SAN DIEGO--(BUSINESS WIRE)--Aug. 9, 2006--Green Star Products, Inc. (OTC:GSPI) (Website: GreenStarUSA.com) announced today that funding commitments have been made by its Consortium of partners (see press release dated June 28, 2006) to purchase one ethanol plant and to build three biodiesel plants and purchase one ethanol research facility.

GSPI and its Consortium partners have received over 30 joint venture offers to build biodiesel plants and Bio-Refineries in the U.S. and six foreign countries.

Although most of the joint venture offers were viable projects, GSPI had to choose its projects carefully to suit the long-term objectives of the Consortium, which are:

1) Production of ethanol from low cost agricultural waste products (wood chips, switch-grass, rice stalks, municipal waste, etc.) from biomass based on our proprietary process patents (see press release dated July 7, 2006).

2) Production of biodiesel integrating our commercially proven proprietary continuous flow waterless biodiesel process in conjunction with local farmers to supply long-term feedstock (canola seeds or equivalent). This will insure sustainability of plant operation and supply fuel for the local community at competitive prices. In the rapidly expanding biodiesel industry long-term feedstock availability is of prime concern!

According to Green Star Products, most farmers are eager to participate even before we present them with reality factors concerning their long-term fuel availability.

The majority of the public does not realize that the U.S. burns 25% of the entire world oil production each day. However, the U.S. only has 2% of the known world oil reserves and only 8% of the refinery capacity.

The question is: Are the farmers (or anyone else for that matter) willing to gamble on that inequitable fuel equation to keep the farming equipment running? Probably not! What we offer the farmers in effect is insurance that we are the equivalent of a local oil production refinery that can provide fuel to local communities regardless of world oil availability.

Mr. Joseph LaStella, P.E. President of Green Star Products, stated, "We assure sustainability, if the farmer provides oilseeds to us. If this happens, we can provide fuel and animal feed at reasonable prices back to the farmer. This dual arrangement has now removed all the intermediate companies (storage, transportation, packaging, crushing) that substantially increase the retail price of fuel and animal feed. Our company and the farmers share in those savings and provide security of fuel supply."

GSPI continues to receive requests to build Biodiesel and Bio-Refinery plants and in response to this demand we have begun to increase the Consortium's engineering and field personnel to address this increased demand.

The alternative fuel industry is experiencing an unprecedented surge of financial support to greatly increase domestic capacity of sustainable fuels and energy.

A recent BusinessWeek article (August 14, 2006) titled "Wall Street's New Love Affair" explains why some of the world's smartest investors are betting billions on clean energy.

The article identified some of the richest men in the U.S. that have committed hundreds of millions of dollars to reduce Global Warming and provide energy independence for the U.S., they include: Richard Branson, Paul Allen, Bill Gates, Warren Buffett, Jeff Immelt, Vinod Khosla (Co-founder of Sun Microsystems), and Google Co-founders Larry Page and Sergey Brin.

The article further stated: "We're seeing an alignment of the environmental interests, automakers, the agricultural industry, the security and energy-independence proponents, even the evangelicals," says billionaire venture capitalist L. John Doerr. "When did all those (interests) come together before?"

In many other articles across the United States, other Wall Street giants, such as Goldman Sachs, are now in the process of committing billions of dollars to the alternative fuels industry. The race is especially acute in the ethanol industry.

Mr. LaStella also stated that, "It's a known fact that biofuel companies do extensive studies before they build and there's a lot of industry posturing for position to secure prime situations."

Green Star's competitive advantages are also tied to specific location advantages. Therefore, details will only be released as each project security is achieved. Presently, major biodiesel plant equipment (reactors, centrifuges, pumps, tanks chillers, heat exchangers, etc.) is being shipped to Northwest U.S. to commence construction in the near future.

As previously stated in our June 28 press release, GSPI Consortium strategic plans include at least 500 million gallons of biofuel capacity by 2010.

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. Green Star Products 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 Green Star Products' Web site at 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 Bloomberg.com and 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.

Copyright Business Wire 2006

Green Star Products, Inc

Green Star Products, Inc

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. Green Star Products and its Consortium are 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.

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