American Biofuels increases biodiesel production

Bakersfield, CA— American Biofuels, L.L.C. (ABF), which is 35% owned by Green Star Products, Inc., announced that it expects to increase biodiesel production to 40,000,000 gallons per year in 2006.

This is a significant amount since the entire biodiesel production in the United States was only 66-million gallons in 2005.

The expansion of biodiesel consumption in the U.S. is being fueled by several factors that include the following:

•Biodiesel is now selling at or below the price of regular diesel. The effect is that biodiesel is no longer a specialty market; it is now in the mainstream of the fuel distribution system with demand expected to increase by several hundred percent over the short term.

•DaimlerChrysler is the first automobile manufacturer to approve the use of B-20 fuel (20% biodiesel and 80% diesel) in its commercial fleet customers including military and government vehicles.

DaimlerChrysler’s announcement follows many other nationwide commitments to use biodiesel, including Governor Arnold Schwarzenegger and Senator Roy Ashburn’s legislation to reduce Global Warming gases and reduce our dependence on foreign oil for the State of California by the use of biodiesel also, Governor Pataki’s announcement to increase the use of biodiesel for fleet vehicles and in home heating oil for the state of New York.

In response to these major commitments by legislators, ABF is planning to increase its production of biodiesel on both the East and West Coast.

ABF is planning a new 20,000,000-gallon per year East Coast facility to supply New York State and surrounding states and expects this facility to be in production by late 2006.

ABF is also expanding its existing production biodiesel plant in Bakersfield to service California. ABF originally expected its existing 5-million gallon per year biodiesel plant to complete its expansion to 10-million per year by January 2006. However, this expansion in Bakersfield will not be completed until March 2006, because ABF decided to increase certain designs to accommodate even further expansion later this year. ABF is planning to commence further expansion to increase the production capacity beyond 10-million gallons per year to 20-million gallons per year, with an estimated completion date by late 2006.

The expansion of the Bakersfield plant will be done without interfering with current biodiesel production and delivery to present customers.