AE Biofuels to Opencellulosic Ethanol Demonstration Plant

Who: AE Biofuels, Inc. (OTCBB:AEBF)

What: The grand opening of the first integratedcellulose and starch ethanol demonstration facility in the United States. The 9,000 square foot demonstration plant will process a combination of feedstocks including various grasses, wheat straw, corn, corn stover (corn stalks), and bagasse (sugar cane stalks). AE Biofuels’integrated technology addresses the need for diversity of non-food and food inputs to meet the worldwide demand for alternative fuels.

The program will begin at 10:30 a.m. Mountain Standard Time (MST)

Among the local, state and national dignitaries that will attend are:

• U.S. Senator Max Baucus (MT)

• U.S. Senator John Tester (MT)

• U.S. Representative Denny Rehberg (MT)

• Montana Governor Brian Schweitzer

• Paul Dickerson, COO, Office of Energy Efficiency & Renewable Energy, U.S. Department of Energy

• Butte - Silver Bow Chief Executive Paul Babb

Senator Baucus will be hosting a delegation of Ambassadors and has invited them to join the event. They are:

• Ambassador Carolina Barco Isakson - Republic of Colombia

• Ambassador Roy Ferguson - New Zealand

• Ambassador Aziz Mekouar - Kingdom of Morocco

• Ambassador Felipe Ortiz de Zevallos - Republic of Peru

• Ambassador Le Cong Phung - Socialist Republic of Vietnam

When: Monday, August 11, 2008 at 10:30 a.m. (MST)

Tours will be available following the brief program.

Where: 109 South Parkmont Street, Butte, MT- 59701

Media Contact: Rory Mackin, Hill & Knowlton, 212-885-0455, rory.mackin@hillandknowlton.com

Company Contact: Andy Foster, AE Biofuels, Inc., 408-213-0928, afoster@aebiofuels.com

About The AE Biofuels Butte Demonstration Facility

The plant uses proven patent-pending Ambient Temperature Enzymes for converting starch and cellulose to fermentable sugars to optimize process conditions for multiple feedstocks. Non-food ethanol feedstocks used by the facility include switch grass, grass seed straw, small grain wheat straw, sugar cane bagasse, and corn stalks either alone or in combination with a variety of traditional starch and sugar sources.

About AE Biofuels

AE Biofuels, Inc. is a global vertically integrated biofuels company developing sustainable solutions to the world's renewable energy needs. The company is commercializing its patent-pending next-generation cellulosic ethanol technology that enables the production of biofuels from both non-food and traditional materials. AE Biofuels owns or has optioned five permitted ethanol plant sites in the United States, and its Universal Biofuels subsidiary owns a 50 million gallon biodiesel facility on the east coast of India, and is planning a 75 million gallon per year biodiesel facility in Argentina. For additional information about AE Biofuels, please visit www.aebiofuels.com.

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