Southridge Receives $7.5 Million for Brazil Ethanol Plant

Southridge Enterprises, Inc. announced that the Company’s subsidiary, Southridge Brasilia Corp. (“SBC”), has received a total of $7,500,000 from its project partners for the construction of the ethanol facility in Brazil.

Southridge director, Mr. Marcio Santos, has been working closely with our Brazilian partners Durmundo Carasca SA (DCSA) and Briskul Transaccao LTDA (BTL) in the development of the Company’s plant in Brazil. DCSA has now completed their $5,000,000 contribution for their 15% interest in the new facility. In addition, BTL has exercised their option to increase their position in SBC for an additional $3,270,000, bringing their total interest to 35%.

The ethanol industry in the United States is facing diminishing profit margins that have put many viable and well-funded projects in an increasingly difficult position to continue operations. Due to the high commodity prices for corn and natural gas in United States, Southridge management has decided to put both the Mississippi and Texas ethanol plants on hold until market conditions improve the viability of these projects. As a result, the Company has refocused and accelerated the development of the El Salvador and Brazil plants, as well as increased the revenue from our ethanol sales efforts.

Dallas-based Southridge is developing ethanol plants in El Salvador and Brazil.

Southridge Enterprises is a renewable energy company with a mission to become the ethanol producer of choice. The Company is focusing its efforts in an area which offers abundant supplies of corn, superior transportation infrastructure and expedited permitting processes. The Company is actively acquiring and developing ethanol production facilities and anticipates start- up of the first phase of these operations in 2009. Southridge Enterprises is headquartered in Dallas, Texas.
Website: http://www.southridgeethanol.com.