Analyst Coverage Initiated for Gulf Ethanol.

HOUSTON -- Gulf Ethanol Corp. (OTC:GFET), a Houston based alternative energy company, announced the publication of the "Gulf Ethanol Industry Analysis Report". The analyst rates GFET as a speculative buy and hold, up to a price target of $6.25.

Mr. Chet Gutowski is an independent Chartered Financial Analyst with over 30 years investment analysis and market evaluation experience, and was retained by Gulf Ethanol to evaluate the company as part of the corporate governance and disclosure regimen for the Company. A complete copy of the analysis report will be provided at www.gulfethanolcorp.com.

"We think that Gulf Ethanol is poised to take its place within its peer group with strong growth in share price over the remainder of 2007. As a result, we are initiating coverage of Gulf Ethanol as a speculative buy and hold with a target price of $6.25 based upon the Company's plan for growth and the performance of its peer group," according to Mr. Gutowski.

"Gulf Ethanol is an emerging player in the rapidly expanding ethanol industry. Government mandates and general acceptance by the transportation industry are expected to support strong growth in the industry for many years," he added. "With most major ethanol infrastructure located in the midwestern states, Gulf Ethanol is uniquely located to serve Texas and the Gulf Coast. The significance of this positioning is underlined by the fact that ethanol cannot be transported using existing pipelines - it must be transported by truck or rail.

Fuel blending operations included in Gulf Ethanol's plan of development should further strengthen their income streams based upon highly profitable government credits granted to biofuels blenders," stated Mr. Gutowski.

Gulf Ethanol is an emerging participant in the rapidly expanding ethanol industry and, according to a recent analyst report, "has a strong growth prospect that will rise among its peer group over the next year as it competes with such companies as Panda Ethanol (OTC:PDAE), Archer Daniels Midland (NYSE:ADM), and Aventine Renewable Energy NYSE:AVR) and others."

About Gulf Ethanol Corporation

Gulf Ethanol will produce, distribute, and blend biofuels. Headquartered in Houston, Gulf Ethanol began as an importer of ethanol based fuel for blending operations from South America and the Caribbean Islands. For more information please visit our homepage at: www.gulfethanolcorp.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking information within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements that include the words "believes," "expects," "anticipate" or similar expressions. Such forward-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 from those expressed or implied by such forward-looking statements. In addition, description of anyone's past success, either financial or strategic, is no guarantee of future success. This news release speaks as of the date first set forth above and the company assumes no responsibility to update the information included herein for events occurring after the date hereof.