Xethanol Corporation (AMEX: XNL - News), a renewable biofuels company, today announced that its consulting engineering firm, The Facility Group, has completed the design and engineering work for the new 35 million gallon ethanol production facility planned to be constructed on Xethanol's Blairstown, Iowa site. Xethanol expects the new plant to incorporate state-of-the-art ethanol technology from Praj Industries and on-site cogeneration. Completion of this design and engineering work positions the company to commence construction as soon as it secures funding for the plant. Xethanol's current cost projection for the design, engineering and construction of the plant is approximately $97 million.

Xethanol acquired the original Blairstown plant in 2004 and re-opened it in April 2005. The plant produced 5.2 million gallons of ethanol in 2006. With production running at capacity, Xethanol previously purchased 57 acres adjoining this facility to construct the new plant. All necessary permits are in place. Once funding is secured, the estimated construction period and time to ethanol production is 14 months. The company expects the existing plant to continue in full production throughout the construction period.

David Ames, Xethanol's President and CEO commented, "We are pleased to have completed the design and engineering work for our new plant, which will allow us to actively pursue financing for construction."

Nick Cawood, President and COO of The Facility Group Inc. said, "The opportunity to work with Xethanol on Blairstown engineering has been an exciting assignment on a new, environmentally friendly technology."

About Xethanol Corporation

Xethanol Corporation is a renewable energy company focused on the production of ethanol and co-products. The company is developing and executing a two-pronged business strategy - a technology strategy in which it works with leading scientists to license, acquire and commercialize innovative technologies; and a production strategy in which it plans to develop operating facilities located at or near the source of waste biomass and in proximity to high demand ethanol markets. For more information about Xethanol, please visit its website at http://www.xethanol.com.

About The Facility Group

The Facility Group is a fully-integrated professional service organization providing comprehensive consulting, program management, architecture, engineering and construction management services to clients across the globe. Offering specialized services to clients in niche markets, The Facility Group delivers projects through a stand-alone or integrated, design/build, single-source approach. Headquartered in Atlanta, with offices in Chicago, Los Angeles, Denver, Kansas City, Orlando and Amsterdam, the firm employs over 420 professionals. For more information, visit www.facilitygroup.com or call (800) 525-2463.

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 financing, construction and production rate of the new Blairstown plant, including whether the company will be able to obtain financing; the time it will take to build the plant and begin ethanol production; and the ultimate cost of the plant. 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. 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.