BUGS Signs LOI for Merger/Spin-Off with Majestic SAFE-T-PRODUCTS Ltd.; Safety Products & Diesel Emission Control Help Environment

    CARLSBAD, Calif.--Aug. 6, 2002--U.S. Microbics Inc. (OTCBB:BUGS) announced today that it has entered into a bilateral Letter Of Intent with Majestic SAFE-T-PRODUCTS Ltd. (MSPL) whereby BUGS will spin-off 70 percent of a newly-formed subsidiary to MSPL in a tax-free exchange for 30 percent ownership of MSPL.
    BUGS have retained Investment Banking Services of Alexander & Wade of San Diego to coordinate the transaction.
    Majestic SAFE-T-PRODUCTS Ltd. has three major products. The SAFE-T-BAR(TM) (http://www.safe-t-bar.com) is a revolutionary and patented passenger restraint for school buses that closely approximates the type of restraint most commonly found on high velocity amusement park rides. The Dispenstec Glove Box (http://www.m-glovebox.com) is a device for use in the high technology industry, medical facilities, and physician and dentist offices which allows the worker, or practitioner, to don gloves without touching the outside of the glove thereby preventing possible contamination of the gloves' exterior. The third product is the REFILTER(TM), (http://www.m-refilter.com) a patent pending, recyclable diesel exhaust filtration system designed to meet impending EPA standards that mandate a 90 percent reduction in particulate matter emissions for all commercial diesel powered vehicles by the year 2007. For more info about Majestic and these products see their Web site at http://www.m-stp.com.
    "The merger/spin-off with Majestic has the basis for additional revenue for BUGS," stated Robert C. Brehm, CEO. "The REFILTER(TM) product is of significant interest to us as an emission control device for diesel exhaust and adds air emission solutions to our existing soil and groundwater contamination solutions. We intend to become the worldwide licensor of the REFILTER(TM) technology to diesel users such as truck, train and tractor manufacturers. The REFILTER(TM) Exhaust Filter System could significantly reduce harmful emissions from combustion engines and has applications in any industry that utilizes diesel engines. At a projected price point of $3,000 per unit, the addressable market for the REFILTER(TM) exhaust filter is approximately $4.5 billion."
    U.S. Microbics Inc. is an emerging global environmental company using conventional and biological technology to provide better, faster, cheaper and safer environmental cleanup solutions. For further information about U.S. Microbics contact Robert Brehm by phone at 760/918-1860, ext. 102 or learn about the company by visiting the Web site at www.bugsatwork.com.
    Alexander & Wade Inc. (AWI) provides both advisory and transactional services to help business owners develop and implement the business strategies necessary to achieve their personal and financial objectives.

    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.