Auburn University Study Confirms Gulf Ethanol Technology

HOUSTON--(Business Wire)--Gulf Ethanol Corporation (OTC:GFET) announced today an AuburnUniversity study confirming the benefits of its ethanol feedstockprocessing technology. Gulf Ethanol has acquired the exclusive rightto a revolutionary new technology, developed by Meridian Biorefining,Inc., that creates a fungible cellulose that is far more effective asan ethanol feedstock than anything available today. Dr. Y. Y. Lee of Auburn University reports that preliminary testsof this new cellulose feedstock indicate the recovery of at least 10%more ethanol by weight and a 12% reduction in processing time.Traditionally processed feedstocks were compared to the GulfEthanol/Meridian product in side-by-side tests. The Company expectsfurther testing and product refinement will confirm even greaterperformance enhancement from its feedstock processing technology. Inaddition, Gulf Ethanol's cellulose feedstock can be processed usingeither a batch method or a continuous flow process. "It is time for the market to know what we have been developing,"noted JT Cloud, President of Gulf Ethanol. "This technology willrevolutionize ethanol production in the United States by moving theindustry from corn-based production to much cheaper cellulosefeedstocks. Ethanol's time has come because it can now be producedwith less energy input and at far cheaper prices," he concluded. Alternative biofuels constitute a critical component of America'salternative fuels policy. Market leaders include agricultural ethanolproducers such as ADM (NYSE:ADM), Cargill and soybean processor BungeLimited (NYSE:BG). As early efforts matured, the market quicklyrealized that the future of biofuels would depend on the ability toturn non-food biomass into alternative fuels efficiently. With largeenergy companies such as ConocoPhillips (NYSE:COP) and Exxon Mobil

(NYSE:XOM) also launching alternative fuel initiatives, Gulf Ethanolis perfectly positioned to play a leading role in the deployment ofcellulosic ethanol technology throughout the alternative fuelsindustry. About Gulf Ethanol Corporation Gulf Ethanol (OTC:GFET) is an alternative energy company focusedon the development of cellulosic ethanol technologies with aparticular emphasis on Texas and the Gulf Coast. For more informationplease visit our homepage at: www.GulfEthanolCorp.com. Safe Harbor Statement under the Private Securities LitigationReform Act of 1995: This news release contains forward-lookinginformation within the meaning of Section 27A of the Securities Act of1933, as amended, and Section 21E of the Securities Exchange Act of1934, as amended, including statements that include the words"believes," "expects," "anticipate" or similar expressions. Suchforward-looking statements involve known and unknown risks,uncertainties and other factors that may cause the actual results,performance or achievements of the company to differ materially fromthose expressed or implied by such forward-looking statements. Inaddition, description of anyone's past success, either financial orstrategic, is no guarantee of future success. This news release speaksas of the date first set forth above and the company assumes noresponsibility to update the information included herein for eventsoccurring after the date hereof.Gulf Ethanol Corporation, HoustonWilliam Carmichael, 713-461-9229Fax: 713-461-9230ir@gulfethanolcorp.comCopyright Business Wire 2007