Kreido Biofuels and the US EPA Expand Team Collaboration Working to Advance Green and Sustainable Chemistry.

CAMARILLO, Calif. -- Kreido Biofuels, Inc. (OTCBB:KRBF) and the Environmental Protection Agency (USEPA) announced today an expanded collaboration under a Cooperative Research and Development Agreement (CRADA) to develop and commercialize green and sustainable chemistries. Prior research with the EPA has yielded substantial results, creating the need to expand this effort with additional resources to explore and exploit several new opportunities of interest. Through an existing CRADA, Kreido Biofuels intends to provide the US EPA its state of the art Magellan([R]) STT([R]) system for bench scale research and development, as well as augment the research team with two University of California Berkeley scientists. Dr. Robert G. Bergman and Dr. Jonathon A. Ellman will serve as advisors to the partnership. This continued alliance underscores both organizations' common goal of working to develop sustainable chemistries that not only benefit the environment, but also play a commercially positive role in chemical design by streamlining production methods and reducing the amount of energy required.

"In our broad experience in the areas of chemical reactions and pollution prevention, we have found that the unique mixing pattern of the STT([R]) System can dramatically improve reaction rates and product selectivity under process intensified conditions," stated Dr. Michael Gonzalez, primary investigator for the Green Chemistry and Engineering for Chemical Synthesis project at the National Risk Management Research Laboratory in Cincinnati, Ohio.

The Magellan([R]) benchtop system which utilizes Kreido Biofuels' STT([R]) (Spinning Tube-in-Tube) technology is capable of sustaining moderate temperatures and pressures within a relatively small working volume. The Magellan([R]) benchtop system is specifically designed for early stage research and development due to its need for only small amounts of chemicals to explore chemical reactions. The Company believes that the system is ideal for applications where the reactants are expensive or hazardous, such as in pharmaceutical and biofuels development. The Company further believes that experiments can be performed in a minimal amount of time and require simple support equipment. Incorporating STT([R]) technology, the Company believes that the Magellan([R]) unit can in many instances improve yields, selectivity, and reaction rates, while reducing energy consumption. In addition, most chemical recipes that are developed in the Magellan([R]) system are intended to be scaled to full commercial production, thereby accelerating a new chemical product's time to market.

"Our continued collaboration with the US EPA supports Kreido Biofuels' efforts to lead the development of advanced chemical process technologies," explains Dr. Joel Balbien, President & CEO. "Our CRADA has already identified some very promising chemical processes, and by supplying the Magellan([R]) system, and adding Dr. Bergman and Dr. Ellman to the research team - we will be able to take a more active role in developing these opportunities."

Dr. Robert G. Bergman (Gerald E.K. Branch Distinguished Professor of Chemistry) and Dr. Jonathon A. Ellman (Professor of Chemistry), at the University of California, Berkley, will join as advisors to the EPA/Kreido Biofuels collaboration. The Company believes that their joint expertise in organic chemistry and specifically chemical reactions and the applications to treat disease and in catalytic C-H activation reactions will assist efforts in pharmaceutical processing, and that their research in other areas of organic chemistry will support continued advancement of efficient biofuel production.

About the Company

Kreido Biofuels is providing the world renewable energy through its proprietary process intensification technology - the STT([R]) system. Our manufacturing methods significantly improve the efficiency, quality, and process control of biodiesel production. To build a sustainable future, our goal is to provide the industry cutting edge technology that improves the manufacturing of biofuels. The Company's senior management has over 50 years of experience in the energy sector including the design, construction, operation, and management of petroleum refining, natural gas distribution, and chemical processing facilities. Kreido Biofuels has also established collaborations with university and government laboratories, such as the US Environmental Protection Agency (US EPA), to gain a leading position in the development of advanced chemical processes. Kreido Biofuels is based in Camarillo, California. For more information about Kreido Biofuels, visit www.kreido.com.

STT([R]) process and equipment are covered by several patents and patents pending worldwide. STT and Magellan are registered with the US Patent and Trademark Office. Kreido is a trademark of Kreido Biofuels, Inc., all rights reserved.

The USEPA's mission is to protect human health and to safeguard the natural environment--air, water, and land--upon which life depends.

USEPA - Dr. Michael A. Gonzalez, Principal Investigator/Technical Coordinator, [phone], [e-mail].

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 our reports filed with the Securities and Exchange Commission, including those risks set forth in the Company's Current Report on Form 8-K to be filed on January 16, 2007, 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.