New York June 7, 2006--Hugo International Telecom today announced its acquisition of Mean Green BioFuels from GreenShift Corporation, Hugo's majority shareholder.

 

Under the terms of the acquisition agreement, Hugo has acquired 100% of the issued and outstanding stock of Mean Green BioFuels and its subsidiaries. It also exchanges GreenShift's current 67% stake in Hugo in return for the assumption by Hugo of about $2.0 million of debt and the issuance to GreenShift of a new class of Hugo preferred stock that is convertible into 80% of Hugo's issued and outstanding stock. Mean Green intends to finance, build and operate several biodiesel production facilities in the U.S.

 

The feedstock for these facilities will include corn oil derived from ethanol facilities, soybean oil, and animal fats. Mean Green is designing its first planned biodiesel production facility to operate at 45 million gallons per year and to be expandable to accommodate growth. Each Mean Green biodiesel facility is expected to utilize traditional esterification and transesterification methods as well as other proprietary processes.

 

A key aspect of the Mean Green business model is its reliance on new sources of biodiesel feedstock's produced by its clean technology partner, Veridium Corporation, another GreenShift company. Mean Green is party to a strategic alliance with Veridium pursuant to which Mean Green has the ongoing exclusive right of first refusal to purchase Veridium's various biodiesel feedstock's including the high grade corn oil that Veridium extracts from an ethanol by-product called distillers dried grain ("DDG") with Veridium's patent-pending Corn Oil Extraction System(TM).

 

Veridium's pricing model for its Corn Oil Extraction Systems(TM) is based on its provision of its turn-key systems for no up-front cost in return for long-term corn oil purchase agreements based on a fixed discount to prevailing corn oil market prices. Veridium intends to purchase and sell its extracted corn oil as a high grade corn oil product until Mean Green's first biodiesel production facility commences operations, at which point Mean Green intends to purchase the oil from Veridium based on a fixed discount to prevailing fuel prices.

 

As previously announced, Hugo intends to change its name to GS AgriFuels Corporation in conjunction with the closing of this acquisition.

 

David Smith, Singapore