BASEHOR, Kan. -- Ethanex Energy Inc. has selected FCStone to provide risk management services with respect to grain origination, energy, transportation as well as commodity procurement and sales for its three ethanol plants.



Additionally, FGDI, LLC, a subsidiary owned by FCStone and Mitsubishi, will execute physical grain origination and logistical support for the Northeast Kansas plant.



FCStone will combine its experience as one of the world's largest grain traders with futures and options market strategies to help Ethanex mitigate its exposure to commodity price volatility and maximize profit margins. As the largest independent risk management firm in renewable fuels, FCStone brings over 75 years of experience in local and global commodity markets and is a recognized innovator in commodity risk intelligence.



"FCStone will help Ethanex maximize operating profitability, expand merchandising efforts and manage multiple risks," said Al Knapp, president and CEO of Ethanex. "As we prepare for Chevron's commencement of construction in the first quarter of 2007, we simultaneously continue to enhance our operational capabilities. As ethanol industry service providers become increasingly selective, we are pleased that Ethanex continues to attract leading companies such as FCStone."



FCStone is a broad-based commodity risk management and trading company headquartered in Des Moines with 13 offices in the U.S., plus four international locations. By 2006, our Renewable Fuels Group will provide risk management for more than 1 billion gallons of ethanol and more than 400 million bushels of corn. This accounts for more than 20 percent of the total ethanol produced in the U.S.



FCStone's Renewable Fuels Group currently works with ethanol plants which have capacity sizes ranging from 20 million gallons to 110 million gallons.



Ethanex Energy Inc. is a renewable energy company whose mission is to become the ethanol industry's low-cost producer. The company expects to achieve this industry position through the application of next-generation feedstock technologies and use of alternative energy sources.



Ethanex Energy is currently developing three ethanol production facilities located in the Midwest, with a combined production capacity of approximately 400 million gallons of ethanol per year. The company expects these three plants to be operational in 2008. Ethanex Energy is based in Basehor, Kan., with offices in Santa Rosa, Calif., and Charleston, S.C.



SOURCE: Ethanex Energy, Inc. via Business Wire.