Funding In Progress for Madera Ethanol Plant Construction

Fresno, California [RenewableEnergyAccess.com] Pacific Ethanol received commitment letters from Hudson United Bank and Comerica Bank for up to a total of $34 million of debt financing for the construction of its ethanol production plant in Madera County, California. This plant is under construction and is scheduled to be completed and begin operations in the fourth quarter of 2006. The closing of the debt financing is subject to, among other things, the negotiation of final documentation and the absence of a material adverse change in either the financial condition of the Company or the construction of the ethanol production plant. The Company will not be able to draw down on any portion of the debt until such time as it has obtained at least $22 million in equity capital. The Company anticipates using a portion of the $84 million in equity capital expected to be provided by Cascade Investment, LLC to satisfy this condition.
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