American Biofuels, Inc., Engages Ault Glazer Bodnar Securities, LLC to Provide Investment Banking and Advisory Services.

ST. JOSEPH, Mo. -- American Biofuels, Inc., ("ABI"), a newly formed Delaware corporation that plans to own and operate biodiesel production facilities concentrated initially in Missouri (Midwest), announced today that it has engaged Ault Glazer Bodnar Securities, LLC ("AGB Securities"), an LA-based investment banking firm, to provide advisory services to the company, including among other things, assistance with financing and other corporate and strategic transactions.

About American Biofuels, Inc.

ABI is a Missouri-based biodiesel operator that plans to manufacture and produce pure biodiesel and a highly refined form of glycerin principally for distribution nationwide. ABI plans to commence construction on its production facilities in the fall of 2006 beginning with a 15 million gallon multi-source biodiesel plant which will eventually be expanded to 30 million gallons. Two additional 15 million gallon, multi-source plant sites with the capacity to expand to 30 million gallons each are also in the planning process and are expected to be developed and rolled out in the Midwest during 2007.

ABI is led by an executive management team, whose collective experience and knowledge and prior successes in managing and operating biofuel and ethanol operations as well as agri-businesses, should bring great synergies and benefits to the Midwest agri-business and alternative fuel markets. In particular, Byron Fink, Chairman of ABI, has already successfully managed one of Missouri's early ethanol cooperatives ventures (Golden Triangle Energy Cooperative). Mr. Fink was a board member of the National Corn Growers Association, the Missouri Corn Merchandising Council and is also the former President of the Missouri Corn Growers Association. John Saunders, the former Director of Agriculture and a member of the Governor's Cabinet for the State of Missouri from 1993-2001, also joins ABI's esteemed management team.

About Ault Glazer Bodnar Securities, LLC

AGB Securities, a Member NASD/SIPC, is a boutique investment banking firm that services retail and institutional brokerage accounts and provides capital market and investment banking services primarily to public and private institutional clients. As a full service broker/dealer, AGB Securities offers retail clients such as individuals, institutions, hedge funds and private equity and other retail investor's execution services in NYSE, NASDAQ, and OTC securities, as well as other debt and other hybrid-type securities. AGB Securities also offers its corporate clients, both public and private, the following other services: (i) institutional execution services, (ii) placement services which include among other things, assisting companies with initial private and public capital transactions and follow-on offerings-particularly, private placements in public equities (PIPES) and late stage private equity offerings, (iii) strategic advisory services, including both sell-side and buy-side advisory services, mergers and acquisitions, sales, joint ventures, valuations, strategic options and market development, and (iv) asset management services through hedge funds and other private investment partnerships. For more information on AGB Securities, please visit the Company's website at www.agbsecurities.com; write the Company at 1800 Century Park East, Suite 200, Los Angeles, California, 90067; or call the Company at 310-895-7778.

Forward-Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements can generally be identified as such because the context of the statement will include words such as the Company "expects," "should," "believes," "anticipates" or words of similar import. Stockholders, potential investors and other readers are cautioned that these forward-looking statements are predictions based only on current information and expectations that are inherently subject to risks and uncertainties that could cause future events or results to differ materially from those set forth or implied by the forward-looking statements. These forward-looking statements are only made as of the date of this press release and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect subsequent events of circumstances.