Shalov Stone & Bonner LLP today commenced a securities class action on behalf of purchasers of the securities of Xethanol Corporation (AMEX: XNL) (OTCBB: XTHN) in the period from January 31, 2006 to August 8, 2006, inclusive. The lawsuit is pending in the United States District Court for the Southern District of New York, and names as defendants the company and certain of its executive officers.

The complaint alleges that the defendants violated the federal securities laws by issuing false and misleading public statements. Specifically, the complaint alleges that the defendants misrepresented the management's experience and standard of ethics, misrepresented the true state of the company's Hopkinton, Iowa plant, omitted disclosing a host of related party transactions, as well as associations with several early-stage investors that had alarming records of stock fraud, market manipulation, breach of fiduciary duty and shareholder abuse, and materially overstated the company's profitability.

Plaintiffs are represented by the law firm of Shalov Stone & Bonner LLP, which has extensive experience in the prosecution of class actions on behalf of investors. If you would like to participate in this action or would like additional information about the lawsuit, please contact Amanda C. Scuder, at Shalov Stone & Bonner LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; email: ascuder@lawssb.com).