GSPI Green Star Products Inc (PK)

American Biofuels, L.L.C. (ABF), which is 35% owned by Green Star Products, Inc. (OTC:GSPI), announced today 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: -0- *T 1) 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. 2) Daimler-Chrysler (US:DCX) 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 (see press release by Daimler-Chrysler dated January 20, 2006). Chrysler Group President and CEO Tom LaSorda went on to say, "Biofuels represent a huge opportunity to reduce consumption and our dependence on foreign oil." *T Daimler-Chrysler'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 (see Green Star Products press release dated October 4, 2005); 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 (see Green Star Products press release dated December 1, 2005). 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 (see Green Star Products press release dated December 2, 2005) 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. Bakersfield Plant expansion pictures are available at GreenStarUSA.com. 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 U.S. Department of Agriculture (USDA) Bioenergy Program (http://www.fsa.usda.gov/daco/bio_daco.htm), which pays producers cash incentives for biodiesel production. 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.