Pacific Ethanol, Inc. Reports Third Quarter 2010 Financial Results

• Total volume of ethanol gallons sold increased 70% to 71.5 million gallons, compared to the third quarter of 2009
• Grew operating income to $1.2 million from a loss of $9.9 million in the third quarter of 2009
• Improved Adjusted EBITDA to $875,000 from $115,000 in the third quarter of 2009
• Completes acquisition of 20% interest in the Pacific Ethanol plants and now holds the single largest ownership interest  

SACRAMENTO, Calif., Nov. 15, 2010 (GLOBE NEWSWIRE) -- Pacific Ethanol, Inc. (PEI) (Nasdaq:PEIX), the leading West Coast marketer and producer of low-carbon renewable fuels, reported its financial results for the three and nine months ended September 30, 2010.

Neil Koehler, PEI's president and CEO, stated, "During the quarter, we delivered strong financial performance, continuing our profitable marketing and asset management operations as well as further restructuring of our balance sheet. We believe we are now well positioned to achieve sustained growth and profitability. Production margins in the ethanol industry improved throughout the quarter and remain positive supporting our acquisition of ownership in the four Pacific Ethanol plants. We are on track to resume operations in December at the 60 million gallon per year facility in Stockton, California. With our supply portfolio, representing a majority of the low-carbon ethanol produced in California, we are now contracting sales of high-value low-carbon ethanol for 2011 in anticipation of the start of the California Low-Carbon Fuel Standard in January. We are optimistic about top and bottom-line growth in 2011."

Recent Highlights

Pacific Ethanol closed the following four transactions on October 6, 2010:

• The issuance of senior convertible notes and warrants for $35.0 million in cash;
• The sale of its minority ownership interest in Front Range Energy, LLC for $18.5 million in cash;
• The purchase for $23.3 million of a 20% ownership interest in New PE Holdco LLC, which is the owner of PEI's previously-owned four ethanol production facilities ("Pacific Ethanol Plants"); and
• The repayment of an aggregate of $17.0 million in corporate debt in default, including accrued interest and fees, owed to Lyles United LLC and Lyles Mechanical Co.

Review of Accounting Changes Impacting Financial Results

During 2010, changes in the ownership of the four Pacific Ethanol Plants and the company's minority position in Front Range resulted in changes to the company's accounting practices.