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September 18, 2006 - 7:09 AM EST

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GS CleanTech Executes Agreement with Ethanol Producer; Company's Technology Extracts Corn Oil from Ethanol Byproduct for Conversion into Biodiesel

GS CleanTech Corporation (OTC Bulletin Board: GSCT) today announced its execution of a definitive agreement with an Illinois-based ethanol producer to extract about 12 million gallons per year of crude corn oil from the producer's distillers dried grains for conversion into a biodiesel feedstock using GS CleanTech's proprietary corn oil extraction technology.

GS CleanTech's patent-pending Corn Oil Extraction Systems(TM) have been engineered to help ethanol producers enhance production and increase revenues out of their existing crop in cost-effective and rapid ways. GS CleanTech's pricing model for its corn oil extraction technology is based on GS CleanTech's provision of turn-key extraction systems for no up-front cost in return for long-term agreements to purchase the extracted corn oil based on a fixed discount to prevailing fuel prices.

Under the terms of the new agreement, GS CleanTech will install its Corn Oil Extraction System(TM) on-site at two ethanol production facilities where GS CleanTech will generate between $14.0 million and $18.0 million in annualized revenues from the purchase and sale of the facilities' extracted corn oil as a biodiesel feedstock.

David Winsness, GS CleanTech's president and chief operational officer said that "Our client recognized the need to implement new technologies to enhance the yield and operating efficiency of standard dry mill production, and they are clearly committed to improving their energy balance. We are pleased with this new agreement and look forward to bringing the technologies in our ethanol program to our client and their community."

GS CleanTech's Corn Oil Extraction Systems(TM) extract about 3 million gallons of crude corn oil from a typical 50 million gallon ethanol production facility and enable the ethanol producer to increase their revenues by about 3.5%, or by as much as $4.7 million in new annualized sales.

To date, GS CleanTech has executed definitive agreements to extract about 22.5 million gallons of crude corn oil from a number of ethanol facilities. Once the systems are commissioned at each facility, GS CleanTech will purchase and sell the extracted oil as a biodiesel feedstock.

GS CleanTech will sell all of its extracted corn oil to GS AgriFuels Corporation (OTC Bulletin Board: GSGF), GS CleanTech's sister company, for conversion into biodiesel.

GS CleanTech's Focus on Ethanol Production

GS CleanTech is focused on delivering technologies and process innovations to the ethanol production industry with a view towards maximizing the yield of corn-based ethanol production.

Traditional ethanol processing converts each bushel of corn, which weighs about 54 pounds, into about 18 pounds of ethanol, 18 pounds of carbon dioxide, and 18 pounds of distillers dried grains (DDG), which contain about 2 pounds of fat. This corresponds to a corn to clean fuel conversion efficiency of about 33%, or about 2.8 gallons of clean fuel per bushel of corn. GS CleanTech's ambition is to increase this efficiency as much as possible.

GS CleanTech's patent-pending corn oil extraction and biodiesel processing technologies convert the fat in the DDG into a high grade corn oil that can then be converted into biodiesel on close to a 1:1 volumetric basis. This increases the corn to clean fuel conversion efficiency described above to 36%, or about 3.0 gallons of clean fuel per bushel of corn.

Additional information on GS CleanTech's corn oil extraction technology and GS CleanTech's Ethanol Program is available online at www.gs-cleantech.com.

GS CleanTech's Corn Oil Extraction System(TM)

GS CleanTech's Corn Oil Extraction System(TM) offers the following compelling benefits for ethanol producers:

-- Increased Revenue - The corn oil extracted is readily amenable to refining into biodiesel fuel which creates a new revenue stream for participating ethanol facilities;

-- Reduced Operating Costs and Emissions - Corn oil removal can improve drying efficiency by more than 10% with reduced natural gas or coal needs and reduced emissions (NOx, SOx, VOC, and CO2);

-- Low Operating Costs - The system requires less than $0.05 per gallon of corn oil produced;

-- High Recovery Rates - The technology is capable of recovering up to 75% of the corn oil within the DDG; and,

-- Increased Inclusion Rates - Corn oil removal can improve defatted DDG marketability and inclusion rates by reducing fat content.

About GS CleanTech Corporation

GS CleanTech Corporation (OTC Bulletin Board: GSCT) provides applied engineering and technology transfer services based on clean technologies and process innovations that make it cost-effective and easy to recycle and reuse resources.

Safe Harbor Statement

This press release contains statements that may constitute "forward-looking statements" within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, as amended by the Private Securities Litigation Reform Act of 1995. Those statements include statements regarding the intent, belief or current expectations of GS CleanTech Corporation, and members of their management as well as the assumptions on which such statements are based. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties, and that actual results may differ materially from those contemplated by such forward-looking statements. Important factors currently known to management that could cause actual results to differ materially from those in forward-statements include fluctuation of operating results, the ability to compete successfully and the ability to complete before-mentioned transactions. The company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results.

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