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Temporary Suspension of Madera, CA Ethanol Facility Operations

January 9, 2009

SACRAMENTO, Calif., Jan. 9 /PRNewswire-FirstCall/ — Pacific Ethanol, Inc.
(Nasdaq: PEIX), the leading West Coast-based marketer and producer of ethanol,
announced today its intention to temporarily suspend operations at its 40
million gallon per year ethanol facility located in Madera, CA. Extended
unfavorable market conditions for producing ethanol has prompted Pacific
Ethanol to suspend operations beginning January 12th.

The company, through its wholly-owned ethanol marketing arm, Kinergy
Marketing, intends to continue serving its ethanol customers with production
from other Pacific Ethanol plants and Kinergy suppliers.

About Pacific Ethanol, Inc.

Pacific Ethanol is the largest West Coast-based marketer and producer of
ethanol. Pacific Ethanol has ethanol plants in Madera and Stockton,
California
; Boardman, Oregon; and Burley, Idaho. Pacific Ethanol also owns a
42% interest in Front Range Energy, LLC which owns an ethanol plant in
Windsor, Colorado. Central to Pacific Ethanol’s growth strategy is its
destination business model, whereby each respective ethanol plant achieves
lower process and transportation costs by servicing local markets for both
fuel and feed. Pacific Ethanol has achieved its goal of 220 million gallons
per year of ethanol production capacity in 2008 and plans to increase total
production capacity to 420 million gallons per year in 2010. In addition,
Pacific Ethanol is working to identify and develop other renewable fuel
technologies, such as cellulose-based ethanol production and bio-diesel.

Safe Harbor Statement under the Private Securities Litigation Reform Act
of 1995

With the exception of historical information, the matters discussed in
this press release are forward-looking statements that involve a number of
risks and uncertainties. The actual future results of Pacific Ethanol could
differ from those statements. Factors that could cause or contribute to such
differences include, but are not limited to, the ability of Pacific Ethanol to
obtain additional debt or equity financing, including additional working
capital financing, or absent new sources of financing, the ability of Pacific
Ethanol to reschedule or restructure its indebtedness; the ability of Pacific
Ethanol to successfully capitalize on its internal growth initiatives; the
ability of Pacific Ethanol to operate its plants at their planned production
capacities; the price of ethanol relative to the price of corn and other
production inputs; the price of ethanol relative to the price of gasoline; and
the factors contained in the “Risk Factors” section of Pacific Ethanol’s Form
10-K filed with the Securities and Exchange Commission on March 27, 2008 and
the “Risk Factors” section of Pacific Ethanol’s Form 10-Q filed with the
Securities and Exchange Commission on November 17, 2008.

SOURCE Pacific Ethanol, Inc.


Source: newswire