Medical Discoveries Acquires Developer of Jatropha Oil

SALT LAKE CITY--(BUSINESS WIRE)--Medical Discoveries, Inc. (Pink Sheets: MLSC) or “MDI” announced today it has acquired privately-held Los Angeles-based Global Clean Energy Holdings LLC (www.GCEHoldings.com), a subsidiary of Mobius Risk Group LLC. The purchase includes certain proprietary rights, intellectual property and other rights relating to both the cultivation and production of feedstock oil from the Jatropha plant, and the commercialization of the oil for the production of biodiesel. Medical Discoveries has terminated its prior drug development operations, appointed new members of management and directors, and intends to change its name and ticker symbol to reflect its new focus on the bio-diesel alternative energy market. The Company also intends to relist on the Over-the-Counter Bulletin Board.

“Developing and distributing a cost-effective non-food based biofuel feedstock is an enormous opportunity for MDI’s shareholders to participate in the very exciting biofuels industry.”

The per barrel cost of Jatropha oil is significantly lower than the current cost of crude oil. It uses a fraction of the resources, and is considerably less expensive to produce than soybean, rapeseed or corn oil, the primary crops presently used for the production of biofuels. The oil extracted from Jatropha curcas seeds, a native non-edible plant indigenous to many tropical and sub-tropical regions of the world, including Mexico, the Caribbean and Central America, is used for the production of high quality biodiesel – an important renewable fuel quickly gaining commercial acceptance worldwide. The Jatropha plant requires less water and fertilizer than conventional crops, and can be grown on desert and other lands not suitable for the production of food crops.

“One of the greatest challenges facing the biofuels industry is the high cost of food-based feedstock,” stated David R. Walker, Chairman of the Board of MDI. “Developing and distributing a cost-effective non-food based biofuel feedstock is an enormous opportunity for MDI’s shareholders to participate in the very exciting biofuels industry.”

Due to the vast quantities of water, land, and agrichemicals presently required by crops used for the production of biodiesel and ethanol-based fuels, government concerns about significant future environmental damage are driving the need to develop a new economical biofuels feedstock. According to a recent article published in the Wall Street Journal, “U.S. farmers only have the capacity to replace about 7% of the country’s gasoline with corn-based ethanol, despite a new federal renewable-fuels target of 15% by 2017. To reach that goal, the U.S. will likely have to find a lot more land.” “Shifting to biodiesel which has a much higher energy balance than ethanol (1:3.2 vs.1:1.1), can allow the United States to achieve our renewable energy fuel goals while shifting jobs and revenues to U.S. companies, further reducing our dependence on foreign oil,” stated Richard Palmer, MDI’s newly appointed President and Chief Operating Officer.

“The ability to produce low cost oil from a non-edible plant, which does not compete with land or other resources used for food crops, provides MDI an enormous opportunity in the biofuels feedstock business without the side effect of driving up food prices,” said Mr. Palmer. “The growing attention surrounding Jatropha oil, as heralded in recent coverage by CNBC and the Wall Street Journal, reflects the growing recognition among the alternative energy and investment communities of the need to develop a cost-effective feedstock alternative. Goldman Sachs recently cited Jatropha curcas as one of the best candidates for future biodiesel production. We believe our business strategy, the land and operating agreements we continue to develop plus our expertise in plant and soil sciences positions MDI to become the first and largest United States-based producer of commercial quantities of Jatropha oil.”

In addition to growing and selling Jatropha oil and other biomass byproducts, the company intends to sell the carbon sequestration credits generated by the plant’s ability to convert large volumes of carbon dioxide to oxygen through photosynthesis. The credits will be sold to companies unable to meet their greenhouse gas reduction requirements under the Kyoto Accords, or within other Cap and Trade markets domestically. The carbon credits will be sold through the European Climate Exchange (ECX) and the Chicago Climate Exchange (CCX). The Kyoto Protocol is an amendment to the United Nations Framework Convention on Climate Change assigning mandatory emission limitations for the reduction of greenhouse gas emissions.

In order to establish and drive its new business, the Company hired Richard Palmer, a seasoned energy executive with many years of experience in the alternate energy and bio-fuels industry. To further support the new effort, the Company has entered into a consulting agreement with Mobius Risk Group LLC, a leading energy risk management company (http://www.mobiusriskgroup.com). In a strategic move to bolster its Board’s bio-fuels, risk management, and financial expertise, MDI appointed three new directors to its Board of Directors; Richard Palmer, its new President and COO, Eric J. Melvin, the Chief Executive Officer of Mobius Risk Group, and Martin Schroeder, the Executive Vice President & Managing Director of The Emmes Group, a strategic business development, assessment and planning organization (http://www.emmesgroup.com). In order to provide additional funds for its new operations, Medical Discoveries has entered into a $1 million loan agreement with a third party lender.

Medical Discoveries purchased Global Clean Energy Holdings LLC from Mobius Risk Group and Mr. Palmer in exchange for 63,945,257 shares of its common stock. Of the 63,945,257 shares, 27,405,111 shares were issued subject to the Company achieving certain specified performance milestones. Some or all of the 27,405,111 shares may be cancelled if the milestones are not met.

The foregoing events are further described in a Current Report on Form 8-K that Medical Discoveries filed on September 17, 2007.

About Medical Discoveries, Inc.

Medical Discoveries, Inc. is now an emerging renewable energy company focused on the production of feedstock used for the production of alternative-energy fuels. The company has completed the divestiture of its legacy biopharmaceutical assets, and intends to change its name and ticker symbol to reflect its new focus on the bio-diesel alternative energy market. The Company also intends to relist on the Over-the-Counter Bulletin Board.

Caution Regarding Forward-Looking Statements

Any statements in this press release about Medical Discoveries’ expectations, beliefs, plans, objectives, assumptions or future events or performance are not historical facts and are forward-looking statements for purposes of the Private Securities Litigation Reform Act of 1995 (the "Act"). These statements are often, but not always, made through the use of words or phrases such as "believe," "will," "expect," "anticipate," "estimate," "intend," "plan," "forecast," "could," and "would." Examples of such forward looking statements include statements regarding the timing, design, scope, and anticipated results of its efforts to plant, harvest, and commercialize feedstock oil from Jatropha curcas. Medical Discoveries bases these forward-looking statements on current expectations about future events. They involve known and unknown risks, uncertainties and assumptions that may cause actual results, levels of activity, performance or achievements to differ materially from those expressed or implied by any forward-looking statement. Some of the risks, uncertainties and assumptions that could cause actual results to differ materially from estimates or projections in the forward-looking statement include, but are not limited to, the risk that we might not successfully commercialize Jatropha oil as expected, the market for our products will not grow as expected, and the risk that our products will not achieve expectations. For additional information about risks and uncertainties Medical Discoveries faces, see documents Medical Discoveries files with the SEC, including Medical Discoveries report on Form 8-K filed September 17, 2007 concerning the acquisition of the alternative-energy feedstock assets from Global Clean Energy Holdings LLC. Medical Discoveries claims the protection of the safe harbor for forward-looking statements under the Act, and assumes no obligation and expressly disclaims any duty to update any forward-looking statement to reflect events or circumstances after the date of this news release or to reflect the occurrence of subsequent events.