to introduce the diesel automobile to the American market and these vehicles will most likely appear on the American highway.
    It is the opinion of many automobile industry experts that even these high tech diesels will have a rough time meeting the tougher 2007 emissions standards set by the EPA without an alteration in the petroleum diesel fuel these vehicles will burn. Presently, in California over 60% of the total vehicle emissions are by diesel trucks, which represent less than 10% of the vehicle population.
    The use of a blend of biodiesel with regular diesel will certainly aid the existing and new diesel engines in meeting the new standards along with some peripheral automobile devices.
    The advantages for using biodiesel are extensive; in a news release by the National Biodiesel Board dated Sept. 5, 2002 entitled "Biodiesel Emissions Reduce Cancer Risk Compared to Diesel," it stated, "In wake of EPA conclusions that diesel can cause lung cancer, biodiesel can reduce cancer causing compounds by 90%."
    The press release further stated, "The findings are the results of two years of independent studies on biodiesel as the fuel completed the health testing requirements of the Clean Air Act. To date, biodiesel is the only fuel to have completed the test, and the industry submitted the results to the EPA."
    In the United States today biodiesel is used by a broad scope of vehicles, fleets and the U.S. military and is blended with regular diesel from 2% biodiesel (B-2) to 5% (B-5), 10%(B-10), 20%(B-20) and 100% (B-100) for different applications. These blends require no infrastructure changes or changes to engine operation.
    Europe is far ahead of the U.S. in the use of biodiesel and the use of diesel automobiles to reduce green house gases, increase fuel efficiency and reduce many other emissions and toxins. It may come as a shock to American drivers that many of the most popular luxury cars (BMW, Mercedes-Benz, etc.) sell very well in Europe with diesel engines, which are no longer "noisy and dirty."
    Biodiesel is the only fuel that contains no sulfur, carries its own oxygen (11% by weight), is biodegradable, reduces many other emissions and reduces CO2 (green house gas) by 78% (see GSPI press release dated July 23, 2002 on CO2 reductions on Bloomberg.com or baat.com).
    GSPI is not only in the biodiesel production business (see GSPI press release dated July 23, 2002), but also has attracted key personnel who have been working for many years on biodiesel additives, diesel engine technology and peripheral devices to further reduce diesel emissions and increase diesel fuel efficiency. GSPI along with its subsidiary and affiliate companies, including American Bio-Fuels, has its own research and laboratory facilities that will be moved to its new location at the Hondo Chemical site in Bakersfield, Calif. These include engine dynamometers, state-of-the-art emission testing equipment, biofuel and additive laboratories, and engine building facilities. All research work is done in-house.
    GSPI has been installing and testing diesel engines in American automobiles since 1998. GSPI management has long believed that diesel engines will find their way to the American market and also to the hybrid vehicle market, which is already happening. Detroit is presently building hybrid diesel vehicles.
    GSPI recently tested its diesel engines installed in a General Motors Geo Metro at the California Speedway in Fontana, Calif. The test vehicle was operated with a blend of 20% biodiesel and 80% diesel and achieved 99 MPG at 45 MPH (see GSPI press release dated Aug. 20, 2002). The GSPI test vehicle also ran with a biofuel additive, which reduces NOx and increases fuel mileage.
    The GSPI test facility never certifies its own data; all performance data is certified by independent certified facilities.
    Presently, GSPI and ABF are testing their biofuel and biofuel additives in combination with GSPI's other developed products. These tests are taking place in several places simultaneously that include CARB testing facilities, stationary fuel testing and testing in Europe on European diesel autos. Preliminary testing is very encouraging with significant reductions in all emissions including NOx, particulates and also fuel efficiency gains.
    GSPI is aiming to prove that the extra cost associated with the use of biodiesel and other GSPI peripheral products can be completely offset by the fuel savings potential of these products therefore the net cost to the consumer is zero or even a plus net savings. If cleaner air costs nothing then we all benefit!
    Green Star Products Inc. is organized as a holding company with major ownership positions in a set of subsidiary companies now commercializing advanced automotive and energy technology products. For more information, see GSPI's Web site at http://www.baat.com or call Investor Relations, 619/409-8977, 619/409-9598 fax, or email info@baat.com. Information about trading prices and volume can be obtained at several Internet sites including http://www.bloomberg.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.