Renowned NASCAR Driver Rusty Wallace Joins Earth Biofuels, Inc. as Advisory Board Member and Company Spokesperson

DALLAS, Aug. 28, 2006 -- Earth Biofuels, Inc. (BULLETIN BOARD: EBOF) today announced that legendary NASCAR-driver Rusty Wallace has joined the company's Advisory Board and will also act as a spokesperson for the company. Mr. Wallace joins fellow advisory board member Julia Roberts and Board of Directors members country music legend Willie Nelson and actor Morgan Freeman in promoting the use of renewable fuels such as Earth Biofuels' biodiesel and ethanol.

"Biofuels are the future and essential in the energy equation, and Earth Biofuels is leading the way in developing and distributing biodiesel and ethanol fuel," Wallace said. "As someone who has spent his life racing cars, I understand the importance of cleaner burning fuels that provide improved efficiency, while also helping to reduce the nation's dependence on foreign sources."

The Earth Biofuels Advisory Board, which is chaired by Julia Roberts, was recently formed to provide guidance to senior management on broadening biofuels awareness on a national scale.

"We are excited that Mr. Wallace has accepted our invitation to become a spokesperson for the company and serve on the Earth Biofuels Advisory Board," said Earth Biofuels Chairman and CEO, Dennis McLaughlin. "He has exhibited excellence and dedication on and off the race track, and we are proud to have him join our team to promote the benefits of renewable fuels."

Mr. Wallace is a former NASCAR Premier Series champion and 55-time race winner. He ranks as one of the top-five money winners in NASCAR history. His 55 career victories mark the eighth best all-time career total and the seventh best in NASCAR's modern era. His accomplishments have been recognized by both racing and civic officials. Nine active race facilities on the NASCAR schedule have permanently honored Mr. Wallace, and more than a dozen state, city, and county seats of government have declared race day as officially recognized Rusty Wallace Day.

Since retiring, Mr. Wallace is still active in the racing world. As a team owner, he has taken his knowledge and experience to his auto racing team that competes in the NASCAR Busch Series. The team is in its second full season of competition. Additionally, Mr. Wallace has taken his knowledge and his charismatic personality to the broadcasting booth as lead auto racing analyst for ESPN and ABC Sports.

Biodiesel is refined from vegetable oils such as soy, canola, and recycled restaurant grease. Today, B20 is the most common and fastest growing biodiesel blend in the United States. Biodiesel is the only alternative fuel certified by the Environmental Protection Agency that fulfills the requirements of Section 211 (B) of the Clean Air Act. Earth Biofuels is the exclusive distributor of BioWillie, Willie Nelson's brand of premium B20 biodiesel.

About Earth Biofuels

Earth Biofuels produces and distributes biodiesel fuel through the company's network of wholesale and retail outlets. The fuel is sold under Willie Nelson's brand name, "BioWillie." 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.com.

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.

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