BioFuels Journal

Green Plains Renewable Energy Completes Merger With VBV LLC

Omaha, NE—Green Plains Renewable Energy, Inc. (NASDAQ: GPRED) announced that it has completed the previously-announced merger with VBV LLC and its subsidiaries ("VBV"), effective at 12:01 a.m. on Wednesday, October 15, 2008.

The merger creates one of the nation's largest publicly-traded ethanol production companies, with complementary grain, agronomy, feed, fuel, and ethanol marketing and distribution operations.

At closing, VBV and its subsidiaries were merged into subsidiaries of Green Plains.

VBV equity holders received Green Plains' common stock and options totaling 11,139,000 shares.

Simultaneously at closing, certain of VBV's equity holders invested $60 million in Green Plains' common stock by purchasing an additional six million shares at a price of $10 per share.

"We are excited to close this merger with VBV," said Wayne Hoovestol, Chief Executive Officer.

"As a result, Green Plains triples its operating capacity.

"After VBV is fully integrated, the combined organization expects to achieve improved efficiency levels and lower costs of production.

"In addition, we now have a strong balance sheet to pursue new opportunities for strategic growth."

Post-merger, Green Plains has four ethanol plants and eight grain elevators, with an expected annual operating capacity of 330 million gallons of ethanol and grain storage capacity of 22 million bushels.

As part of the merger, Green Plains added an operating ethanol plant in Indiana and an ethanol plant in Tennessee that is expected to start production later this year, along with an ethanol marketing and distribution business with national scope.

"We are proud to be a part of Green Plains," said Todd Becker, VBV's Chief Executive Officer, who joins Green Plains as President and Chief Operating Officer.

"The additional investment by VBV's equity holders demonstrates their commitment to the industry and the company."

"We thank our shareholders who supported this merger," concluded Hoovestol.

"We welcome our new employees from VBV and its subsidiaries.

"Green Plains is now larger, more diversified, better capitalized, and in a stronger position to take advantage of opportunities, which we believe will enhance long-term shareholder value."

The corporate offices remain in Omaha.

Because the NASDAQ is treating the transaction as a reverse merger, a fifth letter is added to the trading symbol for a period of 20 business days.

For the next 20 business days, Green Plains common stock will trade under the symbol "GPRED."

Thereafter, beginning on November 10, 2008, the common stock will resume trading under the symbol "GPRE."

For more information, call 402-884-8700.