Horizon Biofuels Inc becomes first commercial Biodiesel producer in Nebraska.

FOR IMMEDIATE RELEASE:

Fremont, NE, August 16, 2006. Horizon Biofuels, Inc. (HBI) of Fremont, NE is officially registered as a biodiesel producer with the Internal Revenue Service making them the first commercial biodiesel producer in the state of Nebraska. HBI currently operates a privately owned 400,000 gallon biodiesel plant and is in the process of building a new 6.2 million gallon production facility. “Nebraska is poised to become a leader in biodiesel,” said Ron Demaray, HBI Chairman. “We are excited to be the first commercial operation in Nebraska and are pleased to lead the way in bringing this important energy resource to the state.” HBI is currently utilizing animal fats from the Hormel Foods Corporation in Fremont as a feedstock. “Our current facility is designed to utilize multiple feedstocks from local agriculture to manufacture biodiesel,” said Jeff Schoeneck, Vice Chairman of HBI. “We plan to continue using a blend of local feedstocks in our new, larger facility.”

“We have been producing biodiesel in small batches for use in our own equipment for over 4 years,” said Schoeneck. “This allows us to enter the market with proven experience.”

Horizon Biofuels, Inc. is a privately owned corporation made up of owners of Meridian Development of Fremont, NE; owners of Regulatory Consultants, Inc (RCI) of Horton, KS; Steve Beck of Grand Island, NE. and Joey Barnes of Powhatten, KS.

HBI’s current production is marketed through ConAgra Trade Group.

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