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Southridge Acquires Cellulosic Ethanol Technology

Southridge Enterprises Inc. (the "Company") today announced that it has signed a definitive purchase agreement with Celuhol Biotech Inc. (Celuhol), a private company, to acquire ownership rights to the Celuhol Intellectual Property (IP), research and development assets, with respect to the cellulosic technology being developed for converting biomass into ethanol. Southridge is in the process of raising $5 million dollars to ramp-up technical staff, purchase equipment and provide working capital for development and testing of the cellulosic technology prior to commercialization.

Southridge acquired this technology, plant data and related engineering together with the original pilot plant that is now being integrated with recently developed process capabilities to convert cellulose to ethanol. The revenue model will be based on joint venture projects, licensing fee for use of the technology and royalties of approximately 12 cents per gallon of ethanol produced.

Noted Ken Milken, Southridge's CEO, "Southridge is excited about adding cellulosic ethanol into our aggregate ethanol portfolio. We have had an intense period of carbohydrate-based ethanol evaluation of sites, and are in the process of optioning land in Corn Belt states. Adding cellulosic ethanol will provide tremendous diversification to our future ethanol production base.

"Cellulose is the most abundant plant material on earth. By replacing more expensive food crops with cellulose as the basic feed-stock for ethanol production, we believe the price of ethanol can be reduced as its availability increases," he explained. "We expect to work with existing plant owners to deliver cellulosic processing technology as well as building new cellulosic ethanol plants."

The Company estimates four to five months of design and engineering, with anticipated construction beginning in the second quarter of 2009. Once processes are finalized, Southridge anticipates building one of the first cellulosic ethanol facilities in the Eastern United States.

The Company is currently developing two corn-based ethanol plants in the United States and one sugarcane-based ethanol plant in El Salvador. All three facilities are expected to be in commercial production in 2010 for a total production of approximately 80 million gallons of ethanol per year.

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, with start-up of the first phase of these operations in 2007. Southridge Enterprises is headquartered in Dallas, Texas. For more information, visit 'http://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, successfully equipping the Quitman County plant for the production of ethanol, and the startup of production in 2008, if at all.

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 management 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.

Contact:
Southridge Enterprises, Inc.
Bruce Kennard, 888-862-2192, ext. 3
'http://www.southridgeethanol.com'
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   Mr. Bruce Kennard
   Southridge Enterprises, Inc.
   Dallas,    TX,    75240
   USA
   8888622192 ext 3 (phone)
   8882439256 (fax)
   ir@southridgeethanol.com
   www.southridgeethanol.com