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Until recently, the only pure play ethanol stock that I knew about was Pacific Ethanol (NASDAQ: PEIX). I have recommended PEIX since December and continue to do so. I like their business model, management team and financiers (Bill Gates). However, unlike Pacific Ethanol (1st plant still under construction), Xethanol Corporation actually has operational plants and produces Ethanol.

I usually stay away from penny stocks or stocks that don’t trade on NYSE or NASDAQ. Also, I am in no way recommending or promoting Xethanol. With all the hoopla with Ethanol stocks recently and President Bush promoting his alternate energy plan I think its worth looking into and finding more information on Xethanol (Nasdaq: XTHN) or XTHN.ob on Yahoo! Finance. General Motors is also doing big time promotion of E85 cars as seen by GM E85 ads everywhere including financial magazines such as Business Week and Forbes.

Xethanol is one of those OTC Bulletin Board stocks. On Yahoo! Finance its traded under the symbol (XTHN.ob) and unlike most of Bulletin Boards stocks, Xethanol trades well above $1 in price. Today’s closing price was in fact $6.47, down about 2%.

I have sent an email with questions to the Investor relations contact who has graciously returned my email and assured me that Christopher d?Arnaud-Taylor, CEO, would be happy to answer my questions.

With help of someone who is very knowledgable about Ethanol Stocks I was able to compile the following questions:

Financials

1. In a recent Fortune article, it was mentioned that Xethanol will achieve profitability in 2006. Can you comment on that?

2. In recent a 10K report, you stated that you had enough funds to last to March 2006. Have you been able to secure additional funds for the business?

3. Do you have any plans to list your stock on the NASDAQ or AMEX stock exchanges? If so, any timeframe that you would be willing to disclose?

4. Please comment on the agreement with the National Forest Service?

5. You have one plant that is operational right now and one that is being refurbished for future use. Is this correct? What are your future growth plans?

Business Model

1. How do you see the ethanol business model evolving in the future? Would you compare it to the model of utility company’s - local operations at a local level.

2. How do you plan to market your ethanol? Do you have agreements with any marketing firms/distributors for the ethanol that Xethanol produces? Does Xethanol have any interest in a marketing firm?

3. What changes or break through do see on the horizon?

4. Any concerns with the enzyme that breaks down the raw material? Logen has touted the new enzyme process or fermentation process?

5. Do you plan to sell any by products (CO2 to bottlers)?

6. Ethanol is business that could skyrocket over the next year? How do you balance growth and profitability?

Government Spending and Legislation

1. Do you support the Vehicle and Fuel Choices Act for American Security Act. Do you think the timeframe is realistic or not aggressive enough for all vehicles to be flexible fuel capable?

2. Do you favor legislation at the state level to enforce the sale of Flex Fuel Vehicles or Hybrids?

Do you have any specific questions you would like to add to these? Leave me your comments (No registration required).

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