Cilion, Inc. Continues to Lead - Closing Debt Financing for Ethanol Facilities

GOSHEN, Calif.--(BUSINESS WIRE)--Cilion, a new biofuels company, today announced the closing of its first round of debt financing for the construction of two ethanol plants in California. Cilion closed on a $105 Million debt package that will complement the previously raised equity of over $200 Million.

“Considering the difficult credit environment, this is a great accomplishment, preparing Cilion to move on to the next stage of its strategy”

This debt financing marks a milestone in the execution of Cilion’s business plan. Cilion has established itself as a leader in the U.S. ethanol fuel market and continues its leadership with this round of debt financing. “Considering the difficult credit environment, this is a great accomplishment, preparing Cilion to move on to the next stage of its strategy,” stated Mark Noetzel, Chief Executive Officer of Cilion.

Known as leaders in providing credit to agribusinesses across the country, Farm Credit Services of America, MetLife and CoBank were co-lead lenders in the transaction. According to a Farm Credit Services of America spokesperson, “We believe the economic investment in renewable fuels is stimulating the national economy and providing environmental and energy benefits for our nation.”

Capitalizing upon the lenders’ investment, Cilion has distinguished itself by its destination-based business model and energy efficient ethanol facilities. The destination model creates added value for distillers grain, which is a co-product of ethanol production and an economic, high protein dairy and cattle feed. Further, Cilion’s management team has leading experience in agricultural markets, ethanol production, and fuels marketing and distribution.

In addition to the closure of debt financing, Cilion is pleased to announce that its first facility in Keyes, California is 50% complete. The Keyes plant will produce 55 million gallons of ethanol annually, making Cilion the largest producer in the California market when completed. Commissioning of the facility is expected in early 2008. During the construction period, Cilion will contribute over 200 construction jobs, offering an economic benefit of $140 Million to the state and local economy. Once operational, the facility will employ approximately 30 full-time high paying jobs with an annual payroll of $1.8 Million. All the ethanol produced is anticipated to stay in the California market and blended with gasoline. Keyes’ pictures available upon request.

About Cilion

Founded in May 2006, Cilion is a renewable fuel company that converts corn into ethanol to power cars and trucks. Cilion fuel is American made which helps reduce our dependence on foreign oil while simultaneously strengthening the American economy by producing the next generation of low cost and environmentally sustainable biofuels. Cilion is implementing state-of-the-art technology, and pursuing new processes to produce renewable energy sources to help America achieve greater energy independence and food security. Cilion is able to offer consumers greener choices in the kinds of fuels they use.