Aventine and the Aurora Cooperative Plan New Ethanol Plant

AURORA, Neb., April 24 /PRNewswire/ -- The Aurora Cooperative and Aventine Renewable Energy Holdings, Inc., announced today that they signed a Letter of Intent to develop a new ethanol plant one mile west of Aurora. This 220 million gallon per year plant, with the first phase being 100 million, will be constructed on a 135-acre site adjacent to the property of the Nebraska Energy, LLC ethanol plant. Aventine is the majority partner/owner of Nebraska Energy, LLC. The letter of intent is subject to a number of significant conditions, including the negotiation and approval of definitive documentation for the transaction. A starting date will be determined as permits and a builder are secured.

"The Aurora Cooperative has been our partner for over ten years, reliably supplying grain and marketing syrup and WDGS for our current facility," said Ron Miller, President and CEO of Aventine. "We look forward to expanding the volume of this relationship with the proposed construction of the new plant."

Ownership and expense of the plant will be Aventine's; however, the Aurora Cooperative will be the exclusive grain supplier to the new facility, as well as the exclusive marketer of syrup and wet distiller's grain with solubles (WDGS).

"In addition to the ethanol project, we are also pleased to announce the first ag-bio multiplex in North America," said George Hohwieler, President and CEO of the Aurora Cooperative. The 135-acre site named Aurora West will also include a state-of-the-art grain handling facility, a fertilizer complex, and a double loop railroad system to accommodate grain, fertilizer, ethanol, and DDG shipments accessing the Burlington Northern-Santa Fe (BNSF) mainline railroad. The plan calls for a multi-million bushel grain storage and handling facility to receive and deliver area producers' grain to end users in the ethanol, feed, and food industries. The fertilizer complex will have the ability to expand based on the continued market growth the Aurora Cooperative is experiencing.

Aurora West will also be home to a 75,000 sq. ft. warehouse leased by Syngenta Seeds, Inc., that will occupy six acres and have the ability to hold a half a million units of seed corn.

"The Aurora West project, with its contemporary and multi-dimensional uses, has the possibility of becoming the cornerstone for a visionary, ag-bio research and development campus that Congressman Tom Osborne has supported for years," Hohwieler added. "Dr. Osborne introduced the strategy at our 2006 Annual Meeting, and now this idea has a potential, future home in Aurora." Total value of the multiplex could exceed a quarter of a billion dollars.

Hohwieler also noted, "We believe the long-term success of the facility, and the Aurora Cooperative's leadership role, will be enhanced because of our growing relationship with Aventine, the U.S. ethanol industry, and policy- makers such as Congressman Osborne."

Based in Aurora, Neb., since 1908, the Aurora Cooperative is a world- class, multi-purpose agricultural cooperative providing service and expertise in grain, agronomy, feed and energy. The Aurora Cooperative has locations in 29 communities in south central Nebraska and northern Kansas. For more information, visit http://www.aurora.coop/ .

Aventine is a leading producer and marketer of ethanol in the United States. Through Aventine's production facilities, marketing alliances with other producers and purchase and resale operations, Aventine marketed and distributed approximately 530 million gallons of ethanol in 2005. Visit http://www.aventinerei.com/ to learn more about Aventine .

Certain information included in this press release may be deemed to be "forward looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. All statements, other than statements of historical facts, included in this press release, are forward looking statements. Any forward looking statements are not guarantees of Aventine's future performance and are subject to risks and uncertainties that could cause actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements. Aventine disclaims any duty to update any forward looking statements. Some of the factors that may cause Aventine's actual results, developments and business decisions to differ materially from those contemplated by such forward looking statements include the following:

   -- Changes in or elimination of laws, tariffs, trade or other controls or
      enforcement practices such as:
      -- National, state or local energy policy;
      -- Federal ethanol tax incentives
      -- Regulation currently under consideration pursuant to the passage of
         the Energy Policy Act of 2005, which contains a renewable fuel
         standard and other legislation mandating the usage of ethanol or
         other oxygenate additives;
      -- State and federal regulation restricting or banning the use of
         Methyl Tertiary Butyl Ether
      -- Environmental laws and regulations applicable to Aventine's
         operations and the enforcement thereof;
   -- Changes in weather and general economic conditions;
   -- Overcapacity within the ethanol and petroleum refining industries;
   -- Total United States consumption of gasoline
   -- Availability and costs of products and raw materials, particularly
      corn, coal and natural gas;
   -- Labor relations;
   -- Fluctuations in petroleum prices;
   -- Aventine's or its employees' failure to comply with applicable laws
      and regulations;
   -- Aventine's ability to generate free cash flow to invest in its
      business and service its indebtedness;
   -- Limitations and restrictions contained in the instruments and
      agreements governing Aventine's indebtedness;
   -- Aventine's ability to raise additional capital and secure additional
      financing;
   -- Aventine's ability to retain key employees;
   -- Liability resulting from actual or potential future litigation;
   -- Competition;
   -- Plant shutdowns or disruptions at our plant or plants whose products
      we market;
   -- Availability of rail cars and barges; and
   -- Renewal of alliance partner contracts.