Earth Biofuels Signs Letter Of Intent With Cellulosic Biofuels Technology Company.

DALLAS -- Earth Biofuels, Inc. (OTCBB: EBOF) today announced that it has signed a letter of intent to form a new partnership with Revolution Biorefining, LP ("RBR"), a company that has developed cutting-edge proprietary technology in the pretreatment of biomass and its conversion into cellulosic biofuels.

White House advisor and Auburn University professor Dr. David Bransby, a cellulosic biofuels industry expert, describes the Revolution Biorefining technology as "years ahead of anything else" he is aware of in the industry. Dr. Bransby is a member of the Earth Biofuels Board of Advisors.

Earth Biofuels and RBR plan to form a new entity called, "Earth Revolution." Earth Revolution plans to construct a refining system capable of producing cellulosic ethanol, diesel and possibly other cellulosic biofuel products in commercial quantities. Revolution Biorefining has worked to develop its proprietary technology and is now preparing to launch its technology on a commercial scale. Revolution Biorefining approached Earth Biofuels to propose combining Earth Biofuels' experience in the alternative fuels industry with Revolution Biorefining's technical expertise in biomass-to-fuel conversion. The joint venture is expected, but it cannot be guaranteed, to be finalized by the end of May, 2007.

The Earth/Revolution refining system is designed to be modular and portable, giving it the capability to go to the biomass source -- a big advantage over transporting massive quantities of biomass to giant refineries as is the currently intended practice in the emerging cellulosic biofuel industry.

"The notion that an alternative fuel production plant has to be large scale in order to be commercially viable is a myth, and I believe these companies are about to dispel that myth," said Dr. Bransby.

About Earth Biofuels

Earth Biofuels produces and distributes biodiesel fuel through the company's network of wholesale and retail outlets. The fuel is sold under Willie Nelson's brand name, "BioWillie([R])." Earth Biofuels also produces and markets liquefied natural gas (LNG). The Company is focused on meeting the growing demand for alternative and renewable fuels in the domestic market. The Company's Web site is www.earthbiofuels.com.

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