US BioEnergy Reports Financial Results for the Second Quarter Ended June 30, 2007

Business Wire, August 13, 2007

Revenue Increased 17% to $154.4 Million, Compared to the First Quarter 2007;

Earnings Per Share Increased 50% to $0.12, Compared to the First Quarter 2007

ST. PAUL, Minn. -- US BioEnergy Corporation (NASDAQ:USBE), today announced net income of $8.3 million, or $0.12 per share for the quarter ended June 30, 2007, compared to $5.2 million or $0.08 per share for the first quarter of 2007. EBITDA was $21.8 million for the quarter ended June 30, 2007, compared to $18.3 million for the first quarter of 2007.

For the six months ended June 30, 2007, the company reported net income of $13.5 million, or $0.20 per share, and EBITDA of $40.0 million.

Total revenue for the second quarter of 2007 was $154.4 million, up approximately 17% compared to $132.2 million for the first quarter of 2007. For the six months ended June 30, 2007, total revenue was $286.6 million.

"We are very pleased with the strong growth and profitability we achieved during the second quarter," said Gordon Ommen, US BioEnergy's CEO. "With our four plants currently in operation, three additional plants under construction and the pending acquisition of Millennium Ethanol, we are well positioned to achieve a production capacity of 780 million gallons per year (mgy) by the end of 2008."

Production volumes in the second quarter of 2007 were 68.2 million gallons, up approximately 16% compared to 58.7 million gallons for the first quarter of 2007. Financial and operating results for the second quarter were primarily attributable to increases in the company's ethanol production at existing plants and new production at the Ord, Nebraska plant, offset by higher corn costs.

During the second quarter of 2007, the company sold 67.1 million gallons of ethanol at an average selling price of $1.91 per gallon, compared with 59.7 million gallons of ethanol at an average selling price of $1.90 per gallon for the first quarter of 2007. The company recognizes revenue on ethanol sales net of freight and commissions of $0.18 per gallon in the second quarter.

After taking hedging losses into account, the company's corn costs averaged $3.97 per bushel, or $1.41 per gallon of ethanol sold for the second quarter of 2007, compared with $3.64 per bushel, or $1.25 per gallon of ethanol sold for the first quarter of 2007. Before taking hedging losses into account, corn costs averaged $3.79 per bushel, or $1.35 per gallon of ethanol sold, compared with $3.52 per bushel, or $1.21 per gallon of ethanol sold in the first quarter of 2007.

Milestones the company achieved during the second quarter of 2007 include the following:

* Early start-up of the company's Ord plant

* Announced the acquisition of Millennium Ethanol, LLC adding 100 mgy of production capacity in 2008

Mr. Ommen continued, "We believe the combination of our track record of strong operating performance combined with our recently announced US Bio Process Technology(TM), which is technology enhancements, engineering improvements, training programs and other process improvements will continue to position our company as a leading producer and marketer of ethanol."

The company currently owns and operates four ethanol plants, which have combined production capacity of 300 mgy and has the following plants under construction and sites under evaluation:

* Hankinson, North Dakota, a 100 mgy nameplate facility, which is expected to start producing ethanol in the second quarter of 2008

* Dyersville, Iowa, a 100 mgy nameplate facility, which is expected to start producing ethanol in the second quarter of 2008

* Janesville, Minnesota, a 100 mgy nameplate facility, which is expected to start producing ethanol in the third quarter of 2008

The company's total construction expenditures for the second quarter of 2007 were $124.0 million, which were primarily comprised of the following: Ord $9.1 million, Hankinson $52.6 million, Dyersville $44.8 million, Janesville $9.2 million, and $0.5 million for Grinnell. The company has put on hold any further funding of Grinnell, pending resolution of lawsuits relating to zoning issues at the site. The company's 50 million gallon ethanol plant located in Ord, Nebraska, began producing ethanol in May 2007.

At June 30, 2007, total cash and cash equivalents were $136.4 million, compared with $170.1 million on December 31, 2006. Total debt as of June 30, 2007 was $261.5 million compared with $150.1 million on December 31, 2006. Equity, as a percentage of total capitalization, was approximately 66% as of June 30, 2007.

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Comparability of Financial Results

Prior to May 1, 2006, US BioEnergy derived revenues principally from its marketing and services businesses. Since that time, the sale of ethanol and distillers grains has become the primary source of US BioEnergy's revenues. As a result, the company's financial results for periods after April 30, 2006 are not comparable to results for prior periods. In addition, due to the steep ramping of ethanol production since April 2006, the actual production figures for 2006 are not indicative of future operating results.