Earth Biofuels Closes on Acquisition of Biodiesel Fuel Distributor

DALLAS--Nov. 2, 20059, 2005--Earth Biofuels, Inc. (OTCBB:EBOF) today announced its acquisition of The Wing Sail Company, Inc., dba Distribution Drive, through a share exchange agreement. As a result, Distribution Drive is a wholly owned subsidiary of Earth Biofuels.

Distribution Drive has distributed biodiesel fuel since October 2003, initially in the state of Texas. Over the past two years, the distribution network has grown to include customers in the states of Georgia, South Carolina and portions of California. In January of 2005, Distribution Drive became the only distributor of Willie Nelson's "BioWillie" biodiesel fuel.

Earth Biofuels CEO, Tommy Johnson, stated, "This acquisition provides an immediate distribution vehicle for Earth Biofuels' biodiesel fuel. Distribution Drive currently distributes both 100% biodiesel fuel (B100) as well as 20% blended biodiesel (B20) and is able to take advantage of government biodiesel tax credits. Distribution Drive's delivered volumes of B100 biodiesel have grown over the past 10 months at an average rate of over 30% per month."

Earth Biofuels produces biodiesel fuel for sale and distribution through the company's network of wholesale and retail outlets. The Company is focused on capitalizing on the growing demand for alternative and renewable fuels in the domestic market. The Company's website is www.earthbiofuels.net.

This press release may contain "forward-looking statements" within the meaning of the federal securities laws, commonly identified by such terms as "believes," "looking ahead," "anticipates," "estimates" and other terms with similar meaning. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can give no assurance that these assumptions will prove to be correct. Important factors that could cause actual results to differ materially from the Company's projections and expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements and by reference to the underlying assumptions.