Ethanex Energy Announces Successful Fractionation Tests.

BASEHOR, Kan. -- Ethanex Energy, Inc. (OTCBB: EHNX), a renewable energy company whose mission is to become the ethanol industry's low-cost producer, announced today the successful completion of commercial scale pilot plant testing of its proprietary fractionation feedstock technology at the National Corn to Ethanol Research Center (NCERC) at Southern Illinois University at Edwardsville. The tests produced greater than 22% higher ethanol yields per unit of feedstock compared to standard whole kernel corn fermentations.

"The fermentation data indicated extremely positive results with the highest ethanol production we have seen," stated David Ellis of Ethanol Technology Inc., the NCERC consultant responsible for the tests' fermentation management. "The fractionated grain from the Ethanex process outperformed the theoretical yields calculated in the lab at Ethanol Technologies."

"We are very pleased with the unprecedented results of our testing at NCERC," stated Al Knapp, President and Chief Executive Officer of Ethanex. "Ethanex continues to deliver on its promise to become the industries low cost producer."

The week long trials utilized Ethanex's fractionated corn feedstock generated at Satake USA Inc.'s Houston, Texas testing facilities. Satake is the manufacturer of the degermer machines utilized in Ethanex's fractionation process. Tests utilized full sized equipment run at full capacity. Sixteen independent tests were conducted with resultant data clearly demonstrating stability and repeatability.

The NCERC trials utilized the same ethanol production process that is used in standard dry-grind ethanol plants to convert non-fractionated or whole kernel corn to ethanol. Ethanex's fractionated feedstock did not produce any relevant processing difficulties in the areas of cook/liquefaction, fermentation or distillation. The resultant co-product DDG demonstrated superior material handling characteristics with high granularity and resultant flowability. Further testing is scheduled to verify a near doubling of protein content relative to industry standard DDGS.

About Ethanol Technology Inc.

Ethanol Technology Inc. is a leading supplier of fermentation ingredients, technical support and education to the fuel ethanol, distilled beverage, and industrial alcohol industries. Based in Milwaukee, Wisconsin, Ethanol Technology has research facilities in Montreal, Quebec. Ethanol Technology Institute carries on a tradition of industry education that began in 1980. It presents the annual Alcohol School and publishes The Alcohol Textbook and Alcohol Times newsletter. For more information about Ethanol Technology Inc., visit www.ethanoltech.com.

About Ethanex Energy, Inc.

Ethanex Energy, Inc. is a renewable energy company whose mission is to become the ethanol industry's low-cost producer. The company expects to achieve this industry position through the application of next-generation feedstock technologies and use of alternative energy sources. Ethanex Energy is currently developing three ethanol production facilities located in the mid-west, with a combined production capacity of approximately 400 million gallons of ethanol per year. The Company expects these three plants to be operational in 2008. Ethanex Energy is concentrating its geographic focus in areas that allow access to abundant supplies of corn, alternative energy sources, transportation infrastructure and the potential for expedited permitting. Ethanex Energy's acquisition and brownfield development strategies afford it rapid capacity development with significant operating cost advantages. The Company's senior management has over eighty years of experience in the energy sector including the design, construction and operation of hundreds of power generation facilities. Ethanex Energy is based in Basehor, Kansas with offices in Santa Rosa, California and Charleston, South Carolina. For more information about Ethanex Energy, visit www.ethanexenergy.com.

Forward-Looking Statements

This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, including without limitation those statements regarding the Company's ability to exploit ethanol development and production opportunities. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Although the forward- looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, our inability to generate sufficient operating cash flow to construct and adequately maintain our production facilities and service our anticipated debt, commodity pricing, environmental risks and general economic conditions. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including those risks set forth in the Company's Current Report on Form 8-K filed on September 6, 2006, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward- looking statements in order to reflect any event or circumstance that may arise after the date of this release.