XNL Xethanol Corp.

Xethanol Corporation (AMEX: XNL), a renewable energy company, today announced its subsidiary Southeast Biofuels LLC has entered into a Cooperative Research and Development Agreement with the U.S. Department of Agriculture's Agricultural Research Service (ARS). The agreement is under the direction of Dr. Bill Widmer of the USDA-ARS Citrus and Subtropical Products Laboratory at Winter Haven, Fla. His work focuses on conversion of citrus waste to ethanol. Widmer�s USDA research is the subject of the April 2008 cover story in Biomass Magazine, called �Fresh-Squeezed Feedstock.� The story explores the innovative process developed by Dr. Widmer and Dr. Karel Grohmann -- showing how citrus fruit waste can be turned into ethanol. The story explains to readers, �Before you drink that next glass of OJ, consider that half of the orange used to make that juice becomes waste material.� Xethanol�s Southeast Biofuels has the rights to three patents pending concerning the work of Dr. Widmer. The article reports the ethanol market in Florida is growing and the state will continue to support waste to ethanol projects. Southeast Biofuels has been awarded a grant of $500,000 by the State of Florida under its Farm to Fuel Initiative. As previously announced, Xethanol plans to build a demonstration plant for converting citrus peel waste into ethanol. The company is negotiating an agreement to locate the plant at an existing Florida citrus facility owned by one of the largest citrus processors in the world. David Ames, the Company�s CEO commented, �Dr. Bill Widmer has been at the forefront of researching the process of converting citrus waste to ethanol so that it can be economically feasible.� Added Mr. Ames, �We look forward to continuing our collaboration with Dr. Widmer and the USDA-ARS Citrus Lab.� About Xethanol Corporation Xethanol Corporation is a renewable energy company focused on alternate energy products and technologies as well as producing ethanol and other co-products. Xethanol is focusing on renewable energy and clean technology, including biomass gasification for electricity production, wind power, solar power, energy storage, energy infrastructure, energy efficiency, waste recycling and agricultural processes. Xethanol has research agreements in place, including several aimed at efficient production of cellulosic ethanol. The company is working with some of the nation�s leading scientific institutions, including the National Renewable Energy Lab in Golden, Colorado; Virginia Tech in Blacksburg, Virginia; the USDA Forest Products Lab in Madison, Wisconsin; and the Energy and Environmental Research Lab in Grand Forks, North Dakota. For more information about Xethanol, please visit its website at http://www.xethanol.com. Forward Looking Statements Some of the statements made in this press release may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management�s current expectations and include known and unknown risks, uncertainties and other factors, many of which the company is unable to predict or control, that may cause the company�s actual results or performance to differ materially from any future results or performance expressed or implied by such forward-looking statements. These statements involve risks and uncertainties, including risks and uncertainties associated with: whether and when the research described above will enable ethanol to be produced from citrus peel waste in a demonstration plant and then on a commercial scale; and financing and building a demonstration plant for converting citrus peel waste into ethanol, such as obtaining the required debt and equity financing, construction costs and delays and the implementation of new technology on a larger scale in a demonstration plant. These risks and uncertainties are in addition to other factors detailed from time to time in the company�s filings with the SEC, including the section entitled �Risk Factors� in its annual report on Form 10-K for the year ended December 31, 2007. The company cautions investors that any forward-looking statements made by the company are not necessarily indicative of future performance. The company is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this document by wire services or Internet services.