XNL Xethanol Corp.

Xethanol Corporation, a renewable energy and clean technology company, today announced an extension of its Cooperative Research and Development Agreement (CRADA) on cellulosic ethanol feedstocks, with the National Renewable Energy Laboratory (NREL) in Golden, Colorado. The agreement has been extended through March 7, 2008. The NREL lab is operated by the Midwest Research Institute under contract to the US Department of Energy. "Extending this CRADA with Xethanol is another step the National Renewable Energy Laboratory is taking to develop the technologies that will help the nation meet presidential and Department of Energy goals of reducing the country�s dependence on imported oil," NREL Commercialization Manager Richard Bolin said. The original agreement dates back to January 2005, for work directed toward a method of biomass feedstock separation. The research focuses specifically on clean fractionation of cellulosic feedstocks into their component parts. 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. The CRADA with NREL is part of Xethanol�s portfolio of research and consulting agreements on renewable energy with some of the nation�s leading research institutions including Virginia Tech in Blacksburg, Virginia; the Forest Products Lab of the US Department of Agriculture, in Madison, Wisconsin; the USDA 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 reaching agreement on the final documentation of the settlement of the referenced lawsuit and obtaining the required court approval. 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.