LANSING ETHANOL SERVICES, LLC INVESTS IN ETHANOL TERMINALLING, STORAGE AND THROUGH-PUT AT WASHINGTON FACILITY

September, 2008 - With the opening and continued expansion of Pacific Northwest ethanol markets, Lansing Ethanol Services, LLC (“LES”) is gearing up for the opportunity with an equity investment in Northwest Bio Energy, LLC (NBE).  NBE is a newly created company which will focus on the distribution of ethanol throughout the PNW.  The initial business will be centered around a storage facility leased from Sound Refining Inc, at the Port of Tacoma, WA.

With the ongoing growth of ethanol blending in the state of Washington, the NBE facility will enable LES to better supply ethanol into the PNW, while benefiting from downstream activity to blenders and retailers.  LES will be the supplier of product to NBE, who will then manage the distribution and pricing of product.  Potential exists for NBE to participate in blending of gasoline and ethanol as the business matures.

“LES is committed to extracting greater margin from our ethanol merchandising business by participating up and down the supply chain.  This is the first of several investments that we are looking to make,” said Scott Mills, general manager of LES.

NBE has a 7 year lease on just over 1 million gallons of storage space at Sound Refining.  The facility is equipped to offload ethanol from railcars moving on the BNSF rail line. In addition to customers having 24 hours a day, 7 days a week access to ethanol, NBE will also distribute product by truck to local gasoline terminals.  LES’ arrangement with NBE will be a great asset as ethanol blending expands in the state of Washington.  This facility will be a key distribution point for many of LES’ ethanol suppliers, as well as refinery and blending customers in the PNW area.

The investment in NBE is a 50/50 venture between LES and Mid American Bio Energy.  NBE will be responsible for the purchase and sale of ethanol from the Sound Refining facility, with a Lansing merchant being contracted to NBE to execute this activity. 

The facility, which will begin receiving railcars on or around Nov. 1, has track capacity for 34 rail cars as well as on-site storage tanks, capable of holding 25,000 barrels (1,050,000 gallons) of ethanol.

About Lansing Trade Group, LLC

Lansing Trade Group is a privately owned firm formed in 1931. The current ownership group has grown Lansing into a national trading company, growing beyond its grain roots with growth into the energy market. Lansing Trade Group formed Lansing Ethanol Services, LLC in March 2006 to trade ethanol. Lansing Trade Group trades whole grains, feed ingredients, and energy products, including biodiesel, in U.S. domestic and export markets. Current annual revenues are approximately $5 billion. Company headquarters are in Overland Park, Kansas. Additional information is available online at www.lansingtradegroup.com and www.lansingethanolservices.com.