April 10, 1999

In 1999 we have been very cautious about the companies we chose to profile. We have only presented two companies. Mirage Holdings (OTC BB: MGHI), our first, was released back in late January. When we released MGHI, the stock was trading in the $3.25 range. Since then, there have been several volume surges taking the stock over $4, but it has always been met with resistance. Our other profile, 1st Net Technologies (OTC BB: FNTT) which is our parent company, has been an outstanding performer. We officially released the profile in early March when the stock was at $3, and since that time FNTT has been as high as $10.50 for at 250% return, and is now comfortably trading in the $6 to $7 range. If you had invested in both companies equally, you would be enjoying a nice profit in your portfolio. We have only featured these two companies, because we have tried to be extremely selective. All the stocks we profile are risky, but we try to minimize the risk by selecting companies that are making tremendous fundamental progress. Today's profile is a company we have known about for some time, and we have a very high level of confidence that this Company is on the verge of a major commercial break through:

As always with the Companies we present, this profile is just a brief overview of the Company and a snapshot of where we believe it is headed. For more complete coverage of US Microbics, simply click on the link at the end of this edition of our Newsletter, and a web page will automatically open with a full profile, including pictures of some of their products. This Company also has a very extensive corporate web site. We recommend that you visit this site at www.bugsatwork.com if you have an interest in learning more.

One night in 1969, an oil well pump shaft in Cat Canyon (located in Santa Barbara County) broke loose. Crude oil, forced by internal gas pressure ran down the adjacent hillside for many hours before the oozing mass was discovered. The spillover went into the drainage system, into a stream, and eventually into the nearest drinking water supply.

George Robinson treated the oil spill sumps with bacteria cultures he had isolated in home experiments which had begun in the 1960's. This was the first commercial use of naturally occurring Microbes to safely and effectively clean up a toxic environmental disaster.

An entire industry known as BioRemediation was born. By 1972 this same technology, which had been greatly enhanced, was being employed in over 4,500 oil pump sites in California. The industry was booming, all started by its founder and inventor, George Robinson.

Over the years, Robinson formed several companies, each specializing in a variety of environmental disciplines. Today, microbes are used to treat sewage, oil spills, contaminated soil and increase yields in food production. Nearly every company that competes in this market place uses bug cultures that can be traced back to George Robinson or one of his disciples.

Here is a partial list of clients that Robinson's Companies served over the years:

• Arco
• AT&T
• Bechtel
• Chevron
• Exxon
• Hughes Electronics
• IBM
• Northrup Grumman
• Pacific Bell
• Rockwell Internatl
• Shell Oil
• Sony Pictures
• S. California Edison
• Standard Oil
• Texaco
• Toyota
• United Parcel
• Walt Disney World

Robinson's Companies did many millions of dollars in business. George Robinson passed away and his daughter, Dr. Mery Robinson took over the Companies.

In 1992, Mery Robinson moved the Company's production facility to South Central L.A. in order to take advantage of lucrative tax incentives offered by the city. At the time, Mery Robinson had a $15 million dollar order to fill for Bechtel Corporation which would be used to clean up the oil spills all over the Kuwait Desert as a result of the Gulf War.

While visiting her mother in Carlsbad, California, Mery Robinson watched her new facility on CNN, which had just had its equipment delivered the previous day, burn to the ground in the L.A. Riots sparked by the Rodney King incident.

Demoralized, and for other personal reasons, Mery Robinson closed down the business, and moved to San Diego. Six years later in the summer of 1997, Dr. Robinson licensed her technology to Global Ventures Funding Inc, changed the name to US Microbics, and reincarnated her Company.

• The Company moved into a 22,000 square foot facility in Carlsbad, CA on September 1st, 1998. The Company has spent the last six months building out the manufacturing facility and putting the corporate infrastructure in place.
• The Company is now in full production, and by the end of April should have created enough microbial inventory to begin filling outstanding orders and provide an inventory for at least the next six months of order flow.
• The Microbes they are currently fermenting will decompose many environmental contaminants that disfigure our planet including oil, diesel fuel, arsenic, toxic waste, and water and soil contamination. The microbes decompose most materials into carbon dioxide, water and other innocuous materials.

Bugs is weeks away from coming out of its ramp-up stage and implementing a major commercial roll-out of its products. Initially, sales will be focused in three areas: BioRaptor(tm) sales and supplies for soil recycling centers, Hydrocarbon cleanup and sewage treatment, and agricultural enhancement products.

• The Company currently has enough business in place to predict a range of a minimum of $8 million in sales for the coming year, and believes that $20 million may be in reach if things go well.
• To date, BUGS has announced two licensing agreements which means revenue flow to the Company with very little overhead.
• Hydrocarbon Cleanup and sewage treatment is an absolutely enormous market that will represent a high percentage of their business. Sewage treatment facilities use BUGS to dissolve the solid waste left when the water is sewage is evaporated off. The microbes can reduce the remaining solid waste down to 10% of its previous volume, saving the sewage treatment plant hauling and disposal costs, and making them more profitable.

The Bio-Raptor(tm)

The Bio-Raptor(tm) is a unique piece of heavy equipment which can process about 1200 tons per day of contaminated soil. At current market prices, each Bio-Raptor(tm) can generate about $36,000 per day in revenue.

Contaminated soil is a huge problem for real estate developers today. Not only does the Environmental Protection Agency have strict laws concerning the cleanup of contaminated soils, but, more importantly to developers, banks will not loan money on projects where there is soil contamination.

The Bio-Raptor(tm) is capable of processing about 1200 tons of contaminated soil per day, and can charge an average price of $30 per ton. In California, tonnage rates can often exceed $100 per ton to clean soil contaminated with certain hazardous materials.

The Bio-Raptor(tm) machine is the ultimate "Razor, Razor Blade" formula for profits to BUGS. Once in place, at about a 75% usage rate, the Bio-Raptor(tm) machine will use about $6,000 per day in microbes. 75% usage means the Bio-Raptor(tm) operates 8 hours per day for 195 days per year. This results in $1,179,000 in annual sales of microbes per Bio-Raptor(tm) machine in operation.

As we write this review, BUGS currently has numerous letters of intent to purchase BioRaptor (tm) machines. Only 25 Bio-Raptors(tm), when fully deployed, this will result in $30 million in annual sales of high margin Bioremediation microbe products.

Putting the "DotCom" in US Microbics

In order to take advantage of the current Internet craze, US Microbics has developed a line of microbial based soil amendments (The Bug Lady(TM) Trade; Microbial blends) which, when applied in agriculture use, can dramatically increase yields and sizes. Plants in gardens and lawns flourish in soil treated with the Bug Lady(TM)Trade; Microbial Blends.

The Bug Lady(TM) Trade; Microbial Blends target the home vegetable and fruit market. Our parent company, 1st Net Technologies (OTC BB: FNTT) is developing a commercial Web-Site through which BUGS can market its line of agricultural enhancing products.

US Microbics is a fully reporting company. Their 10Q filing for the December quarter indicates that the Company, between cash and receivables, had nearly $860,000 in working capital to fund the roll out their commercial launch.

The Microbe production required to fill at least the next six months of orders is in the fermentation process now, and by the end of April the first major production run will be complete.

The Company has provided us the following range of anticipated sales for the year beginning May 1st: $8 million minimum, $20 million on the high end. These numbers are based on existing purchase orders and anticipated licensing fees.

The current financial statement also reveals to us that the Company has nearly $4 million in loss carry forwards from Global Venture Funding, the previous business of the corporation. Therefore, US Microbics will not have to pay taxes on the first $4 million in earnings, saving the Company valuable cash flow.

With only 5.5 million shares issued and outstanding, at about $4.00 the stock market is only placing a value of $22 million value on a company that will do at least $8 million in high margin business in its first year of commercial activity. The risk side of the equation is limited because this is not a start up company. It is the rebirth of a company and a technology that did many millions in business over 30 years. We could easily see the market placing a $50 million valuation on this company, suggesting a stock in the $8.75 range for investors with a medium to long term outlook.

In addition to having the capital in place to fund their commercial roll out, BUGS recently announced that the Company has retained Big 5 accounting firm Arthur Andersen to represent them from here forward in all of its SEC filings. This move signifies that BUGS plans to have the credibility to take its story to Wall Street.

After 1 1/2 years of raising capital and building the infrastructure, BUGS begins its major commercial roll out this month. Fortunes are made by investors that time their entry point into stocks around major commercial product introductions.

A good example, which we can all identify with is Pfizer's (NYSE: PFE) introduction of Viagra. The stock of Pfizer appreciated dramatically around the introduction of this highly publicized drug used to treat male impotence. With all the publicity that Viagra received, investors recognized that there would be very high demand for the drug. Pfizer had taken years to develop this product, and spent millions of dollars. With all the development costs behind them, investors believed that Pfizer would enjoy enormous profits from Viagra sales, and consequently the market pushed up the price of Pfizer stock. Although BUGS is in a different industry group, and investing in the stock is much riskier than that of a pharmaceutical giant, the formula for profits is the same. With the long term development costs behind the Company, huge commercial demand for their products, and low manufacturing costs, the Company is well positioned for substantial earnings.

After closing her doors with a $15 million order on the table from Bechtel Corporation, Mery Robinson is reincarnating her Dad's technologies into a commercially viable company. The manufacturing facility is open and producing Microbes, orders are coming in, and prosperity is fast approaching.

After spending some time at the Company, we are totally convinced that many of Mery Robinson's customers, which reads like the Who's Who's of Fortune 500 Companies, are ready to do business with her company again.

The risk side of the investment in BUGS is uniquely limited. Most start ups need to demonstrate that there is a market for their products. In this case, thirty years, and millions of dollars in purchase orders and profits from Fortune 500 Companies prove that the market already exists.

If what you have read here sparks your interest, you can get more detailed information by CLICKING HERE, and waiting for the web page to open with the full profile. Also, don't forget to sign the company's mailing list for automatic updates on corporate events.

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