San West Inc. Signs Non-Binding Letter of Intent for a Reverse Merger With Human BioSystems

Agreement Would Transform San West Into a Publicly-Traded Organization


SAN DIEGO, Feb. 18, 2009 (GLOBE NEWSWIRE) -- San West, Inc. today announced that it has signed a non-binding letter of intent which contemplates a proposed reverse merger with Human BioSystems (OTCBB:HBSC), a Silicon Valley based bio-tech company specializing in the development of unique organ, tissue and cellular preservation platforms.

Under the terms of the non-binding LOI, San West Inc. would acquire 85% of the outstanding common stock of Human BioSystems, pursuant to the contemplated merger exchange agreement. Following the closing of the anticipated merger, San West would emerge as the surviving company with a name and symbol change to follow.

In addition, HBS shareholders would retain approximately 15% of the new company's outstanding shares upon completion of the anticipated merger. The merger is subject to a number of conditions, including the signing of a definitive merger agreement by March 1, 2009, the completion of financing arrangements between the two parties, and positive final due diligence results reported on behalf of both parties.

Commenting on the potential merger, San West CEO Frank Drechsler stated: "After significantly growing our business over the past few years, I strongly believe that the next logical step in our corporate development is having our stock quoted for sale in a public market. The greater access to capital and overall visibility afforded by operating as a publicly-traded organization should play an instrumental role in our ability to expand both through acquisition and the organic growth of our existing off-road business."

Mr. Drechsler concluded, "My due diligence to date reveals strong evidence that a potential reverse merger with Human BioSystems represents a solid opportunity to take the San West business model to the next level. I look forward to updating the public on our progress with regard to pursuing this agreement in the very near future."

HBS CEO Harry Masuda added, "Our efforts to raise the necessary capital to complete our planned platelet studies using human subjects has been very difficult at best. A potential business partner for our organ preservation technology fell through, leaving us with few options but to seek a merger partner or to attempt to sell the company." Mr. Masuda concluded: "I believe that a merger with San West USA Inc. is the best option for our company given the current financial situation of HBS and the general negative economic climate for raising capital for a development stage company such as ours. If a definitive merger agreement is signed, the ongoing products will be that of San West and the current business of Human BioSystems will be suspended and other options will be considered for its business."

About San West, Inc.

San West Inc. finds its niche in the off-road arena improving designs of buggy manufactures and, selling these products and services as well as repairing of these off-road buggies and additionally providing after market performance products and accessories for buggies. Our products are sold both at our Online store and through our growing dealer network, while our buggy repair services are sold and repaired at our store, Buggy World. Buggy World is the exclusive authorized sales, service and parts distributor for San Diego County with a factory-trained staff that can answer all product and service questions. Buggy World currently has two retail locations in San Diego County, California as well as a growing Internet presence. For further information about Buggy World and its products, please visit www.buggyworld.net and http://stores.ebay.com/BuggyWorld-8770.

For further information about San West, Inc. you may visit www.sanwestinc.com.

Forward-Looking Statements

This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. There is no assurance that a definitive agreement will be completed.


            

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