VERBIO Vereinigte BioEnergie: Improved competitive position and an increase in demand resulting in higher capacity utilisation and rise in sales

Leipzig/Zörbig, 14 November 2008 – VERBIO Vereinigte BioEnergie AG, one of the leading producers and suppliers of biofuels, increased Group sales in the first nine months of fiscal year 2008 by nearly 60 per cent to EUR 490.6 million compared to last year’s Group sales of EUR 307.1 million. In the reporting period a total of 389,053 tonnes (9 months 2007: 371,705 tonnes) of biofuels were produced, a plus of almost five per cent. The cost of materials amounted to EUR 431.1 million (9 months 2007: EUR 267.1 million). Gross profit rose by 23.9 per cent to EUR 56.2 million (9 months 2007: EUR 45.4 million). The operating Group result (EBIT) ran to EUR 15.1 million (9 months 2007: EUR 1.5 million) and includes profit of commodity futures of EUR 2.2 million (9 months 2007: EUR 0.0 million). As of 30 September 2008 VERBIO disposes of liquid funds of EUR 67.3 million (31.12.2007: EUR 57.1 million).

Segment Biodiesel – Nearly 94 per cent of production capacity being utilised

In the first nine months of 2008 300,663 tonnes of biodiesel (9 months 2007: 261,403 tonnes) were produced. Approximately 40 per cent of the biodiesel produced was exported in particular to Eastern European countries. The segment achieved revenue of EUR 336.6 million (9 months 2007: EUR 209.3 million). The segment operating result before commodity futures was EUR 12.2 million (9 months 2007: EUR 9.1 million). After commodity futures, the segment posted an operating result of EUR 16.4 million (9 months 2007: EUR 9.1 million).

Segment Bioethanol – all production facilities operative again

Bioethanol was exclusively produced in Zörbig between January and April 2008. The shortened shifts in Schwedt/Oder finished in May 2008 and production recommenced. Production ceased briefly in Zörbig in September 2008. Since October 2008 all the production facilities have been back in operation.

In the first nine months of 2008, 88,390 tonnes of bioethanol were produced (9 months 2007: 110,302 tonnes), of which approximately 10 per cent was exported. Sales stood at EUR 134.3 million (9 months 2007: EUR 79.6 million), thereof about EUR 34.1 million were generated from grain sales. The segment operating result was EUR 0.5 million before commodity futures (9 months 2007: EUR –10.7 million), and EUR –1.5 million after commodity futures (9 months 2007: EUR –10.7 million).

Segment Energy – result below previous year owing to weather effects and repair expenses

The Energy segment contributed revenue of EUR 14.2 million (9 months 2007: EUR 16.2 million) to the Group sales in the first nine months of 2008. This was down from the revenue generated in the prior year period due to months with weaker wind. The segment income before tax fell to EUR 0.1 million, due to sales decrease and repair expenses (9 months 2007: EUR 2.6 million).

Segment Other – mainly earnings from fleet services

The Other segment realised revenue (mainly revenue from fleet services) amounting to EUR 5.5 million in the first nine months of 2008 (9 months 2007: EUR 2.0 million). Segment operating results amounted to EUR –0.3 million. Revenue and earnings from fleet services only emerged when it became operational in Q4 2007.

Outlook: positive corporate operating result expected in 2008

The stable utilisation of the production facilities till the end of the year, backed by lower oil prices in comparison to the previous quarter, and a decline in the prices of raw materials let the Management Board assume that the 4th quarter of 2008 will close with a positive operating result before commodity futures.

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   
Email: ir@verbio.de/ pr@verbio.de 
www.verbio.de

Information on VERBIO Vereinigte BioEnergie AG
The 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, VERBIO Ethanol Schwedt GmbH & Co. KG and VERBIO STS AG.