Multigrain Announces Production, Processing Acquisition

SAO PAULO, Brazil, Nov. 12 /PRNewswire-FirstCall/ -- The owners of Multigrain, a leading Brazil-based agricultural commodity business, announced today the company has acquired 100,000 hectares (247,000 acres) of farmland and related processing operations intended to strengthen its ability to serve customers around the world.

CHS Inc. of St. Paul, Minn., PMG Trading of Brazil, and Mitsui & Co. Ltd of Japan are owners of Multigrain AG, the holding company for Multigrain.

The purchase consists of land in the western Bahia, western Minas Gerais and southern Maranhao. The operations, known as XinguAgri farms, include production of soybeans, corn, cotton and sugarcane, as well as cotton processing in four locations. Multigrain currently is exploring opportunities for ethanol manufacturing in conjunction with its sugarcane production. Financial details of the transaction were not released.

"This extension into agricultural production strengthens the ability of Multigrain and its owners to originate commodities for global customers," said Stefano Rettore, Multigrain chairman and general manager of CHS Brazil operations. "This is an important step for Multigrain as a fully integrated agricultural company with production, origination, processing and import/export capabilities.

"Backed by the strength of CHS and its producers in U.S. grain origination, Mitsui's involvement in global imports and logistics, and PMG's experience in Brazilian agriculture, this acquisition enhances our ability to be a dependable, quality supplier year-around."

Multigrain (www.multigrain-group.com) is an integrated agribusiness company involved in production, processing and logistics. It markets soybeans, corn, wheat, sugar and cotton and has recently completed the construction of a wheat import facility at the Brazilian port city of Santos. CHS and PMG Trading each own 37.5 percent of Multigrain AG. Mitsui acquired a 25 percent share in August 2007.

CHS Inc. (www.chsinc.com) is a diversified energy, grains and foods company committed to providing the essential resources that enrich lives around the world. A Fortune 200 company, CHS is owned by farmers, ranchers and cooperatives, along with thousands of preferred stockholders, from the Great Lakes to the Pacific Northwest and from the Canadian border to Texas. CHS supplies energy, crop nutrients, grain, livestock feed, food and food ingredients, along with business solutions including insurance, financial and risk management services. The company operates petroleum refineries/pipelines and manufactures, markets and distributes Cenex(R) brand refined fuels, lubricants, propane and renewable energy products. CHS is listed on the NASDAQ at CHSCP.

This document contains forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995 that are based on management's current expectations and assumptions. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from the potential results discussed in the forward-looking statements. The company undertakes no obligations to publicly revise any forward-looking statements to reflect future events or circumstances. For a discussion of additional factors that may materially affect management's estimates and predictions, please view the CHS Inc. annual report filed on Form 10-K for the year ended Aug. 31, 2006, which can be found on the Securities and Exchange Commission web site (www.sec.gov) or on the CHS web site www.chsinc.com.