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Ethanex Energy, Consolidated Grain and Barge Co. Announce Contract

Posted on: Monday, 12 February 2007, 09:00 CST

Ethanex Energy, Inc. (OTCBB: EHNX), a renewable energy company whose mission is to become the ethanol industry's low-cost producer, announced today that it has contracted with Consolidated Grain and Barge Co., a subsidiary of CGB Enterprises, Inc. ("CGB"), to be the exclusive grain originator for its Ethanex at SEMO Port and Ethanex at Southern Illinois facilities.

CGB, a recognized leader in the grain and transportation industries, owns and operates a rail and truck-to-barge grain facility located within the SEMO Port Authority in Missouri. The co-location of Ethanex's plant and CGB's barge terminal and elevator system will facilitate the shipping and receiving of grain by barge, truck and rail providing the plant with a strong competitive advantage. CGB currently owns and operates an additional 64 grain elevators in the U.S. with many of those assets in close proximity to Ethanex's Missouri and Illinois sites. CGB also operates ten full service barge fleeting locations on the inland waterways of the United States. Facilities are located in the strategic "brown water" areas of the Lower Mississippi River near the Gulf of Mexico, the St. Louis Harbor, the Ohio River, the Arkansas River, and various locations on the Illinois River.

Ethanex is currently developing three 132 million gallon ethanol facilities incorporating the Company's proprietary corn fractionation technology. This next-generation process significantly reduces energy and water consumption in ethanol production as well as enhances the quality and increases the number of co-products placed back into the food chain. Delta-T Corporation is providing back-end ethanol processing technology and engineering support and Chevron Energy Solutions (CES), a Chevron Corporation (NYSE: CVX) subsidiary is the EPC contractor. Initial production from the plants is expected by the end of 2008.

"Ethanex is pleased to work with CGB on such a critical component to the success of our facilities," said Al Knapp, President and Chief Executive Officer of Ethanex. "CGB's proven ability to secure grain combined with the close proximity of their elevators to our plants and their logistical expertise makes CGB an ideal partner."

Kevin Adams, President & CEO of CGB Enterprises said, "CGB is excited to begin this relationship with Ethanex. The corn processing efficiency of Ethanex's fractionation technology is in important step forward for the ethanol industry." Adams further commented "Our organization brings a long history of commodity merchandising, logistical and transportation expertise to the Ethanex projects. We have been a part of the local grain and transportation industry for many years, and our strategically located assets will help secure a reliable source of grain for the Ethanex plants. Anytime we can be involved in a project that adds value to not only the local agricultural community, but also the local economy in general....we are pleased to be involved, and the Ethanex plants will certainly provide those things."

FGDI, LLC, a jointly owned subsidiary of FCStone Group, Inc. and Mitsubishi, will provide grain origination and logistical support for the Ethanex at Northeast Kansas plant.

About CGB Enterprises, Inc.

Headquartered in Mandeville LA, a suburb of New Orleans, CGB Enterprises operates over 70 locations across the US and through its subsidiary Consolidated Grain and Barge Co., is a significant principle in the US grain industry. In addition to owning/operating a significant number of grain facilities, CGB Enterprises operates numerous other related businesses units including, stevedoring, soybean processing, barge shipyard repair and fleeting, transportation services packages involving barges, railroad and trucking, ocean vessel services along the gulf coast, and risk management services for US farmers. For more information about CGB, please visit www.cgb.com.

About Chevron Energy Solutions

Chevron Energy Solutions partners with institutions and businesses to improve facilities, increase efficiency, reduce energy consumption and costs, and ensure reliable, high-quality energy for critical operations. Chevron employs proven technologies to meet customers' specific needs, including infrastructure technologies, energy controls, solar photovoltaics, fuel cells, biomass and other systems. For more information about Chevron Energy Solutions, please visit www.chevronenergy.com.

Chevron is one of the world's leading energy companies. With more than 53,000 employees, Chevron subsidiaries conduct business in approximately 180 countries around the world, producing and transporting crude oil and natural gas, and refining, marketing, and distributing fuels and other energy products. Chevron is based in San Ramon, Calif. For more information about Chevron, please visit www.chevron.com.

About Delta-T Corporation

Headquartered in Williamsburg, VA, Delta-T is a design-build firm that provides alcohol plants, systems, and services to the fuel, beverage, industrial, and pharmaceutical markets. Delta-T is known for pioneering many of the recent innovations currently in use by the newest generation of biorefineries to produce fuel ethanol, including the commercialization of molecular sieve dehydration, zero discharge of process wastewater, and more efficient refining/purification systems to produce high quality alcohols. Delta-T has provided alcohol production, dehydration, and purification solutions to more than 110 clients on five continents. Delta-T Corporation is located at 323 Alexander Lee Parkway, Williamsburg, VA 23185, USA. Telephone (757) 220-2955. For more information about Delta-T, visit www.deltatcorp.com.

About Ethanex Energy, Inc.

Ethanex Energy, Inc. is a renewable energy company whose mission is to become the ethanol industry's low-cost producer. The company expects to achieve this industry position through the application of next-generation feedstock technologies and use of alternative energy sources. Ethanex Energy is currently developing three ethanol production facilities located in the mid-west, with a combined production capacity of approximately 400 million gallons of ethanol per year. The Company expects these three plants to be operational in 2008. Ethanex Energy is concentrating its geographic focus in areas that allow access to abundant supplies of corn, alternative energy sources, transportation infrastructure and the potential for expedited permitting. Ethanex Energy's acquisition and brownfield development strategies afford it rapid capacity development with significant operating cost advantages. The Company's senior management has over eighty years of experience in the energy sector including the design, construction and operation of hundreds of power generation facilities. Ethanex Energy is based in Basehor, Kansas with offices in Santa Rosa, California and Charleston, South Carolina. For more information about Ethanex Energy, visit www.ethanexenergy.com.

Forward-Looking Statements

This press release contains 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, including without limitation those statements regarding the Company's ability to exploit ethanol development and production opportunities. These statements are expressed in good faith and based upon a reasonable basis when made, but there can be no assurance that these expectations will be achieved or accomplished. Although the forward- looking statements in this release reflect the good faith judgment of management, forward-looking statements are inherently subject to known and unknown risks and uncertainties that may cause actual results to be materially different from those discussed in these forward-looking statements including, but not limited to, our inability to generate sufficient operating cash flow to construct and adequately maintain our production facilities and service our anticipated debt, commodity pricing, environmental risks and general economic conditions. Readers are urged to carefully review and consider the various disclosures made by us in the our reports filed with the Securities and Exchange Commission, including those risks set forth in the Company's Current Report on Form 8-K filed on September 6, 2006, which attempt to advise interested parties of the risks and factors that may affect our business, financial condition, results of operation and cash flows. If one or more of these risks or uncertainties materialize, or if the underlying assumptions prove incorrect, our actual results may vary materially from those expected or projected. Readers are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. We assume no obligation to update any forward- looking statements in order to reflect any event or circumstance that may arise after the date of this release.

Source: Business Wire

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