New Biodiesel Reactor Shortens Process Time Significantly

Green Star Products, Inc. (OTC:GSPI) (GreenStarUSA.com) announced today that they have developed and successfully commercially tested their advanced biodiesel reactor.

GSPI reactors require an amazing two minutes to complete the biodiesel conversion reaction versus over one hour for the rest of the industry. This means that GSPI’s processing rate through the reactor is at least 30 times faster than the rest of the biodiesel industry.

Mr. LaStella, President of GSPI, stated, “Three different sizes of the proprietary biodiesel reactors were tested from January 2005 through February 2006 at the Bakersfield Biodiesel Plant Facility. The largest reactor was rated at 10-million GPYC (gallons per year capacity) and was operated from August 2005 through February 2006.”

Mr. LaStella further stated, “The reactor’s capability is revolutionary. Most biodiesel plants processes require from one to one-and-a-half hours for complete chemical reactions to take place between vegetable oil, alcohol (methanol) and the catalyst. The GSPI reactors take less than two minutes to complete the reactions. Furthermore, the advanced engineering design incorporates an inexpensive construction method to produce these reactors. The basic production cost to build them has been reduced to only $30,000 per reactor for a 10-million GPYC module. Smaller units will cost even less. This major engineering breakthrough will significantly reduce the costs and time to build biodiesel plants. The balance of the infrastructure – which includes land, building, electrical, storage facilities, railroad access and final cleanup of biodiesel – will still be required.”

Mr. LaStella further noted, “Most biodiesel plants also need large amounts of water to clean the biodiesel after completion of initial reaction conversion to attain quality ASTM grade biodiesel. GSPI also has been using a proprietary Waterless Biodiesel Cleanup System since December 2003 at the Bakersfield facility. GSPI’S cleanup system negates the need for complex permits and significantly reduces construction expenditures associated with washing systems normally used in the industry.”

Since GSPI’s Continuous Flow Biodiesel Production (CFBP) system is completely enclosed and waterless, it greatly reduces the time to secure construction permits, which can take a year or longer to obtain. Mr. LaStella points out that California is probably the toughest state to obtain air and water discharge permits. Recently, the GSPI CFBP system received the permits to construct a biodiesel plant in California in only eight weeks.

Since many cities and towns across the U.S. do not have the expertise to evaluate new biodiesel plants being built in their jurisdiction, they have welcomed the California permit package to save them the need to research this emerging biodiesel technology and save GSPI the time to receive these valuable permits.

The new reactors operated for 14 months in Bakersfield under secrecy for security reasons. Only a handful of prospective technical and financial parties were invited to tour the plant at Bakersfield (under non-disclosure agreements).

These reactors have been and always will be built and operated by GSPI personnel in all present and future plants to protect the intellectual property. These important proprietary elements of the GSPI “continuous flow waterless process” make it possible for the construction of future plants to be within 14-18 weeks versus 14-18 months as the industry standard is today.

The capital cost factor for GSPI plants are in the range of at least 60% less than most biodiesel plants now being built throughout the industry. GSPI is currently expanding its technical staff to build several biodiesel plants simultaneously.

Please see GSPI press release dated May 15, 2006 entitled Green Star Products to Construct Total Bio-Refineries.

Green Star Products, Inc. (OTC:GSPI) 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’ Website at http://www.GreenStarUSA.com, or call Investor Relations at 619-864-4010, 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”.

Source

Green Star Products May 23, 2006.

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