SOURCE: Southridge Enterprises, Inc.

December 19, 2006 09:10 ET

Southridge Enterprises Retains U.S. Litigation Firm

DALLAS, TX -- (MARKET WIRE) -- December 19, 2006 -- Southridge Enterprises, Inc. (OTCBB: SORD) (the "Company") today announced that it has retained a New York law firm to pursue a claim for damages in relation to a failed equipment purchase by Southridge Ethanol, Inc., the Company's wholly owned subsidiary. The subject equipment would have been used for establishing an early-stage ethanol production capacity at the Sledge, Mississippi plant.

The Company entered into a purchase arrangement with ethanol equipment sellers (South Louisiana Ethanol, LLC) whereby it was represented that there were no contractual arrangements with any other buyers, and that the equipment was not subject to any outstanding liens or encumbrances. Subsequently, the Company was notified by another would-be purchaser (Earth Biofuels, Inc.) who claimed to have signed an earlier agreement with South Louisiana Ethanol, LLC for the same equipment. Litigation was threatened by Earth Biofuels, Inc. and, accordingly, Southridge chose not to close on the equipment purchase.

Mr. Alex Smid, President of Southridge Ethanol, Inc., stated that, "We intend to seek damages to rectify the unfortunate circumstance respecting South Louisiana Ethanol, LLC and Earth Biofuels; however, Southridge has also commenced initiatives to mitigate our damages and we are confident that, in the long run, the negative impact will be minimized."

About Southridge Enterprises, Inc.

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice in the southeastern region of the United States. The Company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The Company is actively acquiring and developing ethanol production facilities and anticipates start-up of the first phase of these operations in 2007. Southridge Enterprises is headquartered in Dallas, Texas. For more information, please visit our website:

Notice Regarding Forward-Looking Statements

This news release contains "forward-looking statements," as that term is defined in Section 27A of the Act and Section 21E of the Securities Exchange Act of 1934. Statements in this press release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. Such forward-looking statements include, among other things, the development of two ethanol production facilities, any related ethanol production capability, or when any ethanol plant may become operational. Actual results could differ from those projected in any forward-looking statements due to numerous factors. Such factors include, among others, the inherent uncertainties associated with the development of an early stage company in the alternative energy industry, its products and the entry into new markets for such products. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this press release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's current and periodic reports filed from time to time with the Securities and Exchange Commission.

On behalf of the Board of Directors,
Southridge Enterprises Inc.

Alex Smid, President, and Director

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