Positive consolidated operating result in the second quarter 2009 – Utilization of biodiesel plants again over 90 percent

Leipzig/Zörbig, August 13, 2009: In the first half-year of the fiscal year 2009 VERBIO Vereinigte BioEnergie AG achieved total revenue in the amount of EUR 247.0 million (1. HY 2008: 298.8 million). The half-year consolidated operating result (EBIT) was at EUR -11.2 million (1. HY 2008: EUR 3.8 million). In the first half-year 2009 the manufacturing costs based on the contracted raw material basis, could be just partially passed down the market due to the price decline in fuel prices.

In the second quarter 2009 the situation has eased. Therefore consolidated sales increased from EUR 122.0 million in the first quarter 2009 to EUR 125.0 million in the second quarter 2009 and an improvement of the consolidated operating result (EBIT) was accomplished (Q1 2009: EUR -12.0 million; Q2 2009: EUR +0.8 million).

As of June 30, 2009 VERBIO disposed of liquid funds totaling EUR 55.5 million. On the record date, the equity ratio was at 71.7 percent (December 31, 2008: 66.2 percent).

Utilization in biodiesel segment in the second quarter 2009 clearly over prior quarter, segment bioethanol benefits from increasing demand

Mainly in consequence of the lower demand for pure biodiesel (B100) and a decrease in enforceable market value prices 176,783 tons of biodiesel were produced in the first half-year of the current fiscal year in the biodiesel segment and therefore less than in the first half-year 2008 (191,510 tons). An encouraging development is seen in capacity utilization in the second quarter 2009 which is clearly above capacity utilization of the first quarter and with it the return to the high level that was achieved in the second quarter of 2008. In the first half-year 2009 revenues in the amount of EUR 174.8 million (1. HY 2008: EUR 208.5 million) were achieved. The segment result before interest and taxes was EUR -1.2 million (1. HY 2008: EUR -2.2 million).

In the same period in the bioethanol segment 79,508 tons (1. HY 42,672 tons) of bioethanol were produced. Sales reached EUR 59.5 million (1. HY 2008: EUR 76.3 million). The segment result before interest and taxes stood at EUR -10.6 million (1. HY 2008: EUR 5.0 million). In the first half-year 2008 revenues and result were positively impacted by grain sales.

The energy segment contributed revenue of EUR 9.0 million (1. HY 2008: EUR 10.8 million) to the total revenues in the first half-year 2009. Because of essentially weaker wind months the revenue was under the comparably previous year’s figure. The segment result before interest and taxes therefore reduced to EUR 0.7 million (1. HY 2008: EUR 1.4 million).

The other segment generated revenues in the amount of EUR 3.7 million (1. HY 2008: EUR 3.2 million). The segment result before interest and taxes improved to EUR -0.1 million
(1. HY 2008: EUR -0.4 million).

Binding EU-directives and German act on the amendment of the promotion of biofuels passed

By adopting the Renewable-Energy-Directive and amending the Fuel-Quality-Directive, the European Council and European Parliament have created a binding and legal framework for the promotion of biofuels use in the transportation sector. These comprehensive directives came into force in June of this year and must be transposed into national legislation by the EU member states by the end of 2010. Irrespectively of this the act on the Amendment of the Promotion of Biofuels was passed by the German Parliament (Bundestag) on June 18, 2009. This means for Germany that the consumption of pure biodiesel will continue to decline and the sale of biofuels in the blending market will increase. Germany must submit a national action plan for implementing the objectives of the Renewable-Energy-Sources-Directive to the EU by the end of June 2010. The extent to which this action plan entails the amendment of existing laws and regulations is unknown at this point.

Continuing challenging market environment

Against the background of unsecure commercial and economic data it is currently difficult to make a precise statement according the further business development of VERBIO. It is assumed that both sales and commodity price situation will remain comparatively stable by the end of the year.

A sustainable and explicit improvement of the situation of the biofuels industry and the business of VERBIO is expected by the Management Board with coming into force of the sustainability directive. This is particular because VERBIO is already today very well prepared according the fulfilment of the presumably required greenhouse gas reduction specifications.

The interim report to the first half-year 2009 is available in German and English on www.verbio.de.

Key figures half-year comparison and quarterly development:

Contact:
VERBIO Vereinigte BioEnergie AG
Anna-Maria Schneider (Investor Relations)
Sandra Haacker (Public Relations)
Augustusplatz 9 
04109 Leipzig   

Phone: +49 (0) 341 30 85 30 90 
Fax: +49 (0) 341 30 85 30 99
  
Information on VERBIO Vereinigte BioEnergie AG
VERBIO Group is one of the leading producers and suppliers of biofuels and also the only industrial-scale producer of biodiesel and bioethanol in Europe. Nominal capacity currently amounts to around 450,000 tons of biodiesel and 300,000 tons of bioethanol per year. The company has developed its own processes and innovative technologies for the production of biodiesel and bioethanol. It supplies its products directly to European mineral oil corporations, mineral oil traders, independent gas stations and haulage companies. VERBIO AG also markets high-quality pharmaglycerin for the consumer goods and cosmetic industries (glycerine is a by-product of biodiesel production). Within the Group, VERBIO AG acts as the management holding company. The Group’s operating business is run by its subsidiaries: VERBIO Diesel Bitterfeld GmbH & Co. KG, VERBIO Diesel Schwedt GmbH & Co. KG, VERBIO Ethanol Zörbig GmbH & Co. KG, and VERBIO Ethanol Schwedt GmbH & Co. KG.

Important Note
This corporate news contains forward-looking statements, which are based on assumptions and estimates of the company management of VERBIO Vereinigte BioEnergie AG. Even though the company management believes that these assumptions and estimates are correct, the actual future development and actual future results can deviate substantially from these assumptions and estimates due to many factors. For example, these factors can include alteration of the economic situation, legal and regulatory constraints in Germany and the EU, and changes in the industry. VERBIO assumes no liability and provides no warranty that future developments and actual future results will agree with the assumptions and estimates expressed in this corporate news.