BioFuels Journal

Lake Mary, FL—New Generation Biofuels Holdings Inc. (Nasdaq: NGBF) announced November 17 that it is moving its existing biofuel pilot facility from Cincinnati, Ohio to Baltimore, Maryland, the site of the Company's recently announced lease for a commercial scale production facility.

The Company also issued a business update.

Pilot Plant Relocation

The pilot facility, which can be scaled up at full capacity to produce up to 8 MM gallons annually of advanced, second generation biofuel is expected to be back in service by year end and will be used primarily to support the Company's early sales commitments.

Company VP of Engineering and Operations, Phil Cherry said, "Moving the pilot plant to Baltimore allows us to consolidate our operations in one location, efficiently merging our R&D activities and our early commercial efforts.

"We are also taking the opportunity to implement some very inexpensive upgrades to improve both the quality and the capacity of the pilot plant."

Commercial Scale Plant Update

The company is completing the preliminary design engineering phase for its 25 million gallon per year commercial scale plant, a necessary prerequisite to initiating the permitting process.

The Company plans to file permit applications for the commercial scale facility in the upcoming weeks.

The Company currently estimates that the facility would cost approximately $8.5 million to build and could be completed in mid 2009, assuming the timely issuance of permits and the availability of acceptable financing arrangements.

Sales Update

In October, the Company delivered its first revenue producing product when it shipped its first 15,000 gallons of fuel under its contract with Dynegy.

Negotiations are underway with a number of other potential customers.

Clarification of Payment Terms under Exclusive License Agreement

Under our license agreement with the inventor of our proprietary technology, we are required to pay $6.0 million over the next six years, of which $1.0 million is due in February 2009.

These terms are correctly disclosed in "Note 1--Organization and Going Concern" of the Notes to the Consolidated Financial Statements in the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2008.

However, disclosure in the "Liquidity and Capital Resources" section of "Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)" erroneously suggests that the Company is required to make license payments of $6 million per year.

An amended filing is being made with the SEC to correct this inadvertent typographical error.

For more information, call 212-370-4500.