November 2006

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Indiana Logistics Summit

• November 2006

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Ethanol Fundamentals

• Grain alcohol produced from fermentation of
  starch or sugar
• 95 of US ethanol made from corn (a)
• Ethanol is a gasoline additive and substitute
• Most cars can run on 10 ethanol gasoline blend
• Cars can be made to burn 85 ethanol
• 5 million on the road today
• Priced relative to regular gasoline (quoted in
  / gallon)
• Industry has doubled in last 3 years
• Government mandate doubles renewable fuel demand
  in next six years (b)

Ethanol as a of Gasoline Sold(a)
Ethanol 2.7
Gasoline 97.3
2005 Total Gasoline Demand 148 billion gallons
Ethanol as An Additive

• Source Renewable Fuels Association
• Mandated in 2005 Energy Bill

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Visible Production Growth with a Proven Track
Record
Mt. Vernon, IN 220.0
1 Billion Goal
Pekin 256.5
Pekin 3 110.0
Aurora220.0
1,000.0
Capacity
?
?
?
?
Land
756.5
Existing Infrastructure
?
?
?
?
426.5
Delta T and Kiewit Negotiations Underway
ICMFagenKiewit
Engineering, Procurement, Construction
Delta T and Kiewit Negotiations Underway
Delta T and Kiewit Negotiations Underway
Permit Applications
?
Summer 2006
Summer 2006
Summer 2006
ProductionStartup
3Q08
1Q09
3Q08
1Q07
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Integrated Infrastructure Drives Long-Term
Customer Relationships

• Fully-integrated ethanol pure-play
• Difficult to replicate terminal infrastructure
• Multiple modes of transportation (truck, rail,
  and barge)
• Ability to spread costs across pool
• Ability to deliver scale and reliability to
  customers
• Consistency of fee based revenue

Key Customer Relationships
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Aventine is the Face of Ethanol to Its Customers

• Dependable supplier of ethanol in large volumes
• Brings the national market to Midwest ethanol
  producers
• Current production in eight states provides
  distribution flexibility
• Fragmented industry provides acquisition
  opportunities

Aventine14
ADM27
(a)
Other Ethanol Producers59 96 Companies

• Does not include marketing volumes.

Source Renewable Fuels Association as of April
2006
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Future Ethanol Markets

• CA 10 700 MGPY
• Atlanta 225 MGPY
• Boston 250 MGPY
• Philadelphia 200 MGPY
• New Jersey 150 MGPY
• DC/ Baltimore/ VA 300 MGPY
• Dallas/ Houston 440 MGPY
• Florida 300 MGPY
• PADD II 1.35BGPY
• (Midwest _at_ 75)
• Total 4.0 BGPY

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Ethanol Value Chain
Other Truck BargeCompanies
Other SelectedMarketers

-
-
-
Netback Ethanol Price Gross Ethanol Price
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Distribution

• Access to rail, truck and barge transportation
• Access to all major railroads in the USA
• Sixteen Production Facilities
• Seven Breakout Terminals Serving Major Markets
• Thirty-eight Blend Terminals
• Adding at least 11 distribution points in 2006
• Reduced Rail Freight Rates Due to Volume
• Utilize Efficient Movements to Meet Contract
  Commitments

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Distribution

• 1435 tank cars more tank cars on order
• National contracts with the UP, BNSF, NS, CN,
  CSX, CPRS
• Trucks - work with over 80 carriers
• Terminals - located in 51 terminals with 30
  million gallons of off-site storage
• Unit trains - NS CSX (Northeast) BNSF
  (Southern California)

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Unmatched Distribution Infrastructure
Competitive Advantage

• Over 1,435 rail cars under long-term lease
• 1 ocean-going 13 inland river barges on
  time-charter
• 14 production sites and 51 terminals
• Extensive blending system with 30 million gallons
  of capacity (renewal at our option)
• Access to West, East, and Gulf Coast
• 25 years of development

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Where Does Demand Originate?

• Public Policy Mandate Renewable Fuels Standard
  (RFS) currently 7.5 billion gallons by 2012. A
  further increase in the mandate would
• help balance supply/demand concerns
• provide long-term support for ethanol prices
• improve investor sentiment
• Discretionary Blending by Refiners and Blenders
  ethanol can be used
• as an octane enhancer
• to extend gasoline stocks
• to reduce the cost to refiners/blenders
• Global Growth in Ethanol

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Increases in the RFS?
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Export Opportunities

• Countries increasingly blending ethanol into
  gasoline

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Plant Location Mt. Vernon, IN
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Mt. Vernon Project

• 220 Million Per Year Ethanol Plant
• Approximately 400 Million Project
• 50-65 Jobs (estimate includes CGB handling)
• Inputs
• Corn
• Natural Gas Eletricity
• Water
• Outputs
• Ethanol
• Corn By-Products Animal Feed Ingredients
• Carbon Dioxide

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(No Transcript)