AE Biofuels Announces Strategic Agreement With Merrick & Co.

AE Biofuels, Inc., (OTCBB:AEBF), a global vertically integrated biofuels company, today announced that it has signed a strategic agreement with Merrick & Company to commercially implement AE Biofuels’ patent-pending enzyme based technology for the conversion of non-food biomass into ethanol and other materials through the design of new biofuels facilities or the conversion of existing biofuels facilities. Merrick is a leading provider of engineering and architectural design-build, procurement, construction management, and geospatial services.

Under the terms of the agreement, AE Biofuels and Merrick will work to rapidly deploy AE Biofuels’ next-generation biofuels technology to address the significant demand for cellulosic ethanol created by the revised Renewable Fuels Standard (RFS). The Energy Independence and Security Act of 2007 increased the RFS to 36 billion gallons of renewable fuels, the majority of which must be advanced biofuels, such as cellulosic ethanol.

The combination of AE Biofuels’ industry-leading technology and Merrick’s leading position as a world-class engineering and services provider brings to the market a solution that is both cost-effective and commercially viable to address the growing demand for non-food, advanced biofuels.

“We are excited to team up with Merrick, a world-class organization with deep experience in both refining and biofuels, to work with customers to rapidly deploy our advanced technology,” said Eric McAfee, chairman & CEO of AE Biofuels. “Our approach addresses the growing demand for advanced biofuels at both existing and new ethanol facilities. We think this flexibility will allow us to better serve the immediate needs of the biofuels industry.”

“Merrick is pleased to extend our advanced biofuels service offerings through the implementation of AE Biofuels’ enzyme-based technology,” said Ralph Christie, PE, Merrick’s president and chief executive officer. “Merrick has been on the leading edge of the biofuels market since the early 1990’s and there’s a wealth of experience built over the last 18 years in this quickly evolving market that will provide a solid base for the team to work from.”

About AE Biofuels

AE Biofuels, Inc. is a global vertically integrated biofuels company based in Cupertino, California, developing sustainable solutions to address 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 feedstocks. Its Universal Biofuels subsidiary owns a name plate 50 million gallon per year biodiesel production facility on the east coast of India. For additional information about AE Biofuels, please visit: www.aebiofuels.com.

About Merrick & Company

Merrick & Company (http://www.merrick.com/index.php/markets/fuels-energy/renewable-energy), an $85 million engineering, architecture, construction management, and geospatial solutions firm, serves domestic and international clients in the energy, government, life sciences, infrastructure, and mapping markets. With a focus on the alternative energy and hydrocarbon processing markets, the firm’s most recent work includes the detailed process design and construction support to the U.S. Department of Energy’s National Renewable Energy Laboratory (NREL) for its integrated biorefinery facility (IBRF) cellulose-to-ethanol research and development facility to be located in Golden, Colorado. When operational the facility will provide the industry with the opportunity for testing biomass conversion technologies and processes.

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