New Generation Biofuels Reports Third Quarter 2010 Financial Results

  New Generation Biofuels Holdings, Inc.
(NASDAQ: NGBF) ("NGBF" or the "Company"), a leader in renewable fuels
technology, announced today its financial results for the third quarter
ended September 30, 2010.

Net loss for the third quarter ending September 30, 2010, was $1.2 million, compared to a net loss of $1.7 million for the third quarter of 2009. For the first nine months of 2010, the net loss was $7.1 million, versus a net loss of $10.3 million for the first nine months of 2009. For the three months and nine months ended September 30, 2010, the Company had revenues of $-0- and $6,351, respectively. This is compared to revenues of $34,412 for the three and $77,048 for the nine months ended September 30, 2009. The decrease in revenue was due solely to working capital constraints, not customer demand. During 2010, the production facility in Baltimore has been utilized primarily to make fuel for prospective customer testing and for R&D activities including testing new production processes. We expect to produce and ship fuel once we have secured additional working capital.

Net cash used in operating activities was $3.7 million for the nine months ended September 30, 2010, versus $5.2 million used in last year's comparable period. As of September 30, 2010, the Company had cash on hand of approximately $0.22 million, and will need to complete another financing during the fourth quarter.

Recent Developments

--  Miles F. Mahoney joined the Company as President and Chief Executive
    Officer.  He also serves as a Director. Mr. Mahoney brings strong
    experience in technology development, business development and product
    commercialization. Most recently, Mr. Mahoney served as President and
    COO of Evergreen Energy, a leader in the global $3 trillion greenhouse
    gas and carbon credit trading marketplace.

--  The Company received gross proceeds of approximately $2.4 million in a
    series of four transactions with institutional investors.  Three of the
    transactions were completed under the Company's shelf registration
    statement in August, September and October.  The most recent
    transaction, closed in early November, consists of convertible notes
    carrying a conversion price of $0.14 per share.

--  In the third quarter, the Company recorded a gain on debt
    extinguishment of $1.3 million resulting from the negotiated settlement
    of certain liabilities and the amendment of the lease on the Baltimore
    production facility.  Pursuant to the agreement to amend the lease the
    Company made a payment of $290,000 in cash and also issued 300,000
    shares of restricted common stock.  In consideration of the payment,
    the landlord agreed to forfeit past due amounts under the lease
    agreement, terminate and forfeit minimum payments due for terminating
    services under a separate agreement, and reduce the monthly lease rate
    from $80,000 to $25,000 for the remaining lease term of three years.
    Included in the $290,000 payment is $100,000 representing the August
    reduced lease payment and prepayment of the monthly $25,000 rent for
    September, October and November of 2010.  As a result of the lease
    amendment, the Company recorded a gain of approximately $570,000 and
    reduced future obligations by approximately $2.9 million.   The balance
    of the recorded gain was related to settling trade payables, primarily
    professional services rendered by 19 vendors.  The Company settled
    $1.9M of debt for cash payments totaling $467,000 and 585,000 shares of
    restricted common stock.

"I'm excited to be joining New Generation Biofuels at this important juncture in the Company's development and I'm prepared to address the challenges we face, including ensuring that we have the financial resources needed to grow the Company and create long-term value for our shareholders," commented Miles, F Mahoney, President and Chief Executive Officer. "The Company has been able to improve its financial condition by raising capital and settling a number of debts and we must continue to make rapid progress in putting the Company on a solid financial footing. Securing adequate funding, continuing to advance our technology, completing a strategic partnership, and commercializing our technology are my highest priorities."

Mr. Maloney continued, "I appreciate the Board's confidence in presenting me with this opportunity to lead the Company. I would also like to thank our shareholders for their continued interest and patience. Moving forward, we are committed to clear, consistent communications with stated objectives by which we can measure our progress. I invite you to visit our website and view the recently posted CEO letter for additional comments on my objectives and the Company's value drivers."

About New Generation Biofuels Holdings, Inc.

New Generation Biofuels is a renewable fuels provider. The Company holds an exclusive license for North America, Central America and the Caribbean to commercialize proprietary technology to manufacture alternative biofuels from plant oils and animal fats that it markets as a new class of biofuel for power generation, commercial and industrial heating and marine use. The Company believes that its proprietary biofuel can provide a lower cost, renewable alternative energy source with significantly lower emissions than traditional fuels. New Generation Biofuels' business model calls for establishing direct sales from manufacturing plants that it may purchase or build and sublicensing its technology to qualified licensees.

Forward-Looking Statements

This news release contains forward-looking statements. These forward-looking statements concern the Company's operations, prospects, plans, economic performance and financial condition and are based largely on the Company's beliefs and expectations. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results expressed or implied by such forward-looking statements. The risks and uncertainties related to our business, which include all the risks attendant an emerging growth company in the volatile energy industry, including those set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2009, and in subsequent filings with the Securities and Exchange Commission. 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 the actual results could differ from those projected in the forward-looking statements.

                  NEW GENERATION BIOFUELS HOLDINGS, INC.
                       Consolidated Balance Sheets

                                            September 30,   December 31,
                                                2010            2009
                                            -------------   -------------
                                            (Unaudited)
ASSETS

Current assets:
  Cash and cash equivalents                 $     216,762   $     567,647
  Restricted cash                                  14,704               -
  Accounts receivable                                   -          63,900
  Other receivables                                41,406          41,406
  Inventories                                      11,708          11,708
  Prepaid expenses and other current assets     1,654,972         237,635
                                            -------------   -------------
  Total current assets                          1,939,552         922,296

Property, plant and equipment - net             1,124,212       1,120,911
License agreement - net                         5,104,840       5,650,988
Other assets - net                                413,103         346,073
                                            -------------   -------------
TOTAL ASSETS                                $   8,581,707   $   8,040,268
                                            =============   =============

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Accounts payable and accrued expenses     $   1,647,292   $   1,472,519
  Loan payable                                          -          50,000
  Convertible notes payable
   (net of unamortized discount of $- and $-)     200,000               -
  License agreement payable, current portion
   (net of unamortized discount of $314,746
   and $375,467)                                  685,254         624,533
  Accrued dividends on preferred stock            973,895       1,078,003
  Common stock warrant liability and
   antidilution obligation                         31,900         110,874
                                            -------------   -------------
  Total current liabilities                     3,538,341       3,335,929

  License agreement payable (net of
   unamortized discount of $400,152 and
   $622,274)                                    2,599,848       3,377,726
  Deferred rent                                   170,365         324,409
                                            -------------   -------------
  Total liabilities                             6,308,554       7,038,064
                                            =============   =============

Commitments and contingencies                           -               -

Stockholders' equity:
  Preferred stock; $0.001 par value;
   9,450,000 shares authorized; no shares
   issued and outstanding at September 30,
   2010 and December 31, 2009                           -               -

  Series A Cumulative Convertible Preferred
   Stock: $0.001 par value; $100 stated value,
   300,000 shares authorized, - and 18,400 shares
   issued and outstanding as of September 30, 2010
   and December 31, 2009, respectively; aggregate
   liquidation preference of $-                         -         710,970

  Series B Cumulative Convertible Preferred Stock:
   $0.001 par value; $100 stated value, 250,000
   shares authorized, 45,785 and 45,785 shares
   issued and outstanding as of September 30,
   2010 and December 31, 2009 respectively;
   aggregate liquidation preference of
   $5,552,424                                   3,094,872        3,094,872

  Common stock, $0.001 par value, 100,000,000
   shares authorized; 60,353,205 and 31,711,578
   shares issued and outstanding as of September
   30, 2010 and December 31, 2009, respectively    60,353          31,712

  Additional paid-in-capital                   57,003,899      47,593,489

  Accumulated deficit                         (57,885,971)    (50,428,839)
                                            -------------   -------------
  Total stockholders' equity                    2,273,153       1,002,204
                                            -------------   -------------
  TOTAL LIABILITIES AND STOCKHOLDERS'
    EQUITY                                  $   8,581,707   $   8,040,268
                                            =============   =============




                     NEW GENERATION BIOFUELS HOLDINGS, INC.
                      Consolidated Statements of Operations
                                  (Unaudited)

                 For the Three  For the Three  For the Nine   For the Nine
                 Months Ended   Months Ended   Months Ended   Months Ended
                 September 30,  September 30,  September 30,  September 30,
                      2010          2009           2010           2009
                  -----------    -----------    -----------    -----------

Revenues:
Product           $         -    $    34,412    $     6,351    $    77,048
                  -----------    -----------    -----------    -----------
  Total revenue             -         34,412          6,351         77,048
Operating
 expenses:
Cost of product
 revenue (including
 depreciation and
 amortization for
 the three and nine
 months ended
 September 30, 2010
and 2009 of $205,011,
 $178,670, $624,075,
 and $511,282,
 respectively)        301,699        584,745      1,408,925      1,391,240
Research and
 development
 expense               87,770         73,126        240,930        363,160
General and
 administrative
 expense            1,920,911      2,279,523      6,354,618      6,775,806
                  -----------    -----------    -----------    -----------
     Total operating
      expenses      2,310,380      2,937,394      8,004,473      8,530,206
                  -----------    -----------    -----------    -----------

Loss from
 operations        (2,310,380)    (2,902,982)    (7,998,122)    (8,453,158)

Interest income            75          1,294            461          2,951
Interest expense     (276,973)      (119,029)      (659,253)      (338,692)
Gain on debt
 extinguishment        50,000              -        204,000        241,500
Gain on settlement
 of trade payables
 and lease
 termination        1,319,483              -      1,319,483              -
Gain (loss) on
 net change in
 fair value of
 derivative
 liabilities           65,521      1,343,577         60,525     (1,797,071)
                  -----------    -----------    -----------    -----------

Net loss           (1,152,274)    (1,677,140)    (7,072,906)   (10,344,470)

Dividends to
 preferred
 stockholders        (109,748)      (167,919)      (384,226)    (4,549,741)
                  -----------    -----------    -----------    -----------

Net loss
 attributable
 to common
 stockholders   $  (1,262,022) $  (1,845,059) $  (7,457,132) $ (14,894,211)
                =============  =============  =============  =============

Basic and
 diluted net
 loss per share $       (0.03) $       (0.06) $       (0.20) $       (0.61)
                =============  =============  =============  =============

Weighted average
 number of shares
 outstanding       42,962,197     28,465,378     37,672,085     24,345,980
                =============  =============  =============  =============

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