BAKERSIFELD, Calif., Oct 04, 2005 -- BUSINESS WIRE

 

Last Thursday September 29, 2005, Governor Schwarzenegger of California signed into law a proposal authored by State Senator Roy Ashburn (R-Bakersfield) that would allow public agencies and utilities to use vehicles that run off of biodiesel and biodiesel blends.

"By using biodiesel, we can reduce dependency on foreign oil by up to 20 percent," said Senator Roy Ashburn.

American Biofuels (ABF), a biodiesel producing company which is 35% owned by Green Star Products, Inc. (OTC:GSPI), has been working with the California Energy Commission for some time now to establish production and usage criteria for the State of California.

American Biofuels has foreseen the probability that the State of California would commit to the use of biodiesel and anticipated a commitment by the Governor's Office for the use of biodiesel in the state.

On September 30, 2005, Central Valley Business Times (CentralValleyBusinessTimes.com) reported, "Bakersfield is the location of a major biodiesel plant. In July, American Biofuels said it was expanding its biodiesel production facility in Bakersfield to an annual production capacity of 10 million gallons. Expansion is expected to be finished by the end of the year."

The article went on to state: "Californians have always led the way in protecting our lands and oceans and pioneering new forms of energy use that reduce our reliance on foreign fuels," Gov. Arnold Schwarzenegger says in a statement. "Today, we are continuing that proud legacy with new legislation that will decrease our dependence on foreign oil and encourage the use of cleaner burning domestic fuels."

Mr. Joseph LaStella, President of GSPI, stated, "This is a major commitment even on a world scale considering that the state of California has the 5th largest economy in the world and is also the 10th largest emitter of global warming gases in the world.

"In response to the ever growing demand for biodiesel, American Biofuels has already begun its next expansion to 10 million gallons per year to be completed before year end (expansion pictures available at GreenStarUSA.com), and will continue its expansion next year to its eventual planned capacity of 35 million gallons at the Bakersfield location," said LaStella.

American Biofuels has been a member of the National Biodiesel Board (NBB) since 2001 and in the same year received its registration for three EPA certificates for its biodiesel fuel and fuel additives. ABF was also approved to participate in the US Department of Agriculture (USDA) Bioenergy Program (http://www.fsa.usda.gov/daco/bio_daco.htm), which pays producers cash incentives for biodiesel production.

In 2004, ABF was listed on the USDA Bioenergy Program website as the 8th largest producer of biodiesel in the U.S. and the largest producer on the West Coast.

Green Star Products, Inc. is an environmentally friendly company dedicated to creating innovative cost-effective products to improve the quality of life and clean up the environment. GSPI is involved in the production of renewable clean-burning biodiesel and other products including lubricants, additives and devices that reduce emissions and improve fuel economy in vehicles, machinery and power plants. For more information, see GSPI'S Web site at http://www.GreenStarUSA.com or call Investor Relations at 619-864-4010, or fax 619-789-4743, or email info@GreenStarUSA.com. Information about trading prices and volume can be obtained at several Internet sites including http://www.bloomberg.com and http://www.bigcharts.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.

SOURCE: Green Star Products, Inc.

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