Convergence Ethanol Reports 1st Quarter Sales Growth

Business Wire, March 13, 2007

Net Sales Rise 50% to Highest Level in Company History

LOS ANGELES -- Convergence Ethanol[TM] Inc. (OTCBB:CETH) today announced financial results for its fiscal 2007 first quarter, ended December 31, 2006. The Company posted net quarterly sales of $3,947,772. These results compare to net sales of $2,626,519 in the year-ago quarter. This 50.3% increase was primarily due to the delivery of the Company's first Intelligent Filtration System[TM] (IFS), combined with sales of conventional products. Gross profit margin for this quarter was down 4.2% from the year-ago quarter. This decreased margin was primarily due to the one-time cost of implementing the new IFS product line and one-time costs associated with implementing the Company's Profit Improvement Initiative (see press release January 11, 2007).

"We are accustomed to seeing strong first quarter sales growth, but I'm pleased to say we've exceeded even our usual growth with the highest quarterly net sales in the Company's history," said Dr. James A. Latty, Convergence Ethanol's President and CEO. "Engineered systems, products and services are an important part of our mission to support the production of cleaner-burning fuels. Our commitment to high quality and low cost is getting around, and we look forward to serving a lot more demand in this market segment."

As a result of a successful IFS launch, the Company continues to receive inquiries from refineries around the world looking for cost-effective IFS processes to help minimize hazardous waste volumes and improve production of low-sulfur, eco-friendly fuels. The Company also continues to generate strong customer demand for pumps, equipment, systems and repairs services at Bott Equipment and Gulfgate Equipment, its two Texas-based subsidiaries.

Dr. Latty expressed the Company's continued commitment to growth: "In the near term, we will continue to expand our management, engineering and sales teams, aggressively market our products and services and intensify our focus on ethanol project development."

California-based Convergence Ethanol is a biorenewable energy project developer and an ISO 9001:2000-certified provider of engineered products and systems. The Company's mission is to support the energy industry's cost-effective production of cleaner-burning fuels. Currently in development is Hearst Ethanol One, Inc. (HEO), a 'second generation' biorenewable energy refinery that will convert cellulosic woodwaste into ethanol.

For more information visit http://www.c-eth.com.

Safe Harbor Disclosure

This press release contains certain forward-looking statements, within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934, that involve a number of risks and uncertainties. Actual events or results may differ from the company's expectations. In addition to the matters described in this press release, risk factors listed from time to time in the reports and filings with the Securities and Exchange Commission may affect results achieved by the Company.