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Evergreen Energy Launches International Business and Strategic Partnership with Sumitomo Corporation

FOR IMMEDIATE RELEASE:

DENVER, April 25, 2007 - Evergreen Energy Inc. (NYSE Arca: EEE), a leading provider of cost effective pre-combustion cleaner coal solutions for electric and industrial power generation, has formed its first significant international business corporation with Evergreen Energy Asia/Pacific (EEAP).

The Sumitomo Corporation (Sumitomo, Japan) has agreed to be a strategic partner and will leverage its substantial energy market success to assist EEAP in the development of the K-Fuel® business in the Asia Pacific region. Sumitomo is a Fortune Global 500 integrated business, trading and investment firm headquartered in Tokyo with more than 160 offices in 75 countries. It has an international reputation in energy, construction, utilities, metals and mining, among other industries. Sumitomo has been trading more than 10 million tons of coal annually from overseas, including Australia, Indonesia, Russia, Vietnam and China.

In addition to adding worldwide market and operations experience as a strategic partner, Sumitomo has made an initial cash investment for a four percent equity participation in the new Asia venture. Sumitomo and Evergreen are discussing a possible additional investment for a higher equity participation.

EEAP has been formed as a separate international operation and can develop markets immediately without impact on Evergreen Energy's US financial commitments and resources.

EEAP has already begun discussions with potential partners for coal sourcing, project financing and plant construction. As supplies of Asian bituminous coal diminish, and costs increase, the K-Fuel® upgrading process will provide access to large reserves of low-rank coal in the region. K-Fuel® refineries will be constructed to process the lower rank coals to increase the heat content per ton and to lower emissions per kilowatt-hour generated in an environmentally beneficial manner.

Kevin R. Collins, interim CEO and president of Evergreen Energy Inc., said "We have been evaluating expansion into Asia for some time, and I am greatly encouraged that our strategic partner believes the time is now. Vince Cook, former corporate officer and IBM vice president, responsible for IBM Asia-Pacific Corporation, was brought into Evergreen to lay out a strategy and implementation plan for Asia and to secure a substantive strategic partner."

With the additional engineering and financial capacity of Sumitomo, Collins noted that EEAP can pursue opportunities in that growing region concurrently with Evergreen's domestic developments.

Kazuyuki Takahashi, general manager of the coal department at Sumitomo said, "Sumitomo is very excited about the K-Fuel® technology and its vast potential." As a prerequisite to its participation in Evergreen Energy Asia-Pacific, Sumitomo recently completed a favorable review in the United States of K-Fuel®'s commercialization progress.

Based in Tokyo, Hideharu Enomoto will serve as president and CEO of Evergreen Energy Asia Pacific. Enomoto has extensive experience in the energy and Asian power management sector and in the management of engineering, procurement and construction.

Ted Venners, chief technology officer and founder of Evergreen Energy, said "Opening the Asia market is an opportunity that won't wait. It is a region that embraces the Kyoto Accord and will greatly appreciate the significant contribution of K-Fuel® to the reduction of global warming emissions."

"The Asia-Pacific market is an immense opportunity, and we're entering it in strong form through an impressive strategic partnership with the Sumitomo Corporation, known globally for its accomplishments in the energy and natural resources sectors," added Collins. "The endorsement of a company with Sumitomo's outstanding reputation underscores the worldwide potential of refined coal to deliver better environmental and efficiency performance."

The K-Fuel® technology and process is patented in numerous countries. It uses heat and pressure to reduce water and some pollutants from low rank, sub-bituminous and lignite (brown) coals. The K-Fuel® coal product has increased heat content and efficiency with lower emissions per kilowatt-hour generated. In the United States, Evergreen Energy has built the world's first large-scale coal refinery in Gillette, Wyoming designed for an annual capacity of 750,000 tons.

About Evergreen Energy Inc.

Evergreen Energy Inc. refines coal into a cleaner, more efficient and affordable solid fuel that is available today to meet the growing energy demands of industrial and utility customers while addressing important environmental concerns. Visit www.evgenergy.com for more information.

Contacts:

Analysts and Investors
Karli Anderson
Director, Investor Relations
303-293-2992

Media and Public Affairs
Paul Jacobson
VP, Corporate Communications
303-293-2992

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