Xethanol Announces Investment in Consus Ethanol, LLC

NEW YORK--(Business Wire)--Xethanol Corporation (AMEX: XNL), a renewable energy company, has
announced a $500,000 investment in Consus Ethanol, LLC of Pittsburgh,
Pennsylvania pursuant to a convertible promissory note. Consus has a
permitted site in western Pennsylvania, where it plans to build the
first of several ethanol plants. Its business model calls for a
cogeneration plant using waste coal to power the companion ethanol
plant -- allowing significant energy cost savings.

Consus estimates producing corn ethanol at a $0.48 per gallon
advantage to a typical Midwest, natural gas powered plant. Its plant
locations also permit Consus to charge East Coast prices for ethanol,
which are among the highest in the nation.

Xethanol CEO and President David Ames commented, "We are excited
to be participating in this venture with Consus as we believe that
economically producing alternate energy is key to the future energy
needs of the US."

Consus CEO Eric P. Wallace said, "The environmentally friendly
design of our cogeneration plant has won the full endorsement of the
Commonwealth of Pennsylvania."

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 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.

ICR
Kathleen Heaney, 203-803-3585

Copyright Business Wire 2008