Xethanol Corporation Acquires Ethanol Extraction Technologies, Inc.; Acquisition Transfers Licensed Technology that Continuously Removes Ethanol During Fermentation.

NEW YORK, KINGSTON, Ontario & PLANT CITY, Fla. -- Xethanol Corporation, a bio-technology driven ethanol production company, and UTEK Corporation (AMEX:UTK), an innovative technology transfer company, announced today that Xethanol Corporation has acquired Ethanol Extraction Technologies, Inc. (EETI), a wholly owned subsidiary of UTEK Corporation, in a stock transaction.

EETI holds the worldwide exclusive license to a patented, Queen's University-developed technology designed to continuously remove and isolate ethanol, an inhibitor of fermentation, during the fermentation process. The technology incorporates a strategy in which the fermentation reaction and ethanol removal occur simultaneously. Ethanol is a federally mandated, clean-burning, renewable fuel that is used to oxygenate gasoline blends and enhance octane to improve vehicle performance.

"We believe that the acquisition of this technology for continuous ethanol removal from fermenters will be synergistic with our current methods for producing ethanol more efficiently," says Christopher d'Arnaud-Taylor, President and CEO of Xethanol Corporation. "We look forward to deploying this important process technology at our Biomass Technology Center in Iowa." He added, "We believe efficient ethanol production is important to U.S. energy self-sufficiency as 23.8 gallons of ethanol can replace one barrel of imported oil."

"We are delighted to be working with Xethanol Corporation, as they develop and commercialize our extractive fermentation technology," says Anne-Vivian Scott, Director of Commercial Development at PARTEQ Innovations, Queen's University. "We believe that this method of removing ethanol during the fermentation process will increase production efficiency and greatly enhance the generation of valuable products such as ethanol."

"UTEK is pleased to consummate this technology transfer with Xethanol Corporation and we look forward to continuing our efforts to identify additional technology acquisition opportunities for their consideration," says Clifford M. Gross, Ph.D., Chief Executive Officer of UTEK.

About Xethanol Corporation

Xethanol Corporation seeks to become a leader in the emerging cellulosic biomass-to-ethanol industry. Their mission is to convert biomass that is currently being abandoned or land filled into ethanol and other valuable co-products. Xethanol's strategy is to deploy proprietary biotechnologies that will extract and ferment the sugars trapped in these biomass concentrations. Xethanol's value proposition is to produce ethanol and valuable co-products more cost effectively than corn based ethanol processors with Xethanol plants located closer to ethanol consuming markets. Xethanol owns and operates an ethanol production facility at its Biomass Technology Center in Iowa that processes fermentable sugars derived from food biomass as its primary feedstock.

About PARTEQ Innovations

PARTEQ Innovations is the technology transfer arm of Queen's University. PARTEQ works with Queen's researchers and the business and venture capital communities, helping to bring the benefits of scientific discovery to the public while returning proceeds to inventors and the university. http://www.parteqinnovations.com

About UTEK Corporation

UTEK is the first market-driven technology transfer company that enables public companies to rapidly acquire innovative technologies from universities and research laboratories. We are the only company that facilitates the identification and acquisition of external technologies for clients in exchange for their equity securities, while allowing research institutions to receive 100% of the royalties. We call this process U2B(R). We seek to transfer proprietary technologies to create product differentiation, resulting in a strategic marketplace advantage. For more information about UTEK, please visit its website at http://www.utekcorp.com.

Forward Looking Statements

Certain matters discussed in this press release are "forward-looking statements." These forward-looking statements can generally be identified as such because the context of the statement will include words such as UTEK or Xethanol "expect," "anticipate" or words of similar import. Similarly, statements that describe UTEK's or Xethanol's future plans, objectives or goals are also forward-looking statements. Such forward-looking statements are subject to certain risks and uncertainties, including the financial performance of UTEK or Xethanol, as appropriate, and market valuations of UTEK's stock, which could cause actual results to differ materially from those currently anticipated. Although UTEK and Xethanol, as appropriate, believe the expectations reflected in any forward-looking statements are based on reasonable assumptions, they can give no assurance that their expectations will be attained. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating any forward-looking statements. Forward-looking statements made herein are only made as of the date of this press release and neither UTEK nor Xethanol, as appropriate, undertake any obligation to publicly update such forward-looking statements to reflect subsequent events or circumstances.

UTEK's operating results could fluctuate significantly due to a number of factors. These factors include the small number of transactions that are completed each quarter, the value of individual transactions, the timing of the recognition and the magnitude of unrealized gains and losses, UTEK's dependence on the performance of companies in its portfolio, the possibility that advances in technology could render the technologies it has transferred obsolete, the loss of technology licenses by companies in its portfolio, the degree to which it encounters competition in its markets, the volatility of the stock market and the volatility of the valuations of the companies it has invested in as it relates to its realized and unrealized gains and losses, the concentration of investments in a small number of companies, as well as other general economic conditions. As a result of these factors, current results may not be indicative of UTEK's future performance. For more information on UTEK and for a more complete discussion of the risks pertaining to an investment in UTEK, please refer to UTEK's filing with the Securities and Exchange Commission.