Below is the full text of yesterday's press release from Xethanol Corporation regarding a piece written about the company in the Motley Fool on Friday June 23rd.  The Motley Fool is a periodical and web site containing information of interest to investors.

 

NEW YORK--(BUSINESS WIRE)--June 26, 2006--Xethanol Corporation (AMEX: XNL) today issued the following in response to inaccurate information that was included in a number of Internet articles during the past several days.

Following an article published by The Motley Fool on Friday, June 23, that carried a number of inaccurate and misleading statements about the company, Xethanol said:

The Motley Fool article authored by Ryan Fuhrmann has a number of inaccuracies and misleading statements, foremost of which is a quote attributed to the New York Times, which in reality is taken out of context from a New York Post story that appeared on Thursday, June 22. More importantly, the Motley Fool article, which has since been referenced by other online blogs further perpetuating the inaccuracies, suggests that Xethanol was formed simply to capitalize on the ethanol interest in today's market.

Nothing is further from the truth. Xethanol was formed in 2001 with the express strategy to develop its business in the emerging biomass-to-ethanol industry. Since 2001, Xethanol has been engaged in the business of developing and operating facilities for the production of ethanol. It continues to be engaged only in that business and in the development of technologies and facilities for the production of other biofuels.

Like many other successful companies, Xethanol merged with a reporting shell corporation so that its shares could be publicly traded. The Company subsequently registered its outstanding shares with the SEC and applied for the listing of its shares on the American Stock Exchange. The Company's common stock was approved for listing on June 16 and is now being traded on the AMEX.

All the prior businesses of Zen were discontinued when Xethanol merged with Zen. None of Xethanol's management were involved with Zen or its businesses and none of Zen's management or owners are involved with Xethanol. Zen's prior businesses are irrelevant to Xethanol's operations or performance and Xethanol's financial statements reflect only the operations of Xethanol.

Xethanol continues to successfully operate and expand its business. In recognition of that fact, well-known financial institutions have invested in Xethanol and leading government and academic research facilities, including those of the United States Department of Energy and the United States Department of Agriculture have licensed their technologies to Xethanol on an exclusive basis.

The Motley Fool article is misleading and does an unjustified disservice to Xethanol, its shareholders and the investing public. The misleading statements in the article were so egregious that Xethanol felt compelled to respond.