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Rentech, Inc. Agrees on Coal Supply Terms With Peabody Energy

Posted on: Tuesday, 6 March 2007, 15:00 CST

LOS ANGELES, March 6 /PRNewswire-FirstCall/ -- Rentech, Inc. announced today that it has signed a term sheet with Peabody Energy for the initial coal supply contract for Rentech Energy Midwest Corporation's (REMC) ultra-clean fuels conversion project in East Dubuque, Illinois. The coal will come from Peabody's Gateway Mine near Coulterville, Illinois. It will supply the REMC project, which will convert the existing natural gas-fired ammonia fertilizer facility into what the Company believes will be the United States' first Fischer-Tropsch and ammonia fertilizer production facility utilizing clean coal technologies.

The terms call for Peabody to provide up to approximately 7.2 million tons of Illinois coal commencing between August 2009 and January 2010 through December 2017. The parties may mutually agree to extend the term of the contract for an additional five years after that. The arrangement provides for a fixed price coal contract with standard industry escalation for five years, and a potential market based adjustment with a ceiling thereafter.. The terms are subject to approval of final definitive agreements by the parties.

"We are pleased to expand our relationship with Peabody beyond our Joint Development Agreement," said D. Hunt Ramsbottom, president and chief executive officer of Rentech. "Securing a cost-effective supply of coal represents an important development in completing the REMC project on time and budget. As a leading coal company, Peabody is well positioned to provide a reliable supply of coal to the Company. With this announcement today, as well as our construction progress at Rentech's Product Development Unit in Colorado, we are right on track with the commercialization of the patented and proprietary Rentech process. We believe our fundamentals have not changed in recent days and we are not aware of any business reason for the recent decline in our stock price," added Mr. Ramsbottom.

Rentech and Peabody previously entered into a Joint Development Agreement for the co-development of up to two potential clean fuels projects to be located on Peabody reserves. The projects would convert coal into ultra-clean transportation fuels using Rentech's proprietary Fischer-Tropsch process. The Joint Development Agreement represents Peabody's initial activities to develop clean fuels projects in the United States.

About Rentech, Inc.

Rentech was incorporated in 1981 to develop technologies that transform under-utilized energy resources into valuable and clean alternative fuels. The Company has developed an advanced derivative of the well-established Fischer-Tropsch, or FT, process for manufacturing ultra-clean diesel fuel and other fuel products.

Safe Harbor Statement

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995 about matters such as the Company's plans to convert its nitrogen fertilizer plant, construct a product development unit and develop additional projects. These statements are based on management's current expectations and actual results may differ materially as a result of various risks and uncertainties. Other factors that could cause actual results to differ from those reflected in the forward-looking statements include, the ability of Rentech to finance the proposed conversion and construction of the REMC and other proposed fuels plants and other risks, including those set forth in the our prior press releases and periodic public filings with the Securities and Exchange Commission, which are available via Rentech's web site at http://www.rentechinc.com/. The forward-looking statements in this press release are made as of March 6, 2007, and Rentech does not undertake to revise or update these forward-looking statements, except to the extent that it is required to do so under applicable law.

For more information please contact: Mark Koenig, Director of Investor Relations, Rentech, Inc. at 303-298-8008, extension 116, or by email at mkir@rentk.com, or see the Company's website at: http://www.rentechinc.com/; Kevin Theiss, CEOcast, Inc. 212-732-4300 or by email at ktheiss@ceocast.com.

Rentech, Inc.

CONTACT: Mark Koenig, Director of Investor Relations of Rentech, Inc.,+1-303-298-8008, ext. 116, mkir@rentk.com; or Kevin Theiss of CEOcast, Inc.,+1-212-732-4300, ktheiss@ceocast.com, for Rentech, Inc.

Web site: http://www.rentechinc.com/

Source: PRNewswire-FirstCall

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