XNL Xethanol Corp.

Xethanol Corporation (AMEX: XNL), a renewable energy company, has announced that its latest laboratory research results show significant increases in the rate of cellulosic ethanol production. Researchers working at the Forest Products Laboratory of the US Department of Agriculture in Madison, Wisconsin are developing technology to reduce the net cost of renewable fuel made from wood and agricultural residue. Dr. Thomas Jeffries leads that effort. Dr. Jeffries reports that research sponsored by Xethanol �has improved the rate of ethanol production from xylose wood sugar by 22% and has increased the ethanol yield by 11% as compared to the control strain of yeast.� David Ames, President and CEO of Xethanol, commented, �This is more evidence our research and technology strategy is taking the company in the right direction � potentially reducing the cost of making ethanol from non-corn sources, and helping our country cut its dependence on foreign oil�. U.S. Forest Service Chief Abigail Kimbell said, �We are proud of the work of Dr. Jeffries at our Forest Products Laboratory. Improving production of biofuels from woody materials is an important goal for the Forest Service and continues a long tradition of biomass utilization research. Improved efficiency in converting woody biomass to energy provides additional opportunities for stewardship of both public and private forested lands by making more efficient use of materials generated from forest management activities.� The mission of the Forest Service is to sustain the health, diversity, and productivity of the Nation�s forests and grasslands to meet the needs of present and future generations. Established in 1910 by the U.S. Department of Agriculture Forest Service, the Forest Products Laboratory (FPL) in Madison Wisconsin serves the public as the nation's leading wood research institute. FPL is recognized both nationally and internationally as an unbiased technical authority on wood science and use. Xethanol is focusing on opportunities in 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. These sectors aim to provide profitable solutions to global challenges. Xethanol�s portfolio contains a number of patents and research agreements. These agreements include scientific research arrangements with some of the nation�s leading institutions, including the National Renewable Energy Lab in Golden, Colorado; Virginia Tech in Blacksburg, Virginia; the USDA Agricultural Research Service in Winter Haven, Florida; and the Energy and Environmental Research Lab in Grand Forks, North Dakota. 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. 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 the company�s business strategy and research projects, including whether the projects will produce the anticipated results, and whether the company�s technology assets will prove to be valuable. 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-KSB for the year ended December 31, 2006, as amended. 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.