CleanTech Biofuels

CleanTech Biofuels Enters Into Agreement to Acquire Technology and Develop Commercial Site

St. Louis, MO--(Marketwire - July 15, 2008) - CleanTech Biofuels, Inc. (OTCBB: CLTH) announces the signing of an agreement with Biomass North America Licensing, Inc. to acquire the company via merger. Biomass North America Licensing, Inc. owns the rights to use a proprietary and patent-pending technology for the production of cellulosic biomass from municipal solid waste in the United States and Canada. CleanTech will issue the shareholders of Biomass North America, 2,000,000 shares of its common stock at Closing and an additional 4,000,000 shares of its common stock upon commencing a commercial development using the technology.

The agreement provides for the development of a commercial site using the licensed technology at a transfer station currently operating in Chicago, Illinois. The proposed site for the commercial development is owned by a principal shareholder of Biomass North America.

This acquisition will complement CleanTech's existing Pressurized Steam Classification Technology for the production of fuel ethanol, and is expected to enable the Company to enter the additional business line for the production of renewable electricity from municipal solid waste.

The Biomass North America technology is currently being operated at a commercial plant in Australia where the cellulosic biomass produced from municipal solid waste is being utilized as a soil amendment. Ed Hennessey, CEO of CleanTech Biofuels, Inc., stated: "We are very pleased to acquire this new technology and anticipate moving quickly to deploy it in a commercial setting for the production of renewable energy."

About CleanTech Biofuels, Inc.

CleanTech Biofuels, Inc. is a development stage company with technology that the company believes is capable of converting municipal solid waste into ethanol and other products. By using the existing infrastructure for municipal solid waste collection and disposal to collect biomass at low or possibly negative feedstock cost, the Company expects to achieve profitability quickly relative to other energy producers who must develop their infrastructure to collect and transport more expensive feedstocks such as sugar cane, corn or even switchgrass, wood waste, or corn stover.

Safe Harbor:

This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. The risks and uncertainties that may affect the operations, performance development, and results of the Company's business include but are not limited to fluctuations in financial results, availability and customer acceptance of our products and services, the impact of competitive products, services and pricing, general market trends and conditions, and other risks detailed in the Company's SEC reports.
Investor Contact:
Lippert Heilshorn& Associates, Inc.
Amy Gibbons/Jody Burfening
212-838-3777
agibbons@lhai.com