DAYTON, Ohio -- REX Stores Corporation announced today that it recently received notice that all conditions necessary for the Company to fund its previously announced commitment in Millennium Ethanol LLC were satisfied.



As such, on Dec. 18, 2006, REX Stores Corp., through a subsidiary, purchased a $14 million secured promissory note from Millennium. The note provides the company rights to convert the note, with additional funds of $4 million, into approximately a 33-percent ownership interest in Millennium.



With funding secured, Millennium Ethanol, LLC has started construction of an ethanol producing facility in Marion, S.D. Fagen Inc. of Granite Falls, Minn. is providing design, engineering, procurement and construction services for the plant.



The plant is expected to begin ethanol production in early 2008 and will have a design capacity of 100 million gallons of ethanol and 320,000 tons of dried distillers grains per year. Millennium has reached an agreement with Archer Daniels Midland Company to market ethanol produced by Millennium.



Stuart Rose, REX Stores' chairman and CEO, commented, "We are delighted to be moving forward with this investment in the Millennium ethanol production facility. Millennium was organized and is owned by over 900 South Dakota investors, including Fremar Cooperative Inc., which includes over 1,700 farmer members. Our participation in Millennium is consistent with our strategy to invest in farmer-owned projects."



SOURCE: REX Stores Corporation via Business Wire.