Research, Report & Profiling Services by IPOdesktop.com US Farms, Inc. (USFI.OB)

Stock symbol: USFI.OB……..……………………………..Float: 4.1mm(est)

Stock price 9/10/07: $.52……..……….Common shares (09/10/07: 39.7mm)

52-week price range: $.30 - $.94.….Equity market capitalization: $19.7mm

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BUSINESS

US Farms, Inc. is one of a small number of publicly traded companies of the farming and nursery agriculture and produce sector of the public traded stock market. USFI is a vertically integrated, best of breed emerging growth company in this sector of the public markets

Through internal growth, consolidating supply agreements with growers, and strategic acquisitions USFI is expanding its market share in the produce, farming and nursery space.

HIGHLIGHTS

US Farms Inc. has publicly projected revenue of $12 million for FY 2007 and $40 million for FY 2008 respectively

The company has used investments of approximately $4.5 million in 2007 to finance its growth.

US Farms, Inc. grows all its plants and crops in Southern California, reducing risk from weather.

US Farms, Inc. utilizes advanced modern technologies to its advantage to increase seasonal and volume production while reducing costs and increasing profit margins

GROWTH DRIVERS

Senior industry sales executive hires in growth niche markets who bring an established customer base and fine reputation to USFI.

Making strategic acquisitions for vertical channels of distribution.

Expanding timely planting and harvesting taking advantage of market opportunities due to supply and demand of seasonal niche products.

Online availability to the US Government for bulk produce acquisition and support to US service disabled veteran subsidiary.

Increase product sourcing worldwide.

POTENTIAL MARKET CAPITALIZATION

We noted in our December, 2006 report that USFI’s price per share could approach $.90 in Q1, which it did the end of May

Based on management’s revenue guidance of almost $12 million for the 12 months ending December 31, 2007 and $40 million for 2008 with a further sales in succeeding years.

Coupled with the stock market’s current hunger for new companies that show top line revenue growth.

And because the industry is fragmented with USFI on track to consolidating profitable operations, sign new grower agreements and provide a public exit strategy for smaller operations on a roll-up basis.

It seems reasonable that as USFI achieves expected milestones (see below) the market capitalization into 2008 could approach the expected top line revenue of $40 million. With 40 million shares outstanding the price per share could approach $1.00, not counting equity sales to finance expected growth.

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Address: 1635 Rosecrans Street, Suite D, San Diego, CA 92106

Telephone: : 858-488-7775/ 800-845-9133 Fax: 858-488-2828

President: Yan K. Skwara

Web Site: http://www.usfarmsinc.com

State or other jurisdiction of incorporation or organization: NV

Transfer Agent: Holladay Stock Transfer

Investor contact: Yan K. Skwara, Tel: 858-488-7775, investor.relations@usfarmsinc.com

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OPERATING SEGMENTS

California Produce Exchange, Inc. (CPE)

Grows and distributes produce (asparagus, tomatoes and garlic) through retail and wholesale distribution channels in the Continental United States. CPE produce is sold in supermarkets and to restaurant suppliers and food processors.

American Nursery Exchange, Inc. (ANE)

Grows and markets potted plants through wholesale distribution channels throughout North America. ANE plants are sold in supermarkets, garden and home improvement centers, landscapers and through direct mail.

American Aloe Vera Growers, Inc. (AAVG)

Grows packs and ships Aloe Vera plants, produce and bulk leaves through wholesale and retail channels throughout North America. AAVG products are sold in supermarkets, garden and home improvement centers, landscapers and retail outlets.

California Produce Exchange, Inc. (CPE)

CPE expected to provide most of the top line revenue growth

Most of the CPE growth is expected from Garlic, Tomato and Government bulk contracts businesses

Recently achieved CPE milestones

Addition of senior sales executives with large books of business from the industry

. Specifically in Tomato and Garlic product lines

. Q2-07-Hired Sam Nucci as VP Sales & Marketing of newly formed Sammy’s Produce, Inc. (a wholly owned subsidiary of California Produce Exchange, Inc.).

. Q3-07-Hired Iraj Shadfar as VP Sales & Marketing of newly formed World Garlic & Spice, Inc. (a wholly-owned subsidiary of California Produce Exchange, Inc.).

Government bulk contracts

. Expected to drive almost 1/3 of top line revenue growth

. Q3-07-Signed agreement with a US Government prime contractor with a Disabled Veterans designation.

. Agency Exchange, http://www.agencyexchange.us

. This Contract is expected to allow US Farms to become a player in bulk produce contracts awarded by various government agencies including Military Services, Military Commissaries/Exchanges and the Morale, Welfare, and Recreation (MWR) Facilities, Job Corps Centers, VA Hospitals, Federal Prisons, Schools and Native American Reservations in partnership with the US Department of Agriculture, National School Lunch Program and related Food and Nutrition Services Program, food acquisition networks.

ANTICIPATED MILESTONES

Anticipated CPE milestones

Strategic acquisitions have already contributed to top line revenue growth, for example, Q4-07/Q1-08-Acquisition of Large Garlic & Spice Retail/Wholesale company with locations in LA and Texas

Product supply and multi sourcing insures product availability through both strategic sourcing & growing arrangements. With the addition of http://www.agencyexchange

U.S. Government contracts will impact the overall increase in produce requirements causing USFI to enter into larger growing agreements and a diversified purchase and self-grow business practice to reduce product costs, increase margins and increase customer service assuring customer loyalty.

Q4-07-Begin direct importation of Garlic from China.

Distribution facilities to provide infrastructure for regional growth

. Q1-08-Distribution facilities slated for Houston & Michigan which will provide the company a regional sales and distribution presence in the in these new market areas while reducing logistics costs.

. 2009-Distribution facilities slated for Nogales, Arizona & Bakersfield, California.

Anticipated ANE milestones

. Brokered Products and Jade to provide Growth

. Strategic Hires of Sales VP’s to bring large book of business to Nursery Operations

Anticipated AAVG milestones

Strategic Hires of Sales VP’s to bring large book of business to Aloe Vera Operations

SEGMENT DESCRIPTION

California Produce Exchange, Inc.

Products & Services

Fresh Market Asparagus, Fresh Market Tomatoes, Fresh Garlic, www.agencyexchange.us Bulk Government Produce Contracts

Market Trends

. Consumers are purchasing more produce, more exotic varieties, and more convenient portions and packaging.

. The foodservice sector has stepped up as buyers of fresh fruits and vegetables as merchant wholesalers have declined in importance.

. Retail companies have grown larger, with mass merchandisers (e.g., Wal- Mart) more active in food marketing.

. Purchasing strategies have also changed, with retailers and wholesalers now asking grower-shippers to provide additional services.

Sales & Marketing

. CPE markets and distributes produce through retail and wholesale distribution channels in the Continental United States.

. CPE produce is sold by a direct sales force to supermarkets, restaurant suppliers and food processors.

Competitive Landscape

The competition for produce products has evolved into a very competitive local, regional and international business. , Management maintains that its experienced sales staff, customer service specialists, historical relationships, and geographic locations will provide competitive advantages.

American Nursery Exchange, Inc.

Products & Services

Jade, Exotic Palms & Cycads, Mail Order, Other Brokered Products

Market Trends:

Increases in homeownership, The aging of the American population, Increasing popularity of gardening, Expansion of large "big box" retailers and their growing emphasis on the lawn and garden category

Sales & Marketing

. ANE markets and sells to independent or chain garden centers, home centers, landscapers, hotels, office parks, and golf courses.

. Sales are usually by a direct sales force with years of established relations with buyers.

Competitive Landscape

The competition for nursery products is significant and includes Hines Horticulture, Inc, and Color Spot Nurseries, Inc.; however, management insists that its focus on high end palms and cycads for landscape/interscape and jade plants will provide competitive advantages.

American Aloe Vera Growers, Inc.

Products & Services

Premium Branded Aloe Plants, Boxed Aloe Produce, Bulk Leaf

Market Trends

. Aloe has one of the highest levels of recognition for herbs.

. Continuing research on aloe’s medicinal properties by prominent labs and new products from around the world has raised consumer awareness of aloe's benefits.

. The latest trends in the aloe market have been designed as aloeceuticals, which blend aloe with other supplements and herbs.

Sales & Marketing

. AAVG markets and sells to independent or chain garden centers, home centers, grocery stores and is brokered nationally.

. Sales are usually by a direct sales force with established relations with buyers.

Competitive Landscape

The competition for the aloe leaf is primarily from Mexican growers. Competition for potted aloe plants is from very small regional growers. Management recognizes it has significant competitive advantages in this segment due to climate, an irrigated crop which provides superior product, a "good sized leaf" and location to market as the aloe is grown in California.

SEASONALITY

USFI’s business is highly seasonal. The seasonal nature of operations results in a significant increase in working capital between the growing and selling cycles. As a result, operating activities in the first and fourth quarters use significant amounts of cash, and in contrast, operating activities in the second and third quarters historically have generated cash as USIF ships inventory and collect accounts receivable. USFI has experienced, and expects to continue to experience, significant variability in net sales, operating income and net income on a quarterly basis.

MANAGEMENT TEAM

Yan Skwara, Chief Executive Officer and Chairman of the Board of Directors

Founder and CEO of US Farms, Inc. During Mr. Skwara’s 18 years on Wall Street he was a NASD Registered Representative and an Investment Banker. He has had Investment Banking experience managing both small and large cap market portfolios and expertise in Mergers and Acquisitions. He served as Vice President of Investments at AG Edwards and Executive Vice President of Whale Securities during his tenure on Wall Street. Mr. Skwara has over 10 years experience managing early stage private and public companies. Mr. Skwara is responsible for overseeing the acquisition of companies and inventories while managing the internal growth of the company. He has been instrumental in raising capital, hiring experienced management and increasing shareholder value. Under his guidance, US Farms, Inc. has reached and exceeded sales and earnings projections quarterly.

Darin Pines, Chief Operating Officer

Over 18 years experience in farm and nursery operations. He has been instrumental in the acquisition of both the farm and nursery properties, the strategic restoration of the nursery, development and planting of the Imperial Valley Aloe Vera acreage, and establishing the Company’s proprietary farming techniques which have provided superior quality and yield.

In addition, Mr. Pines has overseen the successful targeting, acquisition and integration of Samlis, Inc. and USA Garlic & Spice, Inc. enterprises into US Farms. He began his career in 1988 with Carlsbad Floral Exchange Inc. where he was responsible for managing multiple nursery facilities, business development and customer retention initiatives.

Donald Hejmanowski, Director/Consultant

Over 25 years of experience in the financial markets. In 1980, he began a career in the brokerage community, going on to serve in various positions in the investment world, including stockbroker, branch manager, vice president of trading operations and as a principal of a firm. In 1990, Mr. Hejmanowski left the brokerage community to work directly for public companies, and with private companies seeking to go public.

His work has included corporate capital structure, mergers and acquisitions. Mr. Hejmanowski has served on the board of directors of 3dShopping.com, an American Stock Exchange listed company, and four companies listed on the Over-the-Counter Bulletin Board: from January 2001 to February 2002, Mr. Hejmanowski served on the board of NuTek, Inc.; from February 2001 to November 2001, he served on the board of NetCommerce, Inc. and from December 2001 to May 2003, he served on the board of Photonics, Inc.

He has also served on the compensation committee and audit committee for 3dShopping.com. Currently, Mr. Hejmanowski serves as a director of LitFunding Corp. Mr. Hejmanowski has also served as an officer or director of five start-up private entities. In 1981, he earned his Bachelor of Science degree in finance and a Bachelor of Arts degree in economics from Eastern Illinois University.

Sam Nucci, Vice President of Sales & Marketing Tomatoes & Food Service

Is leading the sales and marketing functions of the Tomato and Food Service operations. Mr. Nucci has over 28 years of professional experience in various sales and marketing capacities in the produce space.

Prior to joining US Farms, Inc., Mr. Nucci served as President at Samlis, Inc. He began his career at Carlsbad Tomatoes while still in high school, and later at Agri Sales which was eventually acquired by Cal Fruit.

Iraj Shadfar, Vice President of Sales & Marketing Garlic

Leading the sales and marketing functions of the Fresh Garlic operation. Mr. Shadfar has over 25 years of professional experience in the fresh garlic space.

Prior to joining US Farms, Inc., he served as President of USA Garlic & Spice and California Sunshine. Prior to 2001, Mr. Shadfar founded and operated a large European garlic distribution company headquartered in Germany.

Neal Ford CPA, Interim Corporate Controller

Has over 20 years of experience in corporate and public accounting environments. From 2003 to 2006 he was a Financial Consultant for a $90 million manufacturer of dietary supplements.

From 2001 to 2003, Mr. Ford was a Financial Consultant with a CFO Strategies, LLC where he provided clients CFO/Controller level services including industry specific engagements at Color Spot Nurseries and Am-Sod, Inc.

From 1999 to 2001 Mr. Ford acted as Corporate Controller for MediaDNA, Inc., a developmental stage company, which was designing digital rights management (DRM) technology and search engine optimization/ranking software.

Prior to this, Mr. Ford held financial management positions in diverse companies including Booz, Allen & Hamilton, Fisher-Price, Jungle Rags, Moss-Adams, and Performance Plastics.

Mr. Ford earned a BS in Business Administration with double majors in accounting and marketing from the University of Maryland. He is a Certified Public Accountant in the State of California; status active.

IPOdesktop (ID) SAFE HARBOR STATEMENT: Statements contained in this document, including those pertaining to estimates and related plans, potential mergers and acquisitions, estimates, growth, establishing new markets, expansion into new markets and related plans other than statements of historical fact, are forward-looking statements subject to a number of uncertainties that could cause actual results to differ materially from statements made. ID provides no assurance as to the subject company's plans or ability to effect any planned and/or proposed actions. ID has no first-hand knowledge of management and therefore cannot comment on its capabilities, intent, resources, nor experience and makes no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company or its agent and related sources believed by ID to be reliable, but ID provides no assurance, and none is given, as to the accuracy and completeness of this information.

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