VERBIO: Clear standardized EU-directives regarding climate protection allow a precise outlook

Leipzig/Zörbig, March 24, 2010 – In the 2009 financial year Vereinigte BioEnergie AG (VERBIO) achieved sales of EUR 501.7 million, which was nearly 25 percent below the previous years value (2008: EUR 666.6 million) due to demand development and pricing. The Group’s operating profit (EBIT) was EUR -3.0 million (2008: EUR 13.9 million). Besides the decline in sales, high cost of materials, which could only partially be transferred into the market, have burdened the result. The total result for the period disclosed amounts to EUR -7.3 million (2008: EUR 9.1 million). Hence earnings per share (basic and diluted) are EUR -0.12 (2008: EUR 0.15 per share).

As of December 31, 2009 VERBIO shows an equity of EUR 311.1 million (31.12.2008: EUR 325.0 million); so that an equity ratio of 64.1 percent (31.12.2008: 66.2 percent) is calculated.

For the reporting period the cash flow from operating activities was EUR -32.7 million (2008: EUR 68.4 million). The reasons for this decline are the negative result for the period but mainly the higher capital commitment due to increased inventories.

Cash and cash equivalents amounted to EUR 34.2 million (31.12.2008: EUR 45.6 million) as of December 31, 2009.

Positive 4th quarter 2009
In the fourth quarter of 2009 VERBIO achieved sales of EUR 121.7 million. The Group’s operating result (EBIT) stood at EUR 7.4 million. It contains a book profit of EUR 2.3 million resulting from the sale of five wind power plants. The demand for bioethanol further increased in the fourth quarter and the sales prices developed positively, too. Thus sales of EUR 36.0 million were generated and a positive operating segment result of EUR 2.2 million was achieved. The biodiesel segment contributed sales of EUR 78.2 million and an operating segment result of EUR 0.3 to the fourth quarter.

VERBIO gains market share in the blending
The demand for biodiesel was in total weaker than in the previous year, especially for pure biodiesel (B100). In addition the export of biodiesel into Eastern Europe dropped due to the economic crisis. In 2008 VERBIO still delivered 37.4 percent of its biodiesel production into the Eastern European countries, in 2009 it was only 11.8 percent. The drop in exports could be compensated through an increase of market share in the blending business, indicated that only about three percent less biodiesel was produced (2009: 386,926 tons; 2008: 398,902 tons).

In the bioethanol segment, in comparison with the previous year, more bioethanol (2009: 180,762 tons; 2008: 138,478 tons) was produced due to an increase in demand. Also here the volume produced went mainly into the blending market. The share of VERBIO in sales of E85 in Germany is more than 50 percent.

Solid general conditions allow again investments into the future
VERBIO estimates that the long-term development of the biofuel market will be positive, especially because of the “Renewable Energy Directive” (RED) passed by the European Union, the commencement of German “Biofuels Sustainability Act” (German Biokraftstoff-Nachhaltigkeitsverordnung ( Biokraft-NachV)) and the defined notice of intention contained in the coalition resolution. To achieve the CO2-reductions, which are set up in the RED, the biofuel quota must be raised gradually up to ten percent in the year 2020. Thus, it will boost the demand for biofuels significantly.

Positive initiatives are also transmitted from the mineral oil industry, which pushes an increase of the ethanol content of gasoline from currently five percent up to ten percent. This will build up a clear growth potential for the bioethanol segment. VERBIO anticipates that the introduction will take place at the 2010 year end. This would lead to a doubling of the demand for ethanol in Germany.

From 2013 onwards the coalition resolution says that the decarbonization strategy will apply, meaning to change from the energetic base biofuel quota (volume based quota) to the real climate protection contribution of the used biofuels. VERBIO expects positive effects if the decarbonization strategy will apply earlier. This shows long-term that the strategy of VERBIO to produce biofuels with highest CO2-reduction, is the right way.

VERBIO co-operates through contracts of cultivation with the farming industry to secure the supply of raw materials used for biofuel production and to stabilize the business since the end of 2009.

Against previous year a slight improvement of earnings is scheduled
For the 2010 financial year VERBIO aims to achieve full utilization of the existing biodiesel and bioethanol production plants and to gain market share. The biogas plants will gradually go into operation and for the third quarter of 2010 it is scheduled that the produced volume of gas will be fed to the grid.

So far, in the 2010 financial year the Board of Management expects for VERBIO – stable raw material prices assumed – a significant increase in sales and positive earnings before interest and taxes (EBIT) in the upper single-digit million-Euro-range. The share of sales contributed by the production and feed-in of biogas will be about EUR 6 million in 2010. Additional revenues could be generated through the sale of further wind power plants.

After the expected stabilization in 2010 the Management Board of VERBIO anticipates for the 2011 financial year a further improvement of the earnings situation, which will result mainly from additional earnings of the feed-in tariff of biogas. This will lead to a considerable decrease of the disposal costs for the thin stillage and at the same time to a significant increase in sales. Thus VERBIO will be the first industrial producer of biofuels of the second generation.

Up to 2012 capacities as well as the production volume of the biogas plants shall be that much increased that every second German natural gas car can be driven with VERBIO biogas. The strived for market share of biogas at filling stations would then be over 50 percent. Additionally VERBIO plans to build new production plants in Eastern Europe.

Long-term VERBIO will benefit from the specifications and regulations of the RED and Biokraft-NachV through its innovative technology and its own process development.

The 2010 annual report is now available for download under www.verbio.de.

Key figures 2009/2008 and on quarterly basis for 2009:

Contact:

VERBIO Vereinigte BioEnergie AG
Anna-Maria Schneider (IR)
Sandra Haacker (PR)
Augustusplatz 9
04109 Leipzig

Phone: +49 341 30853090
Fax: +49 341 30853099

About VERBIO Vereinigte BioEnergie AG (VERBIO)
VERBIO 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 amounts to around 450,000 tons of biodiesel and 300,000 tons of bioethanol per year. Currently, VERBIO is realizing biogas projects to make use of the residual materials of the bioethanol production. The company has developed its own processes and innovative technologies for the production of biodiesel, bioethanol and biogas. 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.