Research, Report & Profiling Services by IPOdesktop.com Update --US Farms, Inc. (USFI.OB) Stock symbol: USFI.OB….…….…………...………………………………..Float: 2.7mm(est)

Stock price 4/17/07: $.50…….…..…..……………..…….Common shares (3/27/07: 25 est)

52-week price range: $.30 - $.85………..…………Equity market capitalization: $12.5mm

Recent News…..Stock Price…..Chart…..SEC Filings

HIGHLIGHTS

Confirms guidance and projected yearly sales of $12.4 million for the year ending December 31, 2007 from three divisions

. American Aloe Vera Growers, Inc. 18%: $2,2mm

. American Nursery Exchange, Inc. 23%: $2.8mm

. California Produce Exchange, Inc. 59%: $7.4mm

$28mm for 2008*

$54mm for 2009*

*not including revenues from any Ethanol operations. See "Proposed Ethanol Plant Update" below

Since mid-December, USFI has raised over $1.1mm for working capital and to fund operations

MARCH QUARTER RESULTS

Q1 sales estimated in excess of $1.7 million, March sales approximately $685,466

Yan K. Skwara, USFI President, said "These March sales figures are in line with our projected sales revenues for the month of March 2007, which were primarily Asparagus produce and Aloe Vera plant and produce sales. "For the coming 2nd Quarter and the remainder of the 2007 calendar year, US Farms, Inc. will continue to diversify plant and crop sales to increase future revenue which include the growing and sales of Asparagus, Aloe Vera, Wheatgrass, Cactus, Melons, Tomatoes, Palm Trees and Jade. "Management continues to remain confident in hitting our goal of projected revenues in the $12,400,000 plus range for the 2007 year."

BUSINESS

USFI is an operator of commercial nurseries and farms in North America, for the production and distribution of horticultural products through a number of subsidiaries.

Currently one of the largest growers in the United States of Aloe Vera (over 400,000 full grown Mother plants) and of Asparagus (in the first quarter of each year due to favorable climate conditions that allow the company to harvest in the months of December through March).

On the nursery side of the business USFI grows palm trees, jade and other foliage

Horticultural products are sold through supermarkets, home centers, retail merchandisers, garden centers, re-wholesalers, and landscapers throughout the United States and Canada.

USFI is also

Brokers and grows tomatoes, see "Recent Developments" below

EXPANDING MARKET SHARE

USFI is expanding its market share in the farming and nursery space through internal growth and strategic acquisitions of revenue producing operations

USFI is also expanding market share by consolidating supply agreements with growers

RECENT DEVELOPMENTS

Sam Nucci becomes Vice President of Sales and Marketing of USFI’s newly formed subsidiary, Sammy's Produce, Inc. Mr. Nucci will lead the sales and marketing functions with an initial focus on Fresh Market Tomatoes. Mr. Nucci has over 28 years of professional experience in various sales and marketing capacities in the produce space. Prior to joining our team, Mr. Nucci has successfully marketed and sold over 250 million dollars of Tomatoes.

US Farms, Inc. Becomes Player in California Fresh Tomato Market--growing and brokering tomatoes

. According to management, "USFI management is moving aggressively to expand its crop growing business. Based on the current ability to fund our Tomato business operation, we are projecting in the range of $5,000,000 in revenues in 2007 from Tomatoes alone, which is a combination of brokering and growing Tomatoes."

. California is the second largest producer of fresh tomatoes in the United States. There are over 100 growers producing fresh tomatoes on 37,000 acres, May through mid-November, and producing year-round in climate controlled greenhouses. Major California growing regions include the San Joaquin, Salinas, and Imperial Valleys, and Ventura and San Diego Counties.

Purchased all existing plant inventory of Palm Mountain Nursery, wholesale value estimated at $1.5 million

Initiated construction for a two-acre Shade House Facility at USFI’s newly leased nursery facility

Signed a five-year lease agreement for 15 acre nursery facility in Southern California

Generated record sales for the months ending January 31 and February 28, 2007

GROWTH PLAN

USFI uniquely appears on track to establishing a success pattern of

Continuing internal growth

Consolidating profitable operations

Signing new grower agreements and

Providing an public exit strategy for smaller, revenue-production operations on a roll-up basis

PROPOSED ETHANOL PLANT UPDATE

Senate bill would boost use of ethanol (click)

A recently completed study found that the proposed facility in the Imperial Valley located in Southern California

Combines the advantages of a large local ethanol market with an ethanol selling price above the national average

With the opportunity to sell distillers grains into a local cattle feed market. Distiller's grains is a co-product of the ethanol production process.

The proposed plant site is situated well in terms of Ethanol and coproduct markets, transportation networks, utilities, labor pools and community services, the study found.

Local market opportunities are significant and should be capable of absorbing the entire production of the proposed plant.

Next steps

Secure land acquisition in the Imperial Valley

Once land is secured then initiate the permitting process

Strategic plan is the spin off the wholly owned Ethanol subsidiary to USFI shareholders

Financing will be done at the subsidiary level, not through the parent USFI

Initial USFI report (click)

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

Telephone: : 858-488-7775, Fax: 858-488-2828

CEO: 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

POTENTIAL MARKET CAPITALIZATION

Based on guidance for 2007

Based on management guidance for 2007 of $12.4 in revenue, profits, positive cash flow, and a rapid ramp-up in sales in succeeding years

And given the stock market’s current hunger for new companies that show top line revenue growth with cash flow positive profits

A base market capitalization of valuation of $12 million seem reasonable, assuming USFI continues to show cash flow positive profits and yearly sales increases

Because the industry is fragmented, and because USFI uniquely appears on track to establishing a success pattern of consolidating profitable operations, signing new grower agreements and providing an public exit strategy for smaller operations on a roll-up basis, it also seems reasonable to assign a premium at the current time of $5 million to account for expected integration of smaller operations on an acquisition basis

With 25 million shares currently outstanding, it seems reasonable given the above assumptions, a per share value could approach $.71 in Q3, not including the potential Ethanol plant operations.

Regarding the Ethanol operation: USFI is currently in the land acquisition stage and we cannot assign a value to that effort. However, if land acquisition is successful, permits are pulled and funding is arranged, it seems reasonable that a significant market capitalization expansion could occur for USFI

Based on guidance for 2008

USFI management reaffirmed, in an interview, their guidance for 2008 which is revenue of $27mm, 24% gross margin, 10% EBIDTA, and 5% after tax earnings or $1.3 million

At a 16 earnings multiple, roughly what the S&P average is selling for, the business would be valued at nearly $21 mm

If the $5 million premium discussed above for expected integration of smaller operations on an acquisition basis is added to the potential market capitalization

Then when 2008 numbers are discounted the market capitalization of USFI could be in the $26mm range, which would put a per share price, with 25 million shares outstanding, at $1.04

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.

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.

DISCLAIMER: The information, opinions and analysis contained herein are based on sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is no guarantee of future results. This report is a paid advertisement and is for information purposes only and should not be used as the basis for any investment decision. ID has been compensated up to eighty five hundred dollars from the company for preparation and posting of this report, audio interview, virtual road show and other advertising services. This constitutes a conflict of interest as to ID’s ability to remain objective in its communication regarding the subject company. Analysts, principals, associates and employees of ID do not own or trade equities under coverage. For detailed disclosure as required by Rule 17b of the Securities Act of 1933/1934 contact IPOdesktop, 11693 San Vicente Blvd., #350, Los Angeles, CA 90049. ID is not an investment advisor and this report is not investment advice. This information is neither a solicitation to buy nor an offer to sell securities but is a paid advertisement. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results. The opinions contained herein reflect our current judgment and are subject to change without notice. We encourage our readers to invest carefully and read the investor information available at the web sites of the U.S. Securities and Exchange Commission (SEC) at http://www.sec.gov and the National Association of Securities Dealers (NASD) at http://www.nasd.com. The NASD has published information on how to invest carefully at its web site. Readers can review all public filings by companies at the SEC's EDGAR page.