Consolidated Biofuels Investor Update.

CHICAGO -- Consolidated Biofuels, Inc. (OTC:CSBF), an alternative fuels company, announced today that effective June 20, 2006, by mutual acceptance of the parties, it has cancelled its Agreement with Lane Capital Markets, LLC and that it has previously refunded monies associated with the private placement to investors that were presented to the Company by Lane Capital Markets, LLC.

On March 7, 2006, and subsequently on March 8, 2006, the Company through its investment banking representative Lane Capital Markets, LLC, issued press releases disclosing details related to approximately $220,000 in funding through a private placement of the Company's common stock.

Before the transaction was entirely completed, the majority investor, through Lane, requested in writing that its investment be returned in a modified form, which request the Company accommodated expeditiously. Lane further requested that the entirety of the funds provided by the minority investors be refunded, which written request was also accommodated.

In late March, 2006, the Company was notified by Lane Capital Markets, LLC that in their estimation the current public structure of the company provided several roadblocks to their ability to transact a successful funding of the Company's plan. Consequently, the management of Consolidated and principals of Lane Capital Markets, LLC mutually and agreeably decided it was in the best interest of both parties to cancel the investment banking agreement between the Company and Lane Capital Markets, LLC which again, was formally executed by the parties on June 20, 2006.

About Consolidated Biofuels

Consolidated Biofuels, Inc. is a development-stage, alternative fuels company that has aligned its business strategies, research, consulting, and alternative fuels solutions with the needs of the commercial transportation industry, including trucking, rail and waterways. Again, C:Bio is a development-stage company.

For further information visit: http://www.consolidatedbiofuels.com

This press release contains some forward-looking statements. We undertake no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. Forward-looking statements in this document should be evaluated together with the many uncertainties that affect our business.