SOURCE: Southridge Enterprises, Inc.

April 04, 2007 17:41 ET

Southridge Signs LOI to Purchase Cellulosic Ethanol Technology

DALLAS, TX -- (MARKET WIRE) -- April 4, 2007 --Southridge Enterprises, Inc. (OTCBB: SORD) (the "Company") is pleased to announce that Southridge Ethanol Inc. ("Southridge"), the Company's wholly owned subsidiary, has signed a letter of intent ("LOI") whereby Southridge Ethanol would acquire 100% of Celuhol Biotech Inc. ("Celuhol") technology for a combination of cash and shares of Southridge Enterprises, Inc. The closing of the acquisition will be effected by the parties pursuant to a definitive purchase agreement. If a definitive purchase agreement is signed, the parties expect to close this transaction in the second quarter of 2007.

Although the Company is bound by a Confidentiality Agreement and may not disclose Celuhol's proprietary process in detail, Celuhol's cellulosic ethanol technology calls for processing woody wastes and switchgrass to be the feedstock for ethanol production, to supplement foodstuff biomass materials such as corn and sugar cane used as the feedstock for conventional bio-ethanol production. The net result is a greatly reduced production cost. With this technology, Southridge will be optimally positioned in the global, rampant renewable fuels market for the commercialization of cellulosic ethanol production technologies.

Mr. Alex Smid, President, Southridge Ethanol Inc., stated that, "We are open to adopting and acquiring a technology such as Celuhol's in order to accelerate our mission of developing a highly profitable ethanol production operation, to the benefit of our shareholders, and others conducting business with us."

Cellulosic ethanol offers many benefits. For one thing, it has a higher energy yield than corn-based ethanol. Furthermore, because it can be produced with bioenergy crops like switchgrass and not corn, it's not as susceptible to the price of that commodity (Corn has doubled over the past years). In addition, many of the crops used in producing cellulosic ethanol such as switchgrass are perennial energy crops that don't need to be replanted every year, and they use fewer fertilizers and pesticides than corn.

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: www.southridgeethanol.com

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 entry into a definitive agreement with Celuhol or the closing of any acquisition of Celuhol. 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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