1 Company IR Contact: IR Agency Contact: Media Contact: Pacific Ethanol, Inc. Becky Herrick Paul Koehler 916-403-2755 Lippert/Heilshorn & Assoc. Pacific Ethanol, Inc. 866-508-4969 415-433-3777 503-235-8241 Investorrelations@pacificethanol.net paulk@pacificethanol.net PACIFIC ETHANOL, INC. APPLAUDS E15 LABEL APPROVAL AND WELCOMES MARKET IMPROVEMENTS • EPA Ruling for E15 Label Opens New Markets for Ethanol • USDA June 30 th Grain Report Exceeds Market Expectations Sacramento, CA, July 5, 2011 – Pacific Ethanol, Inc. (NASDAQ: PEIXD), the leading marketer and producer of low-carbon renewable fuels in the Western United States, commented on positive industry progress regarding distribution channels and corn supply. On June 28, 2011, the U.S. Environmental Protection Agency (EPA) approved the improved label for fuel dispensers that carry ethanol blends of up to 15% (E15). With the labeling issue resolved, gas stations are closer to selling E15 for cars built in 2001 and later, which represents approximately two-thirds of vehicles on the road. On June 30, 2011, the U.S. Department of Agriculture (USDA) reported that American farmers planted 92.3 million acres of corn this spring. Based upon USDA’s latest projections of average corn yield (158.7 bushels/acre) and harvested acres (84.9 million), this indicates a 2011 harvest of 13.5 billion bushels – nearly 300 million more bushels of corn than USDA had projected in its most recent supply/demand estimates. Neil Koehler, PEI’s president and CEO, stated, “America’s farmers have once again demonstrated the ability to meet the demand to provide food, feed, fuel and fiber to the world markets. We expect the greater than anticipated corn supply will reduce our cost of production 2 and sustain favorable market conditions for ethanol production. In addition, the EPA approval is a significant market indicator that E15 will be sold in the U.S. this year and the American consumer will have more choice of fuel options at the gas pump. Pacific Ethanol is well poised to drive company growth from both of these events.” |