Consolidated Biofuels Announces Corporate Actions

DALLAS--Jan. 2, 20066, 2006--Consolidated Biofuels, Inc. (OTC:CBIO), an alternative fuel company, announced today that on January 25, 2006, the Board unanimously voted, and obtained the written consents from the requisite number of shareholders, to approve the appointment of Jim Blair and Kara Greuel as directors to serve until the next annual meeting of shareholders; to approve a resolution permitting the Board to implement a 1 for 15 reverse stock split to be effective February 6, 2006; to approve a resolution adopting the 2006 Stock Incentive Plan and reserving 666,667 shares pursuant thereto (post-split); and to ratify the selection of Sutton Robinson Freeman & Co., P.C. as independent auditors for the fiscal year ending December 31, 2005 and 2006.

About Consolidated Biofuels

Consolidated Biofuels is planning to construct and operate six 30 million gallon production facilities and is dedicated to a cleaner America by increasing the availability of biodiesel fuel nationwide and expanding the effort to reduce pollution caused by petroleum diesel fuels.

Through tactical relationships and experienced management, Consolidated plans to amalgamate its resources to greatly enhance the facilities' capabilities, allowing the Company to realize economies of scale advantages. Additional advantages encompass improved management systems and advanced technical solutions.

For further information visit: http://www.consolidatedbiofuels.com.