IRVINE, CA -- (MARKET WIRE) -- 10/17/2006 -- Advanced Growing Systems, Inc. (PINKSHEETS: AGWS) has begun a strategic banking relationship with CAPCO Financial Corporation [subsidiary of publicly traded Greater Bay Bancorp].

CAPCO has put in place a $2 million working line of credit secured by inventory and accounts receivable, which enables the Company to attain its immediate goals of opening several locations without the need to raise additional equity, which in turn would dilute existing shareholders. Advanced Nurseries, the commercial nursery division of AGWS, has achieved one of its major corporate milestones of generating over $3 million in cumulative gross sales in September. This was only six (6) months after beginning formal operations. The company anticipates growth to accelerate with the Grand Opening of its second facility in Braselton, GA later next week. The Company is achieving average net profits of over $50K per month before considering expansion costs and anticipates that net income will accelerate over the next six months with the scheduled opening of three (3) additional facilities.

Chris Nichols, the President and CEO of Advanced Growing Systems, Inc., said, "The growth curve we are on is outstanding and will continue to be our path into the foreseeable future. However, our cash flow has to be able to keep pace with and support our rapid growth rate. CAPCO Financial used an innovative banking approach of allowing us to utilize our ever-growing receivables and inventory to secure a new operating line of credit."

Management of AGWS determined that the best capital structure for the company is a conservative mix of debt and equity, rather than supporting growth through only equity offerings, which can be highly dilutive to existing shareholders in the early stages of business development. With this debt funding, the Company's capital structure of roughly 20% debt and 80% equity. "As the operations continue to grow and net income increases, the Company projects an estimated debt to equity ratio of 35-40% debt and 60-65% equity by the end of the first quarter of 2007."

About AGSI:

Advanced Growing Systems, Inc. ("AGSI" or the "Company"), founded in early 2006, is the parent company of Organic Growing Systems, Inc. (a scientifically advanced Organic fertilizer manufacturer) and Advanced Nurseries, Inc. (a wholesale group of Commercial Nurseries located in the Southeastern US). AGSI is dedicated to providing its shareholders significant value and is directly involved in the $48 Billion fertilizer market and the $66 Billion Green Industry. AGSI was founded by a skilled group of industry professionals each with over 20 years of direct experience in the "Green" industry. As profitability is paramount, we intend to maintain a combined GPM of 35-40% for Organic Growing Systems, Inc. and Advanced Nurseries, Inc. For more information, please visit www.AGSIncorporated.com.

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FORWARD-LOOKING STATEMENTS:

Statements about AGSI's future expectations, including future revenues and earnings, and all other statements in this press release other than historical facts are "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and as the term is defined in the Private Litigation Reform Act of 1995. AGSI's actual results could differ materially from expected results. AGSI undertakes no obligation to update forward-looking statements to reflect subsequently occurring events or circumstances. Should events occur which materially affect any comments made within this objective; AGSI will appropriately inform the public.