BASEHOR, Kan. -- Ethanex Energy Inc. has formed a strategic alliance with the Industrial Investment Council to assist the company with the establishment of bio-ethanol facilities in Germany.

The IIC is an investment agency funded by the Federal Government of Germany, five eastern German States and Berlin whose board includes the former CEO of Siemens Corporation, president of General Motors Europe, and director of BASF.

"We are excited to be working with the IIC and the German Government to help establish our European initiative," said Al Knapp, president and CEO of Ethanex. "The European Union has recently instituted legislative mandates for bio-ethanol production similar to those called for by the Renewable Fuels Act of 2005 in the United States. To meet the new bio-ethanol requirements for direct blending European capacity has to more than triple by 2010. These growth dynamics provide Ethanex the opportunity to quickly establish itself as a global leader in the production of ethanol."

Robert Hermann, head of Life Sciences and Chemicals at the IIC, said, "We are extremely impressed with Ethanex management's international energy project development experience and key industry relationships and view them as an ideal partner to advance Germany's renewable energy initiatives."

The IIC is assisting Ethanex with determining project economics, supporting potential site selection, developing strategic partnerships, and accessing German Federal and State investment incentive programs with a view towards fast tracking the Company's European development activities.

Ethanex Energy Inc. is a renewable energy company, currently developing three ethanol production facilities located in the Midwest, with a combined production capacity of approximately 300 million gallons of ethanol per year. The company is based in Basehor, Kan., with offices in Santa Rosa, Calif., and Charleston, S.C.

SOURCE: Ethanex Energy Inc. via Business Wire.