Largest Biodiesel Plant in the U.S. Now Being Assembled in Bakersfield, California

    BAKERSFIELD, Calif.--Feb. 24, 2003--Green Star Products, Inc. (OTC:GSPI) announced today that the largest biodiesel plant in the US is now being assembled in Bakersfield, California.
    The production capacity of this plant is expected to be 35 million gallons per year at full production. This is significant when considering that the entire U.S. production of biodiesel in 2002 was only 15 million gallons.
    GSPI has a 35% ownership position in American Bio-Fuels, LLC (ABF), the company that is building the plant through a joint venture.
    The "Bakersfield Californian" newspaper published an article on Sunday, February 23rd, "Bakers pumped about biodiesel," that covered the role of biodiesel in aiding farm economies, reducing oil dependence and improving Bakersfield's air quality, which is among the worst in the U.S.
    The newspaper article questioned several experts in the biodiesel field including Mr. Joseph LaStella, President of GSPI. The newspaper quoted Mr. LaStella as follows:
    "A new diesel fuel may be available at Bakersfield gas pumps by the end of the year that could make the valley's smoggy skies clearer, help farmers meet strict new pollution rules, and even make dirty diesel trucks and buses smell yummy."
    The article provides further background on biodiesel including the following quotes:
    "Biodiesel can be made from a variety of domestically produced vegetable products, from restaurant waste grease to the most common source, soybeans. This gives biodiesel exhaust its trademark aroma, which resembles french fries or doughnuts. It also indicates another benefit: Soybeans cleanse soil and absorb carbon dioxide from the air as they grow. Since carbon dioxide is a leading greenhouse gas, proponents say burning biodiesel can actually reduce global warming," writes Matt Weiser of the "Bakersfield Californian."
    "It cleans our air. It cleans our soil. If you spill biodiesel, it's as biodegradable as sugar," said LaStella, President of Green Star. "We put our farmers to work and not the Arabs pumping oil for us. We should be getting off that damn foreign oil as soon as we can and we can do it right here."
    "The San Joaquin Valley represents a major market for biodiesel," LaStella said, "because of the area's bad air quality and large diesel-dependent farming industry."
    The article further states:
    "The diesel burned today by farm equipment is unregulated and contributes to a significant portion of the valley's air pollution. The state faces a federal order to eliminate the regulatory exemption for agriculture by Nov. 23. That could require farmers to replace current engines at a cost of thousands of dollars each. Instead, farmers might achieve similar air quality improvements simply by burning biodiesel, which requires no engine modifications," writes Weiser.
    "If it's available and its price competitive -- even if it's slightly higher -- growers will switch over," said Loron Hodge, executive director of the Kern County Farm Bureau. "They've looked for alternative fuels for a long time. If we can get them to start using biodiesel, that would eliminate a big part of the air pollution. I'm encouraged by it."
    The article also states:
    "Biodiesel has proven itself in a variety of test programs around the country. For example, the city of San Jose now runs its entire fleet of garbage trucks on 100 percent biodiesel, and the Deer Valley Unified School District in Arizona has logged 4 million miles on biodiesel-powered buses," writes Weiser.
    Mr. LaStella stated that: "The initial plant was to be much smaller (see GSPI press release dated Nov. 19, 2002) but many factors including market conditions and economies of scale dictated that a much larger plant was more financially prudent and desirable. The existing site facilities include three railroad spurs capable of holding 130 railroad cars and 36 acres of property with many other support facilities. Sixty percent of the equipment for the Bakersfield site is either on-site or in route."
    Mr. LaStella also stated that: "The plant will also be the only continuous flow production facility in the U.S. Other plants usually incorporate older style inefficient batch processes."
    The Bakersfield plant incorporates ABF's proprietary modular reactor/separator, which was tested and operated at the ABF's Adelanto facility (in Southern California) in early 2002. The reactor/separator modules can be quickly installed in increments of 2.5 million gallons per year in response to expanding market demands.
    The rest of the biodiesel plant does not lend itself to modularization. The rules of economies of scale indicate that a much lower cost can be achieved if this part of the plant is built to maximum planned capacity. ABF, with the assistance of outside consultant engineers, has designed this section of the plant to be integrated into the continuous flow process.
    The ABF continuous flow process design also reduces plant footprint; lowers maintenance and operations costs; minimizes capital construction costs; and shortens time to complete construction. All of these factors significantly lower the overall cost for producing ASTM grade biodiesel. The Bakersfield plant will be capable of producing biodiesel in the Second Quarter of 2003.
    Biodiesel is a cleaner burning alternative diesel fuel made from renewable and recyclable resources. It is non-toxic, biodegradable and essentially free of sulfur and carcinogenic benzene.
    Other advantages of using biodiesel include:

1. Puts American farmers to work
2. Creates new production jobs and a new industry
3. Provides insurance against oil embargoes
4. Reduces life cycle CO2 by 78 percent (Greenhouse Gas)
5. Reduces dependency on foreign oil
6. It's a renewable energy source
7. Reduces hydrocarbon and carbon monoxide emissions
8. Reduces particulate emissions and smoke
9. Has higher cetane
10. Has no sulfur
11. Quality is assured by ASTM standards

    The entire "Bakersfield Californian" newspaper article by Matt Weiser can be read at http://www.bakersfield.com/.
    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.