Osage Bio Energy today announced that it has entered into an exclusive agreement with Perdue AgriBusiness to source barley to operate its first barley-to-ethanol bioprocessing facility. Perdue, a leading grain supplier in the Southeast and Mid-Atlantic, is committed to working with local farmers to supply Osage Bio Energy with its barley needs for the Appomattox Bio Energy plant in Hopewell, Va., the first of its kind on the East Coast.

"We are thrilled to be working with Perdue AgriBusiness; their partnership validates our idea that this region is ready to revive the market for barley," said Craig Shealy, president and CEO of Osage Bio Energy. "Perdue AgriBusiness is committed to working with local farmers to help make our goal of feeding our plant with locally grown barley a reality."

Osage Bio Energy is creating a new agricultural economy for barley. The company will use barley as its primary feedstock in ethanol production, creating a viable and consistent local market for the crop. Osage Bio Energy also will produce a high-quality barley protein meal animal feed, along with renewable fuel pellets and food grade carbon dioxide.

Barley offers local growers a number of benefits. As a winter crop, it can be planted in fields that might otherwise be unused and provides growers with an incremental cash crop. Additionally, barley enables high soybean yields when double-cropped with soybeans. Osage Bio Energy's goal is to procure all of its barley feedstock from within 100 miles of its facilities.

"Osage Bio Energy has a strong business model dedicated to creating opportunities for local agriculture," said Dick Willey, president of Perdue AgriBusiness. "We are excited to play a role in building the local barley market, and look forward to working with the farming community to provide Osage Bio Energy with the barley it needs to create both fuel and livestock feed."

Perdue AgriBusiness is launching a barley contracting program for the 2009-2010 crop to supply the Appomattox Bio Energy plant, with plans to contract up to 30 million bushels. Growers interested in contracting barley for Osage Bio Energy should contact Steve Norris at Perdue AgriBusiness at steve.norris@perdue.com or 410-726-9104.

Osage Bio Energy and Perdue AgriBusiness already have worked together to provide opportunities for local barley growers. As sponsors of the 2009 Barley Bin Builder Yield Contest, Osage Bio Energy and Perdue AgriBusiness, along with General Motors and the Virginia Farm Bureau, are rewarding farmers with superior barley yields in the 2009 crop. Farmers in Delaware, Maryland, Virginia, Kentucky, North Carolina and South Carolina were eligible to enter, and the top entries and grand prize winner will be announced at the Virginia Ag Expo on August 6, 2009. The overall grand prize winner will receive a new General Motors Flex Fuel pickup truck.

About Osage Bio Energy
Headquartered in Glen Allen, Va., Osage Bio Energy was launched in January 2007 with the goal of developing the first major barley-to-ethanol bioprocessing facilities in the United States. Osage Bio Energy will market its ethanol through Roanoke, Va.-based Osage, Inc., the largest independent distributor of motor-fuel grade ethanol in the Southeast. Osage Bio Energy is developing a market for barley that will provide farmers with a valuable cash crop to serve as an alternative feedstock for ethanol production, produce a high-quality barley protein meal for livestock and provide soil conservation benefits by promoting year-round farming opportunities. Visit www.osagebioenergy.com for more information.

About Perdue AgriBusiness
Perdue AgriBusiness is a wholly owned subsidiary of Perdue Incorporated. Ranked among the largest grain companies in the United States, Perdue AgriBusiness is a leading merchandiser, processor and exporter of agriculture products. Through its more than 40 elevator locations with more than 60 million bushels of storage, four transload facilities, three protein blend mills, three soybean crushing operations, an edible oil refinery and two rendering facilities, Perdue AgriBusiness serves agricultural markets across the United States and around the world. Visit www.perdueagribusiness.com for more information.

Source: Osage Bio Energy