Consolidated Biofuels Investor Update

Consolidated Biofuels, Inc. (OTC:CSBF), an alternative
fuels company, announced today that effective June 20, 2006, by mutual
acceptance of the parties, it has cancelled its Agreement with Lane
Capital Markets, LLC and that it has previously refunded monies
associated with the private placement to investors that were presented
to the Company by Lane Capital Markets, LLC.
   On March 7, 2006, and subsequently on March 8, 2006, the Company
through its investment banking representative Lane Capital Markets,
LLC, issued press releases disclosing details related to approximately
$220,000 in funding through a private placement of the Company's
common stock.
   Before the transaction was entirely completed, the majority
investor, through Lane, requested in writing that its investment be
returned in a modified form, which request the Company accommodated
expeditiously. Lane further requested that the entirety of the funds
provided by the minority investors be refunded, which written request
was also accommodated.
   In late March, 2006, the Company was notified by Lane Capital
Markets, LLC that in their estimation the current public structure of
the company provided several roadblocks to their ability to transact a
successful funding of the Company's plan. Consequently, the management
of Consolidated and principals of Lane Capital Markets, LLC mutually
and agreeably decided it was in the best interest of both parties to
cancel the investment banking agreement between the Company and Lane
Capital Markets, LLC which again, was formally executed by the parties
on June 20, 2006.

   About Consolidated Biofuels

   Consolidated Biofuels, Inc. is a development-stage, alternative
fuels company that has aligned its business strategies, research,
consulting, and alternative fuels solutions with the needs of the
commercial transportation industry, including trucking, rail and
waterways. Again, C:Bio is a development-stage company.

   For further information visit: http://www.consolidatedbiofuels.com

   This press release contains some forward-looking statements. We
undertake no obligation to publicly update any forward-looking
statement, whether as a result of new information, future events, or
otherwise. Forward-looking statements in this document should be
evaluated together with the many uncertainties that affect our
business.