updated 9/17/2010 3:46:11 PM ET 2010-09-17T19:46:11

SEATTLE, Sept. 17, 2010 (GLOBE NEWSWIRE) -- GeoBio Energy, Inc. (Pink Sheets:GBOE) ("GeoBio") made a strategic decision to focus its oil and gas services and chemical business on the acquisition of Magna Energy Services ("Magna") and, accordingly, terminated, as of September 13, 2010, the previously announced H&M Precision Products, Inc. acquisition agreement. GeoBio's management believes that the termination of the H&M agreement will enable GeoBio to direct its efforts toward completing the acquisition of Magna and supporting other proposed acquisition initiatives.

Magna, located in the San Juan Basin shale play area of Aztec, New Mexico, is a chemical treatment and service company focused on improving oil and natural gas production. GeoBio believes the Magna chemical business, when coupled with the other contemplated acquisitions as well as the proposed acquisition of a civil construction company operating in the Piceance Creek Basin shale play area of Colorado, provides a solid platform for substantial growth in the oil and natural gas services industry.

"We see significant growth opportunities with Magna," said GeoBio's incoming CEO, John Sams, "and we look forward to both growing our chemical business geographically through the strength, knowledge and leadership of the Magna team and implementing our overall growth strategy."

About GeoBio Energy:

GeoBio Energy's ( www.geobioenergyinc.com ) business model emphasizes the acquisition and operation of existing companies in the oil and gas services and energy industry. As oil and gas exploration continue in the face of ever rising demand, preparing and monitoring drilling sites and obtaining peak efficiency and production from existing, aging wells becomes increasingly important. GeoBio believes this to be a significant growth opportunity in its strategy to combine and consolidate companies in the oil and natural gas services sector.

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This Press Release does not constitute or form any part of any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for any securities in any jurisdiction, nor shall it (or any part of it) or the fact of its distribution form the basis of, or be relied upon in connection with, or act as any inducement to enter into, any contract or commitment therefore.

"Forward-looking statements," as defined in the Private Securities Litigation Reform Act of 1995, may be included in this press release. These statements relate to future events and/or our future financial performance. These statements are only predictions and may differ materially from actual future events or results. GBOE disclaims any intention or obligation to revise any forward-looking statements whether as a result of new information, future developments or otherwise. Risks particularly associated with our current business include, but are not limited to the risks associated with our ability to (i) obtain the necessary financing to complete our prospective acquisition of Magna Energy Services, LLC, and other targeted companies and to finance our current operations, (ii) generate sufficient revenue and obtain profitability, (iii) obtain additional financing as needed, (iv) manage changes in general economic and business conditions (both generally and in the natural gas and oil services and the energy industry), (v) react to actions of our competitors, (vi) develop new services and markets for our services, (vii) identify and manage risks in connection with acquisitions (viii) evaluate and effect the level of demand and market acceptance of our services and (ix) make necessary changes to our business strategies.

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