Kreido Biofuels Expands Program For Flagship Biodiesel Plant And Successfully Tests Animal Fat Feedstock

Camarillo, Calif., October 9, 2007 -- Kreido Biofuels, Inc. (OTC BB: KRBF) today announced that the company has expanded its Wilmington, North Carolina plant site plan and development schedule in order to double the plant’s initial targeted biodiesel production capacity to 66 mmgy. Based on this strategic shift, the company believes it will be positioned to meet a significant portion of its targeted 2008 year-end 100 mmgy capacity at its flagship Wilmington site. The company also has successfully tested animal fat as a feedstock in its STT® process intensification system pilot plant.

Kreido Announces plans for First Biodiesel Plant
Kreido Biofuels moved the target startup date of the Wilmington plant to the second quarter of 2008 from the first quarter of 2008. This strategic shift will accommodate the doubling of the plant’s initial target capacity at a lower cost than if the expansion were done at a later date. Also, several site-related modifications will be made that are not expected to significantly alter plant cost. The additional development time will allow the company to obtain concurrent regulatory approvals and build infrastructure that will allow for a more economical expansion. The Wilmington plant will operate using vegetable oils as the feedstock.

“We are making solid progress in developing Kreido’s flagship plant and chose to prepare for a rapid expansion of its capacity,” stated Ben Binninger, Chief Executive Officer of Kreido. “We have said Kreido can improve biodiesel production efficiency while requiring less equipment than conventional processes. We believe that doubling the capacity of our Wilmington plant, which offers us deep water port access to feedstocks, will further enhance our production efficiency”

Kreido Announces Successful Animal Fat Testing in STT® System
Kreido Biofuels also announced today that it has successfully tested animal fat in its STT® (spinning tube-in-tube) System to produce acceptable quality and quantities of biodiesel at the Foothills Bio-Energies biodiesel pilot plant. The test, using pork fat, demonstrated that Kreido’s STT System is able to carry out an excellent conversion of animal fat to methyl ester biodiesel. As biofuel producers seek lower feedstock costs, animal fat is becoming more prevalent. Animal fat is now listed among the other feedstocks successfully tested in Kreido’s STT processors, including degummed soy bean, refined palm, canola, jatropha, and castor oils.

“Testing of the pork tallow material reacted by the STT System showed a bound glycerin level well below required ASTM specification which is exceptional, particularly when considering the extremely short reaction time of the system” stated Randy Dellinger, President and General Manager, Foothills Bio-Energies. “Kreido’s process intensification technology was successfully integrated into our multi-feedstock plant and we are excited in the ability of the unit to work in a multi-feedstock environment, providing flexibility and additional capacity.”Alan McGrevy, Vice President of Engineering, Kreido Biofuels, added “This successful test in our STT System demonstrates both additional feedstock capabilities and STT operability at a commercial Biodiesel plant.”

About Kreido Biofuels
Kreido Biofuels, Inc. is providing renewable energy innovation through its proprietary process intensification technology – the STT® system. The Company is currently developing biodiesel plants in the U.S. with an anticipated capacity of 100 million gallons per year. Kreido’s plants are built around its STT® 30G biodiesel production unit, a complete modular biodiesel production system. Kreido Biofuels’ plants are designed to improve production efficiency and flexibility, while using less equipment and infrastructure to produce quality biodiesel. The Company plans to license its biodiesel technology worldwide. STT is a registered USPTO trademark of Kreido Biofuels, all rights reserved. For more information about Kreido Biofuels, visit www.kreido.com.

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