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LOS ANGELES, May 22, 2008 (PRIME NEWSWIRE) -- Allegro Biodiesel Corporation (Other OTC:ABDS.PK - News) (``Allegro'', or the ``Company'') has signed a letter of intent with an investor group to sell 100% of its limited liability interests (the ``Transaction'') in Vanguard Synfuels, LLC (``Vanguard''). The Transaction is subject to negotiation of definitive agreements, necessary corporate approvals, as well as certain other closing conditions.

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Allegro, like other biodiesel plants in the United States, has not had any relief from commodity prices over the last several months. It is still unprofitable to produce biodiesel from soybean oil, and as a result, the U.S. biodiesel industry is suffering significant distress. Consequently, many biodiesel plants in the United States are shutting down, seeking strategic alternatives or pursuing a sale. Furthermore, the Company has been involved in several negotiations with investor groups with limited success. None of the bidders have provided the necessary proof of funds that would be required to close a transaction. After facing these difficulties, Allegro has decided to sell its Louisiana assets and re-orient its strategy.

The Company will continue as a non-operating entity, retaining its equity investment in Community Power Corporation (``CPC''), the note receivable from CPC, and the claims it has against the Escrow Agreement that was created when the Company originally acquired Vanguard in September 2006. Thus, Allegro will have enough funds and assets to develop a new corporate strategy.

Allegro expects to close the transaction by June 30, 2008. The complete terms of the transaction will be detailed in Allegro's Form 8-K to be filed with the SEC by May 22, 2008.

About Allegro Biodiesel Corporation

Allegro Biodiesel Corporation is a producer and distributor of biodiesel fuel. Allegro operates a production facility located in Pollock, Louisiana that uses renewable agricultural-based feedstock to produce biodiesel. Allegro began sales in April 2006, becoming the first operational biodiesel producer in the state of Louisiana. For more information, click here or visit the company's website at http://www.allegrobiodiesel.com.

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