NEW YORK -- GS AgriFuels Corp. today announced its acquisition of about 85 percent of the outstanding capital stock of Sustainable Systems Inc. for a total purchase price of about $12.6 million. Sustainable is now a wholly-owned subsidiary of GS AgriFuels.

Sustainable owns an oilseed crushing facility in Culbertson, Mont., and is in the business of producing and selling high oleic safflower, sunflower, canola and other high value vegetable oils. Sustainable is currently expanding its oilseed extraction and refining capability from 300 tons per day to 600 tons per day.



Sustainable's growth plans are based on horizontal and vertical expansion through the construction or acquisition of additional oilseed crush and biodiesel processing plants at strategic locations.



GS AgriFuels' President and CEO, Tom Scozzafava, said, "We are excited to have acquired what we see as a very strategic asset based on its oilseed processing and biomass production and handling capabilities. We are also very pleased to be able to bring on Sustainable's management team to GS AgriFuels."



Paul Miller, Sustainable President and CEO added, "Combining Sustainable's food and fuel business model with GS AgriFuels accelerates the development of our oilseed crush biorefineries and related biomass to energy development projects. In addition, we will continue the expansion of and accelerate our ability to service customers in our food grade vegetable oil program."



GS AgriFuels was founded to produce and sell clean fuels from agriproducts in innovative ways. GS AgriFuels' business model is based on the manufacturing and sales of proprietary biodiesel equipment and the use of new technologies to produce biodiesel and ethanol from non-traditional feedstocks such as corn oil and cellulosic biomass through the utilization of several new proprietary technologies, including innovative desiccation, process intensification, gasification, catalytic, and carbon capture technologies, synergistically at small-scales to enable the refining of many forms of biomass into clean fuels at Integrated Multi-Fuel production facilities.



GS AgriFuels is party to a merger agreement with, GS Energy Corporation pursuant to which holders of GS Energy common stock will receive 1 share of GS AgriFuels common stock for each 1,000 shares owned in GS Energy. The filings for this transaction are expected to be filed in April 2007.



GS AgriFuels and GS Energy are both majority-owned by GreenShift Corporation, a company devoted to facilitating the efficient use of natural resources.



Sustainable Systems Inc. is an agricultural processor that currently produces high-value culinary oils and is positioned to capitalize on the emerging biodiesel industry.



SOURCE: GS AgriFuels Corporation via Business Wire.