XNL Xethanol Corp.

Xethanol Corporation (AMEX: XNL), a renewable energy company, has announced an investment in Carbon Motors Corporation, a new American automaker developing a specially-built law enforcement vehicle featuring a clean diesel engine that can run on biodiesel fuel. Carbon Motors, based in Atlanta, Georgia plans to build the vehicle using a global partnership and supply network that includes a world-class automaker, as well as Lotus Engineering in the UK, along with product input from hundreds of law enforcement officers and officials across the United States. Xethanol joins in the Carbon Motors investment with the Advanced Technology Development Center Seed Fund in Atlanta, and the Ariel Savannah Angel Partners LLC. Terms of the investment were not released. Xethanol CEO and President David Ames commented, �Xethanol is targeting the fast-moving alternate energy world and delivering on its strategy focused on renewable energy. The Carbon Motors engine can run on biodiesel and shows a 40% fuel savings over current vehicles. It provides Xethanol an important opportunity in understanding the future of the biofuel marketplace.� 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�s portfolio contains a number of patents and research agreements, 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. 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 expanding business strategy, including whether the strategy will produce the anticipated results. 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.